An overview
Agribusiness includes not only those who cultivate the land but also the people and firms that provide inputs (seed, chemicals, credit, etc), process the output (milk, grain, meat, etc.), manufacture the food products, and transport and sell food products to consumers (restaurants, supermarkets).
The agribusiness system has undergone a rapid transformation as new industries have evolved and traditional farming operations have grown larger and more specialized. At the same time, the agriculture input sector is evolving; a similar evaluation is taking place – commodity processing and food manufacturing moving off the farm.
The term, agribusiness, was first introduced by Davis and Goldberg in 1957. It represents a three-part system made up of (i) the agricultural input sector, (ii) the production sector and (iii) the processing-manufacturing sector. To capture the full meaning of the term, it is important to visualize these sectors as interrelated parts of a system where the success of each part depends heavily on the proper functioning of the other two.
In a nutshell, agribusiness management encompasses many aspects of the economy – agricultural producers, businesses that provide supplies and services to producers (including cooperatives), businesses that add value to agricultural products, and those that facilitate the marketing of agricultural products to an ever-growing marketplace.
Key institutes: With agribusiness management becoming a prospective career option, an increasing number of institutes are coming up with related programs. Some of the famous management institutes offering agribusiness management courses are IRMA (Programme in Rural Management), IIM Ahmedabad (Post-graduate Programme in Agricultural Business Management), National Institute of Agricultural Extension Management (PGDM-ABM and Post Graduate Diploma in Agricultural Extension Management), and Indian Institute of Plantation Management Bangalore (PGDM-PGP-ABPM).
Eligibility for PGP or PGDM in agribusiness management: Though the individual institute may have one-two specifications, the eligibility to get admitted in agribusiness management courses in top institutes remains more or less identical. It is a two-year program. The candidate must hold a bachelor or master degree in agriculture sciences or in agriculture-related disciplines with at least 50% marks or equivalent CGPA. The candidate will have to clear AICTE-approved MBA entrance exams or institute-specific entrances, to be followed by group discussion and personal interview.
Course fees: The course fee varies for various institutes. In IIM-A, the course fee for the 2012-14 batch was around Rs 7,40,000. In Indian Institute of Plantation Management Bangalore, the tuition fee is around Rs 2,50,000, while in IRMA, the fee stands at Rs 4,00,000. National Institute of Agricultural Extension Management (MANAGE) charges a course fee of Rs 3,00,000 for the two-year course. So, barring IIM-A, the upper limit of fees in most other institutions are around Rs 4,00,000. In all the institutes, extra charges will have to be paid for mess, library, laptops, personal expenses on travel, clothes and laundry.
Academics
A student in agribusiness will learn to manage companies which process, market, and merchandise agricultural products to consumers. He must explore business concepts and economic principles, and should have knowledge and skill in management, marketing, and finance with an emphasis on specialized requirements of the agribusiness sector. Courses leading to a degree/diploma in agribusiness include accounting, agribusiness management, agricultural marketing, price analysis, finance, farm & ranch management, and quantitative analysis tools, along with courses in production agriculture.
Placements & salary: Top institutes like IIM-A and domain-focussed ones such as IRMA and Anand Agricultural University report 100 per cent placement. Big corporate, government agencies and companies across sectors visit their campuses. According to placement report of IRMA for its 2010-12 batch, Gujarat Cooperative Milk Marketing Federation Limited, ITC, Metro Cash & Carry, NDDB, Yes Bank, Mother Dairy Fruit & Vegetable Limited, Noida, IDBI Bank and TCS are some of the big organization that recruited its students. The average salary stands at Rs 8-8.5 lakh per annum.
Careers
Careers in agribusiness are varied from farming or ranching to commodity broker, food broker, loan officer, marketing researcher/specialist, product analyst, purchasing agent, statistician, and wholesaler.
Stay tuned to MBAUniverse.com for more in-depth analysis of management courses
