What is Agri Business?
It is a business of farming.
“All the activities concerned with agriculture including farming, management, financing,
processing, marketing, growing of seeds and nursery stock, manufacturing of fertilizers,
chemicals, implements, processing machinery, transportation equipment and the process of
transportation itself. “ Is Agri. Business.
Who is Agri Entrepreneur?
“He, who is in the business of agriculture,”
What is an Agri-enterprise?
An Agri-enterprise is any business in the agricultural industry, which includes production of
agriculture, food, natural fiber, the environment and natural resources.
Agribusiness includes the producing of any food item (Food grain – Fruits –
Vegetables- Flowers), processing, and supply of agricultural goods which range
from Corn to Cornflake, Fruits to Fruit juice and of course Cotton to Cloth.
Apart
from these produce ,by products of farming like fuels derived from farm waste and
farming equipment, machinery, chemicals etc., can also be included in
Agri.Business.
In 21st century even Information Communication Technology
(ICT) can also be included in Agri Business – Kisan kiosk, Krishi related web
site, Agri. Business portals and many more. For Agri. Business successful farmers
should produce what the market wants and not at which farmer is good /
capable of producing Agriculture item .Today Science & technology i.e.
ICI,Green House, Sprinklers / Drip irrigation, Tissue culture etc. is playing crucial
role in Agriculture farm produce.
Day by day, as population is increasing, Food consumption in India is
increasing. Government of India from several decades, making efforts to
overcome weaknesses in the agricultural sector like over-dependence on monsoon,
which is resulting in continuous increasing of Agriculture produce.
The table on next page will show how fast food consumption is increasing in
India. This is main reason for entrepreneur to enter in the field of Agri.
Entrepreneurship.
Why Agri Entrepreneurship?
Cost benefit, profit and quality can be added in Agri.Output by way of
Entrepreneurship and management, that dominates resource and its effective
utilization, systematic social change, availability of support, self confidence and of
course motivation.
A right kind of knowledge and managerial soft skill can be provided through
entrepreneurship. In view of World Trade Organisation (WTO) and General
Agreement on Tariff and Trade (GATT) agreement, Indian farmer and farming
has to change.
Today agriculture sector has achieved commercial importance and has tremendous
potential of being one of the powerful sectors contributing to nation‟s GDP.
Apart from Government initiative, Public Private Partnership and farmers organizations have contributed to the agricultural growth. At present Agribusiness
education is one of the promising qualifications, which has made it possible to
manage Agriculture sector as a professional enterprise like other sectors such as
Automobile, Engineering, Information Technology, Textile etc.
Entrepreneurship
An approach for cultivating Entrepreneurship for the rural population is the
need of an hour and also essential. Gujarat Government is working on the
„Sustainable Livelihoods‟ approach. “Livelihoods” is the root of human
development and economic growth.
There are deep roots of Entrepreneurship in civic structure of community. It
is the Entrepreneurship, which is adding economic profit and cost-benefit ratios to
Agricultural produce. Entrepreneur must be equipped with “KNOWLEDGE”.
Information and Communication Technology (ICT) is playing important role in
reducing the gaps and increasing productivity in Agri Business.
We are producing more literates and not trained youth to earn their own
bread. Our graduates in Agriculture sector and allied sectors, are hunting beg for
job. By giving them entrepreneurial training we should make these graduates as
employers and not employees or in other words not simply Learned Farmer but
Agri Entrepreneur. Both our Farming and Farmers must change to meet
Challenges / opportunities of World Trade Organisation (WTO) and General
Agreement on Tariffs and Trade (GATT) agreement.
The Agriculture sector needs 1 lac + young entrepreneurs to achieve national
goal.
Classification of land in terms of Agriculture
1. MEADOWS
2. ORCHARDS
3. ARABLE
There are 3 types of land so far agriculture is concern MEADOWS – where the
grass is growing automatically (naturally) this land is used for grazing of live
stock. Second is ORCHARDS – where there are permanent crops is grown for
example fruit plants, and third ARABLE land – where annual crops such as
cereals, cotton, potatoes and other vegetables and food grains are grown, this
Arable land is called FALLOW land which means temporarily uncultivated land.
Agriculture sector can be divided into main two segments (1) Farming / Pre
harvest (2) Post harvest segment so far, Entrepreneurial opportunities / Business
opportunities in Agri Sector are concern.
Tips for Starting / Running Small Farm Business
Prepare Business Plan
(All the details must be followed for successful
venture)
1. Specific knowledge in Agriculture OR hire Agri expert
2. Identify product
3. Product Resource (raw material)
4. Human Resource
5. Place / Land (availability)
6. Brand / Logo
7. Selection of financial institution
8. Information of local culture, traditions, festivals etc
Financial projections
1. Own fund
2. Loan, Financial institution, Project report
3. Present financial information
Market analysis
1. Market survey
2. Take note of demand & supply
Marketing plan
1. Retail Outlet
2. Distributors
3. Researching about your competition and market
*Competing strategies
*Business description and mission statement
*Feeling up of forms in Government state which includes business permits
*To take licenses with regard to agriculture and farming.
*Set up of an accounting system with the use of the computer.
Specific opportunities in Agribusiness sector
>>Farm inputs
Biotechnology / Biological inputs, Crop nutrients, Crop protection, Farm
equipment, Farm technology, Seeds & planting material.
>>Agri Services
**Agri. equipment repairing / servicing,
**Organic Certification,
**Commodity trading,
**Contract farming,
**E-commerce etc.
>>Crops
Vegetables, Exotic Flowers/ Vegetables, Cereals, Fiber crops, Farm crops,
Floriculture, Forestry, Gardening, Grassland, Horticulture, Medicinal and
Herbal plants.
>>Food Agro produce processing
Fresh Juice, Dairy, Canned food, Sorting-cleaning-grading, De-hydrating,
Baked food, Confectionery – chocolate made from fruit pulp.
**Fuel from agro. waste
**Spinning (using manually operated machine Charkha)
**Weaving (Handloom)
**Manufacturing shopping bags of cloth
**Wick from cotton (gujarati name „vat‟ for lamp(diya) used for pooja)
**Agro tourism
**Natural dyes
**Information and Communication Technology
Krishi portal, Krishi Vignan Kendra, Krishi magazine, E-commerce in agri.
business.
**Organic fertilizer
**Sorting, grading, packing
**Contract plantation of tree for Industry for example Paper industry.