India wastes a significant amount of agricultural produce, around 40% of total horticulture. Post-harvest losses range from 2.8-18% depending on the crop. Only 2% of agricultural produce is processed. Strategies are needed to improve value addition and processing through primary and secondary processing, by-product utilization, supply chain management, and marketing. Contract farming can help by establishing fixed or market-linked prices and quality standards. Companies like Harrisons Malayalam Ltd are working to address these issues through sustainable agricultural practices, social initiatives, and partnerships with small farmers. National strategies are also needed around comparative advantage, policy, skills, financing, technology, and sustainable resource use to transform Indian agribusiness.

1. STRATEGIES FOR IMPROVING MANAGEMENT CONTROL IN
- GROUP 4
VALUE ADDITION AND
PROCESSING OF
AGRIPRODUCTS

2. PRESENT SCENARIO
• Indian wastes more fruits & vegetables than are consumed in
UK
• Cumulative waste is about $ 6.7 billion which is equivalent to
40% of the total horticulture produce
• Poor infrastructure and logistics support
• Rough and unorganized handling
• India has 70% more arable land but produces 30% less than
China

3. PRESENT SCENARIO
• India ranks first in the world in cereal and milk production and
second in fruits & vegetables and in five producers of
groundnut, rice, wheat, tea, coffee, sugar, spices & oil seeds.
• Even with an industry size of US $ 70 billion,we process less than
2%.
• The industry has about 1.6 mn direct employees and accounts
for about 13% of the country’s exports and 6%of the industry
investment.

4. CROP % Loss, minimum % Loss, maximum
CEREALS 3.9
(Sorghum)
6.0
(Wheat)
PULSES 4.3
(Chickpea)
6.1
(Blackgram)
OILSEEDS 2.8
(Cottonseed)
10.1
(Groundnut)
FRUITS 5.8
(Sapota)
18.0
(Guava)
VEGETABLES 6.8
(Cabbage)
12.5
(Tomato)
POST HARVEST LOSS : SUMMARY

5. Loss (%) at National Level in different
operations/channels
S.N Crop Total Loss In
Farm
Operations (%)
Total Loss In
Storage (%)
Overall Loss
(%)
1 Cashew 0.9 0.2 1.1
2 Sugarcane 7.8 0.9 8.7
3 Turmeric 6.7 0.7 7.3
4 Egg 4.9 1.7 6.6
5 Marine fish 1.8 1.0 2.8
6 Meat 1.4 0.9 2.3
7 Milk 0.7 0.1 0.8

6. Global Picture
• High income countries add US$ 180 worth of value to one tonne of
agricultural produce
• 98% of agricultural produce in high income countries undergoes
industrial processing
• About 30% only is processed in developing countries
• Average value added per ton in developing countries is only 40$.
If we realize with honesty we will have to
accept that Post harvest processing and value addition is
about 1.5 percent in India as against 30%
post harvest processing in some countries.

7. Production to consumption chain of agro-processing activities
Production To Consumption Chain Of
Agro-processing Activities

8. Agenda of Agro-Processing Facilities
• Primary/ Secondary Processing of Main Produce
• By-products Utilization
• Supply/Cold Chain Management
• Custom Hiring Services
• Product Quality And Safety
• Marketing

9. What is –
Value-Added Agriculture?
 Adding Value – Process of changing or transforming a
product from its original state to a more valuable state
Add value to wheat
By processing it into
a product (flour)
Desired by
customers –
(bread bakers)

10.  Adding value to products can be accomplished in a number
of different ways, but generally falls into one of two main
types:
Creating Value
Innovation
Industrial Innovation
Capturing Value
Coordination

11. CREATING VALUE
 Occurs with actual or perceived value to a customer
for a superior product or service
Innovative new products
Enhance a product’s characteristics
Enhance services
Create brand names
Develop unique customer experiences

12. CAPTURING VALUE
 Changing the distribution of value in the food/fiber production chain.
 Meant to ‘capture’ more of the consumer dollar through:
Direct Marketing
Vertical Integration
Producer Alliances
Cooperative Efforts

13. Form value
Location value
Time value
Ownership/Possession value
Information value
6 Key Strategies for Adding Value

14. ADDING VALUE: FORM
• Converting raw materials into finished or semi-finished products
-Increases the usability of the product
-Processing and packaging
• Maintaining product quality
-Cleaning, grading, sorting, cooling

15. Adding Value: LOCATION
 Provide product at a desired place
 Providing assortment
Examples
–Door-to-Door delivery
–Mail order
–Convenience stores
–Truck stop fast food
–Internet sites

16. Adding Value: TIME
 Providing product at a desired time
 Market windows--using seasonality
 Storage, scheduling, transportation,
processing

