Description
bsuiness related
Presented By jyoti prakash biswal
`
` `
In this form of organization the firm is owned by a single person. They are often small business. There is no differentiation between personal assets and business assets.
`
`
`
In a partnership firm, two or more people are the owners of the business.Patnership is defined as the relation between two or more persons who have agreed to share the profits and losses according to their ratio of business run by all or any one of them acting for all. General partner has equal rights and liabilities regardless of percentage of capital contributed. A limited partnership permit individuals to contribute capital with out incurring the full liability of a general partner.
`
`
`
A corporation is a special legal entity endowed by law with the power,rights,liabilities and duties of a person. Corporations are managed by the Board of directors who are elected by the common stock holders. Taxation and regulation is one of the main disadvantages of the corporation form of organization.
`
`
Co-operatives are organizations that are owned, operated and controlled by the members themselves. Cooperatives provides economic benefit to the members and net income is distributed to individuals members in proportion to their volume of business with co-operatives.
`
`
Agriculture emergence as an industry, so farmers no longer function in isolation and most of the production decision are governed by the marketing firms and consumers preferences. Agribusiness management would be successful only farmers produce what markets want rather than what they are good at producing.
`
`
` `
Management of production components such- as water,nutrients,pest,equipments,economics,geneti cs etc. Information on new technologies and evaluation of economics, environmental and social impacts of technology adaptation Value added processing and marketing. Sources of energy and means of energy conservation in agriculture.
Specialization means restricting the scope of economic activity and concentrating on doing a few task well. Specialty production of medicinal,herbs,organic vegetables, mushroom etc have to be profitable.
` ` ` ` ` ` ` `
Utilization of lands or resources not suited for conventional agriculture. Tapping of specialty markets. Securing higher prices Disadvantages Proper location ,site selection and enterprises suited to an area are required High initial inputs costs More intensive and higher levels of management are required Marketing innovations and most specialty enterprises are high risk
`
`
` `
Diversification in agriculture are mainly influenced by natural resources, government policyenvironment,projectfeasibility, infrastructure ,market research, extension and training, private sector involvement and availability in supply chain Diversification strategic are based on the ability among the producer to quickly adjust to the market opportunities created by rational policies. Horizontal Diversification-Enables the farmers to produce different crops Vertical diversification- Engages in different value added activities.
Conservation of biodiversitycomplex ecology of flora and fauna have been influenced by and subsequently adapted to farming activities. Organic farming which provide a combination of environmental, social and economic benefit due to absence of synthetic pesticides, leading to positive environmental impacts on biodiversity.
`
`
`
Land use and soil- Proper soil management maintaining the quality and long term productivity of the soil and reducing potential environmental damages. Good soil management is a vital importance to the income and long term economic viability of farmers.
`
Sustainable agriculture call for the management of natural resources in a way that ensures that the benefits are also available in the future.
Agricultural Inputs Supply Sector Input Manufacturing sector Input Distribution sector Service Sector
Input management
`
`
`
Input manufacturing companies are those companies those who spend huge amount of money on research development to bring a new product to the producer. Multinational firm-John Deere,Monsanto,Jain irrigation,Bayer,Mahindra,syngenta etc. Farm production inputs are moved from manufacturer to the farm through a vast network of sales, marketing and distribution channels.
`
`
` `
Agricultural input supply sector comprises of firms that manufacture and distribute of inputs that fuel the production agriculture sector. Seed, fertilizers, machinery and equipment, crop protection, credit etc are a few of the major agricultural inputs Cooperatives and primary agricultural credit societies are involved in the distribution of inputs Agricultural service industry also plays an important role in the provision of facilitative services such as credit and insurance, information and technical consultancy.
`
Efficiency of the input marketing is defined by certain variables such as active private sector involvement, competitive market orientation, reliable market information system, financial reform, facilitative regulation, forging forward and backward linkage and human capital development
` `
`
`
Private integrated input market networks should be developed Inefficiencies in the govt organization can promote the private sector can instill professionalism in the input supply sector Private should be encouraged to play a greater role while guaranteeing the availability of seed of reliable quantity to the farmers Joint ventures between the public and private sectors should be promoted.
