Characteristics of Agribusiness

Due to some distinctive features, agribusiness differs from some other kinds of businesses.

• Diverse nature of business: There exist various kinds of business in the agribusiness sector i.e. of basic producers, wholesalers, brokers or CAs, processors, packagers, storage firms, transporters, financial institutions, retailers, food chains ,etc.
• Existence around production areas: Agribusiness is established around several millions producers/ farmers that produce hundreds of different food and fibre products.
• Dealing with farmers/ producers: Most agribusinesses deal with farmers both directly and indirectly. No other industry is set up principally around the basic producer of the raw product.
• Variety and size of agribusiness organization: There is infinite variety in the size of agribusiness from one person and one family to giants/huge/tall organization. Most agribusiness tends to be small when compared to other businesses and industrial segments.
• Scale and type of competition: Agribusinesses are small and compete in a relatively free market (Perfect Competition) where there are many sellers and buyers as well. The size of agribusiness does not allow monopoly. Product differentiation is also difficult.
• Conservativeness of agribusiness: The workers (labourers) and producers have traditional philosophical touch, so they make agribusiness more of conservative type.
• Decision making: Agricultural operation decisions are taken by families i.e. husbands and wives are often heavily involved in decision- makings.
• Community oriented business: The agribusinesses tend to be community oriented in small towns and rural areas.
• Seasonality: The agribusinesses are highly seasonal in nature due to planting and harvesting seasons and interdependence of specific enterprise.
• Vagaries of nature: Agribusiness deals with vagaries of nature viz; drought, flood, insects, diseases etc. and everyone from producer, banker and manufactures is concerned with the weather.
• Govt. programmes and policy: Govt. programmes and policies have direct impact on agribusiness. Many agricultural products are directly influenced by govt. programmes and regulations.

Types of Agri-business Management/Specialization Areas of Agribusiness Management

I Basic areas

1. Production and operations management

2. Financial management & planning

3. Marketing and selling management

4. Personnel or human management

II Other areas

5. Material management

6. Purchase management

7. Wholesale & retail management

8. Office management

9. Farm management

10. Export and import management.