It is an introduction to agribusiness which includes the short history of evolution of the agribusiness, its importance, scope or areas of agribusiness. It also includes the distinctive features of agribusiness management.

1. Introduction to Agribusiness
Management

2. •Two words: Agri and Business
• Agri stands for agriculture.
• Agriculture comprises of crop production, fruits and
vegetable cultivation along with floriculture, livestock
production, fisheries and agro-forestry.

3. What is meant by Business?
Business means an enterprise
engaged in the production and
distribution of goods for sale in a
market or the rendering of
services for a price.
Lewis Henry Haney

4. What is meant by Business?
Business includes those
human activities relating
to production and
distribution of goods,
services and ideas with a
view to earning profit.
Roger W. Babson

5. Common factors
• Business is human activities
• Production of assets and services
• Buying and selling of goods and services
• The activities are directed to achieve profit

6. AGRIBUSINESS
• Agri-business as a concept was born in Harvard University in 1957
with the publication of a book “A concept of Agri-business”, written
by John H. Davis and A. Gold Berg.
• It was introduced in Philippines in early 1966, when the University of
the Philippines offered an Agri-business Management (ABM)
programme at the under-graduate level.
• In 1969, the first Advanced Agribusiness Management seminar was
held in Manila.

7. • Moffett Professor of Agriculture and Business, Emeritus
• A native of North Dakota, Dr. Goldberg received his A.B. (Bachelor of
Arts) from Harvard University in 1948, his MBA from the Harvard
Graduate School of Business Administration in 1950 and his Ph.D. in
Agricultural Economics from the University of Minnesota in 1952.
• Together with John H. Davis he developed the Agribusiness Program at
Harvard Business School in 1955. From 1970 to 1997 he was the
Moffett Professor of Agriculture and Business and head of the
Agribusiness Program. Ray Allan Goldberg
• John H. Davis is an American academic and diplomat, Davis attended
the Iowa State University of Science and Technology, where he earned
a bachelor's degree, and the University of Minnesota, where he
earned Masters and Ph.D. degrees.
• best known in his early career for his work in agribusiness and in his
later career for heading the United Nations Relief and Works Agency
for Palestine Refugees in the Near East (UNRWA).
• A Concept of Agribusiness (1957, with Ray A. Goldberg) and Farmer in
a Business Suit (1957)

8. Definition of Agri-business
• Agribusiness denotes investment in agriculture for performing any
activities relating to production and distribution of agricultural
products or services for making profit. Products or services refer both
inputs and outputs of agriculture.
• Original meaning as defined by John David and Goldberg, “Agri-
business is the sum total of all operations involved in the manufacture
and distribution of farm supplies, production activities on the farm,
storage, processing and distribution of farm commodities and items
made from them”.

10. Agri-business involves three sectors
1. Input sector
2. Output Sector
3. Product sector

11. 1. Input sector: It deals with the supply of inputs required by the
farmers for raising crops, livestock and other allied enterprises.
These include Production of organic and bio-fertilizers, plant
protection products, feeds and fodder for livestock, feed for the
fisheries, seeds, chemicals, machinery and fuel.
2. Commercial farm production sector or Output Sector: It aims at
producing crops, livestock and other products.
3. Product sector: It deals with various aspects like storage,
processing, marketing and export of the finished products so as to
meet the dynamic needs of consumers.

12. Previous class summary

13. Agribusiness is an academic subject
• Agribusiness is an academic subject is divided into Agribusiness
management and Agribusiness Economics.
1. Agribusiness management includes the treatment of financial,
marketing, production and personnel management of agribusiness
firms and institutions.
2. Agribusiness economics covers the application of economics to
agribusiness firm management and agribusiness economic and
business activities development.

14. Importance of Agri-business
 agribusiness covers the supply of agricultural inputs, the production
and transformation of agricultural products and their distribution to
final consumers. Agribusiness is one of the main generators of
employment and income worldwide.
 It deals with agricultural sector and also with the portion of industrial
sector, which is the major source of farm inputs like fertilizers,
pesticides, machines, processing and post harvest technologies.
 It suggests and directs the government and private sectors for
development of sub sectors.

