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Agribusiness Trade Opportunities Between India And Australia Literature Review

  1 Downloads   |   33 Pages 8,229 Words   |   Published Date: 27/07/2017

Question:

Write a report about the agribusiness trade opportunities between india and australia literature review.
 
 

Answer: 

Introduction

The bilateral relationship about the agribusiness opportunities between India and Australia is growing stronger now.The trade opportunities have become more effective with the partnership between Australian Trade and Investment Commission with the Indian banking sector, like- YES bank. With the new investment opportunities in the agricultural sector, the Australian agribusiness has entered into the Indian food expertise sector. The research study is based on topic of recent agribusiness opportunities that have been developed between Australia and India (Alam, Mukhopadhya & Islam, 2013). The agricultural goods trade opportunities between these two nations have gone beyond the agricultural products towards forestry as well as fisheries. The research study has been structured into several sections to analyse the previous research studies, explanation about the current study research process, the data collection technique, data analysis part and the findings which have been taken into consideration from Indian Agriculture Council and its tie up with the Australian government, Australian Trade and Investment Commission, Food and Agribusiness Strategic Advisory & Research of the banking sectors of India (Anderson & Strutt, 2014). The Australian agribusiness sector is now contributing a lot towards the economy of India and it has a track record of magnetizing international investment towards the agricultural supply chain in India. The geographic isolation as well as monitoring regime of Indian agricultural sector and the Australian agribusiness is helping to preserve the reputation in terms of high quality production. Proximity to the Indian economy, the extensive free trade agreements (Ashoka et al., 2013).

Literature Review

Agribusiness is a vital industry for Australia and a huge sending out industry. 66% of Australia aggregate farming yield is traded. As indicated by DFAT and ABS measurements the accompanying is a diagram of current condition of farming fares:

Significant agribusiness products

 

CY2009 A$m

Share of Rank

Total

Complete Agriculture (barring fish, ranger service and rubber)a

 

27,985

100.0%

Beef

 

4,764

1

17.0%

Wheat

4,756

2

17.0%

Wine

2,297

3

8.2%

Wool

1,809

4

6.5%

Sheep and mutton

1,455

5

5.2%

Creature feed

1,234

6

4.4%

Live animals

1,152

7

4.1%

Milk and cream

940

8

3.4%

Barleyb

766

9

2.7%

Covers up and skins (excl furskins) raw

764

10

2.7%

Leafy foods new or dried (not incl oil nuts)

763

 

11

2.7%

Vegetables, crisp or frozen

702

12

2.5%

Cheddar and curd

701

13

2.5%

Canola

678

14

2.4%

Sugar

664

15

2.4%

Consumable items and preparations

565

16

2.0%

Cotton

537

17

1.9%

Oat preparations

498

18

1.8%

Malt

412

19

1.5%

Creature fats and oils

272

20

1.0%

Source: Agriculture.gov.au. (2016) 

Both the nations require a worldwide commitment to manage the purposes behind the present emergency and its repercussions in a way that accomplishes the interests of both created and creating nations; a worldwide commitment that goes past strategies, states of mind and interests in their tight national points of view so that this commitment will manage the general population's sustenance security more extensive… a worldwide commitment that witnesses our joint endeavours on the national, provincial and global levels to contain this emergency and stop the mounting ascend in nourishment prices (Carrasco, 2013). Over the recent years an expanding number of researchers, market analysts and rural consultants have turned out to be progressively worried about rising issues of sustenance – nourishment generation, nourishment supply and nourishment security (Chandler, 2014). Patterns and drivers that are adding to the worry over nourishment are: 

 

Expanding worldwide populace

Changing climate designs and ecological effects which incorporate diminishment in access to water e.g. diminishment of precipitation and subterranean water and also proceeded with weakening and debasement of soil quality and number and seriousness of climate occasions, for example, surges, dry seasons etc.

  • Interest for more creation of serious sustenance
  • Changing buyer tastes, especially for natural, occasional
  • Acceleration in requirement for more creation concentrated nourishments
  • Rivalry for water rights/prerequisites – cultivating versus ecological versus urban versus modern necessities and streams
  • Developing urbanization of rustic ranges, and also less agriculturists, especially loss of littler ranches

Agribusiness and subsequently sustenance and nourishment supply have various novel elements that impact the sector (Gounder, 2014). These issues include:

Administrative approaches of fare and import confinements, sponsorships and nourishment standard strategies. It is important that the normal levies for agrarian products are more than 3 times higher than for non-rural merchandise some rural taxes are as high as 800%; Expenses of framework of sustenance logistics including capacity and transport; Effects of speculator theory; Remote trade instability; National expansion rates, especially in connection to sustenance costs; Rivalry (or deficiency in that department) in sustenance circulation and nourishment retailers; Hereditary qualities and rising hereditary advancements and the rights or generally to utilize them; Rising information costs for creation and sustenance supply; Worldwide full scale financial and market components including unpredictability, dangers; over reliance on single markets (Hellin et al.,2015). A case of this is the present condition of play amongst Australia and India with cows and meat. Most savants concur that later on as to sustenance security we will in all likelihood be confronting weakening worldwide conditions. Genuine sustenance security for any nation implies territorial nourishment security (István & Bharti, 2016). On the off chance that deficiencies do happen later on, and numerous financial experts and specialists are affirming they will, every country will nourish itself first. So Australia and its agrarian segments have some vital open doors, despite the difficulties illustrated previously. Asian nations wishing to shore up supply; Advancement and utilization of licensed innovation to enhance generation, diminish utilization of assets, upgrades in cultivating procedures; Growing new markets; Making esteem include items for specific markets which give better comes back to makers; Enhancing logistics and supply chains; Fabricating and repurposing transport foundation to enhance productivity, lessen expenses and waste; Exploiting interest for perfect, green, ecologically benevolent sustenance, demonstrating region of nourishment and making purchaser marking around this; Enhanced handling of farming assets, decreasing waste, and expanding esteem include (Hine, 2015).

