quarterly discharge fee for abattoir and milk processing wastes and boiler waste water. Also the tax on waste in slaughter houses, including a surtax of $0.75 per kilogram on the export of raw hides and skins produced at abattoirs in order to encourage local beneficiation. However, given the current price of hides on the international market, this has effectively amounted to a ban on exports. Under-investment in local tanneries has caused the low uptake of hides by tanneries, leading to stock build-up and spoilage at abattoirs. The Ministry of Local Government, Public Works and National Housing has, though a model by-law, encouraged rural district councils (RDCs) to charge a levy of 10.5% on all live cattle sales. This includes cattle traded between farmers for herd building as well as those for slaughter 26 . The Agricultural Marketing Authority (AMA) Statutory Instrument (SI) 147 of 2012 has led to increases in the cost of these raw materials in the stockfeed sector. Value added tax (VAT) of 15% charged on molasses used in cattle feeds is inconsistent with SI 273 of 2003 which zero rates by-products used for feed production. The current policy of the Grain Marketing Board (GMB) of buying maize at prices that exceed import parity has led to side-marketing by contracted maize farmers to the GMB and thereby discouraging contract farming relationships. Further, GMB's policy of reselling maize at lower prices to its feed and milling divisions is an unfair trade practice that impacts upon private millers and stockfeed plants.”
Use credit (USCRED): As It was hypothesized before credit users of the household head affected market supply of beef positively and significantly at 5%, Thus, holding other factors constant, on average increases the amount of credit users increasing quantity of beef cattle supplied to the market by 0.234 TLU. Credit using within a year that the household head Agricultural service, in our case credit, is believed to enhance the ability of farm households to withstand input supply constraints, encase of liquidity and there by enhance crop choice and productivity (Lerman, 2004). Therefore, a household who has a user to get credit using can be able to buy either farm implements and other inputs which can foster choice and level of crop and/or livestock to be grown or reared and, linking with the use of modern farm technology. Therefore, the more users to credit using, the more it will be market oriented, positive effect. As stated by Zeller and Sharma (2001) and Heidhues and Schrieder (1994), credit adds to the financial resource of the household, for food and input procurement. In the present study, it is expected that households with better access to credit user will be more likely to participate in the beef cattle production and quantity of beef cattle supply.
Mostly farmers sell their livestock when they need money for emergency purposes. To bring farmers to commercialization, encouraging farmers’ business attitudes is necessary. So the concerned body should have to give attentions to encourage feedlot operators and create farmers awareness on modern fattening practices. This may play a central role to supply quality cattle for domestic slaughters/processor which at the present faced low beef quality standard and may also create job opportunities for unemployment. The government should have taken legal action and perform controlling activities on unlicensed traders and middlemen that have become burden on legal traders and reap higher profit without incurring any expenses.
Formal networks between retailers/wholesalers and processors can be encouraged by using simple language in written agreements or contracts that clearly outline the expectations and outcomes for those parties. Involving top management should be achieved with strong, motivated leadership and commitment. For example, Marks and Spencer (M&S) which is one of the UK’s most successful retailers has worked together for more than 25 years to share a high level of mutual dependence with Northern Foods (the largest food manufacturer in UK). Their relationship is based on value-adding partnership which works through ‘centers of excellence’ (people, products and technology) with food safety and quality as their key elements. Australian beef retailers could learn from this example.
In presenting the commodity value added, it had to emphasize the principle of efficiency to reach the supply chain target. According to Prastowo et al, one of factor that influenced commodity retail price was the size of the profit margin that was determined by distributors. According to Downey and Erickson , every tax, charges to be paid or reward to connect buyers and sellers were charged to the final consumers but according to Fatahillah et al., good supply chain could be seen from the distribution of value added from each supply chain actors. Good supply chain insisted on the principle of the value added distribution, profit and fair risk between supply chain actors in delivering products to consumer with right quantity, place and time, affordable price and satisfies consumers.
Supermarkets are the largest buyer of beef products, accounting for 32% of the beef market (RTI International, 2007). Concentration in the supermarket industry has been increasing since the late 1980s (Callahan & Zimmerman, 2003).
