AEC & RI, KUMULUR, TNAU - 62172 06/13/22 1 AGRIBUSINESS AGRIBUSINESS MODELS MODELS
AEC & RI, KUMULUR, TNAU - 6217204/12/23
1
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