Corporate Farming

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CORPORATE FARMING

• PRESENTATION BY
• Piyush Jalan
• Section D
• 181435

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Context

• Introduction.
• Introduction to Corporate Farming.
• History of corporate farming.
• Advantage to farmer.
• Advantage to company.
• Issues.
• Conclusion.
• Reference.

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Introduction

• Reduction in Natural resource is an global
  concern and India is not an exceptional.
• Per capita availability of agricultural land in
  1951 was 0.89 hectare and now in 2018 it has
  decline to 0.30.
• Expected to slip down to 0.20 by 2030.
• Around 1.12 hectare per capita in developed
  nation (U.S, Russia, Canada,
  Australia)

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Corporate Farming

• Corporate farming is a term that describes the
  business of agriculture, specifically, what is
  seen by some as the practices of
  mega-corporations involved in food production on
  a very large scale.

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History Of Corporate Farming

• Corporate farming start as contract farming and
  was way traced back to Colonial period.
• IN 1920s ITC introduced cultivation of Virginia
  tobacco in Coastal Andhra Pradesh on a fair
  contract farming system.
• In 1990s PEPSICO introduced tomato
  cultivation in Punjab for the establishment
  of its paste manufacturing.
  This was sold to
  Hindustan Lever in 2000.

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Advantages For Farmers

• Inputs and production services are often supplied
  by the sponsor company
• Contract farming often introduces new technology
  and also enables farmers to learn new skills.
• Farmers price risk is often reduced as many
  contracts specify prices in advance.
• Contract farming can open up new markets which
  would otherwise be unavailable to small
  farmers to reach. 

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Benefits To The Company

• Uninterrupted Regular Flow of Raw Material
  (generally at fixed price).
• Long term planning made possible.
• Builds long term commitment.
• Dedicated supplier base.
• Generates goodwill for the organization both in
  society as well as corporate world.

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Issues Concerns

• Breach of contract from both firms and farmers
  end.
• Soil fertility concerns
• Environmental issues
• Companies prefer medium and large farmers
  because of transection cost on per contract.
• Contract disputes Middle mans influence

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Conclusion

• India, given the diverse agro climatic zones, can
  be a competitive producer of different types of
  crops.
• There is a need to convert our factor price
  advantage into sustainable competitive advantage.
  
• Contract farming offers one of the possible
  solution. 

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Picture And Chart Reference

• http//inthesetimes.com/images/made/images/uploads
  /corporate_farming__480_320.jpg
• http//archive.indianexpress.com/news/indias-land-
  availability-shrinks-to-0.3-hectare-per-farmer/538
  182/
• https//web.iima.ac.in/assets/snippets/workingpape
  rpdf/2006-11-06_SSingh.pdf
• http//userpage.fu.berlin/garten/Buch/Agrawal(eng
  lisch).htm. (April 6, 2005.)

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Thank You _