Seminar Report 2013
Seminar Report 2013
Seminar Report 2013
MASTER SEMINAR On
Speaker
Yazad P. Minocheherhomji 2nd Semester MBA (ABM) Reg No. :- (04-1165-2012) AABMI
NAU, Navsari
DECLARATION
I, Mr. Yazad P. Minocheherhomji Reg no. (04-1165-2012) hereby declare that the seminar report which I am submitting for the completion of master seminar on Agribusiness Sector in Gujarat is an original piece of work carried out by me under the guidance and supervision of Dr. Swati Sharma. The information has been collected from genuine and authentic sources. The work has been submitted in partial fulfillment of the requirement of MBA course in Agri. Business Management.
Place: Navsari.
Yazad P. Minocheherhomji
CERTIFICATE
This is to certify that the seminar entitled Agribusiness Sector in Gujarat is the bonafide research work carried out by Mr. Yazad P. Minocheherhomji student of M.B.A. (Agribusiness) during the year 2012-2013.
Place: Navsari
Date: 09.05.2013
INDEX
Sr. no.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Particulars
Introduction Objectives of seminar Overview of Agribusiness Importance and Scope of Agribusiness sector Agribusiness sector growth in Gujarat Global Agribusiness Scenario Indian Agribusiness Scenario Key Trends in Agribusiness Sector in India Potential of Gujarat Gujarat Agribusiness Scenario Key Industry players in Gujarat Challenges faced in Agribusiness sector Future prospects of Agribusiness sector in Gujarat Initiatives from Central Government Initiatives from State Government Entrepreneurial opportunites in Modern Agribusiness in Gujarat Conclusion References
Page no.
5 6 6 8 9 9 11 14 16 18 20 21 22 22 23 27 28 29
Introduction
In agriculture, Agribusiness is a generic term applied to businesses involved in some or all of the following agricultural production systems: crop production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and 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 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. Agri-business as a concept was born in Harvard University in 1957 with the publication of a Book A concept of Agri-business, written by John David and A. Gold Berg. It was introduced in Philippines in early 1966, when the University of Philippines offered an Agri-business Management (ABM) programme at the under-graduate level. In 1969, the first Advanced Agribusiness Management seminar was held in Manila.
Definition:
Agri-business is the sum total of all operations involved in the manufacture and distribution of farm supplies, production activities on the farm, storage, processing and distribution of farm commodities and items made from them (John David and Gold Berg) Agribusiness is sum total of all operations or activities involved in the business of production and marketing of farm supplies and farm products for achieving the targeted objectives The term agribusiness most commonly means an agriculturally related business that supplies farm inputs. It's also used to describe businesses that are involved in the marketing of farm products, such as warehouses, wholesalers, processors, retailers and more
Dimensions of Agri-business:
1. It deals with different components of Agricultural and Industrial sector, their interdependence and influence of one sector on other. 2. It deals with decision making process of farm either private or government in relation to production and selling aspects. 3. It deals with strengths and weaknesses of a project and thereby their viability in competing enterprises. 4. Agri-business is always market oriented. 5. Structure of Agri-business is generally vertical and it comprises the following:a. Govt. policies and programmes regarding raising of crops or taking enterprises etc. b. Research and extension programmes of the Govt. c. Farm supplies or inputs. d. Agricultural production. e. Processing. f. Marketing of agricultural products.
Structure of Agri-business:
As mentioned earlier agri-business sector provides crucial Backward and Forward linkages. It involves two important sectors. 1. Farm input sector: It deals with agro-based industries providing seeds, fertilizers, feed, chemicals etc., the industries supplying machinery or equipment, implements and petroleum etc are also important in this regard. 2. Farm product sector: It deals with production and distribution of farm commodities. Large cooperative bodies also exist in Agri-business, but they are few in number, whereas small scaled agro industries are large in number. The vertical integration of a farm is very common in poultry, fruit and vegetable farms.
Horizontal integration: If one firm assumes the functions of other firm is called the
horizontal integration Ex: Co-operative marketing societies, Co-operative farming societies. Horizontal integration occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm, e.g. a car manufacturer merging with another car manufacturer. In this case both companies are in the same stage of production and also in the same industry. This process is also known as a "buy out" or "take-over".