`
`
Input marketing system can be more competive,only if both production and marketing subsidies are maintained at a minimal level. Necessary subsidies should be designed so as to not hamper the functioning of competitive input markets
`
`
Sound business decision should be based on planning through the use reliable marketing information. Supply, demand and prices should be continually monitored through the establishment of market information systems providing accurate and timely information to market participant.
`
`
`
Rural Financial reformed into a liberalized system involving private-sector lending. Access of capital to the private sector should be enhanced and credit repayments closely monitored. Commercial finance and credit available for the development of seed production and distribution enterprises is created.
`
`
`
Role of govt should be to create a legislative framework which supports national seed Institutions, creates the appropriate economics environment and minimizes govt interference in the market. Role for both the public and private sector enterprises Govt should ensure that commercial finance and credit are available for the production and distribution enterprises.
`
`
Effective forward and backward linkages should be forged through a well functioning research and extension system in order to develop better technologies and educate farmers. New products should be introduced through research and development, Improvements need to be made to existing products.
`
It is critical to both public and private sectors. It should be systematically planned and implemented.
`
` `
`
Agricultural marketing management includes all business activities involved in the flow of agricultural products and services from the point of initial agricultural production to the final consumer. Efficient marketing management in agriculture aims at maximization of the input output ratio. Marketing inputs include the resources like land,labour,capital etc necessary to perform the marketing function and out put includes the product,place,time and position utilities that provide satisfaction to the consumers. Satisfaction levels can be measured against the price which consumers are willing to pay in the market place.
`
` `
Location- Village markets-confined to small villages may be held
regularly or intervals. Transaction between producers and sellers Primary wholesale market-Located in big towns or taluka.Transaction between the traders and buyers. Secondary wholesale markets-Located at district level. Commodities are traded in large quantities between the traders and wholesalers. Majority of the produce comes from primary wholesale markets and involve several functionaries such as the commission agents,brokers,weighmen,laborers etc Terminal markets-Located in big cities, capitals of states or sea ports. Under government control well organized with processing and storage facilities. Market provides arts infrastructural facilities for electronic auction, cold chain and logistics are producing area to allow easy access to growers.
`
Seaboard markets-Markets focus on the export and import of commodities. They are well organized markets catering to international standards ` Time-Short duration markets-Market are held for brief periods during the day and the supply is normally inelastic. Mainly seen in case of perishables. ` Long duration markets-Commodities which can be stored for longer period of time like oilseeds and pulses comprises of duration market. Price are determined by demand and supply. ` Secular markets These are well organized markets dealing with manufactured goods or machinery. Processing and storage facilities are well developed.
`
`
Market Area- Local Market-Markets are small in size
and confined to the locations such as a villages etc.They are held regularly or weekly depending on the perishability of the commodity. Regional market-They have a large area of operation and cover an entire region. Deals in important commodities like food grains or oilseeds. National markets-Area of operation is the entire country and aim to procure and distribute produce over place and time. International markets-Markets deal in purchase and sales of commodities globally. Several items like tea,coffee,spieces,rubber etc have international market.m
`
`
`
` ` `
` ` `
Commodities General markets-These markets cater to all types of commodities. Specialized commodity markets-These market deal with specific commodities like cotton market or the jute market. Transaction Cash market-Market where commodities are traded in cash are know as the cash markets. Forward markets-Markets where future purchase and sales take place at a current time are know as the forward markets.
` `
` ` ` `
Government Intervention Regulated marketed-These markets are governed by the marketing Act with statutory market committees. Most of the variables like marketing fees, costs etc are standardized. Unregulated markets-These markets function independents of government controls or supervision Volume of BusinessWholesale markets- Large transaction of agricultural commodities takes place in these market Retail markets-these markets sell directly to individual consumers in limited quantities.