The rise of Wal-Mart and other supercenters is squeezing out some traditional retail grocery outlets. Although the nation's 56,000 supermarkets remain dominant in food shopping, their share of the business has been steadily declining. By 2004, Wal-Mart had roughly 20% of U.S. market share, while supermarkets’ share declined and Whole Foods’ share remained under 1% (see Figure 12). In the roughly four years since that time, Wal-Mart has expanded its reach considerably into its competitors’ niches, including organic and natural offerings. In an economy where, in 2008, the price of consumer goods rose 5%, Wal-Mart has thus continued to draw customers away from higher-priced outlets such as Whole Foods.
Customary in Southern Africa, continuous unenclosed communal grazing is practised under uncontrolled stocking rates, uncontrolled breeding and poor pasture management. Such practices are symptoms of a low investment non-market oriented production system that aggravates land degradation and pasture depletion (Tefera, 2013; Tfwala et al., 2012). Coupled with loss of cattle quality due to delayed sales, land degradation and pasture depletion exacerbates the production of low-quality cattle that fetch low market prices (Dizyee et al., 2017), thus diminishing farmers’ market benefit and eroding the sectors ability to improve national and rural economic growth. Therefore, the integration of farmers into functional livestock value chains is critically vital for creating a pull effect necessary to attract farmers into market-oriented production. Without meaningful economic benefit for farmers, the primary actors of agri-food systems, agriculture as a sector will continue to be relegated into a less profitable enterprise that fails to advance the development agenda for rural farming population that forms majority of the people in developing countries.
This component of the analysis begins with mapping out the current landscape for the provision of financial services. It includes listing all the types of finance service providers that are or could be supporting valuechain with their description, strengths and weaknesses, and the market segments they target or are best suited for. This information can be used graphically by adding a finance flow overlay in the VC map. It also includes developing an inventory of the three types of finance products offered by the finance service providers: saving, credit, and risk management. Different types of financial service providers and products are listed in Table 1. Two further elements need to be assessed here. First, the core finance products may be accompanied by related services such as financial literacy and business
It is the NGO who is playing major role in mainstreaming MSMEs of diversified jute products, as the key formal social and business enabling player. Mainstreaming of women (participation in social economic and right based activities) through this formal network has been strengthened in JDP valuechain, now a day. Karitas, Care, Core-The Jute Workers, Traidcraft Exchange, BRACare the leading NGOswho are continuously to develop JDP clusters, women-led JDP enterprises, train them and link them to forward market. However, awareness raising campaigns at consumers’ end to promote and intensify usage of diversified jute products are still not active and vigilant by these NGOs.
Retail shopkeepers: These are retailers who are mostly dedicated to the sales of different kinds of fruits and spread across different locations and areas of the valley. They also sell value added fruit products such as fresh fruit juice and cut fruit assortments. They source their apples mostly from Balkhu Fruit Market, the purchase cycle being once a week or once in 10 days depending upon the sales. The daily sales vary depending upon the location and season, however on average each of these sell anywhere from 5 to 25 kg of apples every day. There are an estimated 500 or more fruit retail shops and vendors spread across the Kathmandu Valley. They consider Chinese apples to be the most popular mainly because of its size, taste and packaging. These shopkeepers reported of keeping a margin of NRP. 10-20 per kg of apples.
In relation to the above evidences ( Addisu ,2016) conducted valuechainanalysis of vegetables: the case of ejere district, west shoa zone, oromia national regional state of Ethiopia. In his study he examined determinants of volume of sales of potato using two stages least square (2SLS) method. The result of the model indicated that among hypothesized ten explanatory variables five variables productivity, sex of households, distance from nearest market, access of off/non-farm income and land allocated for potato significantly influence volume sales of potato. Similarly, (Nega,2015) conducted market chainanalysis of agro-forestry products the case of fruit at Tembaro District, South Ethiopia particularly on mango, banana and avocado. The result of multiple linear regression analysis for each commodity indicated that quantity produce of each commodity, market information; extension service, market distance, active family member and price of the commodities were major predictor variables that affect the market supply of the stated commodities.
