Agribusiness PART 1.pptx

AGRI BUSINESSS PPT

1. Agribusiness management AGRI ADDA CLASSS BY SURAJ SIR

2. What is Agri business Agriculture Agriculture is the art and science of cultivating on soil, growing crops and raising livestock. Latin root of agriculture is Agri , or "field," plus culture , "cultivation." Cultivating a piece of land, or planting and growing plants on it. Business “ An economics unit that aims to sell goods and services to the consumer at price that will provide an adequate return to its owner “ Business is the activity of making one's living or making money by producing or buying and selling products . AGRI ADDA CLASSS BY SURAJ SIR

3. Define Agri business 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” (John David and Gold Berg) AGRI ADDA CLASSS BY SURAJ SIR

4. “Agribusiness is the coordinating science of supplying agricultural production inputs and subsequently producing , processing and distributing food and fiber” –E Paul Roy OR “ Agri-Business includes all either a product, a commodities or a services and encompasses items such as 1) productive resources (feed , seed , fertilizers , equipment's , energy , machinery etc. . 2) Agricultural commodities (all food and fiber). 3) Facilitative services (credit , insurance , marketing , storages , processing , transportation , packing , distribution ” . , AGRI ADDA CLASSS BY SURAJ SIR

5. MANAGEMENT “ A set of activities ( planning and decision making , organizations, leading / directing and controlling ) , directed at an organizations resources ( human , financial , physical , information ). With the aim of achieving organizations goals in an efficient and effective manners.” “ It is technique by means of which the purpose and objectives of a particular human group are determined, classified and effectuated.” “Management is a process by which a cooperative group directs action towards common goals.” “It is the accomplishment of desired objectives by establishing an environment favorable to performance by people operating in organized groups.”” V AGRI ADDA CLASSS BY SURAJ SIR V

6. TRANSFORMATION OF AGRICULTURE IN TO AGRIBUSINESS Agricultural transformation is defined as a process that leads to higher productivity farms that are commercially oriented , which strengthens the link between farming and other sectors of the economy . AGRI ADDA CLASSS BY SURAJ SIR

7. “a complete change in the appearance or character of something or someone ,especially so that thing or person is improved” (CAMBRIDGE DICTIONARY ) OR “A agricultural transformation should occurs with the aim of ensuring that agriculture runs like a business it should be profitable and efficiently meet the need of both producer and consumer “ Bill gates AGRI ADDA CLASSS BY SURAJ SIR

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9. TYPE OF TRANSFORMATION societal transformation technological transformations service transformation agricultural transformation AGRI ADDA CLASSS BY SURAJ SIR

10. SOCIETAL TRANFORMATION TCHNOLOGICAL CHANGE AGRI ADDA CLASSS BY SURAJ SIR

11. SERVICE TRANSFORMATION V AGRICULTURAL TRANSFORMATIN AGRI ADDA CLASSS BY SURAJ SIR

12. NEED OF TRASFORAMATION Transforming a country's agriculture sector can create jobs, raise incomes, reduce malnutrition, and kick-start the economy on a path to middle-income growth . In fact, almost every industrialized nation began its economic ascent with an agricultural transformation

13. VARIOUS STAKEHOLDER AND COMPONENT OF AGRIBUSINES SYSTEM AGRI ADDA CLASSS BY SURAJ SIR

14. TYPES OF STAKE HOLDER AGRI ADDA CLASSS BY SURAJ SIR

15. COMPONENT OF AGRIBUSINES SYSTEM AGRI ADDA CLASSS BY SURAJ SIR

16. VALUE CHAIN AGRI ADDA CLASSS BY SURAJ SIR

17. VALUE CHAIN AGRI ADDA CLASSS BY SURAJ SIR

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19. THANK YOU AGRI ADDA CLASSS BY SURAJ SIR

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21. Distinctive feature of agri-business management Variation in the kind of business in organization sector ,basic producer ,transporter wholesaler etc. Large number of different business are evolved from the producer to consumer . Built around several million of farm produce Revolves around the farm , without farm Agri business would not have something to process , distribute Product differentiation is common because of the brand and composition the product Highly seasonal in their nature due to the fact that they have depend on farm production in nature They affect natural calamities like drought ,flood ,insect , pest and disease AGRI ADDA CLASSS BY SURAJ SIR

22. What is an Argo-based industry Agro-based industries are industries that use plant and animal-based agricultural output as their raw material. Also, they add value to agricultural output by processing and producing marketable and usable products. Some examples of agro-based industries in India include Textile, Sugar, Vegetable Oil, Tea, Coffee and Leather goods industries. AGRI ADDA CLASSS BY SURAJ SIR

23. Importance of Agro-based industries in India All branches of agro-based industry are important because: ( i ) help in increasing industrial production. (ii) provide employment to landless agricultural labor and tribal population from rural and backward areas. (iii) ensure the development and stability of rural economy through diversification and reduced dependence on agriculture. (iv) ensure the alleviation of poverty by providing steady sources of income and livelihood. (v) earn much required foreign exchange for the country. (vi) improve the standard of living in rural areas. (vii) help in reducing the extreme inequalities in the distribution of income and wealth (viii) support balanced growth between agriculture and industry, and help in avoiding wastage of perishable agricultural products. AGRI ADDA CLASSS BY SURAJ SIR

