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Livestock provides nutritious food, cash income and opens up employment opportunities. Livestock ownership also significantly impacts on agricultural productivity through provision of required draft power and manure as fertilizer in crop production. Livestock holding helps farmers in sustained farming and economic stability. The first chapter of this book focuses on livestock population and production status which has changing facts but still readers should know the livestock wealth of the nation. Currently in India, majority of the livestock production is handled by small farmers with limited resources and the productivity is very low which might be due to poor management practices.

Animal husbandry is the most important economic activity in rural areas as livestock plays a vital role in the economy. Over 90 per cent of the milk production comes from small farmers, who are located in rural areas. Growing human population, increasing urbanisation, rising domestic incomes and changing lifestyles in the country have led to increasing demand for dairy products (Anita and John, 2001).

Economics The term “Economics” is derived from the Greek words ‘OIKOS’ and ‘NOMAS’ or ‘NEMEIN’. ‘Oikos’ means house hold and Nomas or Nemein means management. So in its original sense economics means house hold management; i.e. satisfying as many wants of the house hold or family as possible by allocating the limited resources at the disposal of the family wisely among different wants.

Goods and services are created through process of production. After production they have to be transferred or moved from the original producers to the final consumers. This involves the creation of market and the undertaking of number of activities such as buying, assembling, transportation warehousing, risk bearing, financing, selling etc. This constitutes the subject matter of marketing. Hence there is the need for the study of market.

The entrepreneur as a person brings in overall change through, innovationfor the maximum social good. Human values remain sacred and inspire him to serve society. He has firm belief in social betterment and he carries out this responsibility with conviction. In this process, he accelerates personal, economic as well as human- development.

Popularly the term management is used to refer to the group of managerial personnel of an enterprise. But the use of the term management in this sense is not correct, because the managerial personnel of an enterprise are usually designated as ‘managers’, ‘executives’ or administrators. Strictly speaking the term management refers to functional concept of management.

Objectives of book keeping How much have we earned this year? How much during the past year? Is our business improving? Also, how much cash do we have? How much our customers owe us?

Goods and services are created through process of production. After production they have to be transferred or moved from the original producers to the final consumers. This involves the creation of market and the undertaking of number of activities such as buying, assembling, transportation warehousing, risk bearing, financing, selling etc. This constitutes the subject matter of marketing. Hence there is the need for the study of market. What is market? Market is derived from the Latin word “Marcatus” meaning trade, merchandise, ware, traffic or place of business. In the ordinary language, market is a place where buyers and sellers meet personally and make their purchases or sales. But in the language of economics, market need not be a place but it may be an area or region meant for potential exchange between a group of buyers and sellers interested in negotiating the terms of purchase and sale of goods and services and such negotiations may be done face to face at a certain place or may be done through other means of communication such as mail, phone, cable, television or through business middle men. Whatever may be the means of communication there will be free exchange or perfect communication between buyers and sellers so that a fairly uniform price prevails for a particular commodity over the whole area at any given time.

Classification of market There are several bases on which markets are classified. a. On the basis of location On the basis of the place of location or operation, markets are of the following types: Village market A market which is located in a small village, where major transactions take place among the buyers and sellers of a village, is called a village market. Primary markets • These markets are located in big towns near the centres of production of commodities. In these markets, a major part of the produce is brought for sale by the producer-farmers themselves. Transactions in these markets usually take place between the producers/farmers and traders.

According to traditional marketing concept, marketing is a mere physical process or set of activities connected with the exchange of goods or selling. According to traditional concept marketing is sales oriented. According to this concept marketing is more concerned with all those activities or operations which help the flow of goods from the producers or manufacturers to the ultimate consumers or users. From the point of production to consumption, the following steps are involved. 1. Goods have to be gathered and transported there by creating place utility. 2. Goods have to be made available to the consumers or users at the time when they are needed by consumers. This is done by storing the commodities in warehouses and cold stores etc. This creates time utility. 3. Goods are sold to consumers thereby transferring the ownership or title from the seller to the consumer. This creates “ownership utility” or “possession utility”. The various activities that help in the creation of place, time and possession utilities and help the flow of goods from the centers of production to the centers of consumption or use constitute the subject matter of marketing.