Valuechainanalysis can help in formulating upgrading strategies in these different spheres by describing and analysing sources of competitiveness that arise from factors like local competitors, infrastructure, customers and coordination between companies, given the environmental structures of barriers to entry, trade and rent and governance (Rudenko, 2008). In reference to what parties external to the chain, e.g. government agencies, can do to aid and set in motion the processes of upgrading, Schmitz (2005) states that Business Development Services (BDS) are often used especially in the developing country context. These measures include consulting, training, business planning and funding. There is debate whether these services actually contribute positively to upgrading processes, but it seems that when combined with aid in inter-link coordination and business relationship building, they do have positive effects. Schmitz (2005) does, however, provide critique regarding the limitations of valuechainanalysis in upgrading. In essence, upgrading has to happen and be initiated by companies within the chain, which sets reservations on whether this will actually happen. Especially when developing country production and value chains are in question and external parties try to push for the development of a chain, barriers, e.g. size of companies, exist. Buyers may not be willing to buy from a multitude of smaller producers even when price and availability issues are not a problem. The core of this argument is that in modern value chains transaction costs play a large role and often arise from larger complexity. If a company cannot trace the origin of its products and govern the chain it is linked to, there are concrete costs in reputation and coordination that make these changes less appealing. An additional concern arises when competitive positions of lead firms are contested by upgrading activities. Lead firms play a very important role in governing the entire chain and determining the effects of upgrading activities. If these activities include functional upgrading, which restructures the mix of activities within the chain, lead firms may block upgrading activities. The role of lead firms in determining changes in value creation and distribution through upgrading activities throughout the chain are also highly relevant in the case of the Namibian diamond industry discussed later in chapter 4.
There are a few interrelated issue of value when it involves recycle item. The first one is, recycle item such as aluminium rarely exist as its pure form. According to Dahlstr¨om (2007), aluminium recycling valuechain is quite different to be analysed since aluminium rarely exists as its pure form in commercial use. It has been added with other metal to improve its natural quality or known as aluminium alloys. Aluminium also can exist together with other material in a product such as in electric and electronic appliances. This means the aluminium has been added or mixed up with other materials such as plastic in home appliances, oil in vehicles and other alloying elements to boost certain quality of the aluminium. These directly affect the value of the aluminium itself.
extension programmes on indigenous chicken production are expanding does bode well for the poultry sub-sector. Efforts need to be put on stopping inappropriate breeding programmes particularly indiscriminate crossbreeding, that threaten to erode the native chicken germplasm; undertaking improvements in market infrastructure particularly establishing indigenous chicken marketing points starting in production hotspots and then rolling out to the rest of the country. This should be done alongside promotion of indigenous chicken producer groups using the now domesticated innovation platform paradigm. When this is done, the threats reported namely: frequent disease outbreaks, unstable markets and rampant thefts of chickens could be tackled. The indigenous chicken subsector employs many actors whose efforts and roles have not been exploited, resulting in glaring losses in the entire valuechain and production constraints as well. Therefore, it is recommended that improvement of the indigenous chicken sector requires increased access to services and efforts accruing from all key players, strengthening the marketing system and farmer group participation in trainings.
Valuechain: KIT et al. (2006) defined valuechain as: “Specific type of supply chain where the actors actively seek to support each other so they can increase their efficiency and competitiveness. They invest time, effort and money, and build relationships with other actors to reach a common goal of satisfying consumer needs so they can increase their profits”. The valuechain actors who actually transact a particular product as it moves through the valuechain include input suppliers (e.g. seed suppliers), farmers, traders, processors, transporters, wholesalers, retailers and final consumers (Hellin and Meijer, 2006). A valuechain is an alliance of enterprises collaborating vertically to achieve a more rewarding position in the market. The basic characteristic of a valuechain is market- focused collaboration: different business enterprises work together to produce and market products and services in an effective and efficient manner (AFCA, 2004).
