Agribusiness strategy- Overcoming business tragedy
Agribusiness strategy is vital in overcoming business tragedy. Agribusiness strategy in turn decides the success of agribusiness interventions. It includes the comprehensive planning and holistic approach. The strategic planning for agribusiness should be done in such a way that the market demand is well known to the producer before initiating the production cycle.
Input supply chain planning
Input supply chain planning is a deciding factor in Agribusiness. The inputs to be purchased should be wisely selected. While purchasing the inputs, it is wise to analyze the output value from the intervention. The producer should ensure that the output value of the agribusiness intervention should be more than the input cost.
On farm input production is a wise decision .It ensures the use of good quality of the inputs and makes agribusiness a cost effective venture. Reducing the expense on the inputs will increase the profit margin. Hence, a judicious transformation of input cost in to output value is must in Agribusiness. This way the Agribusiness strategy can overcome the business tragedy.
Market intelligence plays a vital role in agribusiness. Most of the time producer focuses on production without considering the market demand. The negligence of understanding the market demand in agribusiness results in complete failure leading to business tragedy.The market intelligence act as an advisory to the producer in agribusiness planning
.The advisory from market intelligence should better be assimilated in the entire agribusiness planning. This way the Agribusiness strategy can overcome the business tragedy.
Previous years Price in market
Previous years Price in market plays a significant role. The producer mostly depends on previous year price for forthcoming agribusiness planning. This results in increase in surplus production in the targeted year and fall in price .As a result the producer fails to harvest good income.
Actually the producer fails to realize that the previous year price of the commodity don’t reflects the true picture in agribusiness planning and infact create confusion in taking correct decision for forthcoming season. Price is highly volatile and depends on numerous factors. So, Agribusiness strategy should be smarty taken to overcome the Business tragedy.
Market demand for Agribusiness
Market demand for agribusiness plays significant role in success of agribusiness. It is wise to focus on market demand for the targeted year. Based on the market demand, the farmers should adjust their sowing. Further while focusing on market demand, it is important to understand the quantum of produce required, time period during which the supply has to be ensured and the location where it is to be supplied.
Along with it, the quality in demand should also be taken care. For this the variety of crops should be selected as per the market demand.This way the Agribusiness strategy can overcome the business tragedy.