From the report of Indian Agriculture Council, one thing is quite clear that there are some tax barriersassociated with the imports of agricultural products into Australia are low by world measures. Most of the Australian taxation policies related to agribusiness sector are connected at rates of somewhere around zero and 5 for every percentage. The basic normal connected tax for farming products is under 2 for each penny. Generally farming items are transported in obligation free. All Australian farming levy lines are bound under the WTO at rates from zero to 29 for each penny, and the normal bound levy rate is 4 for every penny. India's farming levies have been dynamically lessened in the course of recent years. Its current straightforward normal connected MFN levy for farming is 36 for every penny. There are elevated amounts of complementarity in horticultural exchange between the two nations (Ivey & Davidson, 2015). These incorporate the capacity of Australia to meet residential deficiencies in Indian generation, agricultural trade opportunities and the chance to exchange occasional things on a counter-seasonal premise, in both bearings (which would give shoppers access to high quality products of the soil at a lower value year round). Commonly favourable open doors in the horticultural exchange relationship are just prone to develop. Because of changing structure of interest, India is liable to end up a more general merchant of certain nourishment things, some of which Australia will be very much put to give, such as high-esteem dairy items (Kumarappan, Hostetler & Angles, 2014). Likewise, as India's nourishment preparing part proceeds to grow and search for fare opportunities, Australian inputs conceivably encouraged under an FTA could turn into an inexorably vital piece of India's inventory network. There are limits, notwithstanding, to the degree to which Australia's agrarian merchandise fares to India could increment. Australia faces considerable limit limitations because of the restricted accessibility of arable land and water. Australia has existing farming fare advertises that it should keep on servicing. Australian rural fares are likewise not prone to contend with subsistence agriculturists in India, and will probably target particular corner markets in urban high populace focuses (Mohsin, 2015). Agribusiness exchange is influenced by duties and comparable measures, as well as by the sterile furthermore, the SPC necessities that most nations have set up to control bothers and illness. On account of Australia and India, SPS necessities affect farming exchange.

Australia's WTO plans contain two constrained tax rate quantities (TRQs) for farming items - chose cheeses and tobacco. The tobacco TRQ is no more compelling as the connected tax rate is zero. India keeps up bound tax rate quantities on things, for example, milk powder, maize, assault, colza or mustard oil, sunflower seed and safflower oil (Pray & Nagarajan, 2012). In light of the integral way of Indian and Australian rural fares, exchange liberalization through a FTA which changed duty and non-tax obstructions, would bring noteworthy advantages to both nations. Such advantages would be comparable with the level of liberalization attempted. Be that as it may, due to the vital part of horticulture in both nations, the potential effects of more prominent liberalization would be completely talked about in the occasion FTA arrangements start (Purves, Niblock & Sloan, 2015).

Research Methodology

The research methodology section describes about how the entire study has been done and about what is the main research approach which has been taken into consideration while studying about the agribusiness opportunities present there.Basically, the research approach revolves around secondary research method which includes in-depth study of the reports of bilateral policies and agribusiness opportunities in case of Australian Trade and Investment Commission as well as the Indian Agricultural Council (Raj, 2014).

This study has also included the primary data analysis. The primary data analysis has been included in order to make the more realistic. The study has been done based on the positivism philosophy, deductive research approach and descriptive research design. The study has also maintained the ethical ground from the beginning to the end.

Types of investigation

The investigation during this study has been done by following a specific methodology as per the type and need of the research area. Among all the available research philosophies, this study has followed the positivism philosophy. Positivism philosophy has been chosen because this philosophy helps to conduct the study by following certain rules and regulations those prevent any vast changes in the variables of the study (Mackey and Gass 2015). At the same time, the positivism philosophy was also helpful in analyzing the data in quantitative techniques.

The investigation in the study has also followed the deductive research approach because with the help of the deductive approach it was possible to get very specific result. Due to this, the deductive approach saves the time and cost of the researcher (Youssef and Youssef 2016). On the other side, the study has followed the descriptive research design and the reason behind this selection was ability of the descriptive design in conducting the study in a detailed manner. The descriptive research design follows the existing theories and literature for analyzing the data of the study.

