L ec ture 1Agribusiness – Meaning - Definition – Structure of Agribusiness (Input sector, Farmsector and Product sector) – Importance of Agribusiness in Indian Economy.
Agri-business as a concept was born in
with the publication of abook “A concept of Agri-business”, written by
John David and A. Gold Berg
. It was introduced inPhilippines in early 1966, when the University of the Philippines offered an Agri-businessManagement (ABM) programme at the under-graduate level. In 1969, the first Advanced Agri-business Management seminar was held in Manila.
D ef in it io n o f Agri- b u s in e s s :
Agri-business is the sum total of all operations involved in the manufacture anddistribution of farm supplies, production activities on the farm, storage, processing anddistribution of farm commodities a
John David and Gold Berg)
Agri-business involves three sectors:1.In p u t s e c t o r : It deals with the supply of inputs required by the farmers for raising crops,livestock and other allied enterprises. These include seeds, fertilizers, chemicals, machineryand fuel.Fa r m s e c t o r : It aims at producing crops, livestock and other products.2.3.Pr o d u ct s e c t o r : It deals with various aspects like storage, processing and marketing thefinished products so as to meet the dynamic needs of consumers.Therefore, Agribusiness is sum total of all operations or activities involved in the business of production and marketing of farm supplies and farm products for achieving the targeted objectives.
I m p o rt a nce o f Agr i- b u s in e s s :
1.It deals with agricultural sector and also with the portion of industrial sector, which is the majorsource of farm inputs like fertilizers, pesticides, machines, processing and postharvest technologies.It suggests and directs the government and private sectors for development of subsectors. It contributes a good part of the national economy.2.3.
D im e n s io ns o f Agr i- b u s in e s s:
1.It deals with different components of both
agricultural and industrial sector
, their inter-dependence and influence of one sector on other.It deals with
decision making process
of farm either private or government in relation toproduction and selling aspects.It deals with
strengths and weaknesses of a project
and thereby their viability in competingenterprises.Agri-business is always