Agro projects is the projects of agricultural production. The term was coined in 1957 by Goldberg and Davis. It includes agrichemicals, breeding, crop production (farming and contract farming), distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales. All agents of the food and fiber value chain and those institutions that influence it are part of the agribusiness system.
Within the agriculture industry, “agribusiness” is used simply as a portmanteau of agriculture and business, referring to the range of activities and disciplines encompassed by modern food production. There are academic degrees in and departments of agribusiness, agribusiness trade associations, agribusiness publications, and so forth, worldwide.
In the context of agribusiness management in academia, each individual element of agriculture production and distribution may be described as agribusinesses. However, the term “agribusiness” most often emphasizes the “interdependence” of these various sectors within the production chain.
Among critics of large-scale, industrialized, vertically integrated food production, the term agribusiness is used negatively, synonymous with corporate farming. As such, it is often contrasted with smaller family-owned farms.
Types of Agricultural Projects:
Water Resource Development:
A capital intensive project. To reap the benefit of irrigation the farmer should not ignore the supporting services as extension, marketing, credit and transportation both for handling crop produced and supply of inputs needed. The economic analysis must take full account of all the attributes costs and benefits streams.
Agricultural Credit:
It makes the viable commercial operation. To enable a larger number of farmers to make needed investment to improve their income and level of living.
Agricultural Industries and Commercial Development:
These projects help improve the adequacy and timeliness of input supplies and specialised services to farming, forestry and fisheries or else help improve the storage, processing and marketing systems.
(a) Technical Aspects:
Technical aspects which concerns itself with inputs and outputs of real goods and services.
(b) Managerial and Administrative Aspects:
These are the key to success or failure of the project and is difficult to evaluate.
(c) Organisational Aspects:
Closely related to organisational and administrative aspects.
(d) Commercial Aspect:
This involves an arrangement for marketing outputs produced by the project and arrangements for the supply of materials and services needed to build and operate the project.
(e) Financial Aspects:
Deals with the revenue earning consideration of a project and also securing funds for it and its repayment and see if the project has become viable or not.
(f) Economic Aspects:
The economic analysis is directed towards whether it contributes significantly to the development of the economy as a whole and if it contributes greatly it is worth investing in such project the scarce resources having alternative uses