Data Collection

The data collection part involves collecting more relevant information about the top agricultural export areas of Australia as well as India. Most of the information was taken from the government websites of Austrade, Queensland agribusiness departmental reports, the Australian Bureau of statistics, the agribusiness technological exchange contract and the reports etc. The ISAP report about the current opportunities in this sector in terms of empowering the rural agribusiness of India has also been taken into account while collecting data. Indian Society of Agribusiness Professionals and other illustrious members who are joined in this movement have also illustrated certain facts for which the deployment of ICT in this sector along with involvement of largely developed organisation, government and non-government organizations with the help of large-scale agribusiness opportunities and their perspectives towards this modern innovation of agricultural field have also been taken into consideration while collecting the data (Serrano & Pinilla, 2014). Secondary data is already available in books, magazines, academic literature, and government reports of both the nations that have been referred while collecting data for the research study. The journals, indexes and tertiary sources are also used here for the data collection part. All the published data has been taken from the different agribusiness publications of the local government and the central governments of both the nations while the agribusiness subsidiary organizations study was also considered here. Technical as well as trade journals of the Indian Agriculture Council and the Australian agribusiness government and non-government entities have been analysed.   

 

India and Australia’s top 10 agriculture exports to India – 2008-09 (US$m) Source: (STARS database)

The study has also collected the primary data for get better idea about the possibility of agribusiness trade between India and Australia. In order to collect the primary data, the face-to-face interview method has been followed. The interview has been taken from few farmers and businesspersons in Australia those are related to the agribusiness.

Sampling technique and sample size

In order to collect the primary data, the study has chosen some sample respondents from the population respondents. The sampling has been done by following the non-probability sampling technique. The approach for the interview was made to the 40 farmers and 30 businesspersons. However, among them, 20 farmers were ready to answer the questions during the interview and 10 businesspersons were ready for the same. Therefore, total sample size of the study was 30.

Data Analysis

First the authenticity of the chosen data collection materials has been done with the proper analysis of all the documents. For the data analysis part, auxiliary information investigation have been completed and then immediately contrasted with formal essential information social event and investigation works out. Where great auxiliary information is accessible, time sparing attitude has never been taken into utilization of accessible information as opposed to gathering essential information, consequently keeping away from duplication of exertion (Sekhar, Prahadeeswaran & Nagaraj, 2015). Using auxiliary information gives a moderately minimal effort method for contrasting the level of prosperity of various political units. Notwithstanding, the information accumulation techniques shift, which may impede the likeness of the information have been considered here while doing the data analysis of the agribusiness opportunities present in between India and Australia. Depending on the level of information disaggregation, auxiliary information investigation fits pattern investigation as it offers a moderately simple approach to screen change over time. It illuminates and supplements essential information accumulation, sparing time and assets regularly connected with over-gathering essential information (Yogesh & Chandrashekar, 2014). Persons with constrained examination preparing or specialized aptitude can be prepared to lead an optional information survey.

In order to analyze the primary data, the study has followed the quantitative as well as qualitative techniques of data analysis. The quantitative data analysis technique has been followed for analyzing the data those were collected by interviewing the farmers. This was because the questions those had been asked to the farmers during interview, were the close ended questions and so the analysis of the data could be analyzed by following the quantitative technique. On the other side, the data those were collected by interviewing the businesspersons were analyzed by following the qualitative data analyzing technique.

Ethical consideration

Ethics is one of the main parts in a research project. Maintenance of ethics during the study is essential or mandatory (Flick 2015). During the research, the researcher has taken some steps in order to avoid the ethical issues. First of all, the researcher has taken the permission for conducting the study from the appropriate authority before starting the project. After that, the researcher has taken special care at the time of collecting the primary as well as the secondary data. In case of secondary data, the researcher searched the data from the relevant and valid sources. In case of collecting the primary data, the researcher has maintained the confidentiality of the research participants.

Timeframe

Activities

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Literature review

 

 

 

 

 

 

 

 

 

Gap identification

 

 

 

 

 

 

 

 

 

Research aim, objectives and questions determination

 

 

 

 

 

 

 

 

 

Primary data collection

 

 

 

 

 

 

 

 

 

Data analysis

 

 

 

 

 

 

 

 

 

Result finding

 

 

 

 

 

 

 

 

 

Draft submission

 

 

 

 

 

 

 

 

 

Findings and Discussion

This part of the study states about the findings and analysis of the primary data those has been collected during the study. The data has been analyzed by qualitative and quantitative data analysis techniques.

The farming segment represented just 2.9% of Australia's GDP growth which has been calculated in 2009, however due to a limited extent to Australia's qualities as an effective, minimal effort what's more, creative maker of agrarian items, it contributed a bigger extent of Australia's fares – 14% of the aggregate merchandise comes from export. Around 66% of Australia's all out farming creation is traded. Roughly 1% of Australia's agricultural exportsalways go to India, well underneath India's offer of aggregate Australian products trades.

