Thursday, November 13, 2014

Supply chain in agriculture

The agriculture supply chain plays a dominant role in reducing poverty and in achieving self-sufficiency.

The food supply chain extends back from the farmer to include the suppliers of inputs such as finance seed, veterinary medicine, fertilizers, other agriculture chemicals and machinery and equipment.

It ensures food security for the nations. Over the decades agriculture production improved significantly and in spite of an exploding population, agriculture sector have been able meet the food requirements of the people.

Supply chain development enables integration of market functions and linkages between different participants in the system and allows for better coordination and planning.

Supply chains for agriculture inputs and produce are complex and fragmented, with large networks of small-scale farmers, retailers, aggregators, distributions and exporters.

Consistent with globalization other economic sectors, such supply chains have both looser links and more possibility of spreading across countries than does the more traditional vertical integration though merges and acquisitions.

Closed and coordinated supply chain organization and management are rapidly replacing open markets, especially for perishable food, but increasingly also in food staple mallets.

Coordinated supply chains are institutional arrangements that link producers, processors, traders, retailers and consumers.
Supply chain in agriculture

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