In agriculture, agribusiness is the business of agricultural production.

It
includes crop production (farming and contract
farming), seed supply, agrichemicals, breeding, farm machinery,
distribution, processing, marketing, and retail sales.
Within the agriculture industry, "agribusiness" is used simply as
a portmanteau of agriculture and business, referring to the range of
activities and disciplines encompassed by modern food production. There
are academic degrees in and departments of agribusiness,
agribusiness trade associations, agribusiness publications, and so forth,
worldwide. In this context the term is only descriptive, and is synonymous
in the broadest sense with food industry. The UN's Food and Agriculture
Organization (FAO), for example, operates a section devoted to
Agribusiness Development
[1]
which seeks to promote food industry growth
in developing nations.
In the context of agribusiness management in academia, each individual
element of agriculture production and distribution may be described as
agribusinesses. However, the term "agribusiness" most often emphasizes
the "interdependence" of these various sectors within the production
chain.
[2]

Among critics of large-scale, industrialized, vertically integrated food
production, the term agribusiness is used negatively, synonymous
with corporate farming. As such, it is often contrasted with smaller family-
owned farms.











Introduction
Commercialisation of agriculture calls for specialised production, post-
harvest management, expansion of processing, transportation and
packaging activities and positioning of products both in domestic and
international markets. The need for agri-business management
(ABM) programmes both at under-graduate and post-graduate levels has
become important. Now, agri-business is taught as a separate course in
most of the SAUs at the under-graduate level in various
degree programmes.

Agri-business management
The concept of agribusiness denotes the activities of agricultural sector
integrated in terms of production, processing, marketing and shipments
(exports/imports) under different organisational networks. Agri-business
thus explores production, marketing and trading of products related to
agriculture. It also covers improved growing techniques, agricultural
machinery, fertilizer, pesticides pre- and post- harvest handling, storage,
transportation, packaging and labelling. Critical management issues as
financing and technical assistance, preparation of products for exports,
overseas marketing issues and government policy will also receive
attention in agri-business management.








Scope
There is no doubt that the agri-business activities are on the increase.
The liberalisation policies of the Government and the establishment of
WTO have created more opportunities for globalising our agriculture.
There are clear indications that certain sectors such as floriculture,
aquaculture, poultry, processing of fruits and vegetables are reaping the
benefits of advanced technology. The entrepreneurs
or organisation engaged in such ventures are on the look for competent
and trained agribusiness managers. But, who can provide them the
required manpower? Obviously, the SAUs should take a lead in this
direction. The Indian Institutes of Management (MM) no doubt have the
competency and facilities to turnout such trained personnel. However,
their priorities and mandates are different. Moreover, those trained by IIM
rarely go into the agri-business sector. The time is thus ripe for SAUs to
start postgraduate programmes in agri-business management.
Current status
Most of the SAUs are offering post-graduate programmes in agricultural
economics and agricultural
extension. Tamil Nadu Agricultural University, Coimbatore was the first in
the country to start masters programmes in agricultural marketing
management and agri-busineesmanagement. These two
new programmes have been well received by the corporate
sector. University of Agricultural Science .Bangalore was the first in the
country to introduce Agricultural Marketing and Co-
operation programme at under-graduate level. Now, a
PGprogramme in sericultural marketing and co-operation is also in
operation. Our experience of human resource development
in specialised areas had met with relatively good degree of success.
However, we have to be cautious since it takes time for the employers to
accept new degree holders especially in the public sector.



