Industry aspects of farm access to high value-added supply chains

Aleksandr Kudryavtsev,Yuliya Karmyshova,O Loretts,V Kukhar,S Vinogradov,N Ojha,J.L Lopez Garcia,A Ruchkin

doi:10.1051/e3sconf/202017605005

Aleksandr Kudryavtsev, Yuliya Karmyshova + Show 6 more

Open Access

https://doi.org/10.1051/e3sconf/202017605005

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Abstract

This paper examines the factors characterizing the access of farms to the supply chains of agricultural products with high added value. Indicators of statistical reporting on farm activity grouped by type of products are analyzed, on the basis of which the influence of production size on opportunities selling products at a higher price is assessed. It is concluded that for various sectors of agriculture the level of product sale prices’ dispersion by individual farmers differs, which characterizes differences and opportunities of farmers to increase own share in the added value creation chain. Identified types of agricultural products, producers of which must increase production volumes to gain access to more profitable trade channels of products, as well as types of products where significant production volume is not a prerequisite for higher sales prices. These conclusions can be taken into account in assessing the feasibility of establishing marketing or processing consumer cooperatives of farmers.

Highlights

Many scientific studies have been devoted to the study of various aspects of food supply chains
Food supply chains are seen as complex systems of interaction, elements of which are different economic agents providing some input to the formation and promotion of the product to the end consumer
Certain agricultural markets are characterized by a variety of intermediate supply chain management options involving vertically and horizontally integrated firms, as well as economic agents that ensure that only one step of value creation is implemented

Summary

Introduction

Many scientific studies have been devoted to the study of various aspects of food supply chains. Food supply chains are seen as complex systems of interaction, elements of which are different economic agents providing some input to the formation and promotion of the product to the end consumer. Each participant in the supply chain acts on its own interests and objectives, but collectively they form essentially a “hybrid institution” - a single organizational structure, ensuring the creation of the product and bringing it to the consumer [8]. The first type is characterized by the fact that each stage of the chain is localized within a separate firm, the second - that all stages are implemented within a single vertically integrated firm. Certain agricultural markets are characterized by a variety of intermediate supply chain management options involving vertically and horizontally integrated firms, as well as economic agents that ensure that only one step of value creation is implemented. Conditions arise for asymmetrical distribution of value added among chain participants [9]

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