Agricultural Value Chain: The Concept Of The Agricultural Value Chain

explanatory Essay
3178 words
3178 words

The concept of "agricultural value chain" (Ag VC) covers the full range of activities and participants involved in moving agricultural products from the farmer's field to the consumer's table. In order for a product to reach the consumer, there often are many processes or steps involved. Each step must have a direct link to the next in order to form a viable chain. At each node of this chain, some additional transformation and enhancement is made to the product. Hence, a VC is often defined as sequence of value adding activities, from production to consumption, through processing and commercialization.
The flow of seeds to farmers and grains or tubers to the market occurs along chains. These can be referred to as VCs as the product moves from one actor of the chain to another actor of the same chain e.g. from producer to intermediary to consumer, it gains value. So in general, a VC can be defined as "the full range of activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), . delivery to final customers, and final disposal after use. A range of technical. business and financial service providers supports these processes. …show more content…

Growers are generally isolated from a majority of end-consumer and have little control over input costs or process received for their produce. The primary exception is where local farmers sell produce in local markets and where there is a direct link from farmer to consumer. In most traditional agriculture marketing systems growers tend to receive minimal profit. From the perspective of the chain actors, any integration up or down the VC can help them to receive a greater share of the

In this essay, the author

  • Opines that the growers in ag vc are the most vital node and their position determines the sustainability of the chain.
  • Explains that the market linkages in agriculture can be divided into two distinct systems; traditional marketing systems, and vc marketing.
  • Explains that sub-optimal growth of food processing is attributed to the vicious circle of high unit cost - low demand, low capacity and utilization.
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