In industry and commerce, the concept of a value chain represents the sequence of activities that add value to a product or service as it moves from production to the hands of the end consumer. Yet, what’s often underappreciated is the intricate relationship between agriculture and manufacturing. In this Entrepreneur Weekly, we’ll explore this relationship and how each nodule of the agriculture value chain leads to Agro-processing.
Understanding the Value Chain
The term value chain refers to the various business activities and processes involved in creating a product or performing a service. A value chain can consist of multiple stages of a product or service’s lifecycle, including research and development, sales, and everything in between (Harvard Business School, 2020). Janine Fletcher-Taylor, Marketing Services Manager at the Jamaica Business Development Corporation (JBDC) says each node of the value chain is critical and must work together for the success of the outcome, “Value chain creates structure in an economy and every nodule in this value chain is required to strengthen the final output.
The agriculture value chain starts with the cultivation of crops and the raising of livestock. It then proceeds to various activities such as harvesting, packaging, and transportation, culminating in the delivery quality and quantity of raw materials available for the manufacturing sector.
Manufacturing comes into play as it processes the raw agricultural products into various forms, such as food products, textiles, and chemicals. Agro-processing encompasses activities like canning, milling, refining, and more. These processes add substantial value to the raw agricultural products. They transform crops into consumer-ready goods while minimising waste and increasing shelf life.
Value Addition in Agro-Processing
Agro-processing can simply be described as the method of transforming agricultural, forestry and fishery outputs into usable products. This skill area refers to the subset of manufacturing that processes raw materials and intermediate products derived from the agricultural sector that adds value to it.
This value chain marriage between agriculture and manufacturing is a harmonious partnership that benefits both sectors. The manufacturers rely on a consistent and high-quality supply of raw materials, while the agricultural sector finds stability and market demand for its products. By collaborating and optimising their processes, both sides stand to gain.
Agro-processing offers numerous opportunities for entrepreneurs and businesses. It is a space where innovation can lead to the creation of new products, improved food safety measures, and sustainable production methods.
Global Entrepreneurship Week 2023
Deputy Chief Executive Officer, Mr. Harold Davis says the Agency is focused creating an enabling environment for Micro, Small and Medium-sized Enterprises (MSMEs). “A successful industry is only as good as the entire value chain. Each node of the value chain has to be successful in order to end up being successful. One of JBDC’s responsibilities is to create more opportunities for business along the value chain. One way to do that is to help to develop the value chain itself”.
This Global Entrepreneurship Week (GEW) will see JBDC focusing on value chain development. GEW 2023 will be recognised during the period, November 12-17, 2023 and will be hosted under the theme: D.R.I.V.E: Developing Rich Industry Value Chains for Export.
The theme is significant as it is designed to highlight the JBDC’s world-class incubators which are located at our Incubator & Resource Centre in Kingston, as well as, drive innovation and production in the manufacturing sector. The spaces were recently renovated to equip producers to work in line with international production standards, thereby boosting exports. The incubators include agro-processing, essential oils, craft, and fashion. Visit www.jbdc.net for details and bookings.