developing approriate logistcs for perishable goods and the … 2... · 2015-01-30 · agroinput...
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Developing Appropriate Logistics for Perishable Goods and the Integration of Smallholders Farmers
Tomy Perdana Center for Agricultural Supply Chain and Logistics System Studies
Faculty of Agriculture, Padjadjaran University
Asia Pasific Trade Facilitation Forum 2014 in Bangkok
Challenges of the Small and Rural Farms
Being small farms
Lack of financial capital and small production below threshold capacity
Poor costs and operation efficiency
Low product quality
Locality
Distance from the collection centers, market and exit port
Poor access to reliable information
Physical inaccessibility due to terrains, poor transport infrastructure
Incur higher transportation costs in produce delivery
Production decisions
Lack of knowledge and information result in the inability to decide what,
when, how and how much to grow?
What capacities of the small farms able to engage into the Supply Chain
System
What motivations are needed to want to engage into the Supply Chain
System
What competencies are needed of small farmers to enable them into the
System 2
Advantages of small farms
Direct and precise control of farm operations
Detect crop problems quickly
Personal attention to crop care
Opportunities available to small farms
With global changes, new markets become available and accessible
Niche marketing
Innovate farm techniques
Innovate marketing approaches
Add value to products
Safe food
Rare cultivars / varieties
Differentiated produce
Quality Certification
Develop supply chain networks
Opportunities of the Small and Rural Farms
3
Determinants of an Efficient Logistics Management Program
Timing – correct time of implementation, shortest transit route
Reliability – right time of departure / arrival
Consistency – doing it again and again
Quality – best quality condition
Performance – full satisfaction of the customer
Cost – most efficient logistics cost, economies of scales, inventory
Price – most competitive price
Sustainable logistics system – fuel resources, transport mode, etc
Others – Security, Highest capacity utilization, Responsiveness,
etc.
4
5
Teaming-up a Farmers Group
Criteria of Membership
Capacity
Locality
Similar Problems
Membership Terms
Division of Responsibilities
Individual Financial Responsibilities
Sharing Equipment / Transportation
Production Rotation / Allocation
Share Costs
Penalty
Knowledge Management
Developing a logistics model for the small &
rural farmers group production
Compatible crops
Contracts
Agriculture extension
Selection
Source : Chan (2012)
6
Knowledge Management Internal
Production in Farm
Market Information
Acquisition
Good Farm Practices
Agronomy
P&D Control
Identify Buyers / Clients
Confirm Demand Criteria
Market conditions
Environmental conditions
Connectivity
Forecast conditions
Farm Logistics
Harvest
Farm Grading
Farm Packing
Temporary Cool Storage / PHH
Delivery or Collection
J.I.T
P.O.
B 2 B
Outsource Transport
System
External
Harvest on Demand
Implementation
Source : Chan (2012)
7
Logistics for Export Market
Farm Supply
Market Information
Acquisition
Quality Consistency Timeliness
Transport System
Shipping Co.
Shipping Agent
Haulage Co.
Port Authorities
Customs
Financial Inst.
Identify Buyers / Clients
Confirm Demand Criteria
Market conditions
Environmental conditions
Forecast conditions
Making Decision
Monitoring Production /
Market
Improving & Upgrading System
Control Operations
After Delivery
Payment
Regulations
Certification / Government
EDI System
Source : Chan (2012)
Facilitating Trade and Developing Approriate Logistics of Small Farmers
Farmers Farmers
FarmersGroup
Farmers Farmers
FarmersGroup
Farmers Farmers
FarmersGroup
Growing
RuralLogistcs
Collec veproduc onsystem
Postharvest,sor ng,grading,packing,pre-cooling,cooling,storage,trading,transport
Distributor Exporter
Logis csServices
Consolida on,qualitycontrol,branding,marke ng
ModernRetail
Consolida on,qualitycontrol,marke ng
Consolida on,qualitycontrol,marke ng
Importer(Buyer)
Transporta on,administra on
Interna onalmarket
Tradi onalMarket
Domes cmarket
The Triple Helix Facilitation
Agro logistics management in the rural area
10
Performance Management
Push System
Pull System
Value Added
Market Growth
Fee based Income
11
Logistics Mgmt
Market Acces
Technology Acces
Agroinput Acces
Financial Acces
Agro logistics services in the rural area
The Triple Helix Model in facilitating trade and developing approriate logistics of small farmers
FFVSC
Government
PrivateUniversity
AESBI
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UniversitasPadjadjaran
APRINDO
Farmer
Farmers
Group Farmer
Farmer
Market
University
Gives services in technical, managerial, institutional,
access to technology, financing, and market.
Other Parties
(Banks, Syngenta Foundation,
Supermarket, food industry)
Reduce risks such as cancelled order, delayed payment, climate change
Ministry of Agriculture
Food Crops and Agricultural Services of
West Java
Giving the supporting facilities such as packing house with cold chain
system, irrigation etc
Central Bank,
Supporting Agencies
Funding trainings and building some
demonstration plots
The Role of Each Actor in Facilitating Small Farmers and Developing Appropriate
Logistics of Small Farmers
Market
guarantee
Supplying
consistency
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