Vertical integration: If one firm assumes other functions which are having close
relationship. a. If one firm assumes other functions (succeeding) related to consumption function is called forward integration. Ex: A wholesaler firm assuming the function of a retailer. b. If one firm assumes the other functions (proceeding) related to the production function is called backward integration. Ex: A wholesaler firm assumes the functions such as assembling, processing, packing etc. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or market-specific service, and the products combine to satisfy a common need. The Indian petrochemical giant Reliance Industries has integrated back into polyester fibres from textiles and further into petrochemicals. Reliance has entered the oil and natural gas sector, along with retail sector. Reliance now has a complete vertical product portfolio from oil and gas production, refining, petrochemicals, synthetic garments and retail outlets.
Conglomerate integration: If one firm assumes several functions which do not have
any relationship. Ex: HUL. It is a process whereby a business acquires a substantial number of other unrelated businesses in order to form a large and highly diversified corporation. Some advantages of conglomerate integration are the economies of scale and product diversification possible by having various sub businesses under a broad administrative umbrella, although the current trend is moving away from this form of corporate growth structuring process.
Importance and Scope of Agribusiness sector for the growth of Indian Economy Scope of Agribusiness sector:
India is endowed with varied ago-climate, which facilitates production of temperate, subtropical and tropical agricultural commodities. There is growing demand for agricultural inputs like feed and fodder, inorganic fertilizers, bio-fertilizers. Biotechnology applications in agriculture have vast scope in production of seed, bio-control agents, industrial harnessing of microbes for bakery products. Export can be harnessed as a source of economic growth. As a signatory of World Trade Organization, India has vast potential to improve it present position in the World trade of agricultural commodities both raw and processed form. The products line include cereals, pulses, oilseeds and oils, oil meal, spices and condiments, fruits and vegetables, flowers, medicinal plants and essential oils, agricultural advisory services, agricultural tools and implements, meat, milk and milk products, fish and fish products, ornamental fish, forest by products etc. At present processing is done at primary level only and the rising standard of living expands opportunities for secondary and tertiary processing of agricultural commodities. The vast coastal line and internal water courses provides enormous opportunity for production of marine and inland fish and ornamental fish culture gaining popularity with increase in aesthetic value among the citizens of India. The livestock wealth gives enormous scope for production of meat, milk and milk products, poultry products etc. The forest resources can be utilized for production of by products of forestry. Beekeeping and apiary can be taken up on large scale in India. Mushroom production for domestic consumption and export can be enhanced with improvement in the state of art of their production. Organic farming has highest potential in India as the pesticide and inorganic fertilizer application are less in India compared to industrial nations of the world. The farmers can be encouraged and educated to switch over for organic farming. There is wide scope for production and promotion of bio-pesticides and bio-control agents for protection of crops. Seeds, hybrid and genetically modified crops, have the highest potential in India in the future, since the productivity of high yielding varieties have reached a plateau. Micro-irrigation systems and labour saving farm equipments have good potential for the years to come due to declining groundwater level and labor scarcity for agricultural operations like weeding, transplanting and harvesting. Production of vegetables and flowers under green house conditions can be taken up to harness the export market. Trained human resources in agriculture and allied sciences will take on agricultural extension system due to dwindling resources of state finance and downsizing the present government agricultural extension staff as consulting services.
The enhanced agricultural production throws open opportunities for employment in marketing, transport, cold storage and warehousing facilities, credit, insurance and logistic support services.
Global
Trends
in
Food
Choices
across
Various
Regions
North & Latin America Frozen Meal Starters 95% Frozen Meat Substitutes 66% Emerging Markets Noodles/ Pasta 27% Cheese 27% Juice Drinks 49% Meat products 37% RTE Salads 19% Fruit Bars 21%
Vegetables 19%
Source: Anonymous (2011) Processed Food and Agribusiness Opportunities for Investment in India The Global trend for demand of processed food in Europe, North and Latin America and Asia Pacific is shown with other emerging processed food markets in the world. The demand for fermented milk products like drinkable yoghurt and dairy drinks is increasing also demand is high in frozen meal starters and frozen meat substitutes. The emerging markets are noodles/pasta, juice drinks, meat products, cheese are in high demand in various countries of the world with a high increase from Arab countries and United Arab Emirates. These trends are creating immense opportunities for both manufacturers and retailers. There is a definitive need to acknowledge and address the consumer's requirement for healthy and convenient products. Since consumers are willing to purchase both private labels and branded products, global food markets have become all the more competitive and are looking at expansion beyond their own local boundaries.
