1. Presentation on Emerging Agribusiness Formats The Case of Integrated Agro Food Parks First Annual Conference of The Indian Society of Agribusiness Management Gopi Krishna Swarangi Vice President Food & Agribusiness Strategic Advisory & Research 26-09-2008

2. India

Significant strengths in agriculture, horticulture, dairy, poultry, etc

• Agro-climatic diversity

• Production leadership in many areas

Rapid urbanization

Govt. according priority status

Growth in Organized food retail

Indias share in global production Indias prices as % of world prices 3. Changing Consumers

Rising income levels

Increasing consumer discern towards quality & healthy food

Shift in consumption basket

• Increasing consumption of processed food

• Moving from mass market to convenience and snack foods

• Increasing consumption of fruits and vegetables

4.

Inspite of

• positive demographics & consumption trends

• Supply side advantages

Indian Agriculture still lags behind, due to.

• Inefficiencies in the value chain

• Lack of scale

• Inability to meet the quality standards

Rationale for Agro Food Park Realizing the opportunity, Alterra of Wageningen University and Research, Netherlands and YES BANK embarked upon the creation of world class Agribusiness Infrastructure that would enable India become the Food Factory of the World! 5.

Unique first of its kind integration of various agribusiness value chain components

Spatial clustering of different agro-production chains

Spatial combination of agro-processing and non-agro functions (building, industrial estate or region)

Scale increase in production further enables industrial processing

Application of principles of industrial ecology, i.e. mutual use of waste and by-products

Clustering approach to attract leading foreign retail chains to anchor and plan their supply chain at and through the Agro Food Parks

Township model approach to attract Indian MNCs and foreign food processing companies

Tremendous scope for Ruraltransformation and rural employment generation

AGRO FOOD PARK Integrated Agro Food Park - ConceptClustering and Networking provides context for sustainable innovations RTC RTC RTC RTC RTC RTC Consolidation Centre Consumers 6. Intelligent Agrologistic Networks combining Consolidation Centres, Agroparks and RTCs Consolidation Centre Agroproduction- and processing Park Rural Transformation Centre METROPOLE METROPOLE 7. Concept (contd.)AFP Modern Farm Clusters Green Houses Livestock farms Mushroom Nursery FP Zones Utilities &Services Commercial Complex R&D Incubation QCL Commissaries & Packaging Common Infrastructure Agribusiness Mgt. Trg. Inst Convention Center IT/ Library Training Center Agro tourism Wellness & Nutrition Terminal Markets Logistics Cold Stores Ripening Chambers Warehousing Rural Transformation Centers Rural Transformation Centers Rural Transformation Centers Rural Transformation Centers Production Processing R & D Trade Social 8. Concept (contd.)RuralTransformation Centers At Mandal Level Popln: 5000 - 10000 Agri Clinic Collection Center Mentoring Training Farm Credit Micro Finance Primary Health Center Commercial Rural Mart Office Space Smart Card Green Port Realty Food & Entertainment Village Village Village Village Village Village 9. Market-Oriented Food Production Chains

Collection - Value Adding - Distribution Centres:

• Increase employability

• Add quality and value

• Link farmers to retail

• Open new markets

Farmers Collection Points Collection Centres Primary processing Centres Distribution Centre Domestic markets Export markets Retail 10.

Primary processing centre:

• Cooling, sorting, grading, packaging and storing

• Collectionfrom max. 50 - 100 km

Backward chain optimisationfrom farm to fork(incl. seeds and tissues); farmers become preferred suppliers

Reduce shrinkage by expanding cool chain

Increase quality (+price)

Extend potential market

Market-Oriented Food Production Chains (contd.) Farmers Collection Points Collection Centres Primary Processing Centres Distribution Centre Domestic markets Export markets Retail 11. Add Agro-production to Processing and Trade Land-independent agriculture in Agro Food Parks adds opportunities, mainly in new markets Farmers Collection Points Collection Centres Value Adding Centres Distribution Centre Domestic markets Export markets Retail 12. Case Study - Integrated Dairy Farms Linked to AFP AFP { Margin MoneyPayment of Milk (Market Price) Payment Of Cattle Feed (Market Price) Veterinary Services, Training, Technical Knowledge, Market Information Information Flow Bank Payment from the market Cattle Loan Repayment Cattle Loan Payment(Milk+Fodder-Loan-Feed) Financial Flow Distribution Centre Domestic Markets Export Markets } Retail Consumers Modern Livestock Farm Farmers Cattle +Fodder Milk Feed Dairy Product Product Flow 13. Sustainable & Environment Friendly 14. Components of an Agro Food Park Central Production and Processing Zone Social, Commercial, Common and Entertainment Zone Investors Zone 15. Advantages

Benefits to Consumers

• Healthier & safer food

• Extended freshness & increased shelf life

Benefit to farmers

• Exchange of knowledge

• Access to latest technology

• Timely information transfer

• Reduction in wastage

• Better price realization

Employment Generation

• Each Agro Food park will generate

• • Atleast 10,000 direct jobs

• • Another 10,000 Indirect jobs

16. Phase I: Proposed AFP Locations Phase II: Proposed AFP Locations Phase II: Cons. centre Locations Phase I: Cons. centre Locations

Focus initially in Southern & Western India (8 AFPs)

• Andhra Pradesh

• Karnataka

• Tamilnadu

• Maharashtra

• Gujarat

Phase II

• Rajasthan

• West Bengal

• Punjab

• Haryana

• Uttar Pradesh

• Madhya Pradesh

• Kerala

About 30 Consolidation Centres on pan India basis

Strategic Plan 17. Thanks for your attention !