The document outlines the major players in agriculture supply chains, including farmers, traders, commission agents, wholesalers, retailers, and consumers. It then describes three common configurations of agriculture supply chains: cooperative supply chain models, collaborative supply chain models, and contract farming models. Cooperative models group farmers to collectively sell their products, like milk cooperatives in India. Collaborative models involve partnerships between different players. Contract farming involves commitments between farmers and purchasers.

1. Major players in Agriculture
Supply Chain
1
• Farmers
2
• Traders
3
• Commission agents
4
• Wholesalers
5
• Retailers
6
• Consumers
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2. Agriculture Supply Chain
Configurations Agriculture
Supply Chain
Cooperative supply
chain model
Collaborative
supply chain model
Contract farming
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3. 1. Cooperative supply chain
model
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4. 1. Cooperative supply chain
model
Example:
In some parts of India milk is collected and sold by cooperatives. The
cooperative movement for milk was initiated by the National Dairy
Development Board (NDDB) (Chakravarty, 2000).
Outcomes of milk cooperatives:
• The efficiency, transparency and fairness of the system have
improved ( www.digitaldividend.org/pdf/akashganga).
• The government’s attitude towards the cooperative system is
positive, especially after the success of the milk sector.
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5. 2. Collaborative supply chain
model
Example: Consumer durables and FMCG supply Chain
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6. 3. Contract farming
commitment from
The purchaser
commitment from
The farmers
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7. 3. Contract farming
Advantages:
• This is helpful for farmers, since they get access to the
inputs and the market at a fair price.
• Also, the processor gets an assured supply of raw material.
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8. Total Supply Chain Cost
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9. Estimated cost escalation
in the Indian grain chain
Figure clearly reflects the end consumer on average pays more than
three times the farm gate price for grain.
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10. Intermediaries in the grain supply chain
and their margins and value additions
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11. Reasons for the existence of
intermediaries
• Age-old historical loyalty of farmers to their agents, because these
agents provide debt to the farmer;
• Local understanding and relationships with transporters
• Lack of guidelines and rules in the development
• Organised cartels between commission agents, wholesalers and
transporters;
• Lack of scale in terms of what each farmer produces, sheer
numbers of small farmers drive down bargaining power
• Lack of effort in development from front-end players (retailers)
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