Presentation on theme: "Development of Supply Chain for Fruit and Vegetable Industry"— Presentation transcript:
1 Development of Supply Chain for Fruit and Vegetable Industry Dr. D. N. KulkarniPresident – Agri FoodJain Irrigation
2 An overview of Indian Agriculture (Production side)Comparative advantages:Diverse agro-climatic zones across the country,Round the year sunshinePotential to cultivate a vast range of agricultural productsSecond largest arable land in the worldPotential for Large marketable surpluses and abundant raw material for processingVast pool of skilled manpower in research and extensionThese advantages being leveraged, for India to be a leading food supplier to the world.
3 Area and production of Agricultural products (Production in million tonnes) IndiaIndia’s Rank in WorldArable Land (Million ha)1512Irrigated Land (Million ha)551Wheat72Rice, Paddy124Coarse grains (including maize)293Milk91Fruits47Vegetables82Edible Oilseeds25Pulses15Sugarcane245Tea0.85Cattle (million)186Source: Rabobank International
4 India is the front ranking producer of many perishable commodities India produces41% of world’s mango,23% of Banana,24 % of cashew nut,10% of onion,30% of cauliflower,36% of Green Peas.China : $195 bn; USA : $150 bn; India - $105 bn.India has53% of world’s buffalo and17% of goatAnd a 8000 km of coastline
5 Present Scenario in Value Chain Cost Build Up For One Kg. Basket Of Fruit11.62.5FARMERTRADERWHOLESALERRETAILERCONSUMER PRICE188.8.131.52Retail MarkupsFARM GATE PRICESMILKFISHFRUITS &VEGETABLES350220160100
6 Domestic Market Scenario…... Production may be insufficient if domestic markets all over the country targeted efficiently & effectively.Market prices are satisfactoryMango, Grapes, Apples, Pineapples, Pomegranates, Litchis can be sold out in the country itself because of the production in limited orchards & demand in whole country.Markets in the rural & semi urban(around 60-65%) should also be tapped along with Metros or big cities(around 12-15%)
7 International Markets : Trends Steady increase in global production of fresh produce.Balance of power shifting to retail chains from suppliersFood safety standards are higher & more complex requirements.Demanding regulationsIncreasing intensity of technologyConsumption is convenience-driven. i.e. Value added products.Increasing health concerns reflected in food consummations.- Organic, functional, herbal.
8 Scenario of export of major fruits in India Mango :Over 54% of the world mangoes are produced in India.Less than 10% of total production are approximately exported.It shows export prospectus for Mangoes is very high.Markets to be focused for Mango export:UAE, Bangladesh, Saudi Arabia, Kuwait, EU,. New Markets- Japan, USA, China
9 Scenario of export of major fruits in India Grapes :India produces approx. 1 million tons of fresh grapesannually, out of which export of grapes is about 14000tons per year, which accounts for only 1.4% of the total production.Grapes import accounts for approx million US $ ofwhich the Indian share is only about 1.5%.Major Markets to be focused for Grapes export:UK, UAE, Netherlands, Germany, Saudi-Arabia, Oman etc..
10 Scenario of export of major fruits in India Banana : First in production of Banana in the world. (Around 22% of world’s total output). However, the export from India is negligible.Reasons:Non availability of on-farm packing house, precooling and cold storage facilities.Improper pre-harvest practices.Improper post harvest handling.Major Markets to be tapped for Banana export:UAE, Saudi-Arabia, Qatar, Oman, Kuwait, Bahrain etc.
11 Scenario of export of major fruits in India Pomegranate : Europe, UAE, Saudi-Arabia, Kuwait, OmanApples : Bangladesh, Belgium,Singapore, Srilanka, UK,Malaysia etc.Citrus Fruits: (Oranges, Mandarins, Lemons, Limes etc.)Bangladesh, UAE, Oman etc.Pineapples: UAE,Saudi Arabia, UK etc.Other fruits for export: Papaya, Sapota, Strawberries,Litchis etc.
13 Innovative mango Transport methods Traditional Vs InnovativeTraditional mango Transportation methods are not ideally suited to effective food hygieneInnovative mango Transport methods
14 Innovative mango packing methods Traditional Vs InnovativeTraditional mango packing methods are not ideally suited to effective food hygieneInnovative mango packing methods
15 Supply to Retail Supermarkets which are coming up with high pace
16 Where are lacunae ? Fragmented land holding Very poor backward and forward linkagesPoor infrastructureLack of post harvest TechnologyPoor logisticsSupply Chain Management missing
17 Supply Chain Management End use based productionContract cultivationCaptive cultivationCluster approach in cultivationSupply just in time-production logisticsQuality productionPost harvest technology applicationScientific storage
18 End use based production Local market for table purposeLong distance market within countryAs raw material for processing and for definite product manufactureProduce what market / consumer wants
19 Competitiveness Global and local competitiveness Key issues in supply chain……….Global and local competitivenessQuality competitivenessCost competitiveness
20 Quality Competitiveness VarietyControlling quality during growthHarvesting and Maturity standardsPost harvest handlingPost harvest treatmentsPackaging and storageSafety and HygieneTraceability
21 Quality production Variety Season Horticultural practices Integrated water, nutrient, pest and disease, weed managementTraining/prunningGrowth regulatorsOrganic cultivationHarvesting methods/maturity standards
22 Cost competitiveness Cost of production Productivity By-product and waste utilizationOff season productionMarketing logisticsValue additionPresentation in market
23 Supply Just in Time – logistics Determine what buyer wants?- Variety, Quality, Stage of maturityDetermine when he wants?- FrequencyDetermine how much he wants?- Quantity, Lot size, DurationDetermine how he wants?- Grading, Packaging, Transport mechanismsDetermine where he wants?- at farm, Port
24 Service providers Aggregators Logistic support Cold chain Warehousing Port handlingCredit facilitatorsIT related services