AGRI-BUSINESS MANAGEMENT

Agriculture produces raw material to support various agro based industries and subsidiary industries including dairy, textile, food and pharmaceuticals. Agriculture activities are to be made more competitive with the input of modern technologies and value additions. It is in this context that agriculture has to be understood as an agribusiness activity. Agriculture business has become well accepted term worldwide. Today even most farm families use purchased food and fiber products rather than doing the processing themselves. The farms that meet the consumers demand for greater processing and convenience also constitute a major part of agribusiness and are referred to as the processing manufacturing sector.

Concept of Agribusiness and Management

• Scope and Importance of Agribusiness
• Characteristics of Agribusiness
• Nature of successful agribusiness
• Objectives of Agribusiness
• The Concept of Management
• Managerial Economics and commerce
• Management – Nature, types, tasks and responsibilities

AGRIBUSINESS :

Agriculture produces raw material to support various agro based industries and subsidiary industries including dairy, textile, food and pharmaceuticals. Agriculture activities are to be made more competitive with the input of modern technologies and value additions. It is in this context that agriculture has to be understood as an agribusiness activity. Agriculture business has become well accepted term worldwide. It is apparent that the definition of agriculture had to be expanded to include more than production. Input sector, Production , Processing & manufacturing : Farmers rely on the input industries to provide the products and service they need to produce agricultural commodities and processing.

AGRIBUSINESS MANAGEMENT :

Agribusiness defined by the many authors and researchers for understanding this some definition are given below:

John H Davis described agribusiness as “All the activities concerned with agriculture”. These activities include farming, management, financing, processing, marketing, etc.

John Davis and Ray Goldberg (1957) defined agribusiness as “The sum total of all operations involved in the manufacture and distribution of farm supplies, production operations on the farm and the storage, processing & distribution of farm commodities and items made from them.”

Agricultural economists defined agribusiness as “All business enterprises that buy from or sell to farmers. The transaction may involve a product, a commodity or a service and encompasses/ contains items such as

• Productive goods/services: feed, seed, fertilizers, equipment, energy, machinery, etc,
• Agricultural Commodities : e.g. food and fibre
• Facilitative Services : e.g. credit insurance, marketing, storage, processing,  transportation, packaging, distributions, etc.

Six Principles of Creating Good Working Climate for Agribusiness

• Setting a good example
• Conscientiousness (sense of right or wrong) seeking participation
• Be- goals- and results- centered
• Giving credit and blame as needed: Credit in public, blame in private
• Fairness, consistency and honesty
• Inspiring confidence and giving encouragement.