The term “Food Chain” has been a recurring concept at the top of Farmcrowdy’s operations. There seem to be numerous reports on events happening within the food industry. Complex terms of individuals are what form the majority of terms used. For example, an undereducated farmer may be more concerned with selling his latest harvest. Rather than look for further roles he might actually play in the food value chain.
Each player also has unique impacts on supply and demand throughout the industry. It is important to understand the similarities and differences between these roles. This simplifies the food value chain and economic dynamics between the various players in the market.
A plain description of the value chain structures will be provided in detail in this article. Also inclusive is the influence of supporting functions and rules that play. By taking cognizance of value chain development models. Here are outlines of the main players with a breakdown of their unique roles:
Producers
Food producers are people in charge of providing food products in their raw form – typically, individuals who are viewed as simple farmers. Farmers cultivate, harvest, and sell products in large quantities with products derived from either plants or animals. Farmers rely on seed or existing livestock to produce for each harvest or season. Producers most often serve large food distributors or packaged foods from manufacturers. Producers can also sell directly to consumers at local farmers’ markets or within their communities.
Manufacturers and Processors
This refers to actors that provide foods in their finished state, especially in large and bulky quantities. They source raw materials from farmers for processing into products. These products have a significantly longer shelf life than fresh produce or meat because of added preservatives. The products are also generally frozen, dehydrated, or canned to further preserve freshness.
Food Wholesalers
Food wholesalers buy products in bulk from producers and manufacturers. Then, they sell the products to retailers or service providers, leveraging economies of scale to generate profit along the way.
Retailers
Retailers in the food industry sell both agricultural produce and processed food products directly to consumers in local stores. As the final link in the supply chain from producer to consumer, retailers drive demand for foods in different regions. This is actually based on consumer demand. However, retailers might be faced with difficulties, due to their bottom position in the value chain. This may include access to items that match the distinct demands of customers. Farmcrowdy’s FC Shops has developed the use of interactive applications to fix the problem. This has enabled retailers to find required products to meet demands.
Similarly, Farmcrowdy’s operation in Rwanda serves as a solution with a different strategy. In the country, ative retailers’ buying patterns affect inventory planning all the way through the supply chain, ultimately affecting what and how farmers produce.
Food Service Providers
This may refer to restaurants and delivery services. Service providers buy directly from wholesalers, rather than retailers, to drive cost efficiency. They then add value to food products by preparing and serving them to dine-in guests.
Government
The government represents humanistic elements in charge of making policies that may affect the potential of the value system. Governmental regulations determine the favorability of the value chain environment.
Consumers
The last rung of the value chain system consists of the consumers. They consist of ordinary living individuals with the need to eat for survival. Consumers can be farmers, wholesalers, or any identities in the value chain. They can be anybody so long as there is always a need to feed for the sustenance of life. Food is what everybody has in common in the food value chain. We are all consumers.
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