Marketing Approaches
Functional
Institutional
ehavioral s ste
Exchange functions
Wholesalers and retailers
Input output s ste
h sical Functions
o ission agent/ rokers
Distinctive advantages s ste
Facilitative function
Speculators
o
unication s ste
rocessors
Adaptive ehavior
Facilitative organization
`
The major marketing functions can be classified into exchange function, physical function and facilitating function.
`
`
`
It deals with buying and selling functions which involves transfer of title to goods. Buying pertains to a knowledge of and access to best possible products for procurement of raw materials by middle man . Selling function deals with a large number of activities right from anticipating demands, planning of production, decision making regarding marketing channels,packaging,advertising,physical display of goods.
`
` `
`
Physical function play a crucial role in marketing management and involve handling, movement and physical change in commodity. Storages function- makes the products available at the requisite time and can monitor the price level. Transportation function-Transportation makes goods available at the required place and involve the type of transportation affecting transportation cost. Processing-Involves all activities that change the original form of a product into desired form by the consumer.
`
Facilitating Function includes activities like credit and financing, risk management, market information, market intelligence.
`
Efficient marketing infrastructure such as wholesale, retail and assembly market and storage facilities is essential for cost-effective marketing to minimizes post harvest losses and to reduce health risks.
`
`
Wholesaler purchase from farmers and normally sell to retailer and other industrial consumers. Retailer interact directly with the end consumer and provide a variety of product at a conventional location. Ex-super market.
`
`
Commission agent don't own the products they handle and receive their income in the forms of fees and commission. Brokers normally don't have physical control over the product or on price negotiation.
`
Speculator buy and sell products with the main objective of profiting from price movement. They benefit from short run fluctuation in prices. Future trading is one of the established ways of making short term gains.
`
`
Processors transform agricultural commodities into food, feed or fiber. Food processors are an important link in marketing the produce to the consumer as they add maximum value to agricultural raw materials by providing place, form and time utility ex Diary industry where perishable milk is converted into butter ,chesses ,ghee etc marketed over place and time.
`
Organization such as banks,qualitycontrol and standardization organizations, trade associations research institutions and government machinery facilitate the effective movement of quality goods from producer to consumer in the requisite form at the desired place and time.
`
Every organization can be defined as a system of behavior as they are composed of people who are involved in decision making in order to solve specific problems. Four major behavioral systems have been indentified.
`
Every firm is utilizing a scarce and costly input in order to produce a profitable output. This includes the farmer, the middleman, the transporter, the processor, the retailer as well as the consumer. As such engineering sciences can add value to the marketing function.
`
Every individuals or organization develops a distinct advantage based on quality,service,product features etc which provides them with a particular market niche. Decision making is normally undertaken with view to strengthen and maintain this niche.
`
All organizations have an important communication system linking the producer to the end consumer.
`
The behavioral system approach is extremely important in the current scenario of industrialization of agriculture where in greater networking is called for between the various functionaries such as producers, service providers, processor and consumers.
`
The agricultural supply chain relates to productive relationships between producers,processors,manufacturers and retailers
`
`
`
Growers as individuals or cooperatives sell their produce to wholesalers,packers,marketing agents or processors who then supply it to the retailer stores. Growers pack and market their own product and sell directly to the wholesalers or retailers. This can be seen in the fresh produce sector. Vertically integrated supply chain where firms are involved in the production,processing,packing and marketing of their produce.
`
`
`
` `
Quality- Quality expectation of the end consumer in terms of product quality and price paid a very important role in the supply chain development. TechnologyTechnology innovation in post harvest,processing,transportation etc determine the length of the supply chain. Logistics-The efficiency of procuring, movement and storage of raw materials and finished goods is crucial to supply chain effectiveness. Information Technology-IT applications support the movement of products and information in the supply chain. Government regulation-As agricultural products are perishable, stringent norms regarding quality and safety parameters are in existence in several countries.
