Agribusiness is an off-farm activity. It is dependent on-farm activities especially for availability of raw material i.e. Production. It is important not just to focus on more production for successful Agribusiness is an off-farm activity. It is dependent on-farm activities especially for availability of raw material i.e. Production. It is important not just to focus on more production for successful agribusiness.
Targeting productivity for successful Agribusiness
It is the productivity that’s need to focus on profit margin of business in agriculture. While targeting the productivity the input cost that has been incurred in production is much of significance. For profit of course the much of production will fetch much of amount. But if the input cost can be reduced than it can further increase the profit margin.
Ways to reduce the input cost
Following 3 ways can be used for reducing the input cost:-
On farm production of inputs is one such means that can reduce the input cost. The best advantage of on farm production is the authenticity of the inputs produced.
The inputs purchased from market though are reliable but in some cases farmers complains of poor quality. The farmers in most of the cases have raw material for production of inputs .Vermicompost is one of such input. The farmers in village at least keep 2-3 animals for agriculture and allied activities. The cow dung of animals can be better being converted in to compost through digestion by earthworm. Above all, use of organics is the need of hour from quality aspects .It fetches better price too.
b) Certified seed production
Certified seed production can be taken by farmers by forming Farmers producer group. Especially for the certified seed production in cereals, pulses & oilseeds a liasoning with the state seed corporation and state department of Agriculture can be done. This way the farmers can ensure better quality seeds in reasonable price
c) Enhancing water use efficiency
Enhancing the water use efficiency (WUE) for irrigation can reduce the input cost. The water stored through water harvesting structures can efficiently be utilized through sprinkler and drip irrigation systems.