GROUP 3
Organic
Agriculture
Product Value
Chain
SUPPLY CHAIN V.S VALUE
CHAIN
The supply chain focuses on sourcing materials and delivering
goods to the customer. Value chain emphasizes goes beyond
the selling of goods and products – it's about on offering value
throughout the customer journey from marketing to after-sales
support
value chain looks for ways to enhance the product’s value as it
moves along that supply chain.
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Importance of Understanding the Organic
Agriculture Product Value Chain
1. Enhanced Sustainability
2. Quality Assurance
3. Market Competitiveness
4. Traceability and Transparency
5. Regulatory Compliance
Purpose and Scope of Understanding the Organic Agriculture Product
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Value Chain
Purpose:
-Optimize production processes
- Ensure quality and safety
- Meet consumer demand
- Comply with regulations
- Enhance competitiveness
Scope:
- Farming Practices
- Processing and Handling
- Distribution and Logistics
- Marketing and Consumer Education
- Regulatory Compliance
- Continuous Improvement
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Organic farming:
Sustainable, biodiversity, natural
resources.
Production without synthetic chemicals or
inorganic fertilizers.
Global trend rising due to consumer
demand for healthier, sustainable food.
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Factors driving growth:
Environmental sustainability, food safety,
government support.
Expansion seen in farming land, food markets,
adoption of standards.
Technological advancements enhancing
productivity.
Certification process ensures adherence to
organic standards, provides consumer
assurance.
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Understanding Organic Agriculture
Organic farming relies on natural processes
and biological cycles.
Emphasizes organic inputs like compost,
manure, and green manure.
Practices include crop rotation, mixed
cropping, and biological pest control.
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Global Trends and Growth of Organic Agriculture
Increasing consumer demand for health and
environmental benefits.
Government support through policies and incentives.
Expansion of organic farming practices worldwide.
Technological advancements making organic farming
more efficient.
Global trade and market access driven by consumer
demand and certifications.
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Organic Farming Practices
Organic farming focuses on harmony with nature, eschewing synthetic
inputs like fertilizers and pesticides. Key practices include soil health, crop
rotation, composting, and pest management.
Practices:
- Soil Health
- Cover Crops
- Crop Rotation
- Compost
- Organic No-Till
- Pest Management
- Livestock Management
- Rational Grazing
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Challenges:
- Higher production costs
- Lower yields in some cases
- Pest and weed management difficulties
- Certification complexities
Opportunities:
- Promoting environmental sustainability
- Promoting biodiversity
- Enhancing soil health
- Meeting consumer demand for healthier products
Quality Control:
- Consumer safety
- Market access
- Consumer confidence
- Industry reputation
International Standards and Certification:
- GAP
- Organic Certification
- HACCP
- Fair Trade Certification
Organic Produce Harvesting Techniques
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- Hand Harvesting
- Crop Rotation
- Intercropping
- Companion Planting
- Mulching
- Biological Pest Control
- Trap Cropping
- Biodynamic Techniques
- Natural Fertilizers
- Water Management
- Benefits: High-quality crops, environmental sustainability,
biodiversity
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Post-Harvest Handling & Preservation
- Proper Storage
- Cleaning and Sanitizing
- Sorting and Grading
- Packaging
- Cooling and Refrigeration
- Handling with Care
- Quality Control
- Traceability and Labeling
- Preservation Methods: Canning, Drying, Freezing,
Fermentation, Pickling, Root Cellaring, Smoking, Oil Infusion,
Vacuum Sealing, High-pressure Processing (HPP)
- Benefits: Maintaining freshness, extending shelf life,
sustainability
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Organic Processing Requirements
- Organic Handling Plan
- Processing techniques: mechanical or biological
- No commingling or contamination
- No GMOs or irradiation
- Proactive sanitation & pest management
- Record keeping for pesticide applications
- Packaging requirements
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Certification & Livestock Standards
- Certification requirements: 3 years without prohibited materials
- Organic System Plan: fertility management, conservation measures,
pest management
- Use of natural inputs or approved synthetics
- Restrictions on genetic engineering, sewage sludge, irradiation
- Buffer zones and soil management
- Livestock standards: no genetic engineering, conservation practices,
National List compliance, oversight by USDA-certified agent
Value Addition, Diversification, and Branding
- Value addition: increasing economic value through processing,
packaging, marketing
- Diversification: growing multiple crops for resilience
- Branding: creating a unique identity for increased marketability
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Today's consumers prioritize sustainable
packaging and eco-friendly shipping. Offering
recyclable, biodegradable packaging protects
goods, brands, and the environment from
single-use plastics.
