plantation crop industry
TRANSCRIPT
Plantation crops industry
Presenter:Manish Singhal
MBA (AB) 1ST Year.IABM BIKANER
1
Flow of presentation
IntroductionTea industryCoffee industryCoconut industryCashew nut industryRubber industryCocoa industryAnalysisFuture challengesreference
2
introduction
Definition of plantation crop: It is defined as large scale production of tropical crop by uniform system of cultivation under cultural management.Major crops are grown as: Tea, coffee, coconut, rubber, cocoa, cashew nut.Minor crops: Oil palm, areca nut.15% of the total agricultural export earnings come from crops like tea, coffee and rubber – although these industries occupy only one percent of the total plantation area.
3Source: Handbook of horticulture
TEA INDUSTRY• India, largest producer and consumer
of tea.• 27% of world production and 13% of
world trade.• Direct employment to one million
workers.• Import of tea is permitted with an
import duty of 100%.• Indian tea market valued at Rs. 8.6
billion.• Total turnover Rs. 10,000 crore.• Around 700 tea brands are available.
4Source: Tea board of India
Cont……
1692 registered Tea Manufacturers.2200 registered Tea Exporters.5848 number of registered tea buyers.Nine tea Auction centers. (as on 18.12.2009)
5
Source: Tea board of India
Production area
6
Source: Tea board of India
Tea area and Production
2003 2004 2005 2006 2007 2008820840860880900920940960980
1000
878.170000000001
892.97
945.97
981.8 986.43 980.82
Production(mKg.)
Production(mKg.)
2003 2004 2005 2006 2007490500510520530540550560570580
519.59 521.4
555.61567.02
578.45
Area('000mh)
Area('000mh)
7Source: Tea board of India
Export and Import
2004 2005 2006 2007 20080
50
100
150
200
250 197.67 199.05 218.73178.75
203.12
Export (M.Kg.)
Export (M.Kg.)
2006 2007 20080
5
10
15
20
25 17.41 20.8 16.75
Import(M.Kg.)
Import(M.Kg.)
8Source: Tea board of India
9
Past & future demand
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
0
200
400
600
800
1000
1200
1400
903 916101410341060
1092113011751211
123512661297
Demand : Past & Future MT
Demand : Past & Future th MT
10
Market segmentation
Share (%)
North
35%
East20%Wes
t25%
South
20%
Share %
Major player and share
HUL (Brooke Bond)23%
Tata Tea22%
Duncans5%
Goodricks4%
Dhanseri1%
Others46%
Market shares
11Source: Tea board of India
12
Problems and measures
Problems
Large proportion of old trees
High input cost
Labour intensive
Measures
Rejuvenate old gardens
Government policies
Increase research &
development
13
COFFEE INDUSRY4% of world coffee production.
6th in world coffee production.
Karnataka accounts for 56.5% of country’s total production.
70% of the total coffee production is exported from India.
Employment to 6 lakh people.
14
Few facts about coffeeCoffee is an important primary commodity. With over 500 billion cups consumed every year, coffee is one of the world's most popular beverages.
Worldwide, 25 million small producers rely on coffee for a living.
Brazil is world leader in production of coffee followed by Vietnam, Indonesia, Colombia, Mexico and India.
For instance, in Brazil alone, where almost a third of all the world's coffee is produced, over 5 million people are employed in the cultivation and harvesting of over 3 billion coffee plants
Coffee area &production
2004-05 2005-06 2006-07 2007-08 2008-09345350355360365370375380385390395
363.08
379.7 381.08388.19 394.35
Area('000ha)
Area('000ha)
2004-05 2005-06 2006-07 2007-08 2008-09245250255260265270275280285290
275.5 274288
262 262.3
Production('000MT)
Production('000MT)
16Source: coffee board of India
Export
2004-05 2005-06 2006-07 2007-08 2008-090
50
100
150
200
250
217.76 201.55
249.02
218.99196.53
Export('000ton)
Export('000ton)
17Source: coffee board of India
18
Coffee: present and future demand
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
0
50
100
150
200
250
300
350
400
450
290265
317322328337347359373390
409430
Demand : Past & Future th MT
Demand : Past & Future th MT
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Major Issue & Measures
Inadequate
adoption of
technology
Cost is high
Less research &
development
Infrastructure support for processing
Restructuring of loans & interest relief to growers(a subsidy of 5% for small growers & 3% for large growers)
Higher R & D
Major player and share
Nestle (Nescafe); 55%
Hin-dustan Lever Ltd. & BRU; 20%
Tata cof-fee Ltd.;
14%
Others; 11%
20Source: coffee board of India
21
Coconut industryIndia is 3rd rank in production of coconut.Kerala is the leading state to production of coconut.Industrial use of coconut:Coconut leavesCopraHusk and shellCoconut trunkCoconut rootsShelter and toolsCoir
Area & production
2003-04 2004-05 2005-06 2006-07 2007-08184018601880190019201940196019802000
1993.7 1995
1946.8 1936.8 1903.19
Area('000ha)
Area('000ha)
2003-04 2004-05 2005-06 2006-07 2007-080
2000400060008000
10000120001400016000 12178.2
12832.914811.1
15840.4 14743.56
Production(Million Nut)
Production(Million Nut)
22Source: Coconut Development Board
23
Coconut’s product export
2005-06 2006-07 2007-080
100020003000400050006000
4365.155120.01
1031.44
Value(Rs. In Lakh)
Value(Rs. In Lakh)
Source: Coconut Development Board
24
Major exporter & processor of coconut
Sri Kuppanna Oil Mills: Coconut OilAllwin coir product: Fiber product makingMarico: Coconut hair oil (Parachute)
25
Cashew nut industry
India is the largest producer, processor, consumer and exporter.India produces 45% of the global production of cashew.In Goa, the pseudofruit is mashed and mixed with water and sugar and used to make Feni (a popular liquor) by fermentation.
