Title: Agriculture Marketing as a part of Agri-business
1Agriculture Marketing as a part of Agri-business
- Concept of agri-business
- Components of agri-business
- Agri-business in India issues
- Concept of agriculture marketing in the changing
agri-business scenario
2Concept of Agri-business
- Agri-business can be defined as commercialization
of agriculture, which refers to market
orientation of agricultural production process. - Transition from subsistence to commercial
agriculture. - From production oriented approach to market
oriented approach
3Agribusiness Change in Focus
- Produce and sell homogenous commodities
- - Produce specific attributes and differentiated
products - Emphasis on tradition in agriculture
- - Emphasis on innovations
- Emphasis on technical skills
- - Emphasis on managerial skills
- Food security is primary concern for production
- - Production is diversified as per market demand
4Agribusiness Change in Focus
- Marketing is organized in centrally planned
economy - - Marketing is conducted in market economy
- Increased role of government to protect the
farmers - - partnership web between farmers, corporate
business and government - Low income low risk for farmers
- - High income high risk for farmers
5Agri-business System
AG. MARKETING PROCESSING SUB-SYSTEM
AG. PRODUCTION SUB-SYSTEM
AG. INPUT SUB-SYSTEM
6Agriculture Input sub-system
- Innovation of new technology
- Availability of inputs to farmers
- in proper quantity
- of good quality
- at appropriate time
- at appropriate cost
- Extension
- approach
- institutions
7Agriculture Production sub-system
- Crop planning
- Maximize production
- Maximize input use efficiency
- Food security
- Employment generation
- Sustainability of natural resources
8Agriculture Marketing Processing sub-system
- Identifying the market
- Proper return to farmer
- Higher consumer satisfaction
- Appropriate market channel
- Low marketing cost
- Higher market efficiency
- Low wastage
- Increase value addition
9Agri-business Current Status and Issues
- The food chain in India from the farmer to the
consumer involves several intermediaries leading
to handling at multiple points and longer transit
time. - It is estimated that 20 of the food produced in
India is wasted. This is valued at Rs 50,000
crores approximately.
10Agri-business Current Status and Issues
- This wastage is equal to the amount that the
government spends on food subsidy by more than
six times. - Only 25 of the consumers rupees reaches the
farmer as compared to 50 in developed countries.
11Agri-business Current Status and Issues
- India produce a wide range of fruits and
vegetables of both the topical and temperate
varieties because of the varied climatic
conditions in our country. - Unfortunately, less than 2 of our produce is
processed as against 30 in Thailand, 70 in
Brazil, 78 in Philippines and 80 in Malaysia.
12Agri-business Current Status and Issues
- The wastage is estimated as high as over 25 of
the total production of fruits and vegetables. - The cold chain system is primitive and under
developed. - The existing capacity of 1 million tonnes is
primarily used for storage of potatoes.
13Agri-business Current Status and Issues
- The current method of forecasting of agricultural
produce does not provide for any time to take
corrective action in terms of crop failure or
surplus. - There is need to develop efficient market
information system.
14Concept of Marketing
- Performance of all business activities involved
in the flow of agricultural products from the
point of initial agricultural production until
they are in the hands of consumers
15Concept of Marketing
- It does not limit marketing to all non-farm
activities in the food industry - - Marketing begins with production decisions on
the farm itself - - no isolation between production and marketing
- - Can farm gate become dividing line between
farming and marketing?
16Concept of Marketing
- A mutual interdependence between farmers and
middlemen - - competitive or complementary relationship
between two parties? - Marketing is management decision making
- - it is neither mechanical nor an automatic
operation
17Agriculture Marketing Alternatives
- Delivery Alternatives
- - local market
- - commission agent at farm
- - regulated market
- - processing plant
- - international market
18Agriculture Marketing Alternatives
- Storage alternative
- - on farm storage
- - commercial facility
- - government facility
- Product alternative
- - raw product
- - processed products
- - branded products
19Agriculture Marketing Alternatives
- Pricing alternatives
- - cash sale
- - forward contract
- - as on sale basis
- - contracting
- Mode of marketing
- - individual
- - cooperative
20Concept of Marketing
- Marketing is a value added process
- - It adds form utility
- - It adds place utility
- - It adds time utility
- - It adds possession utility
21Alternate Business Philosophies
- Production Orientation
- Focus Exploitation of technical capability
- (maize grows well here so we grow maize)
- Objective Profits through supplying to markets
where task is one of allocating supplies between
different markets
22Alternate Business Philosophies
- Selling orientation
- Focus Promoting the consumption of the product
that you are able to produce - (Let us sell as much of the maize as possible)
- Objective Profits through persuading the people
that what you have is what they really want
23Alternate Business Philosophies
- Marketing orientation
- Focus Identifying wants and needs of the
consumers and matching those with your resources - (Income has risen and people want more
vegetables, so let us diversify) - Objective Profits through provision of customer
satisfaction by meeting their needs and wants