Price determination under perfect competition - It can be called as a market structure characterized by a complete absence of competition or rivalry among the individual firms. The sellers and buyers cannot determine the price, only the Industry decides the price of the goods. It means the forces of supply and demand determine the price of the goods Perfect competition is defined as a market situation where there are a large number of sellers of a homogeneous product. An individual firm supplies a very small portion of the total output and is not powerful enough to exert an influence on the market price. A single buyer, however large, is not in a position to influence the market price. Demand under perfect competition Demand refers to the quantity of a product that consumers are willing to purchase at a particular price, while other factors remain constant. A consumer demands more quantity at lower price and less quantity at higher price. Therefore, the demand varies at different prices. Market demand means the sum of the quantity demanded by individual buyers at different prices.

Marketing functions The process of marketing involve a number of marketing functions. They may be grouped under: Functions of exchange which include 1) Buying and assembling and 2) Selling. B. Functions of physical supply which include 1) Transportation and 2) Storage or warehousing.

Market information As defined by Philip Kotler, Marketing information system is continuing & interacting structure of people, equipment & procedure designed to gather, sort, analyze, evaluate, distribute pertinent, timely and accurate information for use by marketing decision makers, to improve their marketing planning, execution and control. It is the job of collecting, interpreting and disseminating large variety of data which are needed for the smooth operation of marketing processes. In many countries Government agencies undertake this function and sometimes organisations such as chambers of commerce, board of traders etc. perform this function. The Directorate of Economics and Statistics and concerned state marketing departments collect data regarding a) quantity of various products produced in different areas, b) quantities of products held in storage, c) arrivals in various markets, d) prices prevailing in local, regional, national and international markets. The informative data so collected is disseminated through radio, television, news papers, weekly and monthly bulletins. Daily prices are published in most of the news papers. The informative marketing data is also collected through sales executives and from those personnel who are specially appointed as specialists by various trading firms.

Marketing of perishable and non perishable products Agriculture and livestock products like food grains, vegetables, meat, eggs etc. are highly perishable over time. Under ambient conditions they get spoiled with in a few hours, days or months as the case may be. Livestock products particularly milk is perishable within a few hours if not preserved under refrigeration. Same is the case of meat. Eggs also get spoiled within a few days if not preserved under cold storage. Because of these reasons perishable products pose special marketing problems. Unfortunately in a country like India most of the agriculture and livestock products are produced by large number of small producers and the process of marketing is to a large extent is in the unorganised sector. Fortunately in our country a number of states like Karnataka, Tamilnadu, Maharastra, Gujarath and others, milk is marketed through cooperatives. For example in Karnataka, milk is procured by primary milk producers’ cooperative societies, transported, processed and marketed through milk unions located at district level and coordinated at state level by state milk federation that is Karnataka Milk Federation(KMF). Some states also have slightly different marketing organisation for egg marketing also. In the unorganised sector these products go through wholesalers, semi wholesalers, private vendors, retailers and ultimately reach the consumers.

In India, we have mostly two types of standards, which govern the sale of foods including milk and milk products. These are: Legal standards and Quality standards. Legal standards Legal standard means the specifications or the requirements which pertain to the law of the Govt. and are set up by the Govt. to meet certain minimum requirements in terms of chemical quality (i.e. composition), bacteriological quality (i.e. hygienic quality), and labelling and packaging requirements. In our country, legal standards are given under Prevention of Food Adulteration (PFA) Rules, 1954-1955 (which are amended from time to time). Legal standards or PFA standards prescribe the minimum requirements for all types and categories of food. These standards are consistent with the minimum quality that is attainable under Indian conditions by the majority of the farmers, producers, processors, sale agencies etc. Further, any food that does not confirm to the minimum standards laid down by the legal rulers (PFA rules) is said to be adulterated, irrespective whether anything has been added to or removed from the original food.

Government role in marketing of milk Ever since independence the dairy sector in India has been regulated. The government projects and programmes in place for enhancing dairy development include subsidies for developing infrastructure for milk processing and testing. The Clean Milk Production Programme is a centrally sponsored scheme that is being implemented by the State Department of Animal Husbandry, Dairying and Fisheries with several objectives: i) the creation and strengthening of necessary infrastructure for the production of quality milk and milk products at the farm level up to the points of consumption; ii) improvement of milking techniques; and iii) training to enhance awareness on the importance of hygienic milk production. Several other rural development initiatives support dairying, such as through the District Rural Development Agency and women’s self help groups. An area of government support that has not been capitalized on so far is the investment in promoting the nutritional aspects of milk, particularly pasteurized milk versus loose milk.

