agribusiness and food security

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AGRI-BUSINESS ITS SCOPE AND

OPPORTUNITIES

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COMPILED BY

Abhishek Nandan

Email- abhirau@gmail.com 

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AGRIBUSINESS

Agribusiness is the job of processing,

transporting, and delivering food todomestic and foreign consumers; andproviding services to the people who

produce the food.

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●„Agri-Business‟ is define as all business

enterprises or sell to farmers / trades/consumers.

●The transaction may involve either an

input or a produce or service and

encompasses items such as……..

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1.Productive resoures (feed, seed, fertilizer,Equipments, energy ,Pesticides ,machineries etc.

2.Agricultural commodities (raw and processed

commodities of food and fibers )

3.Facilitative services (credit, insurance,marketing, storage, processing, transportation,packing, distribution, consultancy soiltesting etc)

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AGRIBUSINESS

BUSINESS INVOLVED INFood Production

Farming

Seed Supply

Agro-chemicalsFarm Machinery

Wholesale & Distribution

Processing

Marketing andRetail Sales

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Definition

The making of business decisions that

tend to maximize net income consistent

with the operators objectives.

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What do produce?

How much to produce?

What kinds and amounts of resources to use?

What technology to use? When to buy and sell?

How to finance?

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Farm Operator 

Spouse

Landlords

Farm managers Farm Advisors

Government

Financers

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Planning

Organizing

Directing (leading)

Staffing Controlling

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1. Define the problem

2. List Alternatives

3. Analyze alternatives

4. Select best alternatives 5. Act on decision

6. Evaluate

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Sole Proprietorship

Partnership

Corporation

Cooperative

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One owner makes all decisions

owner responsible for all liabilities

can have multiple employees

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Owned by two or more people

Owners are responsible for their share ofliabilities

Written agreements usually specify percent ofownership, responsibilities, and decisionmaking process.

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Owned by stockholders

Business is treated as a single entity

Stockholders not personally responsible for 

liabilities of the business Returns profits in form of “dividends” to

stockholders

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Owned by the users of the business

Elected board of directors

Profits are returned in the form of “patronage

refunds” to users of the coop

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AGRO INDUSRIES

1) Village industries-@ Owned and run by rural

household

@ Little capital investment

@ High level of manual labor involve

2)Small scale industries@ Medium investment

@ Semi-automation 3)Large scale industries

@ Large investment

@ High level of automation 16

AGRI-BUSINESS SCOPE IN INDIA 

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Huge Domastic Market

@ An average India spends around 53% of 

his / her income on food

@ ITC, HLL, Nestle inter in Indian markets long timeago

Procssed Food

@Level are…

1.Manual 2. mechanical 3.Chamiacal or Combination

¤ Multiple Benefits

@Creates jobs, @ Demand for agri raw materials@Leads to diversification & commercialiazation

of agriculture

@ Enhace the income of farmers & creating

Surpluses for export of agro foods

Cont……

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AGRIBUSINESS

The Agribusiness industry accounts for

nearly one-fifth of the U.S. grossnational product and it employs close

to one-fourth of the U.S. labor force.

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Major Agri-Business Activities

Crop-production(Farming)

Animal Husbandry(Livestock Production)

Allied Sector Value addition& Export

1.Growing crops2.Marketing3.Production of Vital inputs(eg. Seed,Fertilizer,ago-chemicals etc

1.Dairy2.Poutry3.Goatry4.Piggery5.Duckery6.Fishery

1.Mashroom2.Apiary3.sericulture(silk)

4.agro-forestry5.Food processing6.Wood Industry7.Rubber Industry8.Lac Industry

1.QualityImprovement

2.Grading & packing3.Processing intoInnovativeproducts

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(A) Production Sectors

1.Crop production¶ Cereal

¶ pulses¶ Oilseeds¶ Vegetables

¶ Fruits¶ Flowers/ornamentals¶ Spices¶ Medicinal & Aromatic plants

¶ sugarcane¶ Tea/coffee/coca¶ Any other crops

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• Fruit & vegetable processing ( e.g. canning, drying,making preserves, jam, jelly and fruit beaverarasesincludes RTS

• Processing of cereals, pulses and oilseeds (rice mills,four mill, oil extraction and pulse processing units etc.

