How does agriculture relate to the global supply chain

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U.S. farms supply nearly 25% of all grains (such as wheat, corn, and rice) on the global market. Changes in temperature, atmospheric carbon dioxide (CO 2), and the frequency and intensity of extreme weather could have significant impacts on crop yields.

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How does the agriculture supply chain work?

The agriculture supply chain is further complicated by fragmented inbound and outbound networks. The typical agriculture supply chain involves three steps: from farmers to intermediate silos, from silos to transformation plants, and from transformation plants to clients. Each step requires multiple decisions (Exhibit 1). Exhibit 1

Can technology help optimize the global agriculture supply chain?

Now, agriculture players, from farmers to end customers, are discovering that these technologies can play a role in optimizing the fiendishly complex agriculture supply chain. When will the COVID-19 pandemic end?

What are the challenges of agriculture supply chain?

The agriculture supply chain is further complicated by fragmented inbound and outbound networks. The typical agriculture supply chain involves three steps: from farmers to intermediate silos, from silos to transformation plants, and from transformation plants to clients. Each step requires multiple decisions (Exhibit 1).

Why is agriculture important to the global economy?

Agriculture is also crucial to economic growth: in 2014, it accounted for one-third of global gross-domestic product (GDP). But agriculture-driven growth, poverty reduction, and food security are at risk: Climate change could cut crop yields, especially in the world’s most food-insecure regions.

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What is the supply chain in agriculture?

A values-based supply chain (VBSC) is a production and marketing and channel that maintains the identity of the farmers and ranchers who grow or raise a product, and that preserves the social, environmental, and community values that are incorporated into production.


How is the supply chain affecting agriculture?

The same bottlenecks at shipping terminals, surface transportation issues and labor shortages plague agricultural importers, too. Now, crop protectants, fertilizers, tires and parts for farm equipment, computer chips for tractors and more are all in short supply. Fertilizer costs have increased to unprecedented highs.


How is globalization related to agriculture?

Globalization can greatly enhance the role of agriculture as an engine of growth in low-income countries by making it possible for agriculture to grow considerably faster than domestic consumption.


How does agriculture contribute to the global economy?

Analyses in 2016 found that 65% of poor working adults made a living through agriculture. Agriculture is also crucial to economic growth: in 2018, it accounted for 4% of global gross domestic product (GDP) and in some least developing countries, it can account for more than 25% of GDP.


How does the global supply chain work?

Global supply chain management is the process of ensuring the secure and timely delivery of everything from raw materials to finished consumer goods as they travel from manufacturers and suppliers to wholesalers, retailers, and other distribution points.


Does supply chain affect food?

Food production and manufacturing are widely dispersed throughout the U.S. and there are currently no wide-spread disruptions reported in the supply chain.


What do you mean by globalisation agriculture?

Globalization reflects the worldwide spread of modern technologies of production, including farming, the agricultural supply sector, and food processing.


What are the positive impact of globalisation on agriculture?

Positive Impact of globalisation: agriculture, including high yield varieties, genetically modified crops (GM crops) and micro-irrigation techniques. Foreign investment in agriculture in contract farming, cold storage and food processing have helped farmers.


How does globalization affect food production?

The nutrition transition, implicated in the rapid rise of obesity and diet-related chronic diseases worldwide, is rooted in the processes of globalization. Globalization affects the nature of the food supply chain, thereby altering the quantity, type, cost, and desirability of foods available for consumption.


Why agriculture is so important?

Agriculture plays a critical role in the entire life of a given economy. Agriculture is the backbone of the economic system of a given country. In addition to providing food and raw material, agriculture also provides employment opportunities to a very large percentage of the population.


Why is agriculture important for economic development?

A strong agricultural economy brings social progress by increasing productivity, employment and income. Agriculture is the main driver of development in most rural areas. Demand for staple foods, agricultural commodities and – increasingly – processed food is growing in developing countries.


Why agriculture is considered as the backbone of the economy?

Agriculture makes its contribution to economic development in following ways: By providing food and raw material to non-agricultural sectors of the economy, by creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the …


What disruptions occurred in the food supply chain?

Another disruption of the food supply chain occurred in the meat processing sector. Several big plants had to slow production or close down altogether for a period of time. This was detrimental for meat processing, as the sector is very concentrated.


Why did consumers flock to grocery stores?

With the decrease of food away from home, consumers were flocking to grocery store shelves to snag food for their families. As the demand for food away from home started to shrink, so did the demand for a majority of agricultural products, and many farmers were forced to dump their commodities. “There was a spike in grocery stores, …


How much of the beef is processed in a beef packing plant?