24. Agro-produce processing units – These units are not involved in manufacturing and mainly deal with the preservation of perishable products and utilization of by-products for other uses. Rice and Dal processing mills are perfect examples of these kinds of units. Agro-produce manufacturing units – These units engage in the manufacturing of new products where the finished goods are entirely different from the raw materials used. Sugar factories, solvent extraction units and textile mills are some of the examples of these kinds of units. Agro-inputs manufacturing units – These units are engaged in the manufacturing of products, either for the mechanization of agriculture or for increasing agricultural productivity. Some examples of these units include agricultural implements, seed, fertilizer and pesticide manufacturing units. Agro Service Centers – Agro service centers are workshops and service centers, which are engaged in the repairing and servicing of pump sets, diesel engines, tractors and other types of farm equipment . TYPE OF AGRO-BASED INDUSTRY AGRI ADDA CLASSS BY SURAJ SIR v

25. Other most important agro-based industry are Textile industry Sugar industry Leather industry Vegetable oil industry Tea industry Coffee industry AGRI ADDA CLASSS BY SURAJ SIR

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27. PROCEDURE TO SE UP AGRO BASED INDUSTRIES Before venturing into Agribusiness, you need to be clear about your business objectives, business plan and available resources. Here’s a step-by-step guide to help you through the process: Market Research Creation of a Business Plan Creation of a Business Plan Understand the Laws and Regulations (E). Register your business and acquire licenses (F) Final Arrangements ( Proceed to make all the final arrangements like buying/leasing of land/office space, office stationery and machinery (if required).) AGRI ADDA CLASSS BY SURAJ SIR

28. Thank you AGRI ADDA CLASSS BY SURAJ SIR

29. The agriculture value chain concept has been used since the beginning of the millennium, although there is no universally accepted definition for the term . It normally refers to the whole range of goods and services necessary for an agricultural product to move from farm to its final customer. The World Bank’s definition of the term “value chain’’ describes the full range of value adding activities required to bring a product or service through the different phases of production, including procurement of raw materials and other inputs”. Agri value chain

30. the government’s focus is moving from increasing farm output to improving farmer incomes. It has set an aspiration to double farmers’ incomes by 2022 through the follow six key agendas - · Improvement in crop productivity. · Improvement in livestock productivity. · Resource use efficiency or saving in cost of production. · Increase in cropping intensity. · Diversification towards high value crops. · Improvement in real prices received by farmers This will enhance productivity and have multiplied effects on the larger ecosystem

31. Challenges in Agri value chain Indian farmers face multiple challenges, primary among these are excessive stress on land, water and soil health, lack of knowledge/information about high value/growth products, limited exposure to high productivity practices, weak market linkages, inefficient supply chains with high levels of food wastage, and an acute dependence on rainfall some important challenges are – Scarcity of resources Scope to improve yield Multiple intermediaries and lack of transparency and traceability Losses in the food chain Trends in consumption moving towards F&V and pulses Understanding primary and support activities and their linkage

32. BUSINESS ENVIRONMENT Business Environment is sum or collection of all internal and external factors such as employees, customers’ needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends, economic changes , etc. Types of Business Environment Internal Environment. External environment. All factors outside the business which have a bearing on the working of a business can be termed as the external environment. ... Micro Environment. Macro Environment:

33. PEST AND SWOT ANALYSIS SWOT and PESTLE analyses are used to make a systematic and thorough evaluation of a new business or project . The process gives decision-makers a better awareness and understanding of the changes that may occur and the impact that these changes may have on their business. SWOT and PEST analyses are similar in that both focus on environmental factors that may affect a company . Both types of analysis use group brainstorming to identifying environmental factors.

34. Strengths Strengths describe what an organization excels at and what separates it from the competition : a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors. Weaknesses Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital. Opportunities Opportunities refer to favourable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share . Threats Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labour supply. and so on.

35. Definition: PEST Analysis is a measurement tool which is used to assess markets for a particular product or a business at a given time frame. PEST stands for Political, Economic, Social, and Technological factors. Once these factors are analysed organisations can take better business decisions. PEST Analysis helps organizations take better business decisions and improve efficiency by studying various factors which might influence a business such as political, economic, social, and technology. PEST analysis helps in making strategic business decisions, planning marketing activities, product development and research. It is similar to SWOT analysis, which stands for Strength, Weakness, Opportunities, and Threats. Let's study each individual factor of PEST analysis in detail. In PEST analysis 'P' stands for Political environment . It includes government regulations or any defined rules for that particular industry or business. It also involves study of tax policy which includes exemptions if any, employment laws, environment laws, etc. The letter 'E' in PEST analysis stands for economic factors . It gauges the economic environment by studying factors in the macro economy such as interest rates, economic growth, exchange rate as well as inflation rate. These factors also help in accessing the demand, costing of the product, expansion, and growth. 'S' stands for social factors that form the macro environment of the organisation. It includes the study of demographics, as well as the target customers. These factors help in gauging the potential size of the market. It includes study of population growth, age distribution, career attitude, etc. The letter 'T' in PEST analysis stands for technology . As we all know, technology changes very rapidly, and consumers are hungry to adopt new technology. It involves understanding factors which are related to technological advancements, rate at which technology gets obsolete (Example: the operating system in mobile phones), automation, and innovation.