Sales Company

Success Stories of Agribusiness/ Agri-clinics – a Tool of Agri Entrepreneurship

1. Introduction

Agricultural development over years has been the result of continuous agri skill generation and its popularization. The earliest agriculture was animal domestication over thousands of years ahead, man domesticated wild fowl, dog, goat and smaller animals, whom he could overpower easily and subjugate to his sub-ordination. Agriculture thus since beginning has been the results of trails, experiments and experiences over years, learned first though behavioral changes, psychic reoccurrences, memories passed through parents to children and later on through doing and learning and now through sharing experiences and writing them or dotting them as an Entrepreneurship concern.
2. Entrepreneurship concept

The Entrepreneurship adds economic profits and cost-benefit ratios to Agricultural Output. Entrepreneurship is dominated by four factors like:

a. Social systemic changes

b. Support system availability and use

c. Resource base and its utilization

d. Self confidence, exploration work capacity and intellectual potency.

An entrepreneur has to have a thinking of his own, a capacity building interest in acquiring needed technique. An explorative and analytic faculties to judge the way of procuring cheap raw material. He must be equipped with “knowledge” and mindset to use and benefit out of it.
3. Farm Business

A potential entrepreneurship must strive from getting maximum output. Decades back agricultural development and industrial setups was a public sponsored and heavily subsidized but over time “knowledge” explosion in India Agriculture, have brought us on threshold of a system, where wide distances exist between industry and farm business. Where huge subsidies are benefiting Agro-Industrialists. The Farmers who use fertilizers or agro-chemical are crushed under economic pressures. The gaps between technology generated and technology use at farmers door is increasing day after day. The farm technology adoption rates are not more than 20-30% by any higher prospective. The use of information and communication technology (I&CT) for reducing the gaps and increasing productivity is the need of the hour (Wani, 2005). The modern technology and knowledge flow is fast expanding and bringing change. It demands more educated and trained farmers. Our education system has produced more literates but not educationally trained youth to earn their own bread. They after attaining graduation in agriculture and allied sectors, beg for job. The system has to be corrected to make these graduates as employers and not employees. I wrote a treatise as back as 1992, emphasizing a system. Germans are smart to have Farmers school, Farmer business training institutes, practical agri-farmers training centres and like, where way farmer or animal husbandry man is essentially a trained fellow. The banking system is so organized that they are on the door of convocation hall to sell their agri-business and agri-clinics to graduates, without any personal investments. Banks are so smart, that they have surveyed the villages who need vets or agri-graduates or have attained land and all facilitation, so that agricultural or veterinary or even other medico-biological graduates are used as bank investment. This is what is envisaged in India under agriclinic, Agribusiness venture. We have trainings not in the hands of banks but universities.
4. Success of Agribusiness:

A systematic liaison and support system between Govt. banking and University culture has made this otherwise an remunerative and lucerative programmes into a failure inspite of its personal monitoring of PMO. The success of Agri-business and Agri-clinics success rates are shown in table 1. The universities involve and their success stories are shown in table 2. Both these details are distressing inspite of huge moral, financial support from Govt. This is inspite of subsidiary support table 3.

Various ventures are listed in table 4 – 7. Agricultural professionals are getting converted into Agribusiness and agri-clinical experts. More than 14,000 applicants and 615 agriclinics came to existence in Indian 12 states. The agri clinic trained persons in J&K many number in hundreds. Among them 34 have registered agri clinics earning a handsome profit annually.

We visited Bandipora district and unregistered Agriclinics were earning a handsome salary, more than the Rahbar-e-zerat or Agriculture Asstt. A visit documentary is enclosed and shall be shown. It consisted of Agribusiness viz sale of pesticides, cattle feed, poultry feed and agri-extension services. At a small village in Papchan, one agri graduate Mr. Iqbal Shah earns Rs. 10,000/- per month by selling the services and input. At a distance of few kms. In same district one Mr. Khyatlani owns a big poultry farm and earns around Rs. 20,000/- per month. Both these entrepreneurs employ 2-3 persons at present. Similarly, the success shown by one Mr. Shah at Malangam in Agri products and pesticide sale and one Mr. Bhat in Dairy production and milk product sale earn a handsome income besides generating employment for poor.
5. Farmer as Entrepreneur

Indian Farming and farmer has to change if proper WTO recommendation and GATT agreements are to be followed.

