Agri business managers activitiies field details
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AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
AGRIBUSINESS MANAGEMENT
� Agriculture
� Business
� Management
Agriculture� Art of cultivating various categories of crops including animal
husbandry, forestry, fishery and other related activities.
� An economic unit , Aims to sell goods and services to customers Business
� An economic unit , Aims to sell goods and services to customers
, At prices that will provide an adequate return to its owners,
Commercialization of any enterpriseManagement ?
� A set of activities(planning & decision making, organizing, leading /
directing & controlling) directed at an organization’s resources
(human, financial, physical, and information) with the aim of
achieving organizational goals in an efficient and effective manner.
Management
� Henri Fayol : Father of Modern Management
� F.W.Taylor : Father of Scientific Management
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
AGRIBUSINESS
� Agribusiness as a concept was born in Harvard University in 1957.
� Book : A Conception of Agribusiness
� Authors: John H. Davis & R.Goldberg.
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
12/17/20123
AGRIBUSINESS
� Agribusiness is the sum total of
� all operations involved in the manufacture and distribution of farm supplies;
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� production activities on the farm; and
� the storage, processing and distribution of farm commodities and items made
from them.
Agribusiness�Refers to the various businesses involved in
food production, including farming, seed
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
supply, agrichemicals, farm machinery,
wholesale and distribution, processing,
� marketing, and retail sales.
Agribusiness - Objectives
� Commercialization of Agriculture
� Increase productivity
� Use of modern technologies
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Use of modern technologies
� Reducing cost of production
� Value addition
� Export agriculture
� Higher farm income
AGRIBUSINESS
� Agribusiness encompasses all of the agricultural sector and
that portion of the industrial sector which contains the
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
that portion of the industrial sector which contains the
sources of farm supplies or the processors of farm products.
Agribusiness sectorIndustrial sector
Agribusiness
= Agri +
Industry with Ag
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Agricultural sector
AGRIBUSINESS
�Agribusiness is defined as all business enterprises
that buy from or sell to farmers.
�Transaction may involve either
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
�Transaction may involve either
an input or a produce or service and
�Encompasses items such as:
Productive resources
Agricultural commodities
Facilitative services
AGRIBUSINESS
� Productive resources
Seed,
Fertilizer
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Fertilizer
Pesticides,
Equipment & machinery
Energy,
Feed, etc.
AGRIBUSINESS
� Agricultural commodities
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Agricultural commodities
Raw & processed commodities of food
Eg. Paddy
Rice, Ricebran & Ricebran oil
AGRIBUSINESS
� Facilitative services
Credit & insurance,
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Storage, processing & marketing,
Transportation,
Packing & distribution,
Consultancy
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Features of
Agribusiness Agribusiness
Important Features of Agribusiness
� Agribusiness is a multifaceted point of view, complex vertical structure, largely depend and partly independent.
� Successful decision making at firm level is the
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
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� Successful decision making at firm level is the basis for development in future.
� Viability of the an industry is traceable to the
viability of the firms.
� Agribusiness is market oriented
CONSUMERS
RETAILERS
WHOLESALERS Gov’t officers
Managers
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
PROCESSORS
FARMERS
FARM SUPPLIERS
Managers
Educators
Researchers
vertical structure & coordinators of agribusiness
Viability of the firms
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Depends on
� Ability of the decision makers
� Behaviour of the structure itself
Major areas of Agribusiness� Farm supplies
� Production
� Processing
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Processing
� Marketing
� Research & Extension
� Govt. Policies & Programmes
Scope for Agribusiness in IndiaScope for Agribusiness in India� India is endowed with varied ago-climate
(Facilitates production of temperate, sub-
tropical and tropical agricultural commodities)
� Growing demand for agricultural inputs
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Growing demand for agricultural inputs
(Feed and fodder, inorganic fertilizers, bio-
fertilizers)
� Biotechnology applications
(Production of seed, bio-control agents, industrial
harnessing of microbes for bakery products)
…contd� Biotechnology applications
(Production of seed, bio-control agents, industrial
harnessing of microbes for bakery products)
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
harnessing of microbes for bakery products)
� In World trade, India has vast potential
Cereals, pulses, oilseeds,
Fruits, vegetables, flower, medicinal plants, Meat, and milk products,
Agricultural advisory services
…contd
� Scope for secondary and tertiary processing of
agricultural commodities.
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Scope for production of marine and inland fish
and ornamental fish culture.
