Comparison of supply chain model in urban food production

Project Proposal

Student Name

Course

University

Introduction

Growing concerns for health and the environment have renewed an interest in urban and peri-

urban food production and a local food movement has developed since the 1980s. This has

seen the development of many small urban projects, most of which have not fully addressed

or considered their long term economic viability. The purpose of the suggested projects is to

support such considerations. (Bakker, M., Dubbeling et al 2006) The vegetable cultivation

and animal husbandry for the poor families can provide the supplemental food and income.

More than 40 percent population in African cities and more than 50 percent in Latin

American cities are involved in urban food production. Some countries and cities such as

Taipei, Taiwan, Ethiopia, Vietnam, Quito, Argentina, Accra, Beijing, Brasilia, Zimbabwe,

Cuba, India, and Kenya (IFPRI, 2011).

The existing supply chain model is not suitable to fulfil the need of the consumers in the

urban areas. The food ecosystem is not superior because of the rural and urban linkages.

Disparities in income, transport, physical access to retail outlets, and varying levels of retail

outlet exposure may make it difficult for some people to easily access Food and stay healthy.

One Victorian study showed that increased variety of fast food outlets within a 3 km road

network distance from individual respondent’s homes is linked with likely purchasing of fast

food.

The main objectives of this research proposal are:

Study of comparative plan of supply chain model of urban and peri-urban food

production in order to determine the conditions for sustainability of different

enterprises.

Analysis and investigation of the different forms of ownership and markets, including

farm co-operatives; privately-owned multi-crop arable farms selling to wholesalers;

small-scale enterprises selling fruit and vegetables direct to the public; privately-

owned organic dairies selling direct to retail outlets.

Researching the potential for intensive crop returns for urban and peri-urban food

production with limited input capacity.

Identify suitable management structures for urban and peri-urban food production on

the basis of multi but fragmented plot layouts enterprises.

The effectiveness of the urban agriculture in the economic development and food

supplement need to the urban population.

Finding out the balance in the production and consumption of the food in the

urban/pre urban areas.

Analysis of a variety of purchasing solutions for small scale food production in urban

and pre urban areas.

Current existing supply chain model and future possibilities of the supply chain for

the urban and pre urban cities for better ecosystem and economic development.

The objectives as mentioned above have been chosen because of the gap in the supply chain

in urban food production and the ecosystem of food supply chain need to analyze for the

better integration of the supply chain model. The project plan is based on the basics of the

supply chain model and its impacts on the urban population and link with the rural agriculture

food production. Literature reviews have been performed for the past research to know more

what model has been implemented and what is the impact or benefit of that model in the

urban and peri-urban areas.

The structure of the paper is as follows. In the following section, we present a simplified

conceptual framework for understanding the changes in the food supply chain between rural

producers and urban consumers. Next, we describe the rural-urban food supply chain and the

changes in urban food demand that are occurring in India. Then, we discuss the benefits and

drawbacks of the traditional marketing channel based on the results of a small primary survey

that we conducted with farmers and traders who use this traditional channel for the marketing

of vegetables. We examine the modern marketing channels in the urban areas in next part.

We provide our conclusions and suggestions for further research in final part.

Literature Review

Agriculture in urban areas is not that much as in rural areas so there is need of the food in the

urban areas. The world urban population is expected to double in 30 years leading to a

growing number of urban poor. The urban population expansion is more pronounced in

developing countries as result of the immigration from rural areas, as people flock to the

cities in search of food, employment and security. The trend is accelerating, and by the year

2030, it is expected that about 60% of the world’s population will be living in cities (Van

Veenhuizen, 2009).

After several years of declining research interest, there seems to be a renewed focus on urban

food production amongst researchers and policymakers. Schnitzler, W.H (1999) in his

research sated that this is a positive development, as the urban food security context of today

is not the same as it was in the 1980s and 1990s. Towns and cities have grown considerably

since then and continue to increase rapidly in size through migration and natural increase.