`
` `
`
Farm-gate purchases-Farm gate purchase are characterized by contracts made prior to harvesting and the buyers normally constitute marketing groups, cooperatives or traders. It is mainly a long term relationship based arrangement, reducing the number of intermediaries in the supply chain. This result in minimizing the gap between the supplier price and the consumer price. Local Market- Local market are the mandis where farmers sell their produce on specific days, in a central place at the villages or district. Assembly Markets-Agricultural produce is traded in bulk at the assembly markets to the outside markets, either by the producers themselves or by traders. It operates through out the year, it also provide service such as weighing,packaging,loading and unloading operation. Direct Sales- Farmers directly sell their produce to the urban market, retailers or wholesalers.
`
`
`
Farmers markets-In farmers markets, farmers sell produce directly to consumers. Farmers markets can be seen in towns or cities on a daily or a weekly basis. Although the farmers can get higher prices, volumes are generally low. Wholesale markets-Large amount of produce from many sources are accumulated at wholesale markets for its division into smaller quantities based on quality parameter to meet the needs of retailers. Wholesale markets supply produce to retailers in surrounding districts and to other wholesalers in more distant places. Retail markets-Retailing has progressed from hawkers towards fixed shops and supermarkets. Hawkers sell low quality produce at lower prices to the low income group of consumers which might otherwise have been wasted. Retail shop have a greater variety of goods of a high standard of quality than those found in public markets. Supermarkets are large retail outlets selling all the consumer/customer requirements under the same roof.
ICT application can be classified into those that provide data and requisite information based on user needs and is not concerned with the applicability and those that process information and make it available to the end user in the form needed to facilitate decision making.
` `
` `
`
`
ICT can help in the operation of an early agricultural warning system which can reduce the dependency on climate factors. ICT can facilitate socially desirable,economicallyviable and ecologically sound pattern of resource use and ways to promote sustainable development. Farmers can make use of market information to plan production and to time harvest dates and post-harvest operations. Information Technology helps in decision-making in every field of agriculture such as chemicals usages, irrigation scheduling etc as it is knowledge based and information intensive. Consumers can benefit by the greater competition a market information system generates among retailers and by a greater awareness of price conditions. Improved access to national and international markets is possible.
`
E commerce refers to the buying and selling of goods, service and the transfer of funds through digital communications. The term ³Business to Business´ (B2B) implies similarities or equal partners in trade, and ³Business to Consumers´(B2C) suggest a difference between the two partners. With the globalization of agricultural markets e-commerce has become an important mode of operation for profitable business transaction.
Kisan Call Center Village Knowledge Center Bhoomi Project ITCs Echoupal
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` ` ` ` `
Risk is a very crucial element causing income fluctuation for the farmers in India. Agricultural risk can be broadly classified as Production risk Market risk Institutional risk Financial risk Personal risk
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Production risks are also know as yield risk in agricultural. Two principal components can be attributed to these risks are weather risks and risks due to pests and disease. These factor affect the crop, both in qualitative and quantitative terms. Weather risk can be categorized as uncontrolled, whereas the risk due to pest and diseases can be categorized as those under control.
The volatile nature of the input prices, lack of proper infrastructural facilities for storage, improper delivery of product to the market place and failure of timely delivery of perishable products to the right market are some important market risk in agriculture The nature of market risk which is otherwise know as price risk is different for different commodities
`
The risk in agriculture may arise due to failure of government scheme, regulations and plan such as limitations for the use of chemicals, various tax regulation formed by government, financial service, subsidies and level of support payment which ultimately affect the activities of the farmers
`
Generally the production cycles of many agricultural products extend over a long period of time. So the farmers should be capable of incurring the expenses which they can recover only after marketing the product. Sometimes because of misuse of the loan taken by the farmers, the loan is unable to generate sufficient return which makes the farmers a defaulter for the repayment.
`
Agriculture is also influenced by personal problems or personal risks. Personal risks such as accident,fire,theft and illness affect the life and well being of the farmers which in turn has a direct effect on the farming business. Very often agricultural loans are diverted to the other purposes to mitigate the personal risk.