� Scope for production of meat, milk and milk
products, poultry products etc
…contd
� Beekeeping and apiary
� Mushroom production for domestic
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Mushroom production for domestic
consumption and export
� Organic farming
…contd
� Production and promotion of bio-pesticides and
bio-control agents
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Seeds-hybrid and genetically modified crops
� Micro-irrigation systems and labor saving farm
equipments
…contd
� Production of vegetables and flowers
(Export market)
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Trained human resources in agriculture and
allied sciences
� Opportunities for employment in marketing,
credit, insurance and logistic support services.
Small BusinessesImportance
• Contributes 7% of the GDP.
• 32.25 lakhs small-scale industrial units / businesses
• Employment generation 177.30 lakh persons.
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Employment generation 177.30 lakh persons.
• Output of this sector is around Rs.5,78,470 crores.
• Export amounted to Rs.53, 975 crores.
• Contribute 40 % of gross turnover in manufacturing sector,
• 45% of the manufacturing exports and 35% of the total
exports.
Small Businesses
Involves in
• Production
• Distribution
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Distribution
• Retailing
• Franchising
• Professional services
• Financial services
Objectives
• Service
• Profit
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Community participation
• Growth
• Subsidiaries
Characteristics
• Characterized by smallness
• Involves lesser capital
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Involves lesser capital
• Mostly one man venture
• They are highly diversified • wide range of products
• Wide dispersal geographically
Types
• Small Scale Industry (SSI)
• Ancillary Industry
• Tiny Enterprises
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Tiny Enterprises
• Export Oriented Units
• Women Enterprises
• Village &Small Scale Industries
Advantages• Less capital outlay but more employment
generation
• Does not require sophisticated technology
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Facilitates decentralization and dispersal of
business units
• They offer a wide range of choices to consumers
• Can serve specialized needs
• Utilizes the resources in full without wastage
Disadvantages
• Inadequate management ability
• Inadequate finance
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Inadequate finance
• Poor competitive position
• Uncertain business continuity
Stages of Growth
• First Stage – Owner managed
• Second Stage – Early Growth
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Second Stage – Early Growth
• Third Stage – Middle management
• Fourth Stage – Multilayer Stage
First Stage
One person operation
Owner does all the activities
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Director-Founder- operated
Owner - Manager - Worker
Second stage
Separation of management and non-management functions
Hired subordinates to do some of the manual and / or
mental activities while owner manages the business
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
mental activities while owner manages the business
Early Growth Owner- Manager
Workers
Third stage
Separation of ownership and management functions
Owner begins to relinquish the responsibilities for the
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
day-to-day running of the business activities to a
professional manager.
One Layer Middle Management
Owner
Manager (s)
Worker (s)
Fourth StageMulti-layer management
Chairman
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Managing Director
Manager Marketing
Manger Finance
Manager Production
How agribusiness differs from other
business
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
�There are variations in the kinds of business in agribusiness sector :
basic producers, wholesalers, transporters, processors,
manufacturers storage firms, packagers, food chains, retailers etc.,
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Large number of agribusinesses : Large number of different
businesses are evolved to handle the routes from the producer to retailers
�Agribusinesses are built around several millions of farm producers.
�No other business is built principally around the basic producer of its
raw product as agribusiness and these businesses deal with farmersraw product as agribusiness and these businesses deal with farmers
directly or indirectly.
�Agribusinesses vary in their sizes right from one person or one family
organisation to large giants like Reliance fresh, PepsiCo ,
Amul and Heritage etc.,
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
�Agribusiness firms are small and compete in a relatively free market in which
there are many sellers and many buyers and these firms do not allow monopoly
like enterprises in the industry.
�Product differentiation is common because of the brand and composition
of the products.
�Agribusiness are traditional oriented and are more conservative , when�Agribusiness are traditional oriented and are more conservative , when
compared to other businesses.
�Most of the agribusiness are community oriented in the sense most of them are
located in small towns and rural areas where relationships are important and
associations are long term .
�People know each other’s families for a several generations.
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
�Agribusinesses are highly seasonal in their nature due to the fact that they
depend on farm production.
�These businesses are affected by vagaries (unpredictable change) of nature.
�Natural calamities like drought, floods, insects and pests and diseases are
constant threats to agribusiness.
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
�Agribusiness is vertically structured.
�The Government programmes and policies have direct impact on agribusiness.
