A value chain is an array of interconnected activities that work to add value to a product. It is made of actors and actions that enhance a product and connect the commodity producers to processors and markets. Value chains provide the best results when their actors work together to generate top-notch products and drive more profits for all participants. An agricultural value chain is different from a supply chain as the latter is meant for logistics including transport, procedural steps, and storage systems. A value chain, on the other hand, covers the flow of the products, knowledge, information, finance, and payments. Go through this blog to explore some important facts of value chains designed for the agriculture industry.
Vital Facts about Agricultural Value Chains
Information plays a key role in managing all value chains and flows which are heading in two directions- markets inform producers of price, quantity, and quality, product handling, and tech solutions and the producers make the processors and the markets of the production quantities, delivery time, locations, and production issues. When it comes to the agricultural value chain, market agents and processors support the producers in terms of finance, technical training, and inputs.
Agricultural value chains include a wide range of activities including the development and dissemination of material sources, such as plants and animals.
Listed below are some vital benefits covered by an agricultural value chain:
- Managing input supply
- Farm production and organisation
- Post-harvest activity management
- Dealing with the provision of technologies
Considering the importance and benefits offered by the agricultural value chains, you can implement one for your farm.