Two reasons to explain the need of agribusiness management!
There was a time when agriculture was only related to growing crops. The only way to look at a fertile land is for using it to yield products for consumption. As time progressed, the people’s approach towards agriculture changed and a business aspect was added to their scheme of things. Agriculture market became one of the biggest & busiest commercial ecosystems across the world. Along with the progressively shifting dynamic of agriculture rose a need for a more strategic approach towards managing agricultural resources. Thus came in the aspect of management in agriculture leading a demand for programs like MBA agribusiness management. In this article, we will discuss some of the prominent reasons which make management education for agriculture sector important.
Need of the hour:
India is called as ‘farmer’s country’! The societal and economic value of agriculture in the country is unmatched. Agribusiness is a complex, system which revolves around several stages like input, production, processing, manufacturing, transport and marketing. Hence it poses a massive influence on relevant industries. The agriculture sector in the country employs nearly half of the workforce of the nation. Although, the contribution in GDP is only at 17.5%. Over the past few decades, the manufacturing and services sectors have increasingly contributed to the growth of the economy. On the other hand, the contribution from the agriculture has come down to 15.4% in 2015-16.
In order to tackle a situation like this, the agriculture sector requires a proper management. Considering the declining situation of the sector, the demand for Agribusiness managers is at peak right now. Industry wants people capable of analyzing the problems and finding out the apt solutions which can help achieving a strategic approach.
Agricultural Diversity in India:
Indian terrain is a host to all kinds of climates which can be observed in the entire world. The country has such a diverse climatic conditions that the crops from the same type change their principal characteristics. In addition to that, the agricultural techniques which are used by the farmers of the nation are also varied based on the geography. This makes Indian Agribusiness one of the most diversified business sectors.
Owing to this massive diversity, the Agricultural productivity throughout the country can depend on several disparate factors. These include the availability and quality of agricultural inputs such as land, water, seeds and fertilizers, etc. Financial aspects also play a crucial role due to which factors like access to agricultural credit and crop insurance, assurance of remunerative prices for agricultural produce, and storage and marketing infrastructure and such also need to be managed.
So it is pivotal that a systematic management should be put in place for the proliferation of the agribusiness sector.