Value Chain Approach for AgriBusiness for Pakistan

INTRODUCTION

Agriculture is perhaps the most important and most neglected sector in Pakistan. Agriculture which deploys 69% of the population directly or indirectly is facing the some of the most serious problems like high prices of inputs, lack of electricity to run tube-wells, extra cost for diesel to run tractors, continuously decreasing agricultural land compared to neighbouring country, India. But at the same time the farmer has to sale the produce at a very low rate and mostly raw material is sold out. Hence, agribusiness in Pakistan has greater scope since it is in its developing phase and new & innovative minds are needed in Pakistan.

INTRODUCTION

Agriculture is perhaps the most important and most neglected sector in Pakistan. Agriculture which deploys 69% of the population directly or indirectly is facing the some of the most serious problems like high prices of inputs, lack of electricity to run tube-wells, extra cost for diesel to run tractors, continuously decreasing agricultural land compared to neighbouring country, India. But at the same time the farmer has to sale the produce at a very low rate and mostly raw material is sold out. Hence, agribusiness in Pakistan has greater scope since it is in its developing phase and new & innovative minds are needed in Pakistan.

VALUE CHAIN APPROACH

If we study a simple supply chain starting from raw material through retailer, we see many steps

Raw material –> Distributor –> Farm –> Distributor –> Processor –> Distributor –> Retailer

if at any point some investment is made, some innovation is used then the status of entire supply chain can be improved. But a holistic approach will be more beneficial which will include value addition at all stages of the supply chain. This will be of greater good in term of the profit at each step. 

STEPS INVOLVED IN VALUE CHAIN APPROACH

1. Design: The entire program should be planned considering all factors and variable and then the process shouldgo stepwise.
2. Research: The manager should be in touch with the changing markets, demands of a particular product and the relative supply chain. And finally adjust their goals.
3. Action Strategy: After planning and research, comes the final stage of deciding how these goals and targets will be achieved, what will be the resources etc.
4. Implementation: All the policies, plans and projects are brought into play.

SUPPORT ACTIVITIES

• Firm Infrastructure
• Human Resource development
• Supply Chain Management
• Technology development

Problems which may be associated;

• Low risk appetite
• Low Investments
• Low market separation

POSSIBLE RULES

• A solid and authentic database should be present.
• Research should be perfect.All statistics and analyses should be completed before start of the project.
• Platforms should be established at all levels from national to provincial, district and even village level, which will be helpful to improve the profit of the middle man as well as the investor.
• There should be free networking, sharing of information and database transfer among all the platforms thus established.
• Private and public participation should be promoted.
• Promote collective actions as compared to a few or selective group of investors.

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Cross-Reference: 

Find more this and more articles from Shakil Shaukat at:

http://pakiagriculture.blogspot.com/

http://plantpathologyunlimited.blogspot.com/

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