Exchange amongst Australia and India in agricultural items, including forestry service and fisheries items, is unobtrusive with respect to different divisions. Two way agrarian exchange trade amongst India and Australia has reached up to 456 million US dollars by the end of 2009. By the by, India's agrarian fares to Australia became expanded by a yearly normal of 15% in the course of the most recent 5 years to 2008-09. India's worldwide fares of agribusiness have expanded by 25%each year over the previous five years from 2008. Australia's export rate of agricultural products to India has expanded somewhat in the course of recent years (Pray & Nagarajan, 2012). Main Indian agribusiness fares to Australia include tea, rice, cashew nuts and tobacco. Australia's main export involve agribusiness products to India incorporate wooland it is well-known that Australia is considered as the biggest supplier to India, chickpeas, almonds, wheat etc. The number ofwine exports is gradually increasing and this fact points towards the discussion of expanding opportunities between Australia to India in case of agribusiness, and represented fifteenpercent for every penny of India's aggregate wine imports.

India is the world's third-biggest agrarian maker. Farming makes up a critical extent of Indian GDP, 17 for every penny of aggregate creation in 2008, however this has beendeclining in essentialness - in 1990-91 it constituted 29 for every penny of aggregate creation. Around 60 per penny of India's populace keeps on depending straightforwardly or in a roundabout way on the agrarian part. India's rural fares have developed in worth terms significantly since 2003. They, be that as it may, have been declining as an extent of aggregate stock fares, from around 14 for each penny in 2000-01 to 10 for each penny in 2005-06. India's imports of farming items are low in relative terms (Serrano & Pinilla, 2014). They tumbled from 7.6 for each penny of aggregate stock imports in 2000-2001 to underneath 5 for each penny in 2005-06.

The higher costs have had a hosing impact on deals past 2008, particularly in business sectors where substitution or augmentation with less costly fixings is conceivable. The worldwide business sector changes have additionally influenced costs at agriculturists level, where flightiness of offering cost and related pay have prompted discontent and vulnerability among agriculturists with respect to the development of their exercises and interest in expanding creation. The agricultural material is verging on substitutable and the cost reflects just nature of the item and most essentially the certainty and trust. At town level authorities/purchasers are regularly autonomous and not immediate agents of bigger organizations. At this level the authorities/purchasers are occupied with built up a decent exchanging association with agriculturists (Yogesh & Chandrashekar, 2014). They would regularly give credits to secure an all the more long haul relationship particularly with dependable ranchers who produce quality item. The structure of these connections depends on trust with the greatest difficulties being to ensure the normality and nature of the supply. While creation organizations want to expand limit they are premier dependent on distinguishing solid suppliers of crude material.

The present business sector chain underscores fare of agribusiness items. It is principally in light of a system of makers, authorities and brokers with dominant part of the ocean growth being traded preceding quality including change. The new government arrangement for the improvement to the sub-part is intending to make the conditions for quality to add Australian and Indian sources. It is urging private area to build up the fundamental specialized ability to make arrangements and finished agricultural items to fulfil both residential and abroad market needs (Sekhar, Prahadeeswaran & Nagaraj, 2015). Such change of the quality chain would open-up worth including opportunities both at makers and processors levels relying upon the accessibility of venture capital, know-how and business sector linkages which can create between essential processors and arrangement suppliers further up the chain. The take a stab at national preparing and esteem including is be that as it may, exceptionally subject to the new linkages to be manufactured amongst exporters and outside business sectors, who will require to be prepared to begin exchanging building squares and arrangements as opposed to products.

Quantitative data analysis

Questionnaire to the 20 farmers in Australia

Q1. What is the age group that you belong form?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Between 18 years to 25 years

20%

4

20

Between 26 to 45 years

55%

11

20

Above 45 years

25%

5

20

Table: Age group of the respondents

Findings

The above table and graph is showing that the percentage of the farmers those belong from the age group between 26 to 45 is highest that is 55%. At the same time, the percentage of the farmers those are above the age group of 45 years is 25% and the rest that is 20% belongs from the age group between 18 years to 25 years.

Analysis

The above table is disclosing the fact that most of the farmers in Australia belong from the age group between 26 years to 45 years. This indicates that most of the farmers are young. This actually denotes that there are more chances of introducing the agribusiness trade between India and Australia. This is because generally the young people are more willing to take risk of involving into the export business. Therefore, the age group of the Australian farmers indicates that the possibility of the agribusiness trade between India and Australia is more.

Q2. How long you are engaged with farming?

Options

Percentage of respondents

Number of  Respondents

Total respondents

From 1 to 3 years

15%

3

20

From 3 to 7 years

45%

9

20

From 7 to 10 years

30%

6

20

More than 10 years

10%

2

20

Table: Duration of the farmers engaged with farming

Findings

The table and diagram shown above are indicating that most of the farmers in Australia are engaged with the farming activities for 3 to 7 years and the percentage is 45%. 30% farmers were there those are engaged in the farming activities for 7 to 10 years and the percentage of the farmers those are engaged with farming for 1 to 3 years were 15%. The rest 10% of the customers were there those are engaged with farming for more than 10 years.

Analysis

The above table is disclosing that most of the farmers in Australia are engaged in the farming business for 3 to 7 years. Some farmers are also there those are engaged in the farming business for 7 to 10 years. However, the percentages of the farmers those are engaged in the farming business for 1 to 3 years or more than 10 years are low. This type of result indicates that most o the farmers in Australia are experienced enough to be engaged in the export business or agribusiness trade with India. Therefore, from this point of view, it can be said that the chance of agribusiness trade between India and Australia is high.

