From Blockades to Supply Chain Integration: Challenges of Co-ordination in the Agrifood Sector ...

41 Pages·2015·1.69 MB·English

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From Blockades to Supply Chain Integration: Challenges of Co-ordination in the
Agrifood Sector

Alan Renwick

Contributed paper prepared for presentation at the 59th AARES Annual Conference,
Rotorua, New Zealand, February 10-13, 2015
Copyright 2015 by Authors. All rights reserved. Readers may make verbatim copies of this
document for non-commercial purposes by any means, provided that this copyright notice
appears on all such copies.
From Blockades to Supply Chain
Integration: Challenges of Co-
ordination in the Agrifood Sector
Alan Renwick
AARES Rotorua
February 2015

Agri-Business and Rural Development
School of Agriculture and Food Science.
Outline
• Increasing importance of integration of Agrifood
value chains
• Theoretical Framework
• Case Study: The Irish Beef Crisis
• Background
• Implications
• How do we improve co-ordination?
Increasing importance of co-ordination
within supply chain
100%

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8
8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
Export subsidies Other market support Coupled direct payments
Decoupled direct payments Rural development
Increasing importance of co-ordination
within supply chain
100%

90%
80%
70%
Increasing importance of
‘Volume not Quality’
60%
Quality
50%
Safety
40% Welfare
Sustainability
30%
Traceability
20%
10%
0%
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8
8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
Export subsidies Other market support Coupled direct payments
Decoupled direct payments Rural development
Premises
• Leat and Revoredo-Giha (2008) argue that
‘improved supply chain co-ordination and
cooperation amongst the different segments of a
supply chain can improve its efficiency and
effectiveness, and therefore, its competitiveness
and long term sustainability.’
• The basic premise is that for a country to have a
successful Agrifood sector in the future, all parts
of the system have not only to work well
individually but also function collectively as well.
• For example, there is no point having world class
food manufacturers and processors if there is no
raw material supply.
Theoretical Framework
Source: Leat and
Revoredo-Giha (2008)
Beef in Ireland
• Theory highlights what is needed for a
sustainable and resilient supply chain
• However, it is clear that we are a long way from
this ideal in many chains
• Nowhere is this more evident than the Beef chain
in Ireland
• Under FH2020 Ireland has ambition to increase
value of output from Beef production by 20 (40)
per cent by 2020
• Up to mid-2013 all looking rosy as higher
commodity prices boosted value but then …
Source: Slide provided by Cathal O’Donoghue, Teagasc