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Global scenario
Global Processed Food Industry
31%
39%
Source: Anonymous (2011) Processed Food and Agribusiness Opportunities for Investment in India The above figure shows that the processed food industry is widely spread in various continents of the world. Europe is on the top with 39% of processed food industry, while Asia is on second position with a processed food industry of 31% and lastly USA which has the processed food industry of 21%.
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India is world's largest producer of milk and livestock with an annual production of 122 MMT of milk with 528 million livestock and 2nd largest producer of fruits and vegetables producing 213 MMT. 3rd largest producer of food grains with a production of 250 MMT and fish production of 8.3 MMT. India produces 63 billion eggs, with 649 million poultry. Agriculture engages 70% of Indian population. Food Processing sector alone employs 13 million directly and 35 million indirectly. Agriculture contributes to 18% of Indian GDP. Food Processing contributes 14% of the manufacturing GDP, which amounts to Rs. 2,800 billion. India has emerged as world's top rice exporter overtaking traditional leaders, Vietnam and Thailand. India's total rice export in 2011-12 is expected to be 6.5-7 MMT, which is around 7% of the country's total production. India produces a wide variety of spices like black pepper, cardamom, ginger, garlic, turmeric, chilli and a large variety of tree and seed spices. The total production of spices was 4.0 MMT and the area covered was 2.5 million hectares. India is the largest producer of ginger. Spice Board of India plans to promote exports of spices by establishing 25-30 spice parks in different parts of the country. This will help in achieving export of spices worth USD 5.6 billion (Rs 30,000 crore) by 2020. India exported fruits & vegetables worth Rs.38.56 billion which comprised of fruits worth Rs.26.35 billion & vegetables worth Rs.12.21 billion. India accounts for about 15.5% of the 890 MMT of total global vegetable production. India is the largest producer of okra amongst vegetables & ranks second in production of potatoes (10%), onions, cauliflowers, brinjal, cabbages, etc. India accounts for about 10% of the 500 MMT of total global production of fruits. India is the largest producer & consumer of cashew nuts. India is the third largest producer of coconut and leads 90 coconut-producing countries of the world, producing 11 MMT. In 2011, the production was 122 MMT. The production level is expected to reach 180 MMT by the year 2021-22. Indian Milk production contributes to 15% of global milk production. The market size of Indian Dairy Industry is estimated at around USD 60 billion (INR 2,662 billion). The organized cheese market including its variants of processed cheese is valued at around Rs. 4.50 billion. India has a large livestock base constituting 304.8 million livestock including 199.1 million cattle, 105.3 million buffalo, 71.6 million sheep and 140.5 million goats. The livestock population is projected to increase to 322 million by the year 2015. India ranks second in goat population around the world with goat population share of 25% in India's Livestock population. Indian Poultry Industry is booming and emerging as the world's 2nd largest market. India is the Ninth largest producer of poultry meat with a production of 2.5 MT of poultry meat. The market size for Poultry Industry is estimated at around USD 7.9 billion (INR 350 billion) and is growing at an attractive rate of 12%-15% annually.
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India earned USD 48.5 million (around Rs 215.27 crore) from exports of flowers to over 90 countries during 2010-11. Flower production in India was spread over 0.18 million hectares with a production of 1 MMT of loose flowers and 69 million tonnes of cut flowers. The Food Processing Industry is estimated to be worth around USD 67 billion and expected to increase to USD 175 billion by 2025. The Processed Food sector has a potential of attracting USD 33 billion investments. About 6% of the total Indian produce is processed; there are over 25,000 registered units in the food sector with investments of Rs 840 billion Ministry of Food Processing Industries (MoFPI) through its Vision 2015 envisages: Increasing the level of processing of perishables from 6% to 20%. Raising value addition from 20% to 35%. Enhancing India's share in global food trade from 1.5% to 3.0%.
India
World
Source: Anonymous (2013) Agribusiness and Food - Sector profile Vibrant Gujarat 2013. From this graph it is displayed that fruits and vegetables production is increasing in India as it has made India 2nd largest producer of the world after China. Compared to Global production Indias share has significantly increased. Compared to global 100% production, Indias share in mango is 40%, in green peas is 32%, in cauliflower is 28%, in cashew nut is 21% and in banana 20%.
