With the advent of globalisation, the world has witnessed an unforeseen change in the way we consume and purchase food items. In this changing scenario, the agricultural value chain could be a game-changer in contemporary agricultural practices. Although it is a comparatively new concept, experts say that it would soon become a major driver in the growth of the food business.
Definition of Agricultural Value Chain
There has been no unanimously agreed-upon definition of the term yet. But in general, agricultural value chain refers to the entire range of processes and strategies required for an agricultural product to move from the farm to its end customer. Commonly, the process is described as “farm to table”. The essentially refers to the value added to the product through the different steps of the process.
The Components of Agricultural Value Chain
A value chain in agriculture is composed of several key actors as well as support actors. The key actors include:
Adding Value to the Chain
The importance of agricultural value chain is paramount in several aspects. However, the most prominent ones are identified as below:
• Game-Changer for Small Agri-Businesses: Finding ways to improve their value chains could be instrumental for small stakeholders in raising their profits. If they can link themselves to a higher value chain, they can enter better markets that can lift the producers out of poverty.
• Key to Sustainable Development: Agricultural value chain could be viewed as an effective strategy for achieving sustainable development. It could be leveraged as a framework for strategic planning to help identify the competitive advantages as well as meeting the climate goals.
Aligning agricultural practices with the framework of value-chain could be instrumental to make the sector more efficient. It could further boost employment generation, reduce poverty, and give access to better markets, thus improving socio-economic conditions worldwide.