CORPORATE FARMING

(PEPSICO) .OVERVIEW  Introduction  Corporate Farming  Initiatives of Corporation Farming  Reason For Corporate Farming  Benefits of Corporate Farming  Case of Corporate Farming in India.

. marketing. what is seen by some as the practices of would-be mega corporation involved in food production on a very large scale. distribution.related business. storage. specifically. food processing. agrichemicals. and encompasses not only the farm itself. Corporate farming is a term that describes the business of agriculture. advertising and retail sales.  It is modern food industry issue. including seed supply. but also the entire chain of agriculture. transport. machinery.

capital flow and assured market for crop production.leasing arrangements (Corporate Farming ) to allow accelerated technology transfer . .Initiatives of Corporation Farming  National Agriculture Policy (NAP) of govt. of India announced in 2000 envisaged that “Private sector participation in agriculture shall be promoted through contract farming and land .

 Essential to this is the commitment of the producer / seller to provide an agriculture / horticultural commodity of a certain type.Corporate Farming  This is system for the production and supply of agriculture / horticulture produce under forward contract between producer/ supplier and buyer. . at a specified time and a price and in the quantity and quality required by a known and committed buyer.

The farmer/Producers will be required to plant contractor’s crop on his land. The contractor shall supply all required imputes for the production of the said crop.Reason For Corporate Farming  Consolidation of small farm lands into larger land     holdings. harvest and deliver a quantum of produce(based on anticipated yield) to the contractor. Increase in agricultural productivity. He shall provide land and labor necessary for this. Introduction of value added products . .

This is the only way to feed the world”  Indeed.Benefits of Corporate Farming  The core argument for the method criticized as corporate is essentially. attractive safe food. rapid technological development and large scale global production management are responsible for an unprecedented abundance of inexpensive. and to make inroads into feeding billions of people to develop national standards-.  “This is a way to keep up with population growth. widely available. producing processed convenience foods. and making food available year around in vastly stocked supermarkets. by lowering the cost of raw food inputs. . creating sophisticated long distance distribution networks.

provided these method are sustainable. only about 10% of average income is spent on food.  By this measure. at relatively low cost. corporate farming would appear to be a tremendous success .  Today in north America.Benefits of Corporate Farming  Corporate farming has presented consumers with wealthiest regions of the world with an immense variety of food.

 Contract farming has been encouraged by Pepsi .44 million tones in 1995 -96 due to the use of high yield seeds.Case of Corporate Farming in India.  Pepsi offered its contract farmers advanced equipments such as transplants and seeding machines to help them carry out their task efficiently and speedily.  Production increased from 4. PEPSICO  Pepsi’s tomato farming project was primarily responsible for increasing India's tomato production.24 million tones in 1991 – 92 to 5.