🚨Complete risk is what it takes to build an integrated produce supply chain in primary farming ecosystem.  🏅 Why it matters?  A new entrant to the space of produce supply chains starts with the default of formalising the trade. In this pursuit, undertakes all the risk across the produce supply chain.  The risk vs reward is bounded by the market conditions of produce of the day. The informal intermediaries are well tuned to respond to changing conditions of every day trends.  Across the produce supply chain for one consignment. In traditional trade flow, it is zero sum game. If one intermediary looses the other gains. Due to the daily nature of trade, every intermediary believes they are profiting at the end of the day. Rest all is cashflow management.  On the contrary, as a new entrant, every produce consignment has to be profitable. It all starts at with better procurement.  🌀 Go Deeper  Procurement of produce is the highest leverage function with the integrated approach.  Intermediaries take limited risk and bake it into the produce price at their hand-off. For example, a trader from production region is only taking risk till it reaches the destination region. Not with respect to sale of produce to retailer. So, even if the grade of produce that the trader buys is sub-standard. The risk to sell is to an another trader in destination market.  Mapping supply you procured to demand you need to generate is extremely complicated problem to solve when compared to dominant informal produce marketplace running efficiently.  Produce markets are supply driven and the demand being constant due to essential nature of these commodities. ![[Integrated New Entrant.png]] ## Relevant Links ### Relevant posts to read -> [[Curious nature of Agri commdodity Logsitics]] ### Previous post in the series -> [[Traditional Supply chain Flow]] **** Tags: #primary-farm-ecosystem #agriculture #linkedin