Q3. Do you export your agro-products outside the country?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Yes

55%

11

20

No

45%

9

20

Table: Responses of the participants regarding the export business for agro-products

Findings

The above table and diagram are showing that there are % of the farers in Australia, those are presently exporting their agro-products to the countries outside Australia. However, 45% farmers are also there, those are not presently related with the export of agro-products outside the country that is Australia.

Analysis

The above table is stating that most of the respondents in the interview or most of the farmers in Australia are engaged in the export business. This indicates that the farmers in Australia are very much aware of the export import business of agricultural products. This means if the agribusiness trade takes place between India and Australia, then a certain portion of farmers will be agreed to take part into that business or trade.

However, the above table is also disclosing the fact that the difference between the responses of farmers those are engaged in export agro-business and those are not, is not very high. This means there are also some farmers those are still not aware of the profitability of the import export business in agricultural products. Therefore, in order to start the agribusiness trade between India and Australia, it is important to make all the farmers aware regarding the agribusiness trade.

Q4. Do you agree to export your products to India?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Yes

70%

14

20

No

30%

6

20

Table: Farmers’ willingness towards exporting the products to India

Findings

The above-mentioned table and graph were disclosing the fact that percentage of the farmers in Australia those are willing to export their products to India was 70%. On the other side, 30% of the farmers in Australia were there those were not interested in the same.

Analysis

The findings in the above table are indicating that maximum number of the farmers in Australia is willing to export their products in India. This denotes that if the governments of the two countries take initiatives for agribusiness trade, then it can be a successful business for both the countries. If the farmers get support from the governments of the countries like, easy rules and regulations, export import policies, subsidies, then it will be easier for the farmers to get involved in the agribusiness trade.

However, the support is needed from the governments of both the countries that are India and Australia. The literature review of this study also identified that in Australia the barriers related to the import tax are low than the other countries. This indicates that Australian government has started to take necessary steps for the enhancement of the agribusiness trade. Therefore, for the agribusiness trade between India and Australia, the Indian government also needs to take some policies like Australian government.

Q5. What is the main problem that you think may arise if the trade is done between India and Australia?

Options

Percentage of respondents

Numbers of respondent

Total respondents

Strict and conservative policies of Indian government

30%

6

20

Strict and conservative policies of Australian government

10%

2

20

Political relationship between the countries

20%

4

20

Political instability in the countries

15%

3

20

Higher price of imported products

25%

5

20

Table: Opinion of the respondents regarding the possible problems in agribusiness trade

Findings

The findings in the above table and diagram are stated that according to 30% of the Australian farmers believe that the main barrier that may arise during the agribusiness trade between India and Australia is the strict and conservative policies of Indian government. However, there are 25% of the Australian farmers those believe that the higher price of the imported products will be the main problem. 20% believe that political relationship between the two countries may create problem and 15% believe that internal political instability can be a big problem. Rest 10% thinks that strict and conservative policies of Australian government can be a problem for the agribusiness trade.

Analysis

The above findings are indicating that as per the Australian farmers, many types of problems are there those may hamper the agribusiness trade between India and Australia. As the farmers belong from Australia, they believe that the policies of Indian government can be strict and conservative. However, many of them believe that as the products will be imported and exported, the cost will be higher and due to that, the prices of the products will also be higher. Due to the higher prices, the people of both the countries will mostly prefer the domestic products those are low priced. Therefore, this will decrease the sale of the imported products. Therefore, from the above discussion and analysis, it can be said that in order to conduct the agribusiness trade between Australia and India, care must be taken for the above-mentioned five problems.

Q6. Which product do you think will be beneficial for agribusiness trade between India and Australia?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Mangoes

35%

7

20

Fruits and Nuts

30%

6

20

Canola crops

15%

3

20

Lupins Crops

20%

4

20


Table: opinions on benefits of agribusiness products between India and Australia

Findings:

The table and the diagram represent the highest percentage in the mango products 35 %, which would be beneficial for agribusiness trade between India and Australia. Other beneficial products that are beneficial for the trade are fruits and nuts with 30%, Canola crops and Lupins crops with 15% and 20% respectively.

Analysis:

The results of the assessment of the respondents in an interview for the products that would be beneficial for agribusiness trade between India and Australia shows that the maximum respondents are in favour for the product mangoes. Other fruit and nut products as well as crops like Canola and Lupins responded by the users during the assessment interview. As mangoes are the seasonal fruits and available in wide variety, it is the most saleable product worldwide. Further, few varieties of mango product in India are being produced whereas upon the survey it has been found that the consumers in India are keen to consume all varieties of mangoes. Hence, trading of mango fruit will be most beneficial for both the nations in terms of agricultural trade. Moreover, apart from mangoes there are certain other fruits and nuts as well as oil seed crops that are not cultivated in India but in Australia as presented in the graph. Trading of these products will also fetch benefit in agricultural sector for both the regions.