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Meat Poultry
2.3 3.7
Source: Anonymous 2011-12, Ministry of Food Processing Industries, Annual Report. The table gives the crop cumulative wastage occurring in India, this huge waste is occurring due to lack of well infrastructure and processing facilities. It may be seen that most of the wastage is happening in fruits and vegetables, pulses and cereals. With adequate processing facilities, much of this waste can be reduced thus increasing remuneration to the producer as well as ensuring greater supply to the consumer.
Key trends:
A relatively plentiful monsoon in 2010 allowed key crops rice, wheat and sugar to see either continued growth or strong rebounds in 2010/11. However, this has not seen food price inflation abate as much as we would have liked as the heavy rains also hindered transportation of the foodstuff to markets, supporting already-high prices. We see potential for prices of agriculture commodities to head higher and thus feed into food prices. However, we believe that the effects of abundant supply in 2010/11 for many key crops such as sugar and rice should eventually weigh down on prices and hence inflation. In the longer term, although the government has laid down plans to improve efficiencies in the agricultural sector, we are not confident that these efforts will translate into significant gains in production across the board given the unconsolidated nature of the industry and also poor infrastructure. For example, we see the country becoming a net importer of poultry by 2014/15. Rice production growth to 2014/15: 52.0% to 132.9mn tonnes. This increase will come from increased domestic demand as India's population continues to swell, as well as better access to pesticides and fertilisers, which will improve crop yields.
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Sugar production growth to 2014/15: 105.9% to 36.7mn tonne. This increase will be boosted by an increase in consumption of soft drinks and confectionery items which will be dependent on the expansion of incomes and wages. Poultry consumption growth to 2014/15: 30.0% to 34.4mn tonnes. With a growing middle class and rising incomes, we expect demand growth for poultry meat to outperform over our forecast period. Given the rapid expansion in demand for the meat, India will become a net importer of the poultry by 2014/15. Corn consumption growth to 2015: 30% to 22.4mn tonnes. Consumption growth will be driven by increasing demand for feed from the livestock sector as rising incomes allow Indian consumers to eat more meat, especially poultry but also buffalo meat, for which consumption is also increasing. 2011 Real GDP Growth: 8.1% (down from 8.4% in 2010; predicted to average 8.1% from 2011 until 2015). Consumer Price Inflation: 10.0% average in 2011 (down from 12.4% y-o-y average in 2010) Industry Developments after being delayed numerous times, the government finally lifted its ban on sugar exports in mid- November 2010. That said, the officially allowed figure of 500,000 tonnes have so far underwhelmed expectations of as much as 3.5mn tonnes of sugar exports in 2011, given the bumper sugar crop. Our view is boosted by certain measures recently imposed on the industry such as the restart of sugar futures trading on Indian domestic commodity exchanges after a 19-month freeze, as well as the reinstatement of a 60% import tax on sugar. India's dairy market size in value terms, including the organised and unorganised sector, is estimated at US$47.6bn and has been growing at nearly 7.5% annually. Presently, the country is still able to largely meet its domestic demand and is only marginally dependent on dairy imports. However, given the strong rate of consumption growth, which has been led in part by rising incomes, demand will soon outstrip supply, very likely causing India to become more dependent on imports. Already, we forecast the butter production balance to run into deficit in 2011/12. India's premium basmati rice exports have been facing mounting difficulties in traditionally strong export markets in the Middle East. Iran's Trade Promotion Organisation recently withdrew licences for rice imports, with the intention of improving domestic rice quality and taming rising consumer prices. Saudi Arabia has also removed rice import subsidies in the hopes of reducing reliance on rice imports from India, which currently supplies more than 70% of the country's market. Given that 60% of Indian basmati rice is shipped to these two countries, we are concerned that unless these measures are temporary India might lose its significant market share in these major rice export partners in the long run.
Investment Trends:
The Centre has set an investment target of USD 18.9 billion (Rs. 100,000 crore) by 2015 in the Food Processing sector. There are 25,367 registered food processing units in the country whose total invested capital is USD 15.9 billion (Rs. 84,094 crore) The Government of India has approved setting up of 15 Mega Food Parks under Infrastructure Development Scheme, with a total grant of USD 149 million (Rs. 787.50 crore), during the 11th Five Year Plan.