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Crop Insurance Weather Insurance Contract farming Forward contracts
THANK YOU
doc_288811387.pptx
bsuiness related
Presented By jyoti prakash biswal
`
` `
In this form of organization the firm is owned by a single person. They are often small business. There is no differentiation between personal assets and business assets.
`
`
`
In a partnership firm, two or more people are the owners of the business.Patnership is defined as the relation between two or more persons who have agreed to share the profits and losses according to their ratio of business run by all or any one of them acting for all. General partner has equal rights and liabilities regardless of percentage of capital contributed. A limited partnership permit individuals to contribute capital with out incurring the full liability of a general partner.
`
`
`
A corporation is a special legal entity endowed by law with the power,rights,liabilities and duties of a person. Corporations are managed by the Board of directors who are elected by the common stock holders. Taxation and regulation is one of the main disadvantages of the corporation form of organization.
`
`
Co-operatives are organizations that are owned, operated and controlled by the members themselves. Cooperatives provides economic benefit to the members and net income is distributed to individuals members in proportion to their volume of business with co-operatives.
`
`
Agriculture emergence as an industry, so farmers no longer function in isolation and most of the production decision are governed by the marketing firms and consumers preferences. Agribusiness management would be successful only farmers produce what markets want rather than what they are good at producing.
`
`
` `
Management of production components such- as water,nutrients,pest,equipments,economics,geneti cs etc. Information on new technologies and evaluation of economics, environmental and social impacts of technology adaptation Value added processing and marketing. Sources of energy and means of energy conservation in agriculture.
Specialization means restricting the scope of economic activity and concentrating on doing a few task well. Specialty production of medicinal,herbs,organic vegetables, mushroom etc have to be profitable.
` ` ` ` ` ` ` `
Utilization of lands or resources not suited for conventional agriculture. Tapping of specialty markets. Securing higher prices Disadvantages Proper location ,site selection and enterprises suited to an area are required High initial inputs costs More intensive and higher levels of management are required Marketing innovations and most specialty enterprises are high risk
`
`
` `
Diversification in agriculture are mainly influenced by natural resources, government policyenvironment,projectfeasibility, infrastructure ,market research, extension and training, private sector involvement and availability in supply chain Diversification strategic are based on the ability among the producer to quickly adjust to the market opportunities created by rational policies. Horizontal Diversification-Enables the farmers to produce different crops Vertical diversification- Engages in different value added activities.
Conservation of biodiversitycomplex ecology of flora and fauna have been influenced by and subsequently adapted to farming activities. Organic farming which provide a combination of environmental, social and economic benefit due to absence of synthetic pesticides, leading to positive environmental impacts on biodiversity.
`
`
`
Land use and soil- Proper soil management maintaining the quality and long term productivity of the soil and reducing potential environmental damages. Good soil management is a vital importance to the income and long term economic viability of farmers.
`
Sustainable agriculture call for the management of natural resources in a way that ensures that the benefits are also available in the future.
Agricultural Inputs Supply Sector Input Manufacturing sector Input Distribution sector Service Sector
Input management
`
`
`
Input manufacturing companies are those companies those who spend huge amount of money on research development to bring a new product to the producer. Multinational firm-John Deere,Monsanto,Jain irrigation,Bayer,Mahindra,syngenta etc. Farm production inputs are moved from manufacturer to the farm through a vast network of sales, marketing and distribution channels.
`
`
` `
Agricultural input supply sector comprises of firms that manufacture and distribute of inputs that fuel the production agriculture sector. Seed, fertilizers, machinery and equipment, crop protection, credit etc are a few of the major agricultural inputs Cooperatives and primary agricultural credit societies are involved in the distribution of inputs Agricultural service industry also plays an important role in the provision of facilitative services such as credit and insurance, information and technical consultancy.
`
Efficiency of the input marketing is defined by certain variables such as active private sector involvement, competitive market orientation, reliable market information system, financial reform, facilitative regulation, forging forward and backward linkage and human capital development
` `
`
`
Private integrated input market networks should be developed Inefficiencies in the govt organization can promote the private sector can instill professionalism in the input supply sector Private should be encouraged to play a greater role while guaranteeing the availability of seed of reliable quantity to the farmers Joint ventures between the public and private sectors should be promoted.