Adopting eco-friendly practices benefits both
the environment and society.
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Organic product labeling follows strict regulations
regarding ingredient sourcing.
Labeling requirements depend on the percentage of
organic ingredients.
Current packaging trends emphasize convenience,
reliability, and appearance, with a focus on natural,
disposable, biodegradable, and recyclable materials.
Group 3 Transformation methods of organic products
-Fermentation
-Extraction
-Drying
-Juicing
-Roasting
-Cold Pressing
Storage and warehousing considerations
-Temperature and Humidity Control
-Pest Control
-Storage Container and Packaging
-Inventory and Management
-Separation and Cross Contamination Prevention
-Compliance with Organic Agriculture Standards
Challenges and distribution logistics for orga
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products:
-Certification and Compliance
-Limited Shelf Life
-Supply Chain
-Complexity
-Price and Market Demand
-Limited Distribution Channels
-Transportation and Logistics
-Consumer Education and Awareness
Marketing Strategies for Organic Agriculture:
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- Content Marketing: Educate about benefits of organic
agriculture.
- Social Media Marketing: Showcase practices and engage
with followers.
- SEO and SEM: Optimize website and invest in search engine
marketing.
- Partnerships: Collaborate with local businesses for
promotion.
- Events: Participate in farmers markets and community
events.
- Email Marketing: Send updates and personalize content.
Target Segments & Sales Channels
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Target Segments:
- Health-Conscious, Environmentally-Conscious,
Families, Urban Millennials, Foodies
Sales Channels:
- Direct-to-Consumer (DTC)
- Retail Partnerships
- Online Marketplaces
- CSA (Community Supported Agriculture)
- Restaurant and Food Service
- Cooperatives and Food Hubs
Consumer Trends and Preference
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- Factors influencing consumer decision in organic purchases:
1. Health and Wellness: Perception of organic products as
healthier options.
2. Environmental Concern: Support for sustainable farming
practices.
3. Quality and Taste: Association of organic products with
superior taste and quality.
4. Price Sensitivity: Higher cost of organic products as a
deterrent for some consumers.
5. Availability and Convenience: Influence of accessibility in
stores and online platforms on consumer choices.
Emerging Trends in Organic Product Consumption
Group 3
- Natural Beauty: Beauty product lines featuring natural,
edible ingredients.
- Probiotic Power: Probiotics appearing in new forms such
as chocolate and fresh juices.
- Simple Ingredients: Preference for clean and simple
ingredients in packaged foods.
- Consumer Education and Awareness Initiatives:
Importance of initiatives like public campaigns and
workshops to empower consumers and promote informed
decision-making.
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Economic Analysis of Organic Agriculture
- Benefits:
- Environmental Conservation
- Premium Pricing
- Healthier Soil and Biodiversity
- Costs:
- Higher Production Costs
- Lower Yields
- Certification and Maintenance
Market Dynamics and Economic Impact
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- Market Dynamics and Pricing Strategies:
- Supply and Demand
- Premium Pricing Strategy
- Differentiation and Branding
- Economic Impact on Local Communities:
- Job Creation
- Local Economy Boost
- Sustainability and Resilience
- Health and Well-being
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Sustainable Practices in Organic Agriculture
- Crop Rotation
- Composting
- Natural Pest Control
- Water Conservation
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Benefits of Organic Farming
- Reduction of Carbon Footprint
- Biodiversity Conservation Efforts
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Impact of Organic Agriculture on Rural Communities
- Economic Growth: Higher returns for farmers, boosting local
economies and creating jobs.