The present day poultry scenario has emerging high profile agri-business prospects in India.

The conversion of poultry farmer’s into poultry entrepreneurs shall make the present day 6% contribution of poultry products to 25% share of Global market from India and China. This when translated into action shall increase employment generation by manifolds. The introduction of rural based Vanraja, Gramapriya, Giriraja, Cari Gold and vast other locally grown varieties of poultry have adopted well to our agri-rural base. The market acceptability is higher than exotic poultry concerns. Research to farmers doors in generating free-rang-poultry is like BT cotton hybrid spreading through villages of India and assuring high returns and exports (wani, 2007).
6. Poultry as Agri-business

Dr. Gordon Butland, president of Global poultry strategies presents “Backyard poultry production” as a tool of alleviating poverty and malnutrition. We have tried to distribute “birds” under free-rang system in all our KVK’s our results were excellent and income generation was totally in favour of the Agri-business and agri-clinics as will be shown in case histories and success stories.

A grand show of using poultry, rabbit meat processing introduction at SKUAST-K have innovated white meat usage. Our own preparation could be seen in Figs 1-3.

This all will need the involvement of Agri-Veterinary and food processing technocrats to develop rural-based establishments so as to faster export and fast returns.
7. Holistic Vision for Livestock Enterprise.

Improving income, employment and self-reliance are among educated graduates and un-employed youth especially women needs fostering community development, women empowerment, environmental protection. Rural-based backyard poultry subscribes to all these norms and could be a rich resource for developing agri-entrepreneurship. Govt. of India is liberally financing such agri-business ventures and a proposed infrastructure cost set-up can be seen in table 8. A vast and finance assured schemes are available for agri-graduates for establishing poultry ventures (table 9). An initial allocation of 107 crores for initiating nucleus breeding farms. Further more provision of hatcheries to provide chicks to more than 2 lac farmers and farm women will need many agri-business centres for providing basic germplasm, medicine and above all training.

Some of the success stories in animal husbandry section can be reproduced as follows:
a. Backyard poultry and incubation

Though the Vanraja are the most suitable for back yard poultry, they do not have habit of broodiness. There is a problem among the farmer to get a broody hen in all season. KVK solve this problem of hatching by installing small unit of hatchery. Every month 15-20 farmers are benefited by purchasing chicks for backyard poultry. There 200 back yard poultry units of Vanraja. Each farmer is rearing 10 to 25 in the backyard. There is a good demand and response for the chicks and eggs of Vanraja. KVKs are now planning to expand this unit.
b. Semi-stall-fed Goat Rearing

KVK’s made an intervention to improve this enterprise by conducting short durational training programmes for rural youth. Similarly exposure visit were organized on goat feed, breed and health management. More emphasis was given on O)smanabadi goat and up-gradation in selected non-descript goat breed by osmanabadi pure buck and given the knowledge about semi stallfed goat rearing concept.
c. Broiler Production

KVK has conducted many durational training programmes for 165 trainees. Due to training and demonstrations awareness was increased about contract farming in broiler production with private sector which provide chicks, feed and medicine and after 40 days purchases Rs. 3 to 3.50 per kg on live weight and FCR basis and changed their attitude. They acquired skills through learning by doing at KVK demonstration unit.

The technology has been adopted by 10 percent of youths now in the radius of 20 km there are 27 poultry units having capacity of 5000-10000 poultry birds on contract farming basis. These self employed rural youth earning Rs 10000-15000 per lot.

Recently a seminar-cum-farmer’s meet was arranged at SKUAST-K on 26-27th of Oct.2007. The knowledge –sharing and use for making agricultural graduate and scientists was emphasized by our worthy Chancellor. A vision of poverty alleviation through backyard poultry intervention was the theme of the seminar. Many belts in Gurez, Tangdar, Telail and Zanskar are rearing native livestock species. Who are better suited and need improvement and identification. The cooking methods will need more expansion and scientific intervention for export. More emphasis has to be made on:

• Safe feed and food.