`
`
Input marketing system can be more competive,only if both production and marketing subsidies are maintained at a minimal level. Necessary subsidies should be designed so as to not hamper the functioning of competitive input markets
`
`
Sound business decision should be based on planning through the use reliable marketing information. Supply, demand and prices should be continually monitored through the establishment of market information systems providing accurate and timely information to market participant.
`
`
`
Rural Financial reformed into a liberalized system involving private-sector lending. Access of capital to the private sector should be enhanced and credit repayments closely monitored. Commercial finance and credit available for the development of seed production and distribution enterprises is created.
`
`
`
Role of govt should be to create a legislative framework which supports national seed Institutions, creates the appropriate economics environment and minimizes govt interference in the market. Role for both the public and private sector enterprises Govt should ensure that commercial finance and credit are available for the production and distribution enterprises.
`
`
Effective forward and backward linkages should be forged through a well functioning research and extension system in order to develop better technologies and educate farmers. New products should be introduced through research and development, Improvements need to be made to existing products.
`
It is critical to both public and private sectors. It should be systematically planned and implemented.
`
` `
`
Agricultural marketing management includes all business activities involved in the flow of agricultural products and services from the point of initial agricultural production to the final consumer. Efficient marketing management in agriculture aims at maximization of the input output ratio. Marketing inputs include the resources like land,labour,capital etc necessary to perform the marketing function and out put includes the product,place,time and position utilities that provide satisfaction to the consumers. Satisfaction levels can be measured against the price which consumers are willing to pay in the market place.
`
` `
Location- Village markets-confined to small villages may be held
regularly or intervals. Transaction between producers and sellers Primary wholesale market-Located in big towns or taluka.Transaction between the traders and buyers. Secondary wholesale markets-Located at district level. Commodities are traded in large quantities between the traders and wholesalers. Majority of the produce comes from primary wholesale markets and involve several functionaries such as the commission agents,brokers,weighmen,laborers etc Terminal markets-Located in big cities, capitals of states or sea ports. Under government control well organized with processing and storage facilities. Market provides arts infrastructural facilities for electronic auction, cold chain and logistics are producing area to allow easy access to growers.
`
Seaboard markets-Markets focus on the export and import of commodities. They are well organized markets catering to international standards ` Time-Short duration markets-Market are held for brief periods during the day and the supply is normally inelastic. Mainly seen in case of perishables. ` Long duration markets-Commodities which can be stored for longer period of time like oilseeds and pulses comprises of duration market. Price are determined by demand and supply. ` Secular markets These are well organized markets dealing with manufactured goods or machinery. Processing and storage facilities are well developed.
`
`
Market Area- Local Market-Markets are small in size
and confined to the locations such as a villages etc.They are held regularly or weekly depending on the perishability of the commodity. Regional market-They have a large area of operation and cover an entire region. Deals in important commodities like food grains or oilseeds. National markets-Area of operation is the entire country and aim to procure and distribute produce over place and time. International markets-Markets deal in purchase and sales of commodities globally. Several items like tea,coffee,spieces,rubber etc have international market.m
`
`
`
` ` `
` ` `
Commodities General markets-These markets cater to all types of commodities. Specialized commodity markets-These market deal with specific commodities like cotton market or the jute market. Transaction Cash market-Market where commodities are traded in cash are know as the cash markets. Forward markets-Markets where future purchase and sales take place at a current time are know as the forward markets.
` `
` ` ` `
Government Intervention Regulated marketed-These markets are governed by the marketing Act with statutory market committees. Most of the variables like marketing fees, costs etc are standardized. Unregulated markets-These markets function independents of government controls or supervision Volume of BusinessWholesale markets- Large transaction of agricultural commodities takes place in these market Retail markets-these markets sell directly to individual consumers in limited quantities.
