Post on 07-May-2015
description
BITS Pilani, Pilani Campus
Major players in Agriculture Supply Chain
1• Farmers
2• Traders
3• Commission agents
4• Wholesalers
5• Retailers
6• Consumers
BITS Pilani, Pilani Campus
Configurations Agriculture Supply ChainAg
ricul
ture
Sup
ply
Chai
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Cooperative supply chain model
Collaborative supply chain model
Contract farming
BITS Pilani, Pilani Campus
1. Cooperative supply chain model
BITS Pilani, Pilani Campus
Example:
In some parts of India milk is collected and sold by cooperatives. The cooperative movement for milk was initiated by the National Dairy Development Board (NDDB) (Chakravarty, 2000).
Outcomes of milk cooperatives:• The efficiency, transparency and fairness of the system have
improved ( www.digitaldividend.org/pdf/akashganga). • The government’s attitude towards the cooperative system is
positive, especially after the success of the milk sector.
1. Cooperative supply chain model
BITS Pilani, Pilani Campus
2. Collaborative supply chain model
Example: Consumer durables and FMCG supply Chain
BITS Pilani, Pilani Campus
3. Contract farming
commitment from The purchaser
commitment from The farmers
BITS Pilani, Pilani Campus
3. Contract farming
Advantages:• This is helpful for farmers, since they get access to the
inputs and the market at a fair price. • Also, the processor gets an assured supply of raw material.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Total Supply Chain Cost
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Estimated cost escalationin the Indian grain chain
Figure clearly reflects the end consumer on average pays more than three times the farm gate price for grain.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Intermediaries in the grain supply chain and their margins and value additions
BITS Pilani, Pilani Campus
• Age-old historical loyalty of farmers to their agents, because these agents provide debt to the farmer;
• Local understanding and relationships with transporters• Lack of guidelines and rules in the development• Organised cartels between commission agents, wholesalers and
transporters;• Lack of scale in terms of what each farmer produces, sheer
numbers of small farmers drive down bargaining power• Lack of effort in development from front-end players (retailers)
Reasons for the existence of intermediaries