• Processed foods (e.g. biscuits, snacks, cakes , ice – 

creams, bhujia, papad etc)

• Dairy products (e.g. milk, ghee, cheese, paniar , khoa

etc)

• Meat (e.g. mutton; beef; pork; chicken-flesh etc

• Tea , coffee, cocoa processing.

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• Commercial production

• Carp hatchery

• Fish feed

• Fish processing- dried fish products

• Manufacturing fishing nets and gadgets

6.Animal products• Milk • Egg• Meat• Cattle feed production• Poultry feed production

7. Domestics marketing & export

8. Value addition

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Farmer Farm

Primary Assembler

Kacha Aarthia

Pakka Aarthia

Primary Wholesaler

Secondary Wholesaler

Consumer

Each stakeholder in the supply chain need to play a crucial role.

V 

A

L

U

E

A

D

D

I

T

I

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The cool chain encompasses all the critical steps and

processes that fruits and other perishable products must

undergo in order to maintain their quality.

It is essential during the transport of export qualitycommodity all the way from the farm to the customer. It helps

in maintaining the temperature inside the box at the same low

level as in the cold storage.

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COOL CHAIN

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The various stages of the cool chain are:

Coldstore at the farm. Refrigerated truck from farm to the airport

Coldstore at the airport. Loading the aircrafts directly from the coldstore in a short time. Cargo aircraft maintains coldstore temperature in hold.

Off loading direct into a coldstore in the receiving country.

Refrigerated truck to the customers.

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Precooling

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Cooling of 

Banana

Cooling of 

Grapes

Cooling of Watermelons

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Consultancy services for advice on new technique , plantprotection measures , procurement of farm machinery

,major inputs , quality seeds etc

Providing training for developing skill or expertise in aparticular field/subjects.

Maintenance of public park/ gardens/avenues

Research and development organization/institutes/colleges

Agricultural progessionals/consultants/plant health/clinics

Certification agency

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Community, social and personal services

Health & education

Trade hotels restaurants, transport, storage,communication

Financing , insurance, real estate, and businessservices

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(By Finance Minister P.Chidambram’s in Budget 2005 )

• Developing Food Processing industries

• that is generating 250,000 Job every year.

(By R.K.Bansal , Director in the Ministry

for Food Processing industries. ) Creating a separate

window with a corpus of Rs. 1,000 crore for

refinancing loans for infrastructure development

(in which 25% subsidy on machines and building) .

OPPORTUNITES IN AGRIBUSINESS

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• Punjab is a land of boundless opportunities forAgri-based industry

4.2 million hectare sown area with 186% croppingintensity & 100% assured irrigation makes Punjabgranary of India.

• Punjab is most suitable for Agribusinessdue to:

• 24.46 million tones of good grain

production.

• 9.85 million live stock

• 15.3 million poultry population32

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.

WAL MART

• The worlds biggest corporate in greenfaming practices.

• The biggest seller of organic milk in the

world.• The biggest buyer of organic cotton in

the world.

• Wal Mart goes green and is sooncoming to India

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USAID’s

(ACE)Progrmme

VIDEOCON, BPL ,

GODREJ ,PEPSI

INDO-

GERMAN

VOTAS

NABARD

HUDCO

INVESTMENT IN AGRIBUSINESS

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,

INVESTORS

FOR

AGRIBUSINESS

INVESTMENT IN AGRIBUSINESS

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C

U

S

T

O

M

E

RS

SUPPLY

FRESH

PLUS

CPC/DISTRIBUTIONCENTER 

DEMAND

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GOALS & OBJECTIVE

Farmers will earn higher profit

consumers will get food at cheaper prices

The economy at large will gain form an increase

in agriculture productivity

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