Q7. How far do you believe that export of mangoes to India will be profitable?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Strongly believe

40%

8

20

Believe

25%

5

20

Neutral

10%

2

20

Disbelieve

15%

3

20

Strongly disbelieve

10%

2

20

Table: Opinions on profitability on export of mangoes to India

Figure: Opinions on profitability on export of mangoes to India

Findings:

The above findings in context to the profitability on export of mangoes to India discloses the fact the Strongly believe and believe respondents are 40% and 25% respectively while the percentage of respondent who disbelieve and strongly disbelieve are 15% and 10% respectively and neutral respondents 10%.

Analysis:

The result of the survey indicates that most of the respondents believe that the export of mango products to India will be profitable for the agricultural sector in Australia with around 40% of the respondents strongly believe with the trading of mangoes in India. Further, on the survey upon reasons for such belief it was found that there are certain specific varieties of mangoes that are not cultivated in India. Apart from that, Indian consumers were found to be extremely fond of mango fruit hence; exporting of that unavailable variety in India would be profitable for both the countries. Additionally, the season of mango consumption are different between two countries, India mango is consumed between March to July while in Australia the season is November to March, which represents that if mangoes are exported in India during the offseason it will be profitable for the Australian territory.

Q8. How far do you agree that Australia has better opportunities in agricultural sector?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Strongly agree

30%

6

20

Agree

25%

5

20

Neutral

5%

1

20

Disagree

20%

4

20

Strongly disagree

20%

4

20

Table: Assessment of better opportunity of agricultural sector in Australia

Findings:

In the assessment of Australian opportunities in the sector of agriculture the findings shows the average percentage of respondents for both positive and negative results. 30% and 25% of the respondents strongly agree and agree that there Australia has better opportunity in the agricultural sector while 20% of the respondents disagree and strongly disagree that there is no better opportunity and 5% of the respondents are neutral about the decision.

Analysis:

Upon the findings, it can be analyzed that the respondents highly believe the availability of better opportunity in Australian territory in agricultural sector. This can be said in context to the available advanced technologies for the cultivation in Australia as well as in context to organic products. In the Australian region, use of pesticides in the agricultural products is minimal as the people are more health conscious and believe in organic products. On the other hand, cultivation in India is at lower cost compared to that in Australia with good quality products hence, there is an opportunity for the farmers to get training and adopt the technology so that the cost of production can be reduced.

Q9. How far do you believe that Australia needs to improve its agribusiness trade?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Strongly believe

20%

4

20

Believe

30%

6

20

Neutral

10%

2

20

Disbelieve

25%

5

20

Strongly disbelieve

15%

3

20

Table: Assessment on the improvement of agribusiness trade in Australia Analysis

Findings:

The results showing that 30% of the respondents believe that improvement is required in the Australian agribusiness and 20% strongly believe about the same. Whereas, 25% of the respondents disbelieve and 15% strongly disbelieve about the fact while 10% are neutral about the fact of improvement in the agricultural sector.

Analysis:

The above data implies the maximum number of respondents believe that the Australian territory is required to improve its agribusiness trade so that there is scope of increase in agricultural trade as well as the profitability of the agribusiness is increased. However, certain respondents also believe that the Australian agribusiness does not require improvement in the sector. This is bit controversial argument because at present the agricultural sector is facing little challenges in context to fisheries, forestry, and rubber while some of the sector like beef, dairy, wine, cotton is the major export products of the Australian agricultural sector. Whereas in context to agribusiness trading in India, Australian agriculture is required to focus on organic food products and dairy products cultivation for which it needs improvement. Further, it has been observed that the Australian agricultural sector is an important part of the economy of Australia and hence, the agribusiness trade should be improved.

Q10. How far do you agree that agribusiness trade with India will help Australia to improve its agricultural sector?

Options

Percentage of respondents

Number of  Respondents

Total respondents

Strongly agree

25%

5

20

Agree

35%

7

20

Neutral

10%

2

20

Disagree

15%

3

20

Strongly disagree

15%

3

20

Table: Opinions on the improvement of agricultural sector in Australia with the agribusiness trade in India

Findings:

The above table shows 35% of the respondents agree that the agribusiness trade with India will help the Australian agribusiness to improve whereas 25% strongly agree about the fact. Further, respondents show 15% who disagree and strongly disagree while 10% are neutral about the improvement in agribusiness trade with India.

Analysis:

The implication of the above survey in the interview of respondents discloses high number of participants who agree that the agribusiness trade will improve if done with the India. The reason behind the fact is that as India in many regions follows low cost of cultivation process and technology for the products as well as good quality products Australian agricultural sector can take training and adopt such low costing cultivation process. Moreover, agricultural sector in terms of cotton industry, jute industry, handloom industries, certain edible crops and oil seed crops are best producing products in India. Hence, the Australian agribusiness trade can be improved with the help of trading in India in some particular products for enhancement of the product quality and lower cost of produce. 

 

Qualitative data analysis

Interview questions to 6 business persons in Australia

Q1. What is your opinion regarding the agribusiness trade between Australia and India?

Ans. In the answer of the above question, first two businesspersons in Australia stated that it will be profitable for them if they get such an opportunity of agribusiness trade between India and Australia. The 1st business person mentioned that there are some agricultural products like Lupins crops, canola crops are not that much available in India. The rate of farming of these products is low in India. However, there is demand of these types of crops in India. Therefore, if the agribusiness trade takes place between these two countries, then they can easily sale these crops in India and at the same time, they can get higher price of these crops in India than that of in Australia.