��Each of these features of the agribusiness world requires the agribusiness
managers use the principles of management in a very special way.
India in World Agriculture
Item India’s position in world
% share Rank Next to
Total area 2.5 7th Russia, Canada,
USA, China, Brazil
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
USA, China, Brazil
and Australia
Agrl. Population 23 2nd China
Arable land 11.9 2nd USA
India in World Agriculture (Contd)
Item
India’s position in world
(Production)
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
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Item
% share Rank Next to
Wheat 11.7 2nd China
Rice 22.3 2nd China
Total pulses 21.2 1st
Fruits &
Vegetables
9.7 2nd China
Total milk 14.4 1st
Agriculture Scenario in India
Details 1990 2010
Per capita food availability
(Kg / person / year)
198.00 159.87
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
(Kg / person / year)
Per capita availability land
(Ha)
0.50 0.14
Agrl.growth rate
(%)
3.8 2.0
�7.5 lakhs ha of Agrl. land diverted to other
uses every year.
�Cost of inputs increased >50 times but farm
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
�Cost of inputs increased >50 times but farm
produce price increased <10 times only.
�40% of farmers want to take up other
occupation if given a chance.
Productivity of Crops (Kg/Ha)
Crops India World % yield obtained
Rice 1913 3970 48.19
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Wheat 2770 4123 67.18
Maize 1792 4279 41.88
Cotton 198 1027 19.28
Groundnut 977 1367 71.47
Sugarcane (t) 68 165 41.21
Banana (t) 34 113 30.09
Demand of Horticultural Crops
Commodity
Supply (MT) Demand (MT)
2003-2004 2011-12 2020-2021
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Fruits 44.04 81 98
Vegetables 87.53 185 220
Spices 2.91 5.5 6.5
Total (All) 146.82 300 360
� Quality Seed / Planting Material Production and Marketing
� Quality Input Production
� Food Grain Marketing and Export
� Grain based alcohol, malted foods, starch glucose
� Pulse and Oilseeds Post harvest and Processing
Agriculture
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Pulse and Oilseeds Post harvest and Processing
� Organic Farming
� Agro based Industry
� Vermicomposting
� Quality Certification
� Farm Mechanization
Horticulture� Contract Farming
� Organic Farming
� Quality Seed / Planting Material
Production
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Juices and concentrates
� Micro & mass propagation of planting
material
� Off-Season Vegetable Production
� Commercial Flower Production
� Tissue culture
• Silkworm Rearing
Technology
• Silk Yarn Production
Sericulture
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
•
• Value addition & export
• Handloom & Textile /
Garment Designing
Livestock
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Dairy Processing and Chilling
• Meat Processing
• Broiler and Egg Production and marketing
• Livestock Feed
• Livestock vaccine / drug production /
diagnosis / clinics
• Whole and Skimmed milk powder
(WMP & SMP)
Integrated and Intensive Fish
Farming
Carp Hatchery
Fishery
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
Carp Hatchery
Ornamental Fish
Fish Feed
Frozen and canned products
Processing• Fruit and vegetable processing, including dehydration,
canning, packaging, processing of fruits.
• Processing of maize for starch and feed through improved
mini/small mills and dry milling plants.
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Processing of millets for various purposes and RTE (Ready to
Eat) products.
• Processing of sugarcane for various jaggery products like
spiced jaggery, powdered jaggery, and jaggery cubes.
• Processing of herbal and medicinal plants.
• Establishing cold storage
and warehousing
• Increasing number of
Agri clinics
Infrastructures
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Commodity markets
Agribusiness Organizations in India
Domestic Agribusiness Firms
• Britannia India Ltd
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
• Dabur India
• Indian Tobacco Corporation
• Marico
• Mother Dairy
• Reliance
Foreign Agribusiness Firms
� Cadbury Ltd
� Monsanto
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� Cargill
� Coco Cola
� Hindustan Lever Ltd
� Pepsi Co
Better Agribusiness-Needs� Co-operative farming (AMUL)
� Contract farming (ITC)
� Precision farming (Dharmapuri / Krishnagiri)
� Farm Mechanisation
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
� 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
�Therefore Agribusiness is
very unique and requires
unique abilities and skills to
AGRI-BUSINESS MANAGER
HARYANA STATE AGRICULTURAL MARKETING BOARDPANCHKULA
E-mail:[email protected]
unique abilities and skills to
its managers.
Thank you
Agri-Business Manager