Export and import- an overview The major thrust of livestock development strategy in India has been on achieving self-sufficiency in livestock products through import substitution. Several initiatives were taken to develop the Indian livestock sector in the past and India emerged as the largest milk producer in the world and it is also one of the largest producers of other livestock commodities. However, the economic policy reforms and economic liberalization triggered in 1991 have widened market opportunities for the livestock sector. The global demand for livestock products is also on the rise. Such developments offer an opportunity for India to increase its livestock exports, especially for products like bovine meat, whose domestic demand is low. With improved domestic production and marketing efficiency, better access to expanding world market, India has the potential to become more competitive and may augment port of livestock products. The export and import details reveal that there has been a steady increase in the value of imports and exports of livestock and livestock products in India.

Entrepreneur - Derived from French verb enterprendre meaning “to undertake”. The entrepreneur as a person brings in overall change through, innovation- for the maximum social good. Human values remain sacred and inspire him to serve society. He has firm belief in social betterment and he carries out this responsibility with conviction. In this process, he accelerates personal, economic as well as human- development. The entrepreneur is a visionary and an integrated man with outstanding leadership qualities. With a desire to excel, he gives top priority to Research and Development. He always works for the well being of the society. More importantly entrepreneurial activities encompass all fields / sectors and foster a spirit of enterprise for the welfare of mankind. Urges of an Entrepreneur An urge to exercise powers over things and objects persists among all human beings. The urge may vary in degree from person to person. This urge is an intrinsic quality of an entrepreneur. Sociologists consider him as a sensitive energizer in the modernization of societies. The entrepreneur is a critical factor in the socio-economic change. He is the key person who envisages new opportunities, new techniques, new lines of production, new products and coordinates all other activities. The true entrepreneur is one who is endowed with more than average capacities in the task of organizing and coordinating the various other factors of production. He should be a pioneer, a captain of industry. The supply of such entrepreneurship is however quite limited and enterprise in general consists of several grades of organizational skill and capability. The more efficient entrepreneurs receive a surplus reward over and above the managerial wages and this sum constitutes true profit ascribable to superior talent.

Entrepreneur is a person who takes the responsibility of initiating and establishing an enterprise or an organisation under conditions of uncertainty. Some of the essential qualities of entrepreneurs are as follows 1. Creativity 2. Passion 3. Motivation 4. Product or service knowledge 5. Ability to network 6. Self-confidence 7. Optimism 8. Vision 9. Goal mindset 10. Risk-taking 11. Persuasiveness 12. Decision-making 13. Tenacity 14. Money management 15. Adaptability

Theories of entrepreneurship 1. An economic theory 2. Leibensteon’s X-efficiency theory 3. Dynamic entrepreneurship innovation theory 4. Harvard School theory 5. Theory of high achievement 6. Theory of change 7. Theory of profit 8. Theory of adjustment of price 9. Theory of market 10. Theory of social change 11. Theory of entrepreneurial supply 12. Theory of personal resourcefulness 13. Theory of cultural values 

Introduction The process of setting up a business is preceded by the decision to choose entrepreneurship as a career and identification of promising business ideas upon a careful examination of the entrepreneurial opportunities. Generation of ideas is not enough; the business ideas must stand the scrutiny from techno economic, financial and legal perspectives. That is, after the initial screening of the ideas that do not seem promising prima facie, you should conduct an in-depth examination of the chosen three-four before settling for the one where you would like to exert your time, money and energies. You should prepare a business plan that will serve as the road map for effective venturing, whether you may require institutional funding (in which case it is necessary to do so) or not. Setting up of new business enterprises is a very challenging task; you are likely to encounter many problems en route. It’s advisable to be aware of these problems.

Livestock farms The veterinarians can start their own livestock farms with their vast technical knowledge; they can infuse scientific management techniques in their own farms. In the WTO (World Trade Organisation) era, GMP (Good Manufacturing Practices) and SPS (Sanitory and Phytosanitory) measures are of great importance for export of livestock commodities, as the emphasis in international trade is on quality and food safety. If veterinarians start their own scientifically managed livestock enterprise, they can exploit this opportunity. Further, practicing proven scientific management techniques will improve productivity of animals that would lead to overall quantitative and qualitative improvement of livestock sector.