Issues
Two major constraints in initiating new programmes such as ABM
in SAUs are there is resource crunch and lack of trained manpower. These
could be addressed to some extent by pooling resources on multi- and
interdisciplinary basis. Wherever possible, a separate PG department in
agribusiness management could be created so that the expertise could be
built over a period of time. If not, the Department of Agricultural
Economics be strengthened by recruiting trained personnel in identified
areas and also by training the existing staff members.
It is possible to operate the ABM programme as a multi- and inter-
disciplinary subject in the SAUs. All the SAUs can take the benefit of existing
basic science and humanities departments such as economics, sociology,
psychology, mathematics and statistics.
Agricultural engineers and horticulturists could be used for teaching post-
harvest management and food technologists for food science.
Courses for post-graduate programme in agri-business
management
The ABM programme mainly intends to cater to the emerging needs in
the agri-food sector. In general, it should aim at producing following
categories of trained manpower.
i. Management personnel for the agri-food firms, entrepreneurs
and cooperatives.
ii. Policy makers for government, financial
and parastatal agencies,
iii. Teachers and research workers
iv. Agri-business consultants and self-employed persons.
This programme is mainly designed for graduates coming out of
the SAUs comprising of agriculture, horticulture, forestry, sericulture,
agricultural marketing and co-operation. We may also think of admitting
graduates in veterinary, fisheries, dairy and agricultural engineering. The
scheme therefore, assumes that all students will have a knowledge of
agricultural production so that instruction can concentrate exclusively on
agri-business aspects.
The post-graduate course aims to provide students with an understanding
of:
i. the public policy framework within which business operate
ii. the business and marketing management techniques necessary
for graduates to operate as managers
iii. the theoretical framework together with analytical techniques
for decision making
iv. conduct of research on a subject of topical interest.
The proposed course for the M.Sc programme in ABM are presented in
Table 1. Clearly, this is only a model for masters course, but is flexible
enough to incorporate location specific requirements.
The main focus of the proposed programme is to produce specialists who
have understanding of production technology as well as business aspects of
agriculture. This specialised type of training is even more useful when it
comes to dealing with farmers who have been often told of production
technologies with very less of marketing extension. It is therefore
reasonable to believe that agri-business firms or organisations will provide
employment to such post-graduates at middle management levels.
Presently, the SAUs are keen to establish linkages with industry. This will
provide us an opportunity to convince the industry that we are making
effort to meet their requirement.









Table 1 :
Proposed courses for M.Sc in agri-business management
A) Major field
Introduction to agri-business management
Food policy and price analysis
Marketing management and strategy
Financial management
Production management
Project planning and management
International trade and export management
Managerial economics
Operations research
Organisational behaviour
Post-harvest management
Management accountancy
Human resource management
B) Minor/related field
Micro economics
Macro economics
Statistical methods
Multivariate analysis
Rural sociology and development
Farm management

Conclusion
The introduction of ABM programme in SAUs as a part of the social science
faculty has assumed importance in view of the changing scenario
towards commercialisation of agriculture. The role expectations of
the SAUs are changing and agri-business management will receive greater
attention to meet the needs of the agri-food sector. The main focus of
the programme is to produce agri-business managers who have the
understanding of production technology as well as commercial aspects of
agriculture.


Agribusiness Management Process


A. Agribusiness includes all those business and management activities
performed by firms that provide inputs to the farm sector, produce
farm products, and/or process, transport, finance, handle, or market
farm products.

B. In a 1974 survey of agribusiness-related occupations, the USDA
defined very specifically what types of employment agribusiness
encompass. The following is a breakdown of the types of activities
that were then considered to be used in agribusiness:

1. Agricultural production and propagation of animals, animal
products, plants, plant products, forests, and forest products.




2. The providing of services associated with agricultural production
and the manufacture and distribution of supplies used in
agricultural production.
3. The design, installation, repair, operation, and servicing of
machinery, equipment, and power sources, and the construction
of structures used in agricultural production.
4. Any activities related to the inspection, processing, and marketing
of agricultural products and primary by-products.
5. Any aspects of greenhouse, nursery, landscaping, and other
ornamental horticultural operations.
6. The conservation, propagation, improvement, and utilization of
renewable natural resources.
7. The multiple uses of forest lands and resources.





C. The current definition of agribusiness involves a broader view that
encompasses the total food production and distribution system; this
includes three major sectors:

1. Input Sector - Farm Service and Supply
a. Includes feed, seed, fertilizer, chemicals, petroleum, farm
machinery and equipment, livestock feeder stock, financing,
consulting services, water, and other input service/supplies
for production of goods and services in the agricultural
industries.