At the same time, the 2nd businessperson added that there are different types of mangoes produced in Australia, which are not available in India that much. The businessperson also mentioned that the mango like Honey Gold is highly available in Australia during November to March, which is not the season for mango in India. Therefore, if the Australian businesspersons sale the mangoes at that time in India, it is expected that the business will be profitable. Therefore, from the opinions of the businesspersons 1 and 2, the scope for agribusiness trade between India and Australia is high.

Q2. What is your opinion regarding the improvement of agriculture sector in Australia with the help of agribusiness between India and Australia?

Ans. In response to this particular question, businessperson 3 commented that Australia could improve its agricultural sector by conducting the trade of agribusiness with India. The businessperson also added that there are many low cost techniques available in India those are very much effective for the improvement of agriculture in Australia. In support of this, businessperson 5 mentioned that as India is not that much advanced in using high-level technology in agriculture, they generally apply the easy, simple but effective techniques of farming, which are also good for the quality of products and for the quality of the soil.

Therefore, if the farmers of Australia notice the techniques applied by Indian farmers for producing the crops and vegetables, then they can also improve the technique of farming with relatively lower cost. The businessperson 3 added that there are also some farmers in Australia those are poor and so for those poor Australian farmers, the Indian low cost farming techniques will be beneficial.

However, in this context, businessperson 5 also mentioned that in India the farmers use many pesticides for producing high quantity of products, which need not to be adopted by the Australian farmers. Therefore, from the discussion with the businesspersons 3 and 5, it can be said that there are many opportunities of improvement of Australian agriculture if the agribusiness trade takes place between India and Australia. However, the negative things must be avoided.

Q3. What are the critical issues that you think may arise during the agribusiness trade between India and Australia?

Ans. According to the businessperson 6, there are many vital issues those may arise at the time of conducting the agribusiness trade between India and Australia. The businessperson especially emphasized on the issues like high cost of import and export of agricultural products. The businessperson also mentioned that the high cost of import and export also increases the price of the agro-products. In case of selling the products in India, it is must that the products should be low priced or within the affordable price for the common people. Here, the 4th businessperson added that most of the people in the country that is in India belong from the middle class, upper middle class and poor social class and at the same time, most of the people live at villages. Therefore, the affordability of these people is very limited. Therefore, the higher price of the Australian products will discourage the people to buy Australian products. However, from the point of view of the Australian farmers and businesspersons, if they do not sale the products at a bit high price, then the business will not be profitable for them. Hence, this will be the most vital problem.

On the other side, both of the businesspersons mentioned that the political instability and internal violence are the other big issues those may create problem for the agribusiness trade between India and Australia. At the same time, the 4th businessperson also mentioned that the internal political violence in India is very high, which may create major trouble for the agribusiness trade between the two nations that are India and Australia. Therefore, from the point of views of the 4th and 6th businesspersons, it can be said that there are many critical issues those may come during the agribusiness trade between India and Australia and so both of the countries need to take proper steps to handle the problems in efficient manner.

Summary

From the analysis in this particular chapter of the study, it has been identified that there are much opportunity of agribusiness trade between India and Australia. Though there are also some issues those may arise during the trade. However, the improvements of the agricultural sectors of both the countries will also take place with the help of this agribusiness trade. 

 

Conclusion

The main objective of the research study is to understand the current agribusiness opportunities present between two nations- India and Australia. The study focuses the trade opportunities, value chain analysis, and scope of the newly emerged agricultural products and the changing nature of agribusiness environment that is good for the relationship of these two nations. The entire research project is based on secondary research data and the data collection as well as analysis part revolves around this.

Because of restricted supply and low quality in nearby markets in India, the long separation transport of new vegetables into the locale build the expense to customers. Inside Indian large portions of the vegetable cultivators are little scale with less than 1 hectare of blended cultivating frameworks. Regularly the agriculturists do not have the capacity or are not in a position to arrange costs with the gatherers and brokers because of constrained information of current business sector costs and dealer edges. It has also been distinguished that store exchange reliably furnishes agriculturists with the most noteworthy returns when contrasted with offering through authorities and dealers, which infers that more help ought to be given to forestry as far as assortments, quality control and post harvest abilities so as to partake all the more completely with markets and sustenance preparing facilities. Both Indian and Australian government additionally trusts that a shorter advertising chain would progress pay to agribusiness and diminish expenses to customers (Raj, 2014). It is as of now advancing the foundation of green cooperatives which can possibly decrease showcasing costs. Cooperatives tend to be ineffectively overseen in spite of the fact that and agriculturists have constrained confidence in them unless they are very much overseen. Rising salaries and urbanization and higher interest rates in the workforce has prompted an adjustment in the organization of nourishment interest and an expansion in the improvement of the prepared sustenance segment, for example, prepared to eat, and prepared nourishments, which incorporate vegetables. This has created close by new market channels, for example, the ascent of the grocery store segment (Purves, Niblock & Sloan, 2015). Be that as it may, the rise of cutting edge retailing has other results that go past customers. It requires profound combination with agriculturists and can impact the generation, exchange expenses at ranch level. It can likewise impact the circulation of worth among various specialists required in generation, intermediation, and retailing.

