Supply Chain Management of Fruits and Vegetables
Supply Chain Management of Fruits and Vegetables - A Case Study
N T Sudarshan Naidu
Abstract
India is witnessing rapid changes in retailing with urbanization, increase in disposable income, changing lifestyle, preferences and eating habits of its population. India with diverse agro-climatic conditions offers both opportunities and challenges in retailing of fruits and vegetables. Concentration of production with small and medium farmers in remote areas without proper infrastructure facilities and market linkages has led to large scale inefficiencies in supply chain. Namdhari’s Fresh has successfully overcome the challenges by producing fruits and vegetables on their own farms under different agro-climatic conditions apart from contract farming arrangements with more than 2000 farms and investing both in back and front end of supply chain. They have leveraged the competitive advantage of seeds, network of farmers and experience in agriculture technology of its mother company Namdhari Seeds. They deliver the quality fruits and vegetables with optimum freshness by uninterrupted cold chain network right from harvest till it reaches consumers. They supply the produce to their retail outlets, hotels, and also to other retailers apart from export.
Key words: Retailing, supply chain, fruits and vegetables, contract farming
Introduction
India is witnessing rapid changes in retailing of fruits and vegetables with booming economy, increase in disposable income, changing lifestyle, preferences and eating habits of its population, increase in number of nuclear families and working women and increased competition with entry of many players (Kumar, 2004; Rajadhyaksha, 2006; Anonymous, 2006; Sinha, 2007). Domestic market for both traditional and exotic fruits and vegetables is increasing in the context of rapid urbanisation and changing dietary preferences (Deshingkar et al, 2003). On an average Indians are spending more than fifty percent of their income on food items (Kumar,
N T Sudarshan Naidu
Abstract
India is witnessing rapid changes in retailing with urbanization, increase in disposable income, changing lifestyle, preferences and eating habits of its population. India with diverse agro-climatic conditions offers both opportunities and challenges in retailing of fruits and vegetables. Concentration of production with small and medium farmers in remote areas without proper infrastructure facilities and market linkages has led to large scale inefficiencies in supply chain. Namdhari’s Fresh has successfully overcome the challenges by producing fruits and vegetables on their own farms under different agro-climatic conditions apart from contract farming arrangements with more than 2000 farms and investing both in back and front end of supply chain. They have leveraged the competitive advantage of seeds, network of farmers and experience in agriculture technology of its mother company Namdhari Seeds. They deliver the quality fruits and vegetables with optimum freshness by uninterrupted cold chain network right from harvest till it reaches consumers. They supply the produce to their retail outlets, hotels, and also to other retailers apart from export.
Key words: Retailing, supply chain, fruits and vegetables, contract farming
Introduction
India is witnessing rapid changes in retailing of fruits and vegetables with booming economy, increase in disposable income, changing lifestyle, preferences and eating habits of its population, increase in number of nuclear families and working women and increased competition with entry of many players (Kumar, 2004; Rajadhyaksha, 2006; Anonymous, 2006; Sinha, 2007). Domestic market for both traditional and exotic fruits and vegetables is increasing in the context of rapid urbanisation and changing dietary preferences (Deshingkar et al, 2003). On an average Indians are spending more than fifty percent of their income on food items (Kumar,
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