AGRI BUSINESS

AGRI BUSINESS

BY: Neetika Chawla

Nishtha Bajpai
Rishabh Singh
Prerit Pandey
Runhjun Gupta
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 What is agri-business?

Agriculture conducted on strictly commercial

principles.

The group of industries dealing with agricultural

produce and service require in farming.

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Agribusiness is the business of agricultural
production. It includes agrichemical, breeding,
crop production and see supply as well as
marketing and retail sales.

All agents of the food and fibre value chain

and those institutions that influence it are part
of the agri business system.

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 OVERALL GLOBAL SCENARIO

The value of the global trade of food and

agricultural commodities has increased fivefold
in the last 50 years and it is projected to keep
rising. Although the powerful agricultures of
USA, Europe, Brazil, Argentina and Australia still
dominate the markets, many emerging
economies have shown very good performances
and several countries are nowadays net
exporters.
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 The adoption of technology combined with conventional
plant breeding and bio technology has reduced pesticide
spraying by 474 million kg and decreased the
environmental impact by18%.
 In 2018 more than 16 million farmers of which 90% were
resource poor from developing countries grew
genetically modified crops on 170 million hectares in at
least 28 countries.
 The global population-weighted average share of
agriculture based products rose from 15.4 to 17.7% (in
last 10 years). The increase can mainly be attributed to
rising consumption of agriculture-based products in
developing and emerging economies.
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 CURRENT SCENARIO OF AGRICULTURE IN
INDIA
Ranking second in the world farm output, the agriculture sector is
the backbone of Indian economy contributing majorly to country’s
GDP.
India’s food grain production reached 275.68 million tonnes in the
year 2016-17 and 274.55 million tonnes in 2017-18.
Currently, Indian farmers are getting used to farm mechanization at
faster rate as compared to the past.
Indian tractor industries have emerged as largest in the world
accounting for about one-third of the total global sector production
as put by The Economic Survey 2017-18.
The economic survey also stated that Agricultural R&D is the main
source of innovation, which can help in sustaining agricultural
productivity growth in the long term.
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 MARKET SHARE
Agriculture is the primary source of livelihood for
about 58% of India’s population.
Gross value added by agriculture, forestry and fishing
is estimated Rs 17.67 trillion in FY18.
The Indian food and grocery market is the world’s
sixth largest, with retail contributing 70% of the sales.
The Indian food processing industry accounts for 32%
of the country’s total foo market, one of the largest
industries in India and is ranked 5th in terms of
production, consumption, export and expected
growth.
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It contributes around 8.39% of Gross Value
Added (GVA) in manufacturing and agriculture
respectively.
It also contributes 13% of India’s exports and 6%
of total industrial development.
During 2017-18 crop year, food grain production
is estimated at record 284.83 million tonnes.
In 2018-19 Govt of India is targeting food grain
production of 285.2 million tonnes.
India is the second largest fruit producer in the
world with estimated production of 306.82
million tonnes.
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TOP 5 AGRICULTURAL COMPANIES IN INDIA

RALLIES INDIA LIMITED

NUZIVEEDU SEEDS LIMITED
LEMKEN INDIA AGRO EQUIPMENTS PRIVATE
LIMITED
ADVANTA LIMITED
MONSANTO LIMITED

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 REGULATORY BODIES

Some of the major regulatory bodies of agriculture

business are:
1. Department of agriculture ,cooperation and farmers
welfare
2. Global forum for food and agriculture (GFFA)
3. Institute for agriculture and trade policy (IAT)
4. United states department of agriculture (USDA)
5. International fund for agricultural development
(IFAD)

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 PRODUCTS
AND SERVICES
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 AGRICULTURE BUSINESS SERVICES

 Agriculture Business Group is engaged in Consultancy & Awareness

generation for enhancing productivity in the spheres of Agriculture,
Rural Development and food processing.
 Some of the services offered by business agriculture are:
1. Agricultural farming
2. Fertilizer production
3. Dried flower business
4. Organic farm green house
5. Poultry farming
6. Hydroponic retail store
7. Bee keeping business
8. Agro-farming blogging
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 AGRICULTURE BUSINESS PRODUCTS

 Agricultural products are derived from cultivating plants or

animals to sustain or enhance human life.
 Agricultural products fall into one of four groups: foods, fuels,
fibers, and raw materials:
1. Food
2. Fuels
3. Fibers
4. Raw materials
5. Organic agricultural products
6. Non food agricultural products

