1. Agriculture 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

2. Concept 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

3. Agribusiness – 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

4. Agribusiness – 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

5. Agri-business System AG. MARKETING & AG. INPUT AG. PRODUCTION
PROCESSING SUB-SYSTEM
AG. INPUT
SUB-SYSTEM
AG. PRODUCTION
SUB-SYSTEM

6. Agriculture 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

7. Agriculture Production sub-system
Crop planning
Maximize production
Maximize input use efficiency
Food security
Employment generation
Sustainability of natural resources

8. Agriculture 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

9. Agri-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.

10. Agri-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 consumer’s rupees reaches the farmer as compared to 50% in developed countries.

11. Agri-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.

12. Agri-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.

13. Agri-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.

14. Concept 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”

15. Concept 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?

16. Concept 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

17. Agriculture Marketing Alternatives
Delivery Alternatives
- local market
- commission agent at farm
- regulated market
- processing plant
- international market

18. Agriculture Marketing Alternatives
Storage alternative
- on farm storage
- commercial facility
- government facility
Product alternative
- raw product
- processed products
- branded products

19. Agriculture Marketing Alternatives
Pricing alternatives
- cash sale
- forward contract
- as on sale basis
- contracting
Mode of marketing
- individual
- cooperative

20. Concept of Marketing Marketing is a value added process
- It adds form utility
- It adds place utility
- It adds time utility
- It adds possession utility

21. Alternate 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

22. Alternate 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

23. Alternate 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