• Organic fodder and food.

• Operational excellence and modern mechanization to improve quality of indigenous enterprises.

• Local family management to farm business management and seller-buyer medol adoption.
8. High Value Agri-business

Rapid growth rate in high value commodities in Indian agriculture promises 40% total output. The sectors assuming importance for export earnings are Fruits, milk vegetable and poultry. Thus Agriclinic training centres should focus on these commodity oriented training. The sector may need more than 1 lac young entrepreneurs to achieve national goals and not the more 14000 applicants.

What is needed:

• Openness and transparency.

• Simple banking.

• Credit facility.

• Mission and Training.
Table 1 Agribusiness

S.No Name of the state No. of Success Stories

1 Andhra Pradesh 261

2 Assam 15

3 Bihar 519

4 Chattisgarh 63

5 Goa 1

6 Gujarat 158

7 Haryana 20

8 Himachal Pradesh 39

9 Jammu & Kashmir 28

10 Jharkand 15

11 Karnataka 629

12 Kerala 15

13 Madhya Pradesh 134

14 Manipur 37

15 Nagaland 2

16 Orissa 74

17 Pondicherry 1

18 Rajashtan 557

19 Punjab 23

20 Tamil Nadu 231

21 Uttar Pradesh 990

22 Uttarancahl 49

23 Weat Bengal 51

24 Maharashtra 842

Total 4754
Table 2

Name of the Organisation & sucees in Agri business No . of . Sucess

1 Shree Maa Guru gramodhyog Sansthan (SMGGS),UP 626

2 M/s.Terra-Firma Bio Technologies Ltd.(TFBTL),Banglore, Karnataka 489

3 Krishna Valley Advanced Agriculture foundation (KVAAF),sangli,Maharashtra 251

4 Mitcon ConsultancyServices Ltd .(MCSL),Pune,Maharashtra 224

5 Mahatama Phule Krishi Vidapeeth (MPKV), Pune ,Maharashtra 203

6 Jaipur School of Business &Finance Management (JSBM), Rajasthan 221

7 SRISTI foundation , Patna , Bihar 197

8 Rajasthan Institute of Co-operative Education & Management (RICEM), 180

9 Indra ganghi institute of Co-operative Management (IGICM), UP 175

10 Voluntary Association for people Service,Virudhanagar, Tamil Nadu 146

11 Participatory rural development Initiatives (PRDIS),Hyd,AP 124

12 Institute of Entrepreneurship Development ,Patna , Bihar 118

13 University of Agricultural Science(UAs-BLR),Bangalore, Karnataka 107

14 SCADA Computre Centre Patna , bihar 107

15 State institute of Managemeny of Agriculture(SIME)UP 89

16 R.C.V.P Naronha Academic of administration (RCVP), Bhopal ,MP 80

17 M.R.Rmoraraka GDC Rural Research foundation(MRMGDC) ,Rajasthan 69

18 Krishi Vigyan Kendra(PIRENS)Mahrashtra 69

19 SKC Educational trust (SKC) ,Basaith,Bihar 68

20 Vasant Prakash Vasakh Pratistan(VPVP) sangli,Mahrashtra 67

21 Confederation of aquaculture fishers and Welfare Organisations (CAFWO),AP 64

22 Indra GandgiKrishi vishwa Vidyalaya ,Rajpur ,Chhattisgrah 63

23 JAI Research Foundation (JRF),Vapi, Gujarat 62

24 Centre for entrepreneurship development (CED),Hyd, AP 57

25 Centre for Human Development (CHD), Bhudaneshwar, Orissa 53

26 Vivekananda Research and Traning Institute (VRTI),Kutch,Gujarat 51

27 Maharana Pratap university of Agriculture & Technology (MPUAT), Rajasthan 50

28 G.B.Pant university of Agriculture & Technology (GBPUAT) Uttaranchal 49

29 Bidhan Chandra Krishi Viswavidyalaya (BCKV),West Bengal 43

30 Institute if Co-operative Management (ICM),Manipur 39

31 Allahabad Agriculture Institute –Deemed University (ADU),UP 38

32 Nationlal Research Centre for Agro-forestry (NARCF),UP 37