In order to gain perspective, consider the following. Ten of the largest beef packing plants process about 60% of all cattle. Ten to 15 of the largest pork packing plants process around 60% of all hogs. When one of these plants goes down, it has a significant impact on the industry as a whole.


Why did stores put caps on purchases?

Stores quickly turned their attention to preventing stockpiling. Measures were put in place to discourage shoppers from wiping the shelves clean of essentials. Many retailers placed a cap on purchase quantities of certain items. Several stores enabled omnichannel shopping, such as online ordering, curbside pickup, and in-store pickup. Other stores simply reserved times for vulnerable customers to shop.


Do grocery stores have essential workers?

An aspect most of us don’t think about is the personnel that keep the stores operating. Grocery store employees fall into the essential worker category , and, therefore, must continue their jobs to ensure Americans are fed. These workers had to protect themselves, while remaining on the job. Plenty of us noticed the stark changes that places like Kroger and Walmart instituted to give their workers that necessary protection.


Is farm income flat?

The United States Department of Agriculture (USDA) releases projections of net farm income, and the most recent report was announced in February. Farm income for this year was presumed to be fairly flat, according to the USDA.


Is meat packing labor intensive?

Meat packing is a labor-intensive industry, and many plants can accommodate thousands of workers. With refrigerated buildings and close-quartered employees, this makes for a perfect environment for the coronavirus to spread. This was devastating to an industry that relies on this sort of atmosphere to supply safe, quality products.


Purpose

The purpose of this paper is to review the agriculture supply chain (ASC) literature along many dimensions which include but are not restricted to scope, objective, wastages, driver, obstacle, outcome, etc.


Findings

The information related to empirical research and viewpoint of various ASC drivers were captured, studied and analysed in detail. Although inventory policy, demand forecasting and ASC integration were found to be important areas of ASC, they were less focused, studied and researched.


Digital and Analytics Technologies

New technologies are allowing leading agriculture players to add value at various stages of the supply chain — a major boon for a notoriously complex industry.


Social and Environmental Standards

As consumers become increasingly concerned with the social and environmental implications of their purchases and regulations become more stringent, the agriculture supply chain has implemented various guidelines to help ensure ethical processes end-to-end.


Direct-to-Consumer Model

As the COVID-19 crisis continues to alter the food and agricultural landscape, companies across the globe have been forced to adapt to meet shifting demand.


Lessons to Learn from the Agriculture Supply Chain

As new technologies, shifting consumer demands, and a changing market transform supply chains across the globe, many companies are seeking new ways to stay ahead.


Looking Ahead

The agriculture supply chain is changing rapidly, and in light of the COVID-19 crisis, today’s professionals are facing new, complex challenges.


How does agri supply chain work?

processing-based and organised agri-supply chain functions as a part of a very complex network. Figure 1 depicts a generic supply chain at the organization level within the context of a complete supply-chain network. Each firm is positioned in a network layer and belongs to at least one supply chain, i.e. it usually has multiple (varying) suppliers and customers at the same time and over time.


What is the supply chain for fruits and vegetables?

The Supply chain for fruits, vegetable and spices in the state consist of multiple intermediaries and handling, which sometimes leads to high physical wastage and/or value loss of the produce. Although the supply chains may vary from produce to produce but the main players in most of the horticultural produce supply chain are farmer, post-harvest contractor/aggregator, commission agent, wholesaler, retailer and final consumer. Supply and value chains of some of the major crops are given below for illustration.


What is IVC in agriculture?

Promoting Integrated value chains (IVC) for all the potential products in the state across all the regions. IVCs would cater to all the major horticulture crops in the regions by developing appropriate infrastructure at all levels of the value. All potential districts will have a hub that would have primary processing facilities such as state of the art pack houses, ripening chambers and cold stores depending on the requirements of the locally dominant crop. An illustration of the facilities for an IVC for Banana is illustrated below: Modern Pack houses may be created at the main banana production clusters in the region, which would cater to the banana grown in the surrounding area having a truck travel time of about 2-3 hrs from the farm to the pack house. The pack houses would have the followingDe-handing, infrastructure: Washing and De-sapping facilities  Sorting and Grading Line  Fungicidal Treatment facility  Packaging facilities (in corrugated cartons/crates) The pack houses for mango may have facilities for:  De-sapping  Washing: may include hot water treatment and fungicidal application.  Sorting/grading  Packing in corrugated boxes  Pre-cooling  Cold storage


What is the largest fruit and vegetable producer in the world?

