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Effects rise in food prices and financial crisis Because of high food prices, the import bill for cereals of entire globe rose substantially by 49 percent in 2008 alone. The financial crisis led to a slow down in economic growth from 6.0% in 2007 to 5.1% percent in 2008.
Ratio of Share of Agri-enterprise and Agriculture in GDP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Share in GDP Agriculture (1) Agri-enterprise (2) Ratio of  (2) to (1) Agriculture Based Countries 0.39 0.22 0.57 Transforming Countries 0.16 0.32 1.98 Urbanized Countries 0.08 0.27 3.32 USA 0.01 0.13 13.00
WELL COME TO THE WORLD OF CONTRACT FARMING
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Clear overview on Contract farming before proceeding what  to do and what output Contract terms and conditions should be sketched out properly Threats and  weakness has to be drawn to make alternative  Internal SOP, Farming Standards, Control System  Farmer Entrance and Exit Application, Approval Procedure Well prepared Soft copy with summary  Movie on Local language befit analysis & USP
Entry of Big Blue chip corporate in Agribusiness, works as a catalyst in the global Agribusiness, to full fill  their demand, concept of contract farming came into lime light. Contract farming refers to production  and supply of agricultural produce under advance contract, in which supplier has agreed to produce certain  agro produce quantity under pre decided price. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Aggregator Contract Farmer Contact   Farmer Food  Processors Organized Retail Exports PH PROCESSING HUB FARMER'S GROWTH CONSORTIUM
Need for Contract Farming ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Key Functions Rendered by Corporate in Contract Farming Extension Services Procurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
POSITIVE LESSONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RISKS FOR FARMERS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RISKS FOR SPONSORS ,[object Object],[object Object],[object Object]
KEY  PRECONDITIONS  FOR SUCCESS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Agricultural cooperatives functioning in almost all countries of the region Various forms: formal and informal farmers’ organizations, production groups, producer cooperatives, collectives, marketing cooperatives, agricultural credit cooperatives, multipurpose and single-purpose cooperatives  Started mostly with government assistance and initiative or as a result of development projects The success spectrum varies from country to country. Many suffer from managerial problem, lack of membership participation, heavy participation and influence of government, little involvement of members in decision making Primary cooperatives suffer from weaknesses and deficiencies due to small size and low membership The success spectrum varies from country to country. Many suffer from managerial problem, lack of membership participation, heavy participation and influence of government, little involvement of members in decision making Primary cooperatives suffer from weaknesses and deficiencies due to small size and low membership COOPERATIVES IN ASIA
State-wise Contract Farming 260 Appachi Cotton Company  Cotton  200 Bhuvi Care Pvt Ltd  Paddy  800 Bhuvi Care Pvt Ltd  Maize 570 Super Spinning Mills Cotton  Tamilnadu 6000 PepsiCo India Ltd Around Basmati, Potato, tomato, Groundnut& chilly 14700 Satnam Overseas, DD Intl Incorp, Amira Foods India Ltd, Basmati 4000 Satnam Overseas, Sukhjit Starch(MahindraShubhlabh Services Ltd) Basmati, Maize  2270 United Breweries Ltd Barley  250 Nijjer Agro Foods Ltd  Tomato & Chilly Punjab 1200 ITC_IBD  Soybean 1299 Ion Exchange Enviro Farms  Several Fruits, vegetables, Pluses 15000 Hindusthan Lever Ltd (HLL) Wheat  Madhya Pradesh 19 Ion Exchange Enviro Farms Ltd Several Fruits, Vegetables, Cereals, Spices & Pulses 134800 Tinna Oils and Chemicals Soybean  Maharashtra  150 Natural Remedies Coleus 8000 20 Pvt Companies (Globa Green Company Pvt Ltd,Unicorn Agrotech Ltd, Green,Agro ParkPvt Ltd,Ken  Agritech Pvt Ltd,etc) Gherkins 4000 AVT Natural Ltd Marigold & Caprica 500 Mysore S N C Oil Company Dhavana 700 Himalaya Health Care Ltd Aswagandha Karnataka Area (ha) Company/Corporate  Crop  State
COOPERATIVES IN ASIA:SELECTED EXAMPLES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Counti ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
CHANGING  SCENERIO OF  SUPPLY CHAIN
IMPACTS ON AGRICULTURE AND AGRICULTURE  LENDING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
WELL THIS IS NOT END BUT BEGINNING, A LOT  HAS TO BE DONE IN THE ERA OF CONTRACT FARMING,  LET’S JOIN HAND TOGETHER,  START THINKING ABOUT GLOBAL FOOD & AGRI SYSTEAM   THANKS FOR YOUR  KIND ATTENTION AND TIME BISWARANJAN MOHANTY AGARIAN

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Contract Farming

  • 1. Effects rise in food prices and financial crisis Because of high food prices, the import bill for cereals of entire globe rose substantially by 49 percent in 2008 alone. The financial crisis led to a slow down in economic growth from 6.0% in 2007 to 5.1% percent in 2008.