Marketing Approaches
Functional
Institutional
ehavioral s ste
Exchange functions
Wholesalers and retailers
Input output s ste
h sical Functions
o ission agent/ rokers
Distinctive advantages s ste
Facilitative function
Speculators
o
unication s ste
rocessors
Adaptive ehavior
Facilitative organization
`
The major marketing functions can be classified into exchange function, physical function and facilitating function.
`
`
`
It deals with buying and selling functions which involves transfer of title to goods. Buying pertains to a knowledge of and access to best possible products for procurement of raw materials by middle man . Selling function deals with a large number of activities right from anticipating demands, planning of production, decision making regarding marketing channels,packaging,advertising,physical display of goods.
`
` `
`
Physical function play a crucial role in marketing management and involve handling, movement and physical change in commodity. Storages function- makes the products available at the requisite time and can monitor the price level. Transportation function-Transportation makes goods available at the required place and involve the type of transportation affecting transportation cost. Processing-Involves all activities that change the original form of a product into desired form by the consumer.
`
Facilitating Function includes activities like credit and financing, risk management, market information, market intelligence.
`
Efficient marketing infrastructure such as wholesale, retail and assembly market and storage facilities is essential for cost-effective marketing to minimizes post harvest losses and to reduce health risks.
`
`
Wholesaler purchase from farmers and normally sell to retailer and other industrial consumers. Retailer interact directly with the end consumer and provide a variety of product at a conventional location. Ex-super market.
`
`
Commission agent don't own the products they handle and receive their income in the forms of fees and commission. Brokers normally don't have physical control over the product or on price negotiation.
`
Speculator buy and sell products with the main objective of profiting from price movement. They benefit from short run fluctuation in prices. Future trading is one of the established ways of making short term gains.
`
`
Processors transform agricultural commodities into food, feed or fiber. Food processors are an important link in marketing the produce to the consumer as they add maximum value to agricultural raw materials by providing place, form and time utility ex Diary industry where perishable milk is converted into butter ,chesses ,ghee etc marketed over place and time.
`
Organization such as banks,qualitycontrol and standardization organizations, trade associations research institutions and government machinery facilitate the effective movement of quality goods from producer to consumer in the requisite form at the desired place and time.
`
Every organization can be defined as a system of behavior as they are composed of people who are involved in decision making in order to solve specific problems. Four major behavioral systems have been indentified.
`
Every firm is utilizing a scarce and costly input in order to produce a profitable output. This includes the farmer, the middleman, the transporter, the processor, the retailer as well as the consumer. As such engineering sciences can add value to the marketing function.
`
Every individuals or organization develops a distinct advantage based on quality,service,product features etc which provides them with a particular market niche. Decision making is normally undertaken with view to strengthen and maintain this niche.
`
All organizations have an important communication system linking the producer to the end consumer.
`
The behavioral system approach is extremely important in the current scenario of industrialization of agriculture where in greater networking is called for between the various functionaries such as producers, service providers, processor and consumers.
`
The agricultural supply chain relates to productive relationships between producers,processors,manufacturers and retailers
`
`
`
Growers as individuals or cooperatives sell their produce to wholesalers,packers,marketing agents or processors who then supply it to the retailer stores. Growers pack and market their own product and sell directly to the wholesalers or retailers. This can be seen in the fresh produce sector. Vertically integrated supply chain where firms are involved in the production,processing,packing and marketing of their produce.
`
`
`
` `
Quality- Quality expectation of the end consumer in terms of product quality and price paid a very important role in the supply chain development. TechnologyTechnology innovation in post harvest,processing,transportation etc determine the length of the supply chain. Logistics-The efficiency of procuring, movement and storage of raw materials and finished goods is crucial to supply chain effectiveness. Information Technology-IT applications support the movement of products and information in the supply chain. Government regulation-As agricultural products are perishable, stringent norms regarding quality and safety parameters are in existence in several countries.