All organic businesses have to be profitable and this requires them to operate efficiently. The Food Chain Centre has undertaken three projects dealing with organic producers supplying through multiple retailers. The projects applied the concept of ‘lean thinking’ and ‘valuechainanalysis’. The projects were led by the Food Process Innovation Unit, which is part of Cardiff University’s Lean Enterprise Research Centre. The Lean Enterprise Research Centre enjoys a global reputation in the application of lean thinking and their work demonstrates that businesses can use the concept to secure long term competitive advantage. Lean thinking provides a way to do more and more with less and less – less human effort, less equipment, less time, and less space – while coming closer and closer to providing consumers with exactly what they want. In other words, the project focused on removing waste from supply chains and focusing on
Table 23: Comparison of final cotton SV and parity prices
95. As shown in Table 24, one of the ways to consolidate and sustain competitiveness in
cotton is to improve the ginning out turn (GOT). A 1% improvement in the GOT substantially lowers per unit ginning costs and thus enhances the ginners’ profit. This is an area that provides the greatest scope in terms of improving the ginner’s profit which could then be rolled-back to the net farmer profit through investment in services required to improve the quality and yield of seed cotton and lint. GOT may easily be improved at the farm-level through the use of treated seed, improving the use of chemicals through appropriate scouting for pests so as to ensure timely application of chemicals, avoiding contamination of the seed cotton at picking, sorting, baling as well as transportation to the ginnery. At the gin-gate, GOT may be improved by use of better gins and avoiding contamination through better grading and handling techniques. With the GOM’s current pricing policy whereby nearly all profits in the cotton valuechain accrue to farmers, however, there is little scope for ginners to invest in improved farmer extension or upgrading of ginning facilities.
pregnant cows. Cow costs for each group have been separated into variable expenses and fixed expenses. Variable expenses included the average costs for mineral, supplemental feed, hay for cows and bulls, pregnancy testing services, veterinary products for cows and bulls, machine hire/lease, pasture rent, pasture maintenance expenses (i.e., seed, custom hire, and fertilizer), labor, and miscellaneous expenses. Fixed costs include depreciation and interest for mature cows, young cows, bulls (sires), calf scales, and computer software used to keep track of the data and analysis. It is important to note here that the cost of an open cow was the same as the cost of a bred cow, except for any costs associated with the preconditioning program or any related feed yard expenses from the retained ownership program.
In addition to details of aggregate weekly sales, the data set contains information about how the characteristics of each individual brand are likely to affect the brand’s value. The variables defi ned in Table 2 are used in step two of the analysis to regress the estimated brand premiums from the hedonic model against factors associated with each brand name. Brand longevity is the continued presence of a brand in the relevant market (Banbury and Mitchell 1995, Li 1995). The longevity of a brand is essential for a fi rm’s survival because it is linked to performance measures such as profi tability and market share (Kanter and Brinkerhoff 1981, Suarez and Utterback 1995). We categorized brand longevity into fi ve segments: (i) three years and less (7 percent), (ii) four to six years (18 percent), (iii) seven to ten years (5 percent), and (iv) eleven years and greater (70 percent). Brands having a longer presence in the market are expected to have greater consumer recognition and thus higher brand value.
Consequently, the TCF has raised funds to undertake an objective and independent assessment of the opportunity, in order to provide a realistic and practical basis for further investment in the sector.
For the purposes of the study, AISDevelopment (AISD) defines the production area as including Taos, Rio Arriba and Mora Counties in North Central New Mexico (NCNM) and the San Luis Valley in Colorado (SLV). For the report, we use the description North Central New Mexico/San Luis Valley, or NCNM/SLV. The market area that will be explored encompasses the communities located in the corridor from Taos to Santa Fe, as well as Albuquerque. For the purposes of the study, we use the term “Grass Fed Beef” or “GFB” to refer to beef raised and finished on grass. The key challenge has been that in order to capture the market, ranchers incur significant costs—and risks—to finish cattle on grass, especially with such small volumes of product. To date, it is not clear that the premiums garnered for locally produced grass fed beef actually cover the additional costs of production incurred to finish on grass and direct market the product. Moreover, while grass fed beef is growing in popularity, it remains to be seen where the market will go, given the uncertainty of the definition of “grass fed” and its differentiation from natural or organic, and challenges meeting the demands of consumers for tenderness and taste with a grass finished product.