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Corporate Farming

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Title: Corporate Farming


1
CORPORATE FARMING
  • PRESENTATION BY
  • Piyush Jalan
  • Section D
  • 181435

2
Context
  • Introduction.
  • Introduction to Corporate Farming.
  • History of corporate farming.
  • Advantage to farmer.
  • Advantage to company.
  • Issues.
  • Conclusion.
  • Reference.

3
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)

4
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.

5
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.

6
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. 

7
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.

8
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

9
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. 

10
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.)

11
Thank You _
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