Formation and Development of Agricultural Value Chains: A Practical Solution for Enhancing Efficiency of Agricultural Products Markets

Document Type : Research Paper

Author

• Behrooz Hassanpour

Assistant Professor of Economic, Social and Extension Research Department, Fars Agricultural Research and Natural Resource and Education Center, AREEO, Shiraz, Iran.

10.30495/jae.2023.28358.2268

Abstract

Introduction: The inefficiency of the agricultural products market in Iran has caused severe price fluctuations and dissatisfaction on both sides of the market, namely consumers and producers. This market is sometimes faced with oversupply or shortage of supply, and the role of brokers for speculation and hoarding is very colorful. In this study, while examining and identifying the active links related to the value chain, a strategic model for creating an agricultural value chain and its executive instructions were developed so that in this model the role of actors in the market and trade of products is specified.
Materials and Methods: The present research is applied in terms of purpose and in the field of qualitative research and in terms of research method, it is a combination of two documentary and field methods. Documentary information and face-to-face observation of the activities of 35 economic activists in the agricultural sector of Fars province and 12 joint meetings with officials and managers of the Agricultural Jihad Organization with a brainstorming approach and based on a slight change in Porter value chain model, tried to provide an executive instruction for creating an agricultural value chain.
Findings: Lack of awareness of market factors about the value chain, the existence of economic issues and defective links that practically do not create value, has prevented the establishment of continuity in the supply chain and value links in the agricultural sector. The results of this study led to the development of a strategic model for creating an agricultural value chain and an executive instruction.
Conclusion: Familiarity of entrepreneurs and economic actors in the agricultural sector with the benefits of the value chain and the development of supportive laws can help in forming, developing and completing agricultural value chains.

Keywords

• Marketing
• Organizing
• Value Chain
• Agriculture

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