33 State institute of Agriculture of Management (SIAM),Rajashthan 37

34 Indian Society of Agri business Professional ,Himachal Pradesh 36

35 M.P.water Land management Institute (WALMI),Bhopal, MP 35

36 International Institute of bio-Technology and Toxicolgy (IIBAT), TamilNadu 35

37 Entrepreneurship Development Institute of Indian (EDII), Bhat, Gujarat 32

38 Nagarjuna Agricultural Research and Development Institute (NARDI),Hyd,AP 32

39 University of Agricultural Sciences (UAS_DHR),Dharwad, Karnataka 31

40 Baramati Agricultural Development Trusts Krishi Vigyan Kendra,Maharahtra 29

41 Centre of Agriculture and rural development Studies (CARDS), TamilNadu 21

42 Sher-e- Kashmir University of Agricultural Science and Technology, Srinagar 20

43 Dip Narayan Singh Regional Instiute of Co-operative Management (DNSRICM), Bihar 19

44 Gujarat Agricuture University (GAU), Anand,Gujarat 15

45 Agro Clinical Development Trust (ACDT),Tamil nadu 15

46 Shanmuga Arts ,Science technology &research Academy (SASTRA),Tamil nadu 15

47 Assam Agriculture university (AAU),Jorhat,Assam 14

48 C.S.Azad University of Agriculture and Technology (CSAUAT),UP 14

49 The Agriculture and Promotion and Investiment Corporation of Orissa Ltd.(APICOl0 14

50 CCS Haryana Agriculture University (CCSHAU) Hisar, Haryana 14

51 Indian Society of Agri business Professionals, Amritsar, Punjab 11

52 Centre Institute of Agricultural Engineering (ICAR) ,Bhopal, MP 9

53 Indian Society of Agribusiness Professionals, Haryana 9

54 Indian Society of Agribusiness Professionals ,Jharkand 9

55 Kerala Agriculture university (KAU), Tissur,Kerala 8

56 Netaji Subhash regional Institute of Co- operative Management (NSRICM),West Bengal 8

57 Society for rural Industrialization (SRI),Ranchi, Jharkand 8

59 Central Institute of Post Harvest Engineering & Technology (CIPHET),Punjab 6

60 Agroweb online (Pvt) Ltd.(AOPL),Indore,MP 5

61 Indian society of Agri business Professionals,Srinagar,Jammu and Kashmir 4

62 Indian veterinary research Institute (IVRI),UP 4

63 Acharya NG Ranga Agriculture university (EEI),hyd,AP 4

64 Dr. Y.S. Parmar University of Horticulture and Forestry (YSPUHF) 3

65 Punjab Agriculture Management & Extension Training Institute (PAMETI), Punjab 3

66 Rajendra Agriculture university (RAU),PUSA,Bihar 3

67 Narendra Deva university of agriculture & Technology (NDUAT),UP 3

68 Agriculture Cooperative Staff Traning Institute (ACSTI), Jalanghar, PunJab 3

69 Sher-e Kashmir university of Agricultural Science and Technology (SKUAST), Jammu 2

70 Indian Society of Agribusiness Professionals ,Jammu, Jammu and Kashmir 2

71 Indian society of forest Management (IIFM),MP 1

72 Sardar vallabh bhai Patel University of Agriculture and Technology 1

Total 4754
Table 3 Under Agri-clinics/ Agri-business norms thereof

S.No Means of Finance General Category Weaker Category

1 Promoter’s contribution 10% 5%

2 Soft loan from NABARD 0% 5%

3 Total promotion contribution 10% 10%

4 Subsidy 25% 33.33%

5 Eq..— 355 43.33%

6 Term loans 65% 56.67%

Total 100% 100%
Table 4 List of ventures

1 Soil and water quality cum inputs testing labotatories (with Atomic Absorption Spectrophotometers)

2 Pest surveillance, diagnostic and control services

3 Maintenance, repairs and custom hiring of Agricultural implements and machinery including micro irrigation systems (sprinkler and drip);

