Corporate Farming | Pepsi Co | Agriculture

CORPORATE FARMING

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

(PEPSICO)

 Corporate farming is a term that describes the

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

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 - leasing arrangements (Corporate Farming ) to allow accelerated technology transfer , capital flow and assured market for crop production.

Corporate Farming
 This is system for the production and supply of

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

Reason For Corporate Farming
 Consolidation of small farm lands into larger land
  

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

Benefits of Corporate Farming
 The core argument for the method criticized as corporate is

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

Benefits of Corporate Farming
 Corporate farming has presented consumers with

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

Case of Corporate Farming in India. PEPSICO
 Pepsi’s tomato farming project was primarily

responsible for increasing India's tomato production.  Production increased from 4.24 million tones in 1991 – 92 to 5.44 million tones in 1995 -96 due to the use of high yield seeds.  Pepsi offered its contract farmers advanced equipments such as transplants and seeding machines to help them carry out their task efficiently and speedily.  Contract farming has been encouraged by Pepsi

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