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 S WEAKNESS
O THREAT

STRENGTH
W OPPORTUNITY
T
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 Strength

 Knowledge and its accessibility

 Skilled manpower
 Timely requirement with high
priority
 Sustainable energy supply
 Additional household income

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 Weakness
 Technical immaturity
 Food vs fuel concerns
 Land consuming feedstock
production for bio fuels
 Lower energy content per volume
than gasoline

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 Opportunities

 Employment creation
 Strengthening economy
 Energy security
 Environment improvement
 Less dependency on impact of
gasoline

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 Threats
 Non availability of surplus
feedstock
 Higher uncertainty
 Direct competition with food
production

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 MOST IMPORTANT CROP
India is top producer company of many crops.
The major crops can be divided into four categories:
 FOOD GRAINS( Rice, Wheat, Maize, Millets and
Pulses.)
 CASH CROPS(Cotton, Jute, Sugarcane, Tobacco and
Oilseeds.)
 PLANTATION CROPS(Tea, Coffee, Coconut and
Rubber.)
 HORTICULTURE CROPS( Fruits and Vegetables.)
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 RICE
Rice is the top major crop of India.
It is a tropical crop that can be grown throughout
the year.
It is a Kharif crop grown in plains of North and
North Eastern India, costal plains and deltaic
region.
India is second largest producer of rice in India.
In 2009-10, total rice production in India
amounted to 89.13 million tonnes.
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So... Where's your business plan.?
 Components of Agribusiness

PLANNING
PRODUCTION
PROCESSING
MARKETING

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 PLANNING
NON FINANCIAL
Legal and Ownership (Sole ownership,
Partnership, Cooperative.)
Organisation Management: Who will manage
the organisation? Who is who? (Organogram)
What will the structure look like?
Organisation Capacity: Resources needed
Organisation Culture: Same mind, Same ethics
etc.
Succession Plan
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 PLANNING
FINANCIAL
Financial Goal: What is your goal for the finance?
Start-up Capital: What is the start-up capital and business
goal?
Planning Horizon: What time frame is the finance for?
Forecasts and projections: What are the net income
projections? How does this projection when certain prices
changes? What is the break even point for farmers growing
the crop?
Bookkeeping: Record of financial transactions as a part of the
accounting system.
Revaluation and revise of the financial plan

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 PRODUCTION
Product: Quantity that is going to be produced?
What standard of quality? What market are we
targeting? Buyers knowledge.
Operation: The production of the crop, the
processing facility(including labour
requirements), storage and transportation
services required. What are the risks, plan to
mitigate the risk.
Profitability: How will this lead to profit.
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 PROCESSING

VALUE ADDITION

Branding/Labelling
Grading/Categorization
Bagging
Certification where and when required
Standards from buyers

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 MARKETING
The management process through which
goods and services move from concept to the
customer. It includes the coordination of four
elements called the 4P’s of marketing:
PRODUCT
PLACE
PRICE
PROMOTION

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 MARKET STRATIGIES
Direct Sales? Open market
Agro processing? Cooperation among
smallholder farmers to turn primary
agricultural products into other commodities
for market.

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 BUSINESS
OPPORTUNITIES

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Agriculture is fast growing dynamic field and in
agriculture business profit as well as impact can be
created with small efforts and low capital.
Some business opportunities in India can be:
 Medicinal plants and tissue culture
 Seed development and distribution
 Food processing
 Organic farming
 Animal husbandry
 Agri produce marketing
 Financing in the farm sector
 Logistics and warehousing
 Farmers training So... Where's your business plan.?
 RECENT NEWS
Modi govt keen to hand out up to Rs 4000 to
farmers before polls.
Chhattisgarh govt. to write off Rs. 207 crore of
irrigation tax ; to benefit 15lakh farmers.
Govt hikes MSP of 22 crops to a minimum of
50% over cost.
Govt mission to double farmer’s income by 2022
on track: Agriculture minister Radha Singh.
Govt finalises Model Contract Farming Act 2018.
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 Union budget 2018: Govt promises to buy farmer’s
produce at better prices, announces agri reforms.
 Less mango export from UP this year as prices soar
higher than usual.
 Farmer’s right activists to alert farmers about crop
MSP on social media.
 Direct Benefit Transfer process in fertiliser subsidy
still far from perfect, says NITI Aayog commissioned
study.
 Farmer’s organisations seek enactment of freedom
from debt bill, guaranteed fair and remunerative
prices bills.
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THANK YOU

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ANY QUESTIONS..?

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