4 Agri Service Centres including the three activities mentioned above (Group activity);

5 Seed Processing units

6 Micro-Propagation through Plant tissue Cultural Labs and hardening Units
Table 5 List of Ventures

1 Setting up of Vermiculture units, Production of bio fertilizers,bio-pesticides, bio-control agets;

2 Setting up of apiaries (bee-Keeping) and honey &bee products’ processing units;

3 Provision of Extension Consultancy Services;

4 Facilitation and agency of agricultural insurance services;

5 Hatcheries and production of fish finger-lings for aquaculture;
Table:6 List of Ventures

1 • Provision of livestock health cover, setting up of veterinary dispensaries & services including frozen semen banks and liquid nitrogen supply;

2 • Setting up of Information Technology Kiosks in rural areas for access to various agriculture related portals;

3. • Feed Processing and testing.

4. • Value Addition Centres

5. • Setting up of Cool Chain from the farm Level onwards (Group Activity)
Table 7 :List of Ventures

1. • Post Harvest Management Centres for sorting, grading, standardization, storage and packaging;

2. • Setting up of Metallic/ Non-Metallic Storage structures (Group activity)

3. • Retail marketing outlets for processed agri-products.

4. • Rural marketing dealerships of farm inputs and outputs.

5. • Projects in any other service oriented activities in agriculture and other allied areas can also be considered.
Table 8 Poultry Agri business

S.No Component/Cost Year Remarks
I II III IV V Total

1 Satellite Hatcheries 100 50 - - 50 200 Assuming cost of each Satellite unit around Rs.10.00 lakhs and Proposing 10 and 5 units during Ist and 2nd year respectively and another 5 units during 5th year

2 Mother Units 420 60 300 - - 780 Assuming Single Mother Unit cost to be around rs 1.2 lkhs during Ist and 2nd year and rs 1.5 lahks during 3rd year and Proposing for Establishment of 350,50 200 unts during Ist ,2nd and 3rd year respectively

3 Poultry traning cum –

extension Centres for traning

of trainers,poultry link

workers etc 50 30 30 - - 110 Assuming cost of each Centre to be around Rs.2.00 lakhs and proposing 25.15,15 Centres during Ist, 2nd and 3rd year respectively

4 Poultry Proceesing Units- - 500 500 500 1500 Assuming cost of each Mini Plants with dressing capacity of 500 birds per hour and proposing 5 units to be set up each year during the 3rd,4th,and 5th year

5 Skill up gradation and

training of beneficiaries 420 400 450 500 500 2270 Assuming 70,000 beneficiaries are trained during the Ist year and 50,000 each during the subsequent years,.Further only honorarium is proposed @ Rs.600,800,900,1000,1000 during Ist ,2nd,3rd,4th and 5th year respectively
Table 9 Poultry business Targets
Sl.No Component/costs Year Year I YearII YearIII YearIV Year V

1 Cumulative no. of nucleus breeding farms 35 40 40 40 40

2 Cumulative no. of mother units 350 400 600 600 600

3 No. of beneficiary families (‘000) 70 120 180 180 180

4 Financial assistance towards fixed cost of

beneficiary families

(at the rate of Rs.1300)Rs in lacs 910 650 780

5. Subsidy towards input costs of beneficiary

families (assuming averagebatch size of 30 birds)-Rs. In lacs 1,607 1,683 1,760 459

6. Subsidy towards fixed cost of

mother units (at the rate of Rs. 18,000 i.e 20%

of Rs. 90,000) Rs. In lacs. 63 9 36

7. Interest free loan (net of recovery)

to mother units (at the rate of Rs. 27000)- Rs. In lacs 95 14-19 54-23= 31 Rec. of 32 Rec. of 32

8. Poultry training cum extension centres for

training of trainers, poultry link workers etc.

(25,15 and 15 centres to be set up in the Ist, 2nd and

3rd years at the cost of Rs. 2 lacs each) Rs. In lacs. 50 30 30

9. Skill upgradation and training of beneficiaries

(70,000 to be trained in Ist year and 50,000 in each

subsequent year) Rs. In lacs 420 300 350 350 400

10. Administrative expenses, monitoring & evaluation

– Rs, in lacs 120 130 140 160 200

Total cost 3265 2797 3127 937 568