Feasibility Study / Business Proposal

Title :

1. Agribusiness/ E Agriculture / E Commerce platform for Agriculture

Commodities.
2. Digitalising the Agribusiness through E-Commerce.
3. Agribusiness Globalization in Pakistan.

Purpose Of Study :
Agriculture is considered to be the backbone of Pakistan’s economy. In fact, the agribusiness of
Pakistan significantly impacts the GDP of the country and accounts for more than 20% of GDP and
employing about 43% of the rural labor force.One of the important reasons to properly structure
agribusiness of Pakistan is because it has the opportunity to grow due to the availability of natural
climate changes with four seasons and proper irrigation system which is effectively suitable for
agriculture and farming.Pakistan’s horticultural sector has tremendous scope to contribute to its
economy through exports of fruits and vegetables which can help to bring cash into farming
communities and overcome rural poverty.
Technology advancement in agribusiness would bring the country’s agricultural commodities in world
market and notable attention of the exporters and investors. Developed countries are well aware with
E-commerce and other technology implementation whereas developing countries have slow trend to
the global digital market.The sales from E commerce in world business is around US $24 Billion in 2017
and are expected to grow at US $48 Billion till 2021. Due to less labor wage and less price of
agriculture commodities compared with the world markets, but providing better quality, farmers would
be better off if they export their product at a reasonable price. Introduction of internet and E commerce
eliminates the factor of middlemen and commission agents.

Why - The Purpose

To constitute a cost-effective structural model for agribusiness of Pakistan, which would not only generate
financial profitability but also serve as a major source for uplifting the rural poor of the country which
mostly consists of smallholder farmers. This industry accounts for half of employed labour force and is
the largest source of foreign exchange earnings.

*** Include Financial feasibility POV.

*** Include Future Budget. Govt interest in promoting agri exports and subsidies given by
govt.
*** Include Supply Chain (SCM) NOT managed accurately.
*** More related to finance!!
*** Needs to be edited
Aims And Objectives :
To convert the brokers and middlemen’s work all into technology using mobile phones and computers.
To sell from farmers to retailers, the role of middlemen is important , but to play that role with more
efficiency and with important reforms to upgrade the shipping and packaging and grading agricultural
commodities to meet exportation standards. Meeting such standards and making them up to grade
and making sure that the quality is exactly to the standards , and doing all this through website. Firstly
connecting the farmers to packaging companies, then to grading companies, then to cold storage
shipping companies, and lastly moving the agriculture commodities in complete perfection.

• Providing logistics service for their product. (Hiring a transportation company)

• Providing refining/ product packaging services. (Through factories)

• Providing grading services to ensure quality measures if the quality meets the exportation criteria.

• Providing buyers for wholesale purchases. (Vendors).

Main Objectives ( From Feasibility to Startup )

• Connecting farmers and consumers through e commerce.

• Researching about Products, their varieties and areas from they come from.

• Main logistic design of all products and their shipping.

• Process of packaging, storing, shipping, inventory problems, maintaining quality.

• Exportation rules and regulation for Pakistan and its major exporting countries.

• Target market inside Pakistan and outside Pakistan.

• *Cost Comparison

• *Budget (Expenditures, profits and revenues etc)

• Development of E Commerce site and registration of farmers.

• Initial Start process. Choosing from where to start and what to start.

• Research based marketing analysis. (SWOT, star, cc, etc, Demand Supply etc)

• Drafting a Business plan for further actions and gaining investments.

*** Check if deviating from topic ?

*** Check if specific or not ? ( needed now or not ?)

*** More financial objectives to be included ( Minimising Cost, maximising rev)

Literature Review ( from more than 30 articles/research papers )
***All taken from my Research Paper’s lit review.

Technology proliferation in 22nd century has profoundly impacted and globalized businesses around the
world. For economic development, a sustainable agriculture is required to change the living standards
of the people and reducing the ratio of poverty in rural areas of Pakistan (Abdullah 2015). Pivoto, et al
(2017) supported by the study of XING (2015) discusses that investment in R&D serves as a major factor,
as there are degrees of technology accumulation and different efficiencies in technology and innovative
research processes when comparing different regions and countries.

Pakistan has faced obstructions towards flourishing its agricultural industry. Even though Pakistan is an
agro based economy having a major labor workforce in its agriculture sector, it still lacks in generating
substantial revenues from its agribusiness. In Pakistan’s case, considering a strong positive relationship
between Pakistan’s agricultural productivity and its GDP growth rate, Usman (2016), the lags in
improving Pakistan’s agribusiness industry significantly proves that there exists a deficiency in
agriculture productivity and exportation. Chebbi (2010) also provides an insight of Tunisa and its agro
based economy and empirically investigates the agricultural sector’s role in the economic development
process and the causal link between GDP growth of the agricultural sector.

Constraints on agricultural productivity have also been recently studied by Song et al (2017) who
promoted the optimal use of capital equipment which can be achieved through the outsourcing of
mechanization. Policy implementation issues have also been observed, a case of CAF (Corporate
Agriculture Farming) argues to bring in economic efficiency, increase productivity by adding
technological resources, as well as increase exports, Faisal Abbasi; (2012). He suggests that a serious
thinking of land distribution must be pondered upon. Kirsten & Sartorius (2002) explained the
importance of contract farming that entering into contract production reduces cost and gain access to
information, technology, marketing channels, managerial skills, and technical expertise, access to plant
and equipment and patented production procedures which results in increased productivity.

One of the major gaps in exportation of agriculture products lies within its marketing strategies. As
Goutam (2014) brought into light the advantages of new opportunities of globalization to developing
countries. Da Huo (2014) views country-level factors such as labor cost, land area and exchange rates as
main components on the export competitiveness of the agricultural industry. Geldes, Felzensztein;
(2014) infer in their study that market innovation has a constructive relationship with inter
organizational cooperation but they are least conducted in agribusiness industries, this idea is also
supported by John Steen et al (2016) in his study. This study also scrutinizes the factors which could
enhance and upgrade agricultural exportation by using E-commerce platforms.
No in depth previous studies were available relating to the prospect of commercializing agriculture
through e-commerce technology. However, Shabir et al (2014) conducted a study in Southern Punjab
of Pakistan about linking agriculture with global trading and deduced that advance
telecommunications, technical and marketing information in the rural areas must be developed. The
aim is to grasp the opportunity of beneficially utilizing the land fertility of Pakistan and its major cash
crop quality. Chandio (2017) demonstrates the impact of agricultural credit and farm size on the
technical efficiency of rice productivity in Sindh, Pakistan. Likewise (Georges Giraud, 2008) showed that
credit, farm size, fertilizer, and labor significantly influenced the rice productivity in Sindh, Pakistan.
Additionally, larger and significant scale of elasticity was found on credit while larger and significant
marginal effect was found on farm size.

Two contradicting views are developed about whether globalization influences protectionism and
national policies or not. Germann (2012) in his study provides empirical evidence that challenges the
different channels through which globalization might affect agricultural support. Furthermore (Thomas
Reardon, 2001) the study demonstrates that it is the concern of national policy-makers, for example,
related to import competition, urbanization or potentially decreasing food quality.

All of the above studies have made useful contribution to understanding the contribution of
agriculture to economic growth but they lack focus on promoting agribusiness through e-ecommerce
and other digital platforms.

Research design and methodology

*** All Blank !

*** Nothing !

*** Help !

Proposal Analysis :

Price Analysis ?
Cost Analysis ?
Cost Realism Analysis ?
Price Realism ?
Technical Analysis ?
Unit Prices ?
Unbalanced Pricing ?