  • 2.
  • 3. WELL COME TO THE WORLD OF CONTRACT FARMING
  • 4.
  • 5. Clear overview on Contract farming before proceeding what to do and what output Contract terms and conditions should be sketched out properly Threats and weakness has to be drawn to make alternative Internal SOP, Farming Standards, Control System Farmer Entrance and Exit Application, Approval Procedure Well prepared Soft copy with summary Movie on Local language befit analysis & USP
  • 6.
  • 7. Aggregator Contract Farmer Contact Farmer Food Processors Organized Retail Exports PH PROCESSING HUB FARMER'S GROWTH CONSORTIUM
  • 8.
  • 9.
  • 10.
  • 11.
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  • 13.
  • 14. Agricultural cooperatives functioning in almost all countries of the region Various forms: formal and informal farmers’ organizations, production groups, producer cooperatives, collectives, marketing cooperatives, agricultural credit cooperatives, multipurpose and single-purpose cooperatives Started mostly with government assistance and initiative or as a result of development projects The success spectrum varies from country to country. Many suffer from managerial problem, lack of membership participation, heavy participation and influence of government, little involvement of members in decision making Primary cooperatives suffer from weaknesses and deficiencies due to small size and low membership The success spectrum varies from country to country. Many suffer from managerial problem, lack of membership participation, heavy participation and influence of government, little involvement of members in decision making Primary cooperatives suffer from weaknesses and deficiencies due to small size and low membership COOPERATIVES IN ASIA
  • 15. State-wise Contract Farming 260 Appachi Cotton Company Cotton 200 Bhuvi Care Pvt Ltd Paddy 800 Bhuvi Care Pvt Ltd Maize 570 Super Spinning Mills Cotton Tamilnadu 6000 PepsiCo India Ltd Around Basmati, Potato, tomato, Groundnut& chilly 14700 Satnam Overseas, DD Intl Incorp, Amira Foods India Ltd, Basmati 4000 Satnam Overseas, Sukhjit Starch(MahindraShubhlabh Services Ltd) Basmati, Maize 2270 United Breweries Ltd Barley 250 Nijjer Agro Foods Ltd Tomato & Chilly Punjab 1200 ITC_IBD Soybean 1299 Ion Exchange Enviro Farms Several Fruits, vegetables, Pluses 15000 Hindusthan Lever Ltd (HLL) Wheat Madhya Pradesh 19 Ion Exchange Enviro Farms Ltd Several Fruits, Vegetables, Cereals, Spices & Pulses 134800 Tinna Oils and Chemicals Soybean Maharashtra 150 Natural Remedies Coleus 8000 20 Pvt Companies (Globa Green Company Pvt Ltd,Unicorn Agrotech Ltd, Green,Agro ParkPvt Ltd,Ken Agritech Pvt Ltd,etc) Gherkins 4000 AVT Natural Ltd Marigold & Caprica 500 Mysore S N C Oil Company Dhavana 700 Himalaya Health Care Ltd Aswagandha Karnataka Area (ha) Company/Corporate Crop State
  • 16.
  • 17.
  • 18.  
  • 19. CHANGING SCENERIO OF SUPPLY CHAIN
  • 20.
  • 21.  
  • 22. WELL THIS IS NOT END BUT BEGINNING, A LOT HAS TO BE DONE IN THE ERA OF CONTRACT FARMING, LET’S JOIN HAND TOGETHER, START THINKING ABOUT GLOBAL FOOD & AGRI SYSTEAM THANKS FOR YOUR KIND ATTENTION AND TIME BISWARANJAN MOHANTY AGARIAN