`
` `
`
Farm-gate purchases-Farm gate purchase are characterized by contracts made prior to harvesting and the buyers normally constitute marketing groups, cooperatives or traders. It is mainly a long term relationship based arrangement, reducing the number of intermediaries in the supply chain. This result in minimizing the gap between the supplier price and the consumer price. Local Market- Local market are the mandis where farmers sell their produce on specific days, in a central place at the villages or district. Assembly Markets-Agricultural produce is traded in bulk at the assembly markets to the outside markets, either by the producers themselves or by traders. It operates through out the year, it also provide service such as weighing,packaging,loading and unloading operation. Direct Sales- Farmers directly sell their produce to the urban market, retailers or wholesalers.
`
`
`
Farmers markets-In farmers markets, farmers sell produce directly to consumers. Farmers markets can be seen in towns or cities on a daily or a weekly basis. Although the farmers can get higher prices, volumes are generally low. Wholesale markets-Large amount of produce from many sources are accumulated at wholesale markets for its division into smaller quantities based on quality parameter to meet the needs of retailers. Wholesale markets supply produce to retailers in surrounding districts and to other wholesalers in more distant places. Retail markets-Retailing has progressed from hawkers towards fixed shops and supermarkets. Hawkers sell low quality produce at lower prices to the low income group of consumers which might otherwise have been wasted. Retail shop have a greater variety of goods of a high standard of quality than those found in public markets. Supermarkets are large retail outlets selling all the consumer/customer requirements under the same roof.
ICT application can be classified into those that provide data and requisite information based on user needs and is not concerned with the applicability and those that process information and make it available to the end user in the form needed to facilitate decision making.
` `
` `
`
`
ICT can help in the operation of an early agricultural warning system which can reduce the dependency on climate factors. ICT can facilitate socially desirable,economicallyviable and ecologically sound pattern of resource use and ways to promote sustainable development. Farmers can make use of market information to plan production and to time harvest dates and post-harvest operations. Information Technology helps in decision-making in every field of agriculture such as chemicals usages, irrigation scheduling etc as it is knowledge based and information intensive. Consumers can benefit by the greater competition a market information system generates among retailers and by a greater awareness of price conditions. Improved access to national and international markets is possible.
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E commerce refers to the buying and selling of goods, service and the transfer of funds through digital communications. The term ³Business to Business´ (B2B) implies similarities or equal partners in trade, and ³Business to Consumers´(B2C) suggest a difference between the two partners. With the globalization of agricultural markets e-commerce has become an important mode of operation for profitable business transaction.
Kisan Call Center Village Knowledge Center Bhoomi Project ITCs Echoupal
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Risk is a very crucial element causing income fluctuation for the farmers in India. Agricultural risk can be broadly classified as Production risk Market risk Institutional risk Financial risk Personal risk
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Production risks are also know as yield risk in agricultural. Two principal components can be attributed to these risks are weather risks and risks due to pests and disease. These factor affect the crop, both in qualitative and quantitative terms. Weather risk can be categorized as uncontrolled, whereas the risk due to pest and diseases can be categorized as those under control.
The volatile nature of the input prices, lack of proper infrastructural facilities for storage, improper delivery of product to the market place and failure of timely delivery of perishable products to the right market are some important market risk in agriculture The nature of market risk which is otherwise know as price risk is different for different commodities
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The risk in agriculture may arise due to failure of government scheme, regulations and plan such as limitations for the use of chemicals, various tax regulation formed by government, financial service, subsidies and level of support payment which ultimately affect the activities of the farmers
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Generally the production cycles of many agricultural products extend over a long period of time. So the farmers should be capable of incurring the expenses which they can recover only after marketing the product. Sometimes because of misuse of the loan taken by the farmers, the loan is unable to generate sufficient return which makes the farmers a defaulter for the repayment.
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Agriculture is also influenced by personal problems or personal risks. Personal risks such as accident,fire,theft and illness affect the life and well being of the farmers which in turn has a direct effect on the farming business. Very often agricultural loans are diverted to the other purposes to mitigate the personal risk.
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Crop Insurance Weather Insurance Contract farming Forward contracts
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