India is the fruit and vegetable basket of the world. It grows a variety of fruits and vegetables and has huge production of both fruits and vegetables. India is the second largest producer of both fruits and vegetables in the world after China. In fruits, India is the largest producer of banana, mango and papaya, sixth largest producer of pineapple and seventh largest producer of apple in the world. In vegetables, it is the largest producer of okra, second largest of producer of brinjal, cabbage, cauliflower, onion and potato and third largest producer of tomato in the world. The production and productivity of fruits and vegetables in India for the last three years is given the adjacent chart.


How long does a chilled dairy product last?

In chilled dairy product a set of product has a long shelf life may be 1 to 3 days, which is called as “fresh dairy product”, and some are having longer shelf life, which can be consumed even after 3 to 9 months (below 4 C).


Why did the need for regulation of markets arise?

The need for regulation of markets arose from the anxiety of the British rulers to make


What is non availability of farm level post harvest infrastructure?

Non-availability of farm level post-harvest infrastructure is a major gap in the supply chain of the horticultural crops in the state. Farm level collection centers are mostly absent; sorting, grading, washing, packaging and other crop specific post harvest activities are virtually absent at the farm proximate level. This leads to higher losses and lowers the value realization by the players along the value chains especially producers.


What are the most problematic supply chain issues for the ag industry?

Key ag leaders shared with the Department of Transportation that the most problematic supply chain issues for the ag industry include transportation costs, labor availability, rising energy costs and challenges with obtaining inputs and products for the ag sector.


What are the causes of supply chain issues?

The causes of these supply chain issues have been multifold. Tariffs and the trade war disrupted markets and resulted in higher domestic steel and aluminum prices. Cyberattacks have taken down grain elevators and a packing plant. The West and Upper Plains have suffered droughts, which has reduced forage, increased irrigation needs and lowered river levels. Hurricane Ida closed the Gulf port, slowed Mississippi River traffic and closed chemical plants. Perhaps most significantly, the COVID-19 pandemic has affected almost every aspect of the supply chain, from transportation costs to labor availability, the CEOS write.


How does the ATWG increase competition?

The Surface Transportation Board can increase competition among railroads by finalizing a long-pending proceeding on reciprocal (also referred to as “competitive”) switching. Competitive switching will enable shippers and receivers that are captive to one rail carrier, but are near a second rail carrier, to gain access to the second carrier via a short distance switch.


What is the primary feedstock for ammonia production?

The primary feedstock and process fuel for ammonia production is natural gas . The recent doubling of the Henry Hub natural gas price is increasing the cost of ammonia production – the building block for all nitrogen fertilizers. In addition, rail logistical issues have been particularly acute this year, compounding the 206% increase in freight rates for anhydrous ammonia over the last 20 years. “In all, a confluence of factors has negatively contributed to the fertilizer market supply chain causing a variety of disruptions and market adjustments,” the CEOs write.


What is the biggest input expenditure for agriculture in 2020?

Chemicals, fertilizer and seed production costs represent the largest share of major input expenditures for farms in 2020 at about 17.5% of total expenditures. From 2019 to 2020, chemicals went up 6% in price while fertilizer increased 9%. Both chemicals and fertilizer are at their highest cost for the last five years.


What are the factors that affect the supply chain of fertilizer?

A confluence of factors negatively impacting global fertilizer market supply chains include, (1) global demand for fertilizer, which is largely driven by crop plantings and prices; (2) recent weather events that disrupted domestic production; (3) COVID-19-related deferral of facility maintenance that is now being undertaken; (4) trade actions; (5) transportation costs; and (6) the supply and cost of natural gas.


What is limiting the availability of pesticides necessary for agricultural production?

Regulatory action by EPA is limiting the availability of pesticides necessary for agricultural production. Transportation issues are creating issues in product delivery, and Hurricane Ida has disrupted a critical region for herbicide production.


Why is agriculture important?

Healthy, sustainable and inclusive food systems are critical to achieve the world’s development goals. Agricultural development is one of the most powerful tools to end extreme poverty, boost shared prosperity, and feed a projected 9.7 billion people by 2050. Growth in the agriculture sector is two to four times more effective in raising incomes among the poorest compared to other sectors. Analyses in 2016 found that 65% of poor working adults made a living through agriculture.


What is the role of the World Bank in the Global Agriculture and Food Security Program?

The World Bank plays three distinct roles of Trustee, project implementation partner, and host to the secretariat.


How has the Bank of Madagascar boosted the productivity of farmers?