2. Farm Production Sector
a. This is the hub of agribusiness which connects the input and
product sectors.
b. The health of the farm production sector has a vital and
direct impact on the financial well-being of both the input
and output sectors of agribusiness.



3. Product Sector - Processing and Marketing
a. This is the largest of the three sectors.
b. The product sector transforms the raw farm output into a final
consumer product at the retail level.
c. Some examples of businesses in the product sector are food
processors, meat packers, bottlers, canners, packing houses,
wineries, brewers, transportation companies (truck, railroad,
air), brokers, wholesalers, retailers, advertisers, and
merchandisers, among others.















Importance of Good Management

a. 88% of all business failures can be traced to poor
management.
b. Management deals with the effective use of a firm's
resources.
c. No single, specific, successful management pattern can be
defined.
d. General management skills and principles can be learned, but
they must be modified to deal with the specific problem at
hand.
e. Although management may have various definitions, it is
important to note that it deals with people and resources.

Distinctive Features of Agribusiness Management

1. There are several factors that differentiate agribusiness management
from non-agribusiness management:

a. There is tremendous variety in the types, sizes, and numbers
of businesses involved.
b. The entire system revolves around the production sector.
c. The unique nature of the product and competition within the
industry.
d. The majority of agribusinesses are family-owned and these
families usually have a traditional philosophy of life.
e. Agribusiness has to deal with numerous problems and
uncertainties caused by the vagaries of nature.



Elements of Good Management
One definition of management is "the art of successfully pursuing desired
results with the resources available to the organization." Thus,
management is:
a. People-oriented
b. An art, not a science
c. The ability to establish and meet prescribed goals
d. Working with available resources, stressing efficiency




About Food & Agri business Management
Program


The well recognized Food and Agri Business Management Program from
Cornell University and Sathguru Management Consultants is arranged
every year to keep pace with the dynamically changing agri business sector
worldwide. A paradigm shift in the agri-business polices, strategies and
markets has been noticed in the emerging economies, opening up more
opportunities for the industries to be recognized as global leaders in this
sector.
During the course of this program participants explore the economic,
environmental, and social issues that profoundly impact the agribusiness
industry. The course is meticulously designed and provides executives with
knowledge and essential cross-industry outlook globally. As this exclusive
program brings together senior level executives which include producers,
manufacturers, marketers, retailers, bankers, policymakers, service
providers and also distinguished academicians, it offers a thorough
exposure and valuable opportunity to enhance knowledge and skills.
Taking part in the Food and Agri Business Management Program which is
the fifteenth in the series will help the professionals as well as the
respective organizations in keeping track of the recent trends, innovations
and best practices in the industry which in turn will help them take
confident and bold strides in leading the agri-business industry towards a
more profitable future.