15. Scope of Agri-business

16. Scope of Agri-business
1. Our daily requirements of food and fiber products at desired place
at required form and time come from efficient and hard working of
many business personnel in input, farm and food production and
also in marketing them. The entire system in brief is called
Agribusiness.
2. Agribusiness is combining the diverse commercial enterprises, using
heterogeneous combination of labor, materials, capital and
technology.
3. It is a dynamic sector and continuously meets current demands of
consumers in domestic and world markets.

17. 4. Agri-business establishment leads to strengthening of
infrastructural facilities in that area, expansion of credit, raw
materials supply agencies, adoption of modern technology in
production and marketing of agricultural products.
5. Agri-business generates potential employment opportunities.
6. It adds value to products and thereby increases the net profits.
7. Agri-business provides crucial forward and backward linkages.
• (Backward linkage includes supply of inputs, credit, production
technologies, farm services etc. A forward linkage includes storage,
processing, transportation and marketing aspects.)
Scope of Agri-business

18. Areas of Agribusiness

19. Type of Product Products for agribusiness
Input
1. Seeds of cereals, vegetables, cash crops etc.
2. Fertilizers and manures
3. Chemical i.e. Pesticides, insecticides etc.
4. Machinery used in production, post-harvest & processing
5. Day Old Chick (DOC), feeds & fodder, medicines & vaccines.
Output
Crops:
a. Cereals-rice, wheat & maize
b. Vegetables & spices-potato (chips, flakes), bean, tomato,
cabbage, chilly etc.
c. Fruits- Mango. Jackfruits, Guava, Pineapple, banana, papaya,
tamarind
d. Cash crop- Cotton, jute, sugarcane, tea
Non-crop:
• Meat, milk, poultry and its egg
• Fish- Shrimp, white fish, fried fish and canned fish
AreasofAgribusiness

20. Type of Product Products for agribusiness
Service
• Agricultural credit facilities
• Information and communication technology (ICT)
• Counseling and Consultancy
• Treatment
• Insurance of farm products
• Servicing of agricultural equipment and machinery
• Rental services and so on.
AreasofAgribusiness

21. Structure of Agri-business
• agri-business involves two important sectors
1. Farm input sector: It deals with agro-based industries providing
seeds, fertilizers, feed, chemicals etc. The industries supplying
machinery or equipment, implements and petroleum etc. are also
important in this regard.
2. Farm product sector: It deals with production and distribution
of farm commodities. Large cooperative bodies also exist in Agri-
business, but they are few in number, whereas small scaled agro
industries are large in number.

22. Distinctive Features of Agri-business Management
1. Management varies from business to business depending on the
kind and type of business. It varies from basic producer to brokers,
wholesalers, processors, packagers, manufacturers, storage proprietors,
transporters, retailers etc.
2. Agri-business is very large and evolved to handle the products
through various marketing channels from producers to consumers.
3. Management varies with several million of farmers who produce
hundreds of food and livestock products
4. There is very large variation in the size of agri-business; some are
very large, while many other are one person or one family organization.

23. Distinctive Features of Agri-business Management
5. Most of the Agri-business units are conservative and subsistence in
nature and family oriented and deals with business that is run by family
members.
6. The production of Agri-business is seasonal and depends on farm
production. They deal with whims of nature.
7. Agri-business is always market oriented.
8. They are by far vertically integrated, but some are horizontally
integrated and many are conglomerated.
9. There is direct impact of govt. programmes on the production and
performance of Agribusiness.

24. • People in many countries flock to the cities, complicating the problem
of food, transportation, distribution and marketing. In the developing
new nations, this marks the beginning of a shift from subsistence
farming to commercial agriculture. The commercial agriculture cannot
exist without the support of Agri-business and other industries.
• The role of agricultural economist is to advice farmers on the
commodities to be produced and the most economical methods of
combining resources so as to maximize profits from the farm.
Distinctive Features of Agri-business Management