Cashew nut area & production
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-080
100200300400500600700800900 720 750 770 780 820 837 854 868
Area('000ha)
Area('000ha)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-080
100
200
300
400
500
600
700
450 470 500535 544 573
620665
Production('000ton)
Production('000ton)
26
Source: www.indiastat.com
27
Cashew nut export & import
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
0200400600
161.79
402.979999999999
442.59
479.71
543.94
586.49591.61
import('ooo tonnes)
import('ooo tonnes)
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
0
50
100
150 98.2 129.43 99.68118.11
125.1
122.78111.28
export('000 tonne)
export('000 tonne)
Source: www.indiastat.com
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Major exporter & processor
Vijayalaxmi cashew co.
Olam exports (India) ltd.
Kerala nut food co.
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RUBBER INDUSTRYIndia is the 3rd largest producer of rubber in the world.
4th largest producer and 5th largest consumer of natural rubber.
8.8% share in world production. (2006)
India is the world largest manufacturer of reclaim rubber.
Turnover of Rs 12000 crore
Around 6000 units
30
Rubber export & import
2002-03 2003-04 2004-05 2005-060
1000020000300004000050000600007000080000 55311
75901
46169
73830
Export(tonne)
Export(tonne)
2002-03 2003-04 2004-05 2005-06 2006-070
100002000030000400005000060000700008000090000
26217
44199
72835
45285
88040
Import(tonne)
Import(tonne)
Source: Rubber board of India
Source: www.indiastat.com 31
Total rubber consumption
2002-03 2003-04 2004-05 2005-06 2006-07P 2007-08P 2008-09P0
200000
400000
600000
800000
1000000
1200000
695425 719600755405
801110 820305861455 871720
194850 210190 224650 237495270830
297155 292950
890275929790
9800551038605
1091135
1158610 1164670
NaturalSyntheticTotal(tonne)
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Rubber consumption in different products
Automotive tyre sector50%
Bicycle tyre and tubes
15%
Footwear12%
Belts and hoses
6%
Camelback and latex-product
7%
Other product10%
%
Source: www.indiastat.com
33
Major playerApollo Tyres
MRF Tyre Ltd.
Ceat Ltd.
JK Tyre
Birla Tyre
34
Advantages of rubber industry
There is a large domestic market. There is easy availability of cheap labour. Indigenous availability of the basic raw materials, like natural rubberGovernment policies have a profound influence on rubber prices.
Source: wikipedia.com 35
Cocoa industryCocoa is called as “food of God”.Kerala is leading state as 78% production of cocoa.Only seeds are used in industry.Main products: Cocoa butterChocolate
Source: cocoa and cashew nut board 36
Cocoa Area & Production
2004-05 2005-06 2006-07 2007-08 2008-090
5000100001500020000250003000035000 27811 29471 30341 31885 34049
Area(ha)
Area(ha)
2004-05 2005-06 2006-07 2007-08 2008-090
2000
4000
6000
8000
10000
12000 925010175 10180 10560
11820
Production(MT)
Production(MT)
37
Cocoa Export & Import
2003-04 2004-05 2005-06 2006-07 2007-080
50100150200250300350400450
194.78
286.9248.02
401.19 422.58
Export(value in Rs. Million)
Export(value in Rs. Million)
2004-05 2005-06 2006-07 2007-080
200400600800
100012001400160018002000
920.091128.86
1350.57
1893.6
Import(Value in Rs. Million)
Import(Value in Rs. Million)
Source: cocoa and cashew nut board
38
Major player
MNC are mainly dominated in our India to make chocolate and other cocoa product:Cadbury.Harshey.Cargill.Ferraro.Mars.Tharkaran and company.
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analysisToday there is no credible alternative facility available to a grower to meet the risks of price movements and the art of price risk management is unknown to the small growers. There should be an urgent need to provide the personal accident cover to small growers. This facility is also to be extended to the plantation workers who are solely dependant on the plantations. Farmers, processors and exporters should be enabled to utilize the instrument of derivative contracts and options instituted by the Commodity Derivatives Exchanges of India.An innovative market literacy program on trading in general and future trading in particular is to be launched.The current system of banking regulations does not allow non-investment banks to participate in derivative trading.
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Cont…..
All the banking institutions with exposures to futures trader’s commodities, should be allowed to participate in futures trading.Development of infrastructure facilities in plantation areas will go a long way in providing market access. Poor productivity of the crops (need of higher R & D).
41
Future challenges
Shrinking international markets. Emergence of low-cost competitors.Growth of Mature/differentiated markets.Competing beverages and presence of overseas suppliers.Pests and diseases / Vagaries of weather.Substitution effect of tea & coffee.
42
ReferencesHandbook of HorticultureWikipedia.comwww.mapsofindia.comTea board of IndiaCoffee board of IndiaRubber board of IndiaCoconut development board of IndiaCocoa and Cashew nut board of India.Indiastat.comGoogle image
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