Agribusiness models


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Agribusiness models

  1. 1. 1 AGRIBUSINESS MODELS05/08/12 AEC & RI, KUMULUR, TNAU - 62172
  2. 2. Agribusiness Agribusiness is the sum of all operations involved in the manufacture and distribution of farm supplies, production activities on the farm and the storage, processing and distribution of farm commodities and items made from them.
  3. 3. Agribusiness - Objectives Commercialization of Agriculture Increase productivity Use of modern technologies Reducing cost of production Value addition Export agriculture Higher farm income
  4. 4. Better Agribusiness-Needs Co-operative farming (AMUL) Contract farming (ITC) Precision farming (Dharmapuri / Krishnagiri) Farm Mechanisation Domestic and export market information centers Crop federations / Growers organizations. Credit delivery at lower interest rates. Establishment of agri export zones and Markets Establishment of agro based industries and modern cold storage, ware houses Export management through E-commerces / E-trading
  5. 5. Agribusiness Models Contract Farming Supply Chain Management Corporate Farming
  6. 6. Contract Farming Partnership between Agri -Business Firms & Farmers Coordination of Production & Marketing Reduces the Risk & Uncertainties for Farmers & Sponsors
  7. 7. Contract FarmingInvolves Identification of Suitable Area Easy Access for Transport Selection of Working Groups (For Extn. Service, Credit, Inputs etc.,) Price Based on Quality
  8. 8. Specifications Duration Cultivation practices Quality standards Farmer’s production quota Arrangements for delivery of the crop Price calculation
  9. 9. Advantages - Farmers Good seeds Technical guidance More reliable income Employment generation Better utilization of resources
  10. 10. Advantages for Sponsors No land constraints Production is more reliable More consistent quality
  11. 11. Success of the Project Loyal Farmers Farmer-Management Relations Coordinating Production Monitoring Quality Standard Transparent Administration
  12. 12. Supply Chain Management
  13. 13. Supply Chain Management It is a set of approaches used to efficiently integrate suppliers, manufacturers, warehouses and customers.
  14. 14. Contd.. Distributed the right quantities, to the right locations, and at the right time in order to minimize system wide costs while satisfying service-level requirements.
  15. 15. Why Supply Chain Management ? Excess Inventory costs Excess freight charges Lost sales / Stock out situation Extra staff Customer dissatisfaction
  16. 16. Case StudyKuppam Project
  17. 17. KUPPAM MODEL• R&D Field Service•• Farmers• Forex Earner Agro Industry•
  18. 18. Project Promoted : BHC Agro India & AP Focus : Irrigation Technology Drip & Sprinkler Fertigation Crop Planning
  19. 19. Study Area Kuppam -A P Low Rainfall Drought Prone Area Poor Soil Irrigated Area : 10% GCA Majority S & MF Lack of Irrigation Technology
  20. 20. Phase - I Compact Area : 182 acres Boundaries Removed, Levelled, S & MF : 167 Farmers’ Society Drip & Sprinkler New Crops & Hybrids Onfarm R & D Marketing Produce
  21. 21. Phase - II Area : 1600 acres Villages : 54 Farmers : 692 Drip & Sprinkler - Individual Basis Buyback Arrangement
  22. 22. Perceived BenefitsFarmers Assured employment Buyback arrangements Bonus at the end Extension services
  23. 23. DisadvantagesFarmers Ownership of land Foreign technology Officers domination Dependency of crops
  24. 24. General Impact Efficient Use of Resources Improved Technology Improved Knowledge & Skill Farmers’ Income Stabilized High Value Crops Grown Gherkin, Baby corn, Capsicum Appreciation of Land value Large-scale Adoption
  25. 25. Observations No Tree Cover Mixed Farming -? Society Meetings -Less Govt. Signed with Company Heavy Subsidy Component
  26. 26. Conclusion Project Assured : Price Better Technical Inputs Transferred Technology Linked Production & Marketing Definite Return & Employment Institutional Involvement
  27. 27. Super Spinning Mills,Coimbatore, T.Nadu  It gives necessary inputs and training to the farmers in cotton cultivation  This firm procures cotton from the growers
  28. 28. Rasi SeedsAttur, T.Nadu  The firm identifies seed growers for cotton and supplies the required inputs apart from technical services.  At the end of the season the seeds are procured at agreed rates.
  29. 29. Indian Tropical Agro ProductsTuticorin, T.Nadu  This firm deals about ghergin.  It identifies the farmers and gives necessary inputs like seeds, fertilizers and technical services.  It procures ghergin at the farm level in the agreed price with quality specifications.
  30. 30. Suguna PoultryUdumalpet, T.Nadu The firm identifies the poultry growers and gives chicks, feeds It procures broilers from at agreed rates from the poultry growers
  31. 31. ABT DairyPollachi, T.Nadu  Potential farmers were identified and given 4-5 milch animals (Mini dairy)  The firm gives technical inputs and services  The firm procures milk from the milk producers.
  32. 32. Thank you39 05/08/12