National institute for entrepreneurship and small business Development (NIESBUD) The National Institute for Entrepreneurship and Small Business Development (NIESBUD) was established in 1983 by the Ministry of Industry (now Ministry of Small Scale Industries), Govt. of India, as an apex body for coordinating and overseeing the activities of various institutions/ agencies engaged in Entrepreneurship Development Particularly in the area of small industry and small business. The Institute which is registered as a society under Govt. of India Societies Act (XXI of 1860). The policy, direction and guidance to the Institute are provided by its Governing Council whose Chairman is the Minister of SSI.

Entrepreneurship theory has been evolving over the last 20 years and is ever growing. It is defined as a verifiable and logically coherent formulation of relationships, or underlying principles that either explain entrepreneurship, predict entrepreneurial activity or provide normative guidance (prescribing the right action in particular circumstance). Entreprenuership is interdisciplinary and contains various approaches that would increase one’s understanding of it. One way to examine these theories is with a ‘schools of thought’ approach that divides entrepreneurship into specific activities. These activities may be within a ‘macro view or a micro view’, but all address the conceptual nature of entrepreneurship. Development of entrepreneurship Creativity: Creativity and innovation are often used to mean the same thing, but each has a unique connotation. Creativity is the ability to bring something new into existence. Ideas usually evolve through a creative process whereby imaginative people bring them into existence, nurture them, and develop them successfully. The creative process for an idea contains five stages – germination, preparation, incubation, illumination, and verification.

Sources of agriculture/ Livestock finance Finance for agriculture can be obtained from formal and informal sources Formal sources Credit co-operatives Commercial banks Government Regional Rural Banks Informal sources Money lender Friends and relatives Traders Landlords 3 R’s OF CREDIT To estimate the rationality of a loan, it is essential to know credit analysis.

Scheme The needy livestock farmer visits the banks in the local area and enquire with the bank manager about the livestock projects and after having discussion with him, he visits the technical expert. A scheme can be prepared by a beneficiary after consulting local technical persons of State animal husbandry department, DRDA, SLPP, etc. livestock co-operative society/union/federation/commercial livestock farmers. If possible, the beneficiaries should also visit progressive livestock farmers and government/military/agricultural university livestock farm in the vicinity and discuss the profitability of livestock farming. A good practical training and experience in livestock farming will be highly desirable. The livestock co-operative societies established in the villages as a result of efforts by the Livestock Development Department of State Government and National Livestock Development Board would provide all supporting facilities particularly marketing of fluid milk. Nearness of livestock farm to such a society, veterinary aid centre, artificial insemination centre should be ensured. There is a good demand for milk, if the livestock farm is located near urban centre. The scheme should include information on land, livestock markets, availability of water, feeds, fodders, veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the farmer and the type of assistance available from State Government, livestock society/union/federation.

• A project is a specific plan or design presented for consideration. • It is a location specific activity with specific objectives, time and cost limitations and of non-repetitive nature. • In banking, projects refers to an activity in which financial resources are expended to create capital assets that produce benefits over an extended period of time and which logically lends itself to planning, financing and implementing as a unit. Whereas, UNIDO defines a project as a proposal for an investment to create and or develop certain facilities in order to increase the production of goods/services in a community over a certain period of time. • Projects are common term used by many to denote specific action plans. • Project can be long term or short term, limited or comprehensive, single sector concentrated or multi sector concentrated.

Procurement is acquisition of goods and services. Procurement includes: • Planning the acquisition • Planning the contracting • Requesting proposals  • Selecting a vendor • Administering the contract • Closing the contract  Planning the acquisition It is based on goals of an enterprise acquisition varies – depends on what, when and where to produce. Based on these factors acquisition requirements are arrived.

Retailing Retailingincludes all activities involved in selling and providing goods and  services to ultimate consumers for personal or household use. Classification of retail establishments Based on ownership • Independent retailer- one store ownership • Chain retailer- many stores but owner is one • Franchise – many owners of many stores

Veterinary practice has gone through different phases with different components • Phase I - Patient and Veterinarian: objective was only to treat illness of  the patient by veterinarian. • Phase II – Patient - Veterinarian – Owner: Veterinarian was to take  recognition of owner and his/her needs. • Phase III - Patient - Veterinarian – Owner – Law: Additional  responsibility on veterinarians to work as per the law (e.g. Registration  at VCI, Veterinary jurisprudence, Giving evidence at court of law, Health  certificates,    Death    certificate,    Cruelty    to    animals,    export   and    import    law,     euthanasia rules, etc.) • Phase IV - Patient - Veterinarian – Owner – Law – Environment: Further  added responsibility to protect environment.  E.g. Biomedical waste  management. 

