Agribusiness models

AEC & RI, KUMULUR, TNAU - 6217204/12/23

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AGRIBUSINESS AGRIBUSINESS MODELSMODELS

Agribusiness

Agribusiness is the sum of all

operations involved in the

manufacture and distribution of farm

supplies, production activities on the

farm and the storage, processing and

distribution of farm commodities and

items made from them.

Agribusiness - Objectives

Commercialization of Agriculture

Increase productivity

Use of modern technologies

Reducing cost of production

Value addition

Export agriculture

Higher farm income

Better Agribusiness-Needs

Co-operative farming (AMUL)

Contract farming (ITC)

Precision farming (Dharmapuri / Krishnagiri)

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

Agribusiness Models

Contract Farming

Supply Chain Management

Corporate Farming

Contract Farming Partnership between Agri -Business Firms & Farmers Coordination of Production &

Marketing Reduces the Risk & Uncertainties

for Farmers & Sponsors

Contract Farming Involves Identification of Suitable Area Easy Access for Transport Selection of Working Groups

(For Extn. Service, Credit, Inputs etc.,) Price Based on Quality

Specifications Duration

Cultivation practices

Quality standards

Farmer’s production quota

Arrangements for delivery of the crop

Price calculation

Advantages - Farmers Good seeds

Technical guidance

More reliable income

Employment generation

Better utilization of resources

Advantages for Sponsors

No land constraints

Production is more reliable

More consistent quality

Success of the Project

Loyal Farmers

Farmer-Management Relations

Coordinating Production

Monitoring Quality Standard

Transparent Administration

Supply Chain Management

Supply Chain Management

It is a set of approaches used to

efficiently integrate suppliers,

manufacturers, warehouses and

customers.

Contd..

Distributed the right quantities, to

the right locations, and at the right

time in order to minimize system

wide costs while satisfying service-

level requirements.

Why Supply Chain Management ?

Excess Inventory costs Excess freight charges Lost sales / Stock out situation Extra staff Customer dissatisfaction

Case StudyKuppam Project

KUPPAM MODEL

• R & D Field Service

•

• Farmers

• Forex Earner Agro Industry

•

Project Promoted : BHC Agro India & AP Focus : Irrigation Technology

Drip & Sprinkler Fertigation Crop Planning

Study Area

Kuppam -A P Low Rainfall Drought Prone Area Poor Soil Irrigated Area : 10% GCA Majority S & MF Lack of Irrigation Technology

Phase - I

Compact Area : 182 acres Boundaries Removed, Levelled, S & MF : 167 Farmers’ Society Drip & Sprinkler New Crops & Hybrids Onfarm R & D Marketing Produce

Phase - II

Area : 1600 acres Villages : 54 Farmers : 692 Drip & Sprinkler - Individual Basis Buyback Arrangement

Perceived Benefits

Farmers Assured employment Buyback arrangements Bonus at the end Extension services

Disadvantages

Farmers Ownership of land Foreign technology Officers domination Dependency of crops

General Impact

Efficient Use of Resources Improved Technology Improved Knowledge & Skill Farmers’ Income Stabilized High Value Crops Grown Gherkin, Baby corn, Capsicum Appreciation of Land value Large-scale Adoption

Observations

No Tree Cover Mixed Farming -? Society Meetings -Less Govt. Signed with Company Heavy Subsidy Component

Conclusion

Project Assured : Price Better Technical Inputs Transferred Technology Linked Production & Marketing Definite Return & Employment Institutional Involvement

Super Spinning Mills, Coimbatore, T.Nadu

It gives necessary inputs and

training to the farmers in cotton

cultivation

This firm procures cotton from the

growers

Rasi Seeds Attur, T.Nadu

The firm identifies seed growers for

cotton and supplies the required

inputs apart from technical services.

At the end of the season the seeds

are procured at agreed rates.

Indian Tropical Agro ProductsTuticorin, T.Nadu

This firm deals about ghergin.

It identifies the farmers and gives

necessary inputs like seeds,

fertilizers and technical services.

It procures ghergin at the farm level

in the agreed price with quality

specifications.

Suguna PoultryUdumalpet, T.Nadu

The firm identifies the poultry

growers and gives chicks, feeds

It procures broilers from at agreed

rates from the poultry growers

ABT DairyPollachi, T.Nadu

Potential farmers were identified

and given 4-5 milch animals (Mini

dairy)

The firm gives technical inputs and

services

The firm procures milk from the milk

producers.

Thank youThank you04/12/2339