However, in order to identify whether the aim of the study has been properly achieved or not, the findings of the study have been linked with the research questions. The linking of the research questions with the research findings are stated below:

Question 1: What are the main products, which have developed the agricultural opportunities between India and Australia?

The answer of this particular research question can be identified in the analysis of the findings of the primary data in data analysis and findings portion of the study. The answers given by the Australian farmers and the businesspersons during the interview have indicated that the country that is Australia has a great opportunity to do agribusiness trade on the products like, mango, fruit and nuts, canola, lupins crops. These agricultural products are not that much available in India and so if Australia exports these products to India then it can be a profitable business.

On the other side, the literature review of the study has also identified that presently, the country that is Australia is successfully trading on mango, cucumber, grapes and onion. This means there are also the opportunities of export these products to India during the agribusiness trade with the same country. Therefore, the most important agricultural products in Australia those have developed the agricultural opportunities between India and Australia are - mango, fruit and nuts, canola, lupins crops, cucumber, grapes and onion. Therefore, the first question of the research has been solved by the findings.

Question 2: What is the chief reason behind the huge demand of mangoes in India?

In the answers given by the businesspersons in India, it has been understood that the timing of producing mangoes in India and Australia is different. Therefore, from the Australian point of view, it can be said that as between the time that is between November to March, mango is not produced in India, there is more opportunity to export or sale mango within these five months. At the same time, the businesspersons of the country that is Australia also mentioned that the quality of the mangoes those are produced in Australia those are much higher quality, which are not available in India.

The literature review of the study has also stated that mango is one of the main products those are exported from Australia to India, which again indicates that there is a demand of Australian mango in India. Therefore, from the above, it can be said that Australian mango is in high demand in India because of the time factor and better quality of mangoes. This means the answer of the second research question has been obtained.

Question 3: Which nation has developed more in agricultural section?

The findings in the primary research has identified that Australia is advanced in agriculture because of the use of advanced technology in agricultural sector. The use of machineries is more in Australian agricultural sector. However, the answers given by the businesspersons in Australia have indicated that there are also some low cost techniques those are applied by the Indian farmers. These techniques are of low cost but these are much effective in agriculture. However, the research findings have also mentioned that the use of pesticides is much in India and in case of Australia, the use of pesticides is very limited because of health consciousness of the Australian people.

The literature review of the study has also indicated that Australia is more developed than India in case of agriculture. Therefore, it can be said that the research findings and literature review became successful in identifying the answer of research question 3.

Question 4: What are the chances of even more increase in the agribusiness between India and Australian?

The research findings have identified that the chances or opportunities of agribusiness between India and Australia is more and it can be increase further in the future days. There are many scopes of improvement of the agricultural sectors of both the countries if the agribusiness trade takes place between them. On the other side, the Literature review of the study has also mentioned or indicted the same thing. Therefore, the answer of the fourth research question has been obtained.

Recommendation

The recommendations of this study are as under:

Focus on cost advantage strategies: The farmers of Australia must focus on the strategies of achieving the cost advantage. With the help of these strategies, the farmers will be able to reduce the overall cost of the production and by that they will be able to sale the products in India at a lower price. This will help them to attract the Indian customers.

Try to adopt the low cost techniques: The Australian farmers must try to adopt the low cost techniques applied by the Indian farmers. These low cost strategies will help the Australian farmers in lowering the cost of farming.

Focus on fishery, forestry and rubber industry: The growth of the fishery, forestry and rubber industry in Australia is poor. Therefore, the government and the farmers in the country must try to improve the present condition of these three agricultural sub-sectors. 

 

References 

Agriculture.gov.au. (2016). Home Annual report 2014–15.

Alam, S., Mukhopadhya, P. and Islam, M.R., 2013. The Australia India Proposed Free Trade Agreement and Trade in Agriculture: Opportunities and Challenges. The Journal of World Investment & Trade, 14(1), pp.167-197.

Anderson, K. and Strutt, A., 2014. Emerging economies, productivity growth and trade with resource‐rich economies by 2030. Australian Journal of Agricultural and Resource Economics, 58(4), pp.590-606.

Ashoka, N., Kuldeep, C., Ramachandra, V.A. and Yeledhalli, R.A., 2013. A study on growth, instability and direction of chilli trade in India. Journal of Spices and Aromatic Crops, 22(1).

Carrasco, M.E., 2013. Examining the Australian relationship with India in postgraduate education and research.

Chandler, L., 2014. Australian agriculture’s role in meeting increased Asian demand. Ethics, efficiency and food security: Feeding the 9 billion, well, pp.32-41.

Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research project. Sage.

Gounder, R., 2014. Australian and New Zealand response to aid and trade: regional impact results. The Business & Management Review, 5(1), p.367.

Hellin, J., Krishna, V., Erenstein, O. and Boeber, C., 2015. India’s Poultry Revolution: Implications for its Sustenance and the Global Poultry Trade. International Food and Agribusiness Management Review, 18(A).

Hine, J., 2015. Trends: Investment in food manufacturing needed. Food Australia, 67(6), p.22.

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