Value chain for agribusiness- Vital parameters

Selection of suitable Agribusiness intervention is prerequisite for success in agribusiness. It is important to focus on vital parameters to rank various possible Agribusiness interventions in a given area.

Vital parameters in value chain

The vital parameters in value chain for agribusiness are those parameters that help in setting the priority for agribusiness intervention through ranking system.

After setting the parameters, the weightage is assigned to each of them. An equal weightage or variable weightage as per situation can be assigned. However, it is wise to prioritize the parameters as per prevailing situation of agribusiness in a given area.

Example of Vital parameters in value chain

Let’s make it simpler with example –Vegetable Crop selection agribusiness.

These parameters are:-

Growth potential

Of all possible production of vegetables, analyze the growth potential trend of each vegetable separately.

Competitiveness

Compare the competiveness  of  vegetables in   local and distant market

Comparative advantage

If the area is in hills or plain, analyze the comparative advantage of all possible production of vegetable crops.

Poverty alleviation

Analyze as of how different vegetable crops can play role in poverty alleviation

Social benefit

Social benefits linked with production Agribusiness should be taken while analyzing the  different crops

Chances of success

Take historical view and past experience so as to know the chance of success

Input cost

Calculate the input cost involved in production of each vegetable crop

Profitability

Check the profitability in production and agribusiness of each crop

Sustainability

Analyze how far different crops can provide sustainability  to agribusiness