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The 30 Mega Food Parks will help 20,000 SMEs engaged in the manufacturing and processing of food products every year. The Ministry of Food Processing Industries has allocated USD 112 million (Rs. 595 crore) for different schemes to be implemented in the food processing sector during 2011-12. An Inter-Ministerial Task Force on Agricultural Marketing Reforms, constituted by the Union Ministry of Agriculture, had recommended the creation of additional cold chain facilities with an investment of USD 473 million (2,500 crore).
Potential of Gujarat:
Geographical area: 1, 96,000 sq.km (6.2% of India) Gross State Domestic Product (GSDP): 4, 29,356 crore Per capita income: 63,961 crore Urbanisation: 34.4% - 43% share compared to 28.0% share of urban population of India High industrial growth: 12.5% growth rate from 2002-2007 High industrialisation: Gujarat is home to 800 large industries and over 3, 70,000 micro, small and medium industries.
9.5
10 14 15.6 17 21 22 30
30 35
Source: Socio Economic Review 2010-11 The following graph shows Gujarats contribution to Indias GDP. High contribution is in Stock market capitalization, Coastline and from exports in 2010-11. There is a slow increase in No. of factories, value of output and fixed capital investment. 30% Gujarat's share in India's stock market capitalization and 9.5% Gujarat's share in India's workforce.
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Gujarat has been ranked 1st as per the "Economic Freedom Rankings for the States of India, 2012" Report: Double digit growth rate with Gross State Domestic Product of USD 75 billion (2010-11) growing at a five year average of ~ 10%. Growth in agricultural output in the state over the last 10 years ~ 11%. A highly industrialized state - Gross State Domestic Product contribution from manufacturing sector ~ 28%. Gujarat's Degree of Openness (ratio of exports from state to Gross State Domestic Product) ~ 53%. A state with a population of 60 million and one of the highest urbanization levels ~ 43%. Increase in seat availability in technical institutions over last 3 years > 100%. A state with a high and growing literacy rate ~79%. A state with one of the highest share in investments under implemented projects in India ~ 26%.
Out of the total geographical area of 188.12 lakh hectares in Gujarat, total cropped area is around 124.05 lakh hectares (66%). Major Crops: Wheat, Bajra, Rice, Maize, Groundnut, Mustard, Sesame, Pigeon pea, Green Gram, Gram, Cotton, Sugarcane. Gujarat is the largest producer of, Castor, Tobacco, Isabgul, Second largest Producer of Sesame seeds, Cotton and Groundnut in the country. Gujarat has highest productivity in, Mustard, Castor and cotton, Second highest productivity in Groundnut and Bajra, third highest productivity in Gram and Guar in the country. Predominance of non-food, high value crops i.e. cotton, castor, tobacco, onion, potato, isabgul, cumin, fennel, mango groundnut, banana, Gujarat has the third highest productivity in banana in the country Large quantities (more than 2000 MT) of Marigold is produced in the districts of Baroda, Gandhinagar, Navsari, Bharuch, Kheda, Anand, Ahmedabad, Surat and Valsad Leading as Second in Green Revolution Gujarat has achieved Agricultural Growth table at 9.6% and have carved a niche in the field of Agricultural Development in India. As of 2009, Gujarats agriculture growth rate has been three times more than the national growth rate. The department is confident to change the lives of farmers with its Agriculture Policies and the unique Initiative of the Krushi Mahotsav in the State. In 2001, the State was on verge of less water resources but today, it stand as Worlds biggest water resource through Narmada Canal. Where the dust took to wind storm, there are green fields and where the farmers tilled the land with 1-2 crops, they have sort for 3-4 crops. Continuous hard work of seven years and planned efforts of the Government have resulted in Green Revolution taking shape in Gujarat. Gujarat Agro vision 2015 envisages improving the quality of life of the rural population, including those who are resource poor, by widening their employment opportunities and increasing their income. 63% of the population of Gujarat lives in rural areas and depends for its livelihood on agriculture and the rural non-farm sector that is interlinked with agriculture. The Government is sensitive to the role of Agriculture in Economic development with a vision.
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The Agriculture and Co-operation Department, Government of Gujarat, has setup a marketing board, research institutes, agricultural universities at four places, various corporations and agencies to aid the development of agricultural sector in the state. Besides all these arrangements, the state government has also setup Kisan Call Centres, E- Gram Networking Portals, Kisan Vigyan Kendras. The state government also organises the krishi mahotsav for farmers. Soil Health Card scheme has been started wherein the farmers are taught innovative techniques of farming through soil analysis and genetic crop science.
