L2 Agribusiness Supply Chain PDF

The Agribusiness Sector AGRB 210: Introduction to Agribusiness United Arab Emirates University College of Food and Agriculture Department of Agribusiness 1 Lecture 2  In this lecture you will learn to do the following: LLO 2.1 Describe a supply...

The Agribusiness Sector AGRB 210: Introduction to Agribusiness United Arab Emirates University College of Food and Agriculture Department of Agribusiness 1 Lecture 2  In this lecture you will learn to do the following: LLO 2.1 Describe a supply chain in agribusiness. LLO 2.2 Calculate the value of a product as it moves through the supply chain. What is a Supply Chain in Agribusiness? Chains composed of companies that interact to supply goods and services are referred to as chain of production, value chains, marketing chains, supply chains, or distribution chains. Supply chain describes the interactions of firms and processes that are needed to deliver products to end users (customers). It aims to identify opportunities for and constraints against increasing productivity. Agricultural Supply-chain (Example) 2-5 An example of supply chain: The Dole Company https://www.youtube.com/watch?v=VaeB-tPEkGg Question 2.1 Which sector does Dole Food Company operate in? A) Input B) Production C) Output Question 2.1- Answer A Incorrect! Dole Food Company's worldwide team of growers, packers, processors, shippers and employees is committed to consistently providing safe, high-quality fresh fruit, vegetables, and food products. It does not state that Dole is providing the inputs to production Question 2.1- Answer B You are correct! Dole Food Company's worldwide team of growers, packers, processors, shippers and employees is committed to consistently providing safe, high-quality fresh fruit, vegetables, and food products. Which means they are working in production Question 2.2- Answer C You are correct! Dole Food Company's worldwide team of growers, packers, processors, shippers and employees is committed to consistently providing safe, high-quality fresh fruit, vegetables, and food products. Which means they are working in output sector, also. Agribusiness Value-Chain The agricultural products gain value as they move through the linkages from inputs to consumer. Each part of the chain depends on each other. Agribusiness value-chain ….Aidentify value chain approach in agribusiness helps weak points in the chain and actions needed to add more value. Example 1: In Rwanda, analysis of dairy VC identified critical needs for more local milk cooling points, more collaboration between dairy plants and farmers, and diversification of final products. Example 2: In the Philippines, the Fish VC analysis found: a need for fishermen to deliver uniform- sized fish to processors, for government to enforce corresponding regulations and for processors to offer fishermen contracts that contain credit. Agribusiness value-chain... identifies the set of businesses and activities that bring a basic agricultural product from production in the field to final consumption, where at each stage value is added to the product. can be a vertical linking or a network between various independent business organizations and can involve processing, packaging, storage, transport and distribution. can be a very useful conceptual tool when trying to understand the factors that impact on profitability. Example: breaking down the value of a banana Washer Packer Banana Supply-Chain: Calculating daily revenue for each agent in suply chain Using the break down of the value of banana and assuming that 1 KG banana fruit sold at 1AED, then calculate the daily revenues for each agent in the supply chain. Assume the quantity of bananas sold in one day is 20000 KG.