Competition for resources, including land, has intensified. In many cities, water delivery has

been privatized, making one of the key inputs for urban agriculture considerably more

expensive. This paper asks what role urban production currently plays in the food security of

the residents of Southern Africa rapidly urbanizing towns and cities and how this role can be

further enhanced. Studies in Atteridgeville near Pretoria, for example, have found that 88% of

households were recent migrants from the countryside and that 54% were actively involved

in some form of food production. However, the average monthly income obtained from

household production was only about R6 which represented less than 1% of total monthly

household income. A survey of 19 Melbourne local government authorities showed that

people in low and middle socioeconomic areas were more likely to be exposed to fast food

outlets than those in high socioeconomic areas (Stephan M et al, 2006).

Kenya has been described as a success story in export oriented “extended horticulture”

(fruits, vegetables, flowers) based on contract farming. Exports have grown to over USD 150

million in 1999, equivalent to 17 percent of agricultural exports. Small farmers proved

effective suppliers for products like French beans or avocados; large farms have turned more

to the cultivation of other crops (Stephan M. Wagner et al, 2006). Approximately 85 to 110

thousand people are employed in the sector as farm labourers and industry workers; and

about 35 to 40 thousand smallholders, on a part-time basis, are concerned by horticultural

exports. Growth in export horticulture in Kenya has declined from 17% during the 1974-1983

periods, to 4% per year over the last period, due to new competitors and to new quality

standards which act as technical barriers to trade. Lowering the certification cost requires

recognition and competition between local certifying bodies.

Methodologies

There seem to have different supply chain models for the urban and pre urban food

production. The important thing is to know how the data can be collected for the thesis

research and the how they obtained result can be validated. Methodologies are the activities

that are used to determine and analyze the current scenario of food supply chain and the

improvement done, future technologies that can make it better and its impact on the societies,

firms, and farmers. There are number of things that need to consider while making research

on it.

detailed project plan covering the period of the project.

References

1. Bakker, M., Dubbeling, M., Sabel-Koschella, U., Zeeuw, H. (editors), 2000, Growing

Cities Growing Food: Urban Agriculture on the Policy Agenda. DSE, Feldafing,

Germany.

2. FAO/WHO. 1992, International Conference on Nutrition. Rome: Food and

Agricultural Organization of the United Nations

3. Holmer, R.J., Potutan, G. E., Schnitzler, W. H., 1999, "Urban horticulture in the

Philippines: Its impact on food security, health, gender and urban environment", in

Proceedings of the FAO Sub-Regional Workshop on Constraints and Opportunities

for the Development of Urban and Peri-Urban Horticulture in South-East Asia,

October 16-19, 1999, Kunming, Yunnan, China

4. Schnitzler, W.H., Holmer R.J., 1999, Strategies for urban horticulture in developing

countries. Acta Horticulturae No. 495:331-335

5. C. Rogerson, “Feeding Africa’s Cities: The Role and Potential for Urban Agriculture”

Africa Insight 22(1992): 229-34.

6. Van Veenhuizen and Danso, 2009 “Profitability and Sustainability of Urban and Peri-

Urban Agriculture,” p. 43.

7. M. Zarei, M.B. Fakhrzad, M. Jamali Paghaleh, Journal of Food Engineering, Volume

102, Issue 1, January 2011, Pages 25-33

8. Stephan M. Wagner, Christoph Bode, Journal of Purchasing and Supply Management,

Volume 12, Issue 6, November 2006, Pages 301-312

9. International Food Policy Research Institute, Annual Report 2012-06-22

10. Redwood Empire Food Bank report 2008, http://www.refb.org/

Questions to ask

1. What does this firm actually do for the livelihood of the localities?

2. What edible plants are produced in the firm?

3. What kinds of animals are being kept here and what products are obtained from the

animals?

4. Does this food obtained from animal and plants transport to urban areas?

5. How much percentage of the requirement it fulfils for the population around?

6. Is the supply chain process for the delivery of the food suitable?

7. How many employees are working in the organization?

8. What other activities the firm do for the food production?

9. The plants that are produced here, from where they are taken or seeded in the firm

itself?

10. What kinds of technologies are being used for the production of the plant and animal

foods?

11. Is this food production process links to rural to urban cities?

12. Are these all plants edible or not? If not, for what purpose other plants are used and

how?

13. For how much time the meat of goat and pig is safe?

14. What you feed these animals for more milk and meat production?