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Animal husbandry plays a vital role in Gujarat's rural economy, while contributing nearly 5% to the state GSDP. Gujarat has 23 Intensive Cattle Development Projects (ICDP) with 1078 Breeding Centres in the state which are aimed at improving the breed of cattle and buffaloes. Gujarat has 12 Intensive Poultry Development Projects (IPDP), 5 District poultry Extension Centres, and 85 Poultry Service Centres. Gujarat Cooperative Milk Marketing Federation (GCMMF) is a state level apex body of milk cooperatives in Gujarat - aims to provide remunerative returns to farmers and also serve interest of consumers by providing quality products which are good value for money. GCMMF is India's largest food products marketing organisation and it is dairy no. 1 in Asia and dairy no. 2 in the world. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. During the year 2010-11 export turnover was of Rs. 98 crore.
The growth in vegetable production was the highest and recorded 45% growth in volumes in 2011-12 as against 2008-09 production.
120 100
Production in lakh MT
98.24
80 60
80.88
40
20 0
Source: Anonymous (2013) Agribusiness and Food - Sector profile Vibrant Gujarat 2013. The production of fruits has increased significantly from 59.97 lakh MT in 2008-09 to 80.88 Lakh MT in 2011-12. The vegetables production in 2008-09 was 48.67 lakh MT and has increased by 45% in 2011-12 to 98.24 lakh MT. The spices production in 2008-09 was 9.99 lakh MT and has increased in 2011-12 upto 12.02 lakh MT. Gujarat is occupying 4th, 6th and 3rd places in India in production of fruit, vegetable and spices respectively. The horticulture area is 14.46 lakh Ha. Out of total agricultural area of 88 lakh Ha, i.e. making around 16.5 %. The production of horticulture crop is Rs.11000 crores, i.e 23% against Rs. 48000 crores of total agriculture production.
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Amul: The brand that spurred a white revolution in India, Dairy No. 1 in Asia & Dairy No.
2 in the world. The key success factors are - strong supply chain & distribution network, diversified product line, low cost strategy, adoption of technology & e-initiatives.
McCain: McCain's journey to success began in 1997 when it made its entry into India with
a proposal to invest Rs.1 billion (USD 25 million) in potato fry business. McCainMcDonald's India's initiative with Gujarat farmers has grown into a unique technology driven enterprise. McCain is the most famous Canadian brand name in the world, which manufactures frozen food products, such as French fries, appetizers, pizzas, vegetables, desserts, juices, entrees and oven meals.
Desai Fruits and Vegetables (DFV): Desai Fruits and Vegetables is re-engineering
the Indian agro landscape by pioneering new techniques and concepts in farming & packaging to make available quality agro products to the world.
Riddhi Siddhi Group: Riddhi Siddhi Gluco Biols Ltd. (RSGBL) is one of the largest wet
corn miller in India. RSGBL is known for innovations and excellence in the field of transforming Corn (maize) crop into essential industrial raw materials, adopting the most modern technologies.
Balaji Group: Balaji Group has pioneered the concept of potato wafers manufacturing by
focusing on customers taste and requirements. The company has almost 90% market share of Gujarat's wafers market and 70% market share of state's namkeen (snacks) market.
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21
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National Horticulture Mission (in effect till XI plan) with main thrust on augmenting production of all horticultural products (Fruits, Vegetables, Flowers, Plantation crops, Spices, Medicinal Aromatic plants) in the states. Strengthening of institutions like Indian Institute of Crop Processing Technology. Under the Kisan Credit Card Scheme which was introduced in 1998-99, total accounts have increased to 27.02 lakh with an amount of Rs.16,067 crore (till September 2011).