17. Adding Value:
OWNERSHIP or POSSESSION
 Cost and risk holder
–Insurance, hedging, options
 Credit agreements
–Loans, letters-of-credit
 Lease agreements
–Rent-to-Own
Examples
–U-pick farms
–Equipment rentals,
contract harvesting or
land clearing
–Shipping insurance
–Visa/MasterCard and
other credit cards
–Futures markets

18. Adding Value: INFORMATION
 To inform & educate
 To persuade
 Done through marketing
functions–Advertising,
promotion, packaging,
and labeling
Examples
–Weekly ads
–Labels and brands
–Geographic identity
–Packaging
–Third party certification
–Point-of-purchase
materials

19. Visible Benefits

20. AN EXAMPLE OF AGRIBUSINESS-
CONTRACT FARMING
A contract to purchase a specified quantity of produce at a
pre-agreed price
 Fixed price
 Market linked price
 Quality of produce specified in contract or benchmarked to
certain agreed standards
 Penalty for default usually specified in the contract but rarely
enforced
 Relationship generally built on Trust

21. Harrisons Malayalam Ltd.
 HML’s predecessors Malayalam Plantations Limited and Harrisons &
Crosfield Limited sterling companies incorporated in England – history
of 150 years.
 In 1979, these companies incorporated as Indian Companies under
the names Malayalam Plantations (India) Limited and Harrisons &
Crosfield (India) Limited.
 In 1984, the two companies merged to form Harrisons Malayalam
Limited. HML became part of the RPG Group in the year 1989.
 RPG Group - one of India’s largest industrial conglomerates, with over
20 companies in its fold, spread over 6 business sectors with an
annual turnover over USD 3.25 Billion
 Winner of the maximum number of awards at “The Golden Leaf India
awards” (TGLIA) for quality teas

22. Vital Statistics
 Largest plantation company based in South India.
 Single Largest Private Sector Employer in Kerala.
 HML has 25000 hectares of land under its fold 6000 hectares - in Tea, 8000
hectares - in Rubber
 Single largest producer of Natural Rubber in the Country, Second largest
producer of Tea in South India.
 Largest Corporate grower of Pineapple Presence and other horticulture
crops – banana, passion fruit, cocoa, coconut, arecanut and spices
 Largest exporter of Tea in South India
Some Important customers : Twinings – UK, Saralee – Netherlands, Elink
Schurmann – Rotterdam, May Co – Russia, Baeshan – Saudi Arabia , A F
Jones – Sri Lanka

23. THE HML WAY:
 Caring for People and environment
 An equal Opportunity employer with 7700 men and 8800
women workforce
 Winner of FICCI awards thrice for corporate initiatives in family
welfare as a result of its Comprehensive Labour Welfare
Scheme
 Aimed at improving the quality of life of the employees and
their dependents.

24. Contd.
 Pioneer in corporate social responsibility in Kerala with initiatives
such as “ Rakshita ” a centre for development of children and
adults with multiple disabilities
 Providing free medical aid for underprivileged in Rural Kerala.
 The only company in this sector to bag the Kerala State Pollution
control award for its factory on more than one occasion
emphasizing the responsibility and initiative taken by the
company in preserving the natural resources for future generation.

25. PRESENT SCENARIO PROBLEMS
 Increasing nutritional requirements and decreasing available land
 Shortage of food grains
 Declining rate of food production and increasing population
 Decreasing crop productivity
 One of the Largest producers of fruits, vegetables, meat, milk, eggs,
fish but low cost producers, low farmer incomes, poor exports, lack
of storage
 India’s current share in world trade of processed foods is only 1.6%

26. KEY STRATEGIES AT NATIONAL LEVEL
• Develop national comparative advantage
• Development appropriate policy network
• Development appropriate marketing & management skills
• Establish comprehensive rural financial market
• Create market driven agricultural technologies
• Develop alternate investment to expand rural well- being
• Enhance sustainable use of resources

27. CONCLUSIONS
 Indian Agribusiness is at an interesting crossroads facing huge growth
opportunities.
 It must gear up for and facilitate agriculture revolution through farmer-
corporate partnership.
 Focus on market orientation is must.
 Reduce loss through bringing all operations on single platform.
 Need for wealth creation for farmers & investors, infrastructure
development ,critical commitment and discipline could provide
 Global leadership.
 Transformation from seller-buyer relation to strategic partnership between
corporate and farmer for a win-win outcome.
 Exposing traditional Indian agriculture to modern technologies, creating
large scale processed food manufacturing and food chain facilities and
consequently generate employment and export earnings.

28. THANK YOU