Role Of Mba Food And Agribusiness Management In Economic Development

When it comes to economic development, food and agribusiness play a vital role in contributing to the sustainable growth of the agricultural industry. Food and agribusiness in India contributes close to 18 to 20% of India’s gross domestic product (GDP) and provides employment to roughly 50% of the country’s workforce. India is one of the largest producers of pulses, rice, wheat, and spices worldwide. 

Graduates pursuing MBA Food and Agribusiness, specializing in food and agricultural business, have the skills & experience to help the industry reach its full potential and become a significant economic force. This article explores the role of food & agribusiness and the contributions of MBA graduates in food and agribusiness business management to the overall growth & development of the industry.

Food and Agricultural Business: Contribution to Indian Economy

The food and agricultural business field encompasses a range of activities and enterprises involved in producing, processing, distributing, and marketing food & products. The agriculture sector in India is a driver of growth, accounting for approximately 18% to 20% of the total GDP. Moreover, approximately more than 50% of the population relies on agriculture for their livelihoods.

India’s food and agricultural business has grown over the past few decades, establishing itself as one of the world’s ten exporters by developing expertise in specialized agricultural & related products. From April to August 2023, India achieved a global trade surplus worth INR 2960 crore in related products.

Some notable agricultural exports from India include non-basmati rice, sugar, basmati rice, and spices. These exports contribute significantly to foreign exchange earnings while boosting the country’s economy. The food and agricultural business sector does not only contribute to India’s GDP but also creates employment opportunities, promotes exports, and drives economic growth.

Various Sectors Under Food and Agribusiness

In this industry, there are various sub-sectors where graduates with MBA food business management, can work. To highlight the career scope associated with this field, here are some sectors mentioned within the food & agriculture industry where these MBA graduates can get opportunities:-

  • Production: The primary sector involves cultivating and harvesting crops, where farmers and agribusiness grow their crops for distribution & direct consumption.
  • Livestock Production: The focus of livestock production is to raise animals for various purposes, such as dairy products, eggs, wool, and even meat.
  • Food Processing: This is where agribusinesses convert raw materials into processed food items for distribution & marketing. This includes cleaning, cutting, packaging, and preserving food products. Examples include flour mills, meat processing plants, and dairy factories.
  • Distribution and Logistics: Distribution and logistics are essential for agribusinesses to transport products from producers to consumers successfully. This involves activities such as transportation, storage, warehousing, and wholesale operations. The primary goal of these businesses is to ensure that products are delivered efficiently to market retailers and ultimately reach the consumers.
  • Agri-input Supply: Suppliers of inputs are responsible for providing resources needed for farming, including seeds, fertilizers, pesticides, and machinery. These companies play a role in assisting farmers and ensuring the accessibility of high-quality supplies for both crop and livestock production.
  • Agri-finance and Insurance: Companies in the finance and insurance industry specializing in agriculture offer customized services, loans, and insurance solutions. Their purpose is to assist farmers in managing risks, obtaining capital, and maintaining stability in their operations.

There are various other sectors in this industry where graduates with MBA food and agribusiness can work for industries focusing on various retail and food services, establishing strong sales and distribution of agricultural products via grocery stores, restaurants, cafes, and other food delivery services.

Role of MBA Food and Agribusiness Management in Economic Development

Increasing Agricultural Productivity

MBA Food and Agribusiness Management graduates play a vital role in enhancing the industry’s agricultural productivity by leveraging their knowledge of business & agriculture to enhance and implement new technologies. They promote sustainable practices to help the farmers in efficient production.

Developing the food processing industry

The professionals also help develop and enhance various aspects of food processing, utilize various equipment to ensure sustainable production of new products and ensure the efficiency of the food processing methods.

Marketing and distributing food products

Marketing and distribution is one of the key components of food and agribusiness as it provides a lifeline for businesses to grow in different areas and expand their service. Professionals work closely with retailers and other food businesses to develop marketing strategies to reach customers.

The contribution of MBA Food Business Management graduates to the food and agricultural business sectors helps them drive economic development and improve the livelihood of the people around them.

Conclusion

Professionals in Food and Agribusiness Management play a vital role when it comes to growing the industry. They leverage business skills and agricultural knowledge, allowing them to tackle various challenges associated with the industry.

Pursuing MBA Food and Agribusiness Management from a reputed MBA University, like Prestige University, graduates can work for companies in significant roles in developing and strengthening the food and agriculture industry. Their contribution can help drive economic growth, ensure food security, and create job opportunities.

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