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needs. The Government has directed all officials to cover those farmers who have so far not been issued Kisan Credit Cards. Farm Accident Insurance Scheme, Gujarat Comprehensive Community Accidental Insurance Scheme. Gujarat Agro Industries Corporation (GAIC) - Promotes agricultural activities at the ground level and helps in development of agro industries and accelerates demand-based production of agro products to develop agro industries in the new global agricultural environment. Three phase 24x7 electricity supply to all villages (JyotigramYojna). Enabling of Contract Farming. Framing of Bio-technology Policy & Agri Business Policy. Policy for waste land utilization. Financial assistance upto Rs 75 lakh is made available to educational institutions in food technology for starting the course as well as for up gradation. At the end of year 2010-11, 205 Agriculture Produce Market Committees (APMCs), 199 Main Yards of Market Committees and 201 Sub Market Yards were operational in the State. 37 APMCs connected by futures market through NMCDX. "Gujarat State Horticultural Mission (GSHM)": a registered society has been formed for implementation of "National Horticulture Mission (NHM)" in the state, with a view to double the horticulture production and income by the year 2012 by adopting end-to-end approach with simultaneous development of post harvest infrastructure and marketing facilities. The Mission is being implemented in 15 potential districts and covers 10 important crops of the state viz. mango, chikoo, amla, banana, papaya, lime, cumin, fennel, flowers, medical and aroma crops. SCHEMES FOR WOMEN EMPOWERMENT IN HORTICULTURE Excellent development of horticulture can be done through fruits and vegetable preservation. The program provides for women empowerment through self employment. 15 days and 7 days short term training classes to the women for the preservation of fruits and vegetables will be imparted at all the 18 permanent and 17 mobile community canning and kitchen gardening centers for Urban and Rural women respectively. An outlay of 60.00 Lakh has been proposed during 2012-13. Various sub components included in this scheme are: House wives to be trained and to prepare preserved fruits & vegetable products. BANANA PACK HOUSE (BPH) AND COLLECTION CENTERS 1st Collection center : Dist. Bharuch 2nd Collection center: Vavdi, Ta. Nandod, Dist. Narmada
Project implemented under APEDA & GOG Scheme. O & M Operator: M/s. Cargo Service Center India Pvt. Ltd. Project commissioned and handed over to the O & M Operator w.e.f. 15.07.2010. The O&M agency withdrawn from operation w.e.f. 31.12.2011. GAIC is interested to appoint O & M agency for BPH and Collection centers.
Capacity:
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Project implemented under RKVY Scheme. O & M Operator: M/s. Cargo Service Center India Pvt. Ltd. (CSC India Pvt.Ltd.) Project commissioned and handed over to the O & M Operator w.e.f. 23.04.2012. It is expected to start the operation of the facility shortly.
Capacity:
Cold storage 10 MT x 3 Nos. = 30 MT Material handling system to handle 40 MT perishable goods per day. X-ray machine (X-ray baggage inspection system)
COLD STORAGES FOR TRIBAL DEVELOPMENT Location: Bartad, Ta. Vansda, Dist. Navsari Location: Nana Pondha, Ta. Kaparada, Dist. Valsad Location: Jaghadia, Dist. Bharuch Location: Itwada, Ta. Pavi-Jetpur, Dist. Vadodara Project implemented for Tribal Dev. Dept., under Financial Assistance from Tribal Dev. Dept. Project commissioned and handed over to the authority w.e.f. 30.12.2010. Capacity: Cold storage 25 MT x 4 Nos. = 100 MT Pre-cooling 3 MT x 1 No. = 3 MT One packing & grading hall, One Sorting room, One Raw material storage room. Radiation Processing Plant for Agro & Food Products Location: Bavla, Dist. Ahmedabad Project implementation under RKVY Scheme. Turnkey Contractor : M/s Danver Hydromatics Pvt. Ltd, Kolkata Capacity: Incoming Cold Storage: 50 MT Outgoing Cold Storage: 20 MT Processing 5 to 15 MT per hour (depends on different products) INTEGRATED PACK HOUSE (IPH) FOR FRUITS & VEGETABLES Location: Naroda, Dist. Ahmedabad Project implemented under RKVY Scheme. O & M Operator: M/s. Cargo Service Center India Pvt. Ltd. (CSC India Pvt. Ltd.)