- Environmental Conservation: Prioritizes soil health, biodiversity,
and natural resource management.
- Community Well-being: Fosters a sense of community through
farmer-to-farmer knowledge sharing and local markets.
- Health Benefits: Reduced exposure to synthetic pesticides and
fertilizers, improving health outcomes.
- Cultural Preservation: Integrates traditional agricultural practices
preserving local cultural heritage.
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Labor Practices and Social Responsibility in Organic
Farming
- Labor Practices: More manual labor, labor exchange
among farmers, benefiting rural communities.
- Social Responsibility: Healthier crops, supporting
rural economies, promoting sustainability.
- Inclusivity and Equity: Ensuring fair access,
representation, and opportunities for all stakeholders
in the organic agriculture value chain.
Technological Innovations in Organic Farming
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- Role of technology in improving organic farming
practices:
Integrating technological tools to enhance efficiency,
productivity, and sustainability.
Includes precision farming, data analytics, automation,
and indoor farming.
- Innovations in organic processing and packaging:
New methods and materials to improve processing,
preservation, and packaging.
Focus on maintaining organic product integrity while
meeting consumer demands.
Future Trends in Technology for Organic Agriculture
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-Anticipated advancements shaping organic farming:
Development and integration of cutting-edge
technologies.
Examples: advanced data analytics, IoT devices,
biotechnology, robotics, vertical farming, blockchain,
and agroecology.
- Significance:
Continual evolution towards more resilient,
environmentally friendly, and technologically integrated
farming systems to meet changing demands.
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Challenges and Opportunities in Organic
Agriculture
- Challenges Facing the Organic Agriculture
Value Chain:
- Higher production costs
- Ecological justice concerns
- Supply chain complexities
- Productivity limitations
- Standards harmonization
Growth and Strategies
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- Opportunities for Growth and Expansion:
- Increasing consumer demand
- Access to new markets and premium pricing
- Strategies for Overcoming Challenges and
Leveraging Opportunities:
- Building strong relationships
- Collaboration with other organic producers
- Investing in education and training
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Successful Examples of Organic Agriculture
- Whole Foods Market exemplifies effective
supply chain connecting organic farmers with
consumers.
- Ensures high-quality products and fair prices.
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Lessons and Future Practices
- Lessons learned stress strong partnerships
among farmers, distributors, and retailers.
- Transparent communication and infrastructure
investment are crucial.
- Future practices include support for small-
scale farmers, R&D for organic techniques, and
consumer education.
Group 3
Policy Recommendations in Organic Agricultu
- Allocate funds for R&D
- Invest in infrastructure
- Implement training programs
- Facilitate market access
- Provide financial support
- Launch promotion campaigns
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Regulatory Reforms & Advocacy Strategies
- Develop clear certification standards
- Strengthen pesticide regulations
- Implement labeling and traceability systems
- Introduce supportive legislation
- Foster stakeholder engagement
Organic Agriculture Overview
Group 3
- Increased consumer demand for organic
products due to health, environmental, and
safety concerns.
- Supply chain complexities including
certification requirements and higher
production costs.
- Premium pricing reflecting perceived value
and production costs.
- Strict certification standards ensuring
compliance with organic principles.
Group 3
Sustainable Value Chains in Organic Agriculture
- Environmental Preservation: Emphasizes sustainable
practices and biodiversity preservation.
- Social Responsibility: Promotes fair labor practices
and supports local communities.
- Economic Viability: Ensures efficiency, transparency,
and resilience for long-term profitability.
- Quality Assurance: Maintains high standards of
quality and integrity throughout the value chain.
QUIZ
Thank You