The Bank also supported the cocoa sector through research, the development of certified seeds, and promotion of improved production and processing techniques. This allowed 4,000 cocoa producers to increase their incomes and increase production and export volumes by 50%. The Bank also financed the country’s largest land rights registration, facilitating the delivery of over 200,000 land certificates to farmers.


How did the Agriculture Sector Project help the cashew industry?

To aid the cashew industry, the Bank also supported a research program that helped disseminate 209 genotypes of high-performing trees and establish 18 nurseries. The Bank-financed project also helped leverage US$27.5 million in private investment to boost productivity on at least 26,500 hectares.


What is the World Bank’s Food and Land Use and Restoration Global Platform?

The World Bank leads the Food Systems, Land use and Restoration Global Platform (FOLUR), financed by the Global Environment Facility , in partnership with UNDP, the UN Food and Agriculture Organization (FAO), the Global Landscapes Forum and the Food and Land-use Coalition. FOLUR aims to promote sustainable, integrated landscapes and green the value chains of eight major food commodities.


What is the World Bank’s role in CGIAR?

The World Bank chairs the System Council of CGIAR , a global partnership that advances cutting-edge science to reduce rural poverty, increase food security, improve human health and nutrition, and ensure sustainable management of natural resources.


What is the Food Systems 2030?

With funding from the Bill and Melinda Gates Foundation, the European Commission, Germany, and the UK, Food Systems 2030 seeks to build a sustainable food system that delivers healthy people, a healthy planet and healthy economies.


What is flowspace supply chain?

Flowspace is the answer to your supply chain needs to gain a competitive advantage in the marketplace. As the premium on-demand warehousing and fulfillment service in the country, we offer month-to-month storage space, cold storage, pick and pack, and a free management system and zero long-term commitments. Contact us today.


What is globalization in logistics?

The onset of globalization means supply chain management is more complex and business critical than ever before. As a logistics manager or business owner, it falls on you to know how globalization can benefit your operation.


What is Globalization?

The term “globalization” refers to the free movement of goods, services, and people across the world. In regards to supply chain management, globalization refers to the process in which a business operates on an international scale.


How does globalization affect labor costs?

Expand sourcing opportunities – Globalization makes it possible for businesses to increase production by securing a diverse selection of workers, raw material, and products from regions of the world that were previously out of reach. This can result in significant labor costs.


How does globalization help businesses?

Grow and expand the scope of their business – Globalization makes communication near effortless, which make it easier for markets to expand and diversify, thus providing more opportunities for businesses owners to capitalize.


What is the importance of globalization?

Globalization offers companies the opportunity to reach new customers in new markets, which dramatically upsets how manufacturers need to operate to be successful. Exposure to new markets means exposure to greater competition and greater risk – but also greater reward.


How to take advantage of globalization?

To take advantage of the benefits of globalization, you need to know the negatives and how to respond to them. Greater complexity – Global supply chains have global problems. As companies globalize they must scale up all aspects of their business, especially their supply chain.

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Digital and Analytics Technologies


Social and Environmental Standards

  • As consumers become increasingly concerned with the social and environmental implications of their purchases and regulations become more stringent, the agriculture supply chain has implemented various guidelines to help ensure ethical processes end-to-end. More companies are committing to enhanced sustainability initiativesand increased transparency in their operations. …

See more on thomasnet.com


Direct-To-Consumer Model

  • As the COVID-19 crisis continues to alter the food and agricultural landscape, companies across the globe have been forced to adapt to meet shifting demand. As many restaurants closed, for example, farmers who had relied on them for wholesales had to switch to a direct-to-consumer (DTC) model, allowing consumers to purchase food without setting foot into a store. While this c…

See more on thomasnet.com


Lessons to Learn from The Agriculture Supply Chain

  • As new technologies, shifting consumer demands, and a changing market transform supply chains across the globe, many companies are seeking new ways to stay ahead. The agriculture industry has shown that increased focus on sustainability, advanced technology, and the DTC model all have the potential to create more value while improving social and en…

See more on thomasnet.com


Looking Ahead

  • The agriculture supply chain is changing rapidly, and in light of the COVID-19 crisis, today’s professionals are facing new, complex challenges. As the U.S. economic and cultural landscape continues to shift, companies will likely be tapping into advanced technologies and digital tools more than ever to help them remain as nimble and agile as possible as we move into the future.

See more on thomasnet.com


Want to Grow Your Knowledge on This topic?

  1. Agricultural equipment sourcing is growing. Find out why here.
  2. Find out how to employ digital twinsfor supply chain success.
  3. Is blockchain the answer to supply chain success? Uncover the answer here.
  4. Discover how farmers are reaping the benefits of big data in agriculture.

See more on thomasnet.com

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