A Eco/green job, also called a green-collar job is, according to the United Nations Environment Program “work in agricultural, manufacturing, research and development (R&D), administrative, and service activities that contribute(s) substantially to preserving or restoring environmental quality. Specifically, but not exclusively, this includes jobs that help to protect ecosystems and biodiversity; reduce energy, materials, and water consumption through high efficiency strategies; de-carbonize the economy; and minimize or altogether avoid generation of all forms of waste and pollution. • Livestock play a vital role in rural economy. The combination of livestock and crop farming enables complementarity through productive utilisation of farm by-products and conservation of soil fertility, thus increasing rural farm income. Apart from providing food products like milk, egg and meat, livestock sector generates productive employment and valuable supplementary income to the vast majority of rural households, majority of whom are small and marginal farmers and landless labourers. Growing human population, increasing urbanisation, rising domestic incomes and changing lifestyles in the country have led to increasing demand for livestock products. Livestock like cattle (bulls and cows), buffaloes, sheep and goat are an integral part of India’s socio economic life. Animal husbandry is a part of agricultural economy. It directly supports about five per cent (20 million) of our population. India has two per cent of the geographical area and accounts for 15 per cent of livestock population (400 million). Cows and buffaloes comprise 56.5 per cent of world population.India ranks first, second, third and f ifth in buffalo, cattle and goat, sheep and poultry population in the world, respectively. (Economic Survey, 2008-09). The total livestock population of Tamil Nadu stood at 249.42 lakhs which comprises 4.94, 1.69, 9.10, 6.58 and17.7 per cent of the cattle, buffalos, sheep, goat and poultry population of the country (17th livestock census All India Summary Report, 2004).

Popularly the term management is used to refer to the group of managerial personnel of an enterprise. But the use of the term management in this sense is not correct, because the managerial personnel of an enterprise are usually designated as ‘managers’, ‘executives’ or administrators. Strictly speaking the term management refers to functional concept of management. Management refers to the sum total of all those functions or activities, which relate to the laying down of policies, plans and purposes, securing men, money, machinery needed for the achievement of the organisational objectives, putting all of them into operation and supervising and checking their performances in order to ensure the productive use of human and material resources for the maximum benefit or profit of the organisation, its employees and society in general. Management is the sum total of five principal functions namely planning, organising, staffing, directing and controlling. The functional areas of management include: a) Financial management, b) Personnel management, c) material management, d) Production management, e) marketing management and f) Office management.

What is book keeping? Book keeping    is defined as; 1. The art of recording business transactions (pecuniary transactions) in a regulator and systematic manner. 2. Book keeping is the science and art of correctly recording in books of  accounts all those business transactions that result in the transfer of  money or money’s worth. 3. Book keeping is an art of recording day to day business transactions in a  set of books in a most systematic manner. 4. It is the process of analysing, classifying and recording transaction in accordance with pre-conceived plan.

A Text Book of Commerce – By B.S.Raman (1988) (United Publishers, Mangalore) A Text Book of Commerce – By B.S.Raman (1988) (United Publishers, Mangalore) Agricultural Economics by S. Subba Reddy, P. Raghu Ram, T.V. Neelakanta Sastry and I. Bhavani Devi; ISBN 81-204-1596-5 Agricultural Marketing in India by S.S. Acharya and N. L. Agarwal; ISBN No.: 81-204-1636-8 Anjani kumar, 2009 India’s livestock sector trade: Opportunities and challenges Anjani Kumar. 2010. Exports of Livestock Products from India: Performance, Competitiveness and Determinants. Agricultural Economics Research Review, Vol. 23 January-June 2010 (57-67). APEDA (2014) http://apeda.gov.in/apedawebsite/Announcements/plants-2- approved-meat processing-plants.pdf. APEDA. www.apeda.gov.in Basic Principles of Economics and Marketing – By M. Thirunavukkarasu & R. Prabhakaran, Dept. of A.H.Economics, Madras Veterinary College, Chennai.