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Pack House commissioned and handed over to the O & M Operator. Commercial operation started from 27th January 2010. Capacity: Fruits = 6000 MT/annum Vegetables = 3000 MT/annum Pre-cooling Chamber: 5 MT X 1 No. = 5 MT Ripening Chambers: 5 MT X 3 Nos. = 15 MT Cold store: 50 MT X 6 Nos. = 300 MT Cleaning/grading/sorting/packing line for round fruits = 2 MT/hr. Hi-Tech Potato Cold storage Location: Ranpur Road, Deesa, Dist. Banaskantha Project implementation under RKVY Scheme. Turnkey Contractor: M/s. Blue Star Limited Capacity: Storage of 5000 MT Potatoes. Cold storage chambers: 5 x 1000 MT = 5000 MT Grading & Packing hall
Cold Storage for Onion & its value added products Location: APMC Mahuva, Dist. Bhavnagar Project implementation under the financial Assistance from APEDA, New Delhi Turnkey Contractor : M/s Mothersons Zanotti Refrigeration System Ltd Capacity: Storage of 2028 M.T Dehydrated Onions. Cold Storage Chambers: 4 X 507 = 2028 MT Rice Flakes Unit (Poha Mill) Location: APMC premises, Kosamba, Tarsadi, Dist. Surat Project implementation under RKVY Scheme. Capacity:
To process 6000 MT paddy to produce 3600 MT Rice flakes (Poha) per year.
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Fish
vegetables
Retail
Transport
Seeds
Machineries
Paddy
Sugarcane/ Vegetables
Insurance
Quality control
Flowers
Ornamental plants Fodder
Export
Finance Storage
Animal feed
Bio-control units Bio-tech units
Cashew
Poultry Cattle
Marketing Information
Sericulture
Beekeeping Mushroom
Consultancy
Vetmedicines
Brewery
Source: Atul Bansal (2011) AGRI-BUSINESS IN INDIA VISION 2020 The above table gives the Entrepreneurial opportunites available in Agribusiness sector in Gujarat. The opportunities available in various sectors are farming, product marketing, inputs marketing, processing and facilitative. Several opportunities are available in various sectors which help in better development of Agribusiness sector in Gujarat.
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Conclusion:
The Gujarat economy is a robust economy with a substantial growth potential that is driven by the significant domestic demand in various sub-sectors. A shift from Agriculture to Agribusiness is being viewed as an essential pathway to revitalize Indian agriculture. While the share of pure agriculture in GDP may decline, the share of agribusiness will not and is bound to go up with the demand for value addition products continuously increasing. Agricultural Cooperatives in Gujarat are the backbone of the cooperative system and involved in variety of function and serving the rural masses by providing Credit, Fertilisers, Seeds, Agro-Chemicals and Agriculture Implements etc. Gujarat is becoming Indias most favored Investment destination as many Agroprocessors, exporters and several other domestic agro units have come up to boost up the States and Indian economy.
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References:
Anonymous (2006) Addressing the challenges facing agricultural mechanization input supply and farm product processing Agricultural and Food Engineering Technical Report, pp 31-40 Anonymous (2011) Processed Food and Agribusiness Opportunities for Investment in India A Knowledge Paper FICCI, pp 4-15 Anonymous (2011-12) Ministry of Food Processing Industries (MoFPI)Annual Report, pp 8-22 Anonymous (2013) Agribusiness and Food processing sector profile Vibrant Gujarat 2013, pp 3-30 Anonymous (2010) Bottlenecks In Indian Food Processing Industry FICCI Survey, pp 1-32 Atul Bansal (2011) AGRI-BUSINESS IN INDIA VISION 2020 International Journal of Multidisciplinary Research Vol.1 Issue 2, pp 62-72 Ganga Shreedhar, Neelmani Gupta, Hemant Pullabhotla, A. Ganesh-Kumar, Ashok Gulati (2012) A Review of Input and Output Policies for Cereals Production in India International Food Policy Research Institute Discussion Paper, pp 3-22 Nidhi Dwivedy (2011) Challenges faced by the Agriculture Sector in Developing Countries with special reference to India International Journal of Rural Studies (IJRS) Vol. 18, pp 1-6 S.S. Acharya (2007) Agribusiness in India: Some Facts and Emerging Issues Agricultural Economics Research Review Vol. 20 (Conference Issue), pp 409-424 SP Kashyap and Niti Mehta (2007) Gujarat 2020: Viewpoints and Vision Gujarat Economic Association (Annual Conference Issue), pp 1-20
Web Portals:
http://agri.gujarat.gov.in/department/overview111.htm http://mofpi.nic.in/ContentPage.aspx?CategoryId=199 http://www.gujagro.org http://www.gujaratindia.com/initiatives/initiatives.htm http://www.vibrantgujarat.com/focus-sectors.htm http://www.vibrantgujarat.com/food-agro.htm http://www.vibrantgujarat.com/images/pdf/Food-n-Agro-Sector-Profile.pdf
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