New Concepts for Farms,
Agribusiness, Ag Policy


Brace yourself for a jolt of linear thinking toward
agriculture. In the way farms, agribusinesses and ag policy
are being viewed and managed, old concepts are giving
way to new, and while some changes have occurred only
recently, others are continuations of trends that began
decades ago.
These are the observations of Michael Boehlje,
formerly with the University of Minnesota
agricultural economics department, and now at
Purdue.
To stimulate dialogue about agricultural trends,
Boehlje has presented his observations to the
academic community and policy makers in Choices, a
magazine published by the American Agricultural
Economics Association.
Bear in mind that in some cases, a new concept
doesn't replace the old, but is an addition or extension
of the former concept. You would not be out of line
by taking issue with one or more of the concepts
listed below on Boehlje's variation of "what's
hot/what's not" in agriculture. These are points for
discussion, he says, presented not as empirical fact
but as informed observations.
Old, new concepts in managing farms and
agribusinesses
OLD: Commodities
NEW: Specific attribute/differentiated raw materials
OLD: Staple products
NEW: Fashion/niche products
OLD: Assets drive the business
NEW: Customer drives the business
OLD: Hard assets (land, machinery, buildings) are
the prime source of strategic competitive advantage.
NEW: Soft assets (people, organization, plans) are
the prime source of strategic competitive advantage
OLD: Blending of commodity product from multiple
source
NEW: Separation of identity-preserved raw materials
OLD: Geographically concentrated production sites
NEW: Geographically dispersed/separated
production sites
OLD: Owning assets
NEW: Control of assets
OLD: Money/finance/assets are the prime source of
power and control
NEW: Information is the prime source of power and
control.
OLD: Labor is a cost; equipment is an investment
NEW: Labor is an investment; equipment is a cost
OLD: Sell product and give away service
NEW: Sell service and give away product
OLD: Expanding and getting into the business (entry)
NEW: Contracting and getting out of the business
(exiting)
OLD: Impersonal/open markets
NEW: Personal/negotiated/closed markets
OLD: Adversarial relationship with suppliers and
purchasers
NEW: Partner with suppliers and purchasers
OLD: Impersonal sourcing and selling
NEW: Relationship sourcing and selling
OLD: Insourcing (produce your own) inputs
NEW: Outsourcing (buy from someone else) inputs
OLD: Buying from multiple sources
NEW: Buying from sole suppliers/qualified firms
OLD: Price premiums for specific attributes and
volume purchases
NEW: Cost reductions for specific attributes and
guaranteed markets
OLD: Market (price) risk
NEW: Relationship risk
OLD: Independence
NEW: Interdependence/systems
OLD: Stability
NEW: Change/chaos/flexibility
OLD: Agriculture is an art form
NEW: Agriculture is primarily science based
OLD: Technical skills critical to success
NEW: Personal/communication skills critical to
success
OLD: Technological change and innovation
NEW: Institutional (ways of doing business) change
and innovation
OLD: Core competencies/expertise
NEW: New/different/unique skills and capabilities
OLD: Public/open information and research and
development
NEW: Private/proprietary/information and research
and development
OLD: Resource users and exploiters
NEW: Resouce protectors
OLD: Produce goods and dispose of bads/by-
products
NEW: Produce goods and bads; utilize/recycle
bads/by-products
Old/New concepts in viewing agricultural
policy
OLD: Agriculture is farming
NEW: Agriculture is the food production and
distribution system
OLD: Family farming and small business
NEW: Industrialized/corporate agriculture
OLD: Unstable supply (primarily domestic)
NEW: More stable supply (worldwide production)
OLD: Unstable domestic demand
NEW: Unstable foreign demand
OLD: U.S. is prime world supplier
NEW: Many suppliers worldwide
OLD: Domestic markets are prime markets
NEW: Foreign and industrial markets are critical
markets
OLD: Raising commodities
NEW: Manufacturing food products
OLD: Consumers fear high food costs and food
shortages
NEW: Food costs are decreasing part of the
consumers budget, and worldwide sourcing reduces
the prospects of shortage
OLD: Consumers believe their food is safe
NEW: Consumers question food safety
OLD: Significant political influence
NEW: Limited political influence
OLD: Adequate budget funds for agriculture
NEW: Reduced funding for agriculture
OLD: Farmers are economically disadvantaged
NEW: Farmers have comparable income to others
OLD: Farm income measures economic well-being
NEW: Farm household income measures economic
well-being
OLD: Farm program payments are an entitlement
NEW: Program payments are conditional and should
meet "needs" tests
OLD: Operating farmers own most of the farmland
NEW: Increased farmland owned by nonoperators
OLD: The public trusts farmers as stewards of
resources
NEW: The public questions farmers as stewards of
resouces
OLD: Conservation of resources to maintain/increase
productivity
NEW: Environmentally sound use of resources to
reduce pollution
OLD: Efficiency
NEW: Ecology
OLD: Private property rights are sacred
NEW: Society is reserving more property rights for
the public and reducing private property rights
OLD: Farmers have higher moral standards, a strong
work ethic and higher values
NEW: Farmers are no different in terms of values,
work ethic, or moral standards than the rest of society
OLD: Economic well-being of rural communities
depends upon farming
NEW: Economic well-being of rural communities
depends more on nonfarm activity
OLD: Rural areas have a higher quality of life
compared to urban areas
NEW: Rural areas have a lower or at best the same
quality of life as urban areas