Background Agriculture is the main stay of Economy of Pakistan. Within agriculture the horticulture i.e. fruits, vegetables and floriculture are the important.

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Background Agriculture is the main stay of Economy of Pakistan. Within agriculture the horticulture i.e. fruits, vegetables and floriculture are the important sub-sectors Horticulture produce holds a huge market for export. Potential for high growth rate of exports of Citrus and Mango from Pakistan: – due to ever increasing demand in the existing and new international markets

NEED FOR CHAIN ANALYIS Marketing's objective (high customer service and maximum sales) conflict with manufacturing and distribution goals The result is that there is not a single, integrated plan for the organization A need for a mechanism through which these different functions can be integrated together Value chain management and analysis is a strategy through which such integration can be achieved. The supply chain has also been called the value chain and the service chain

Value Chain Analysis A Value chain is a network of facilities and distribution options The chain of activities gives the product more added value than the sum of added values of all activities. The ultimate goal is to maximize value creation and minimizing cost. For increasing customer satisfaction and managing cost more effectively A systematic approach to examining the development of competitive advantage The value chain has also been called supply chain the and the service chain An operational strategy if implemented properly, will provide a new dimension to competing: quickly introducing new customized high quality products and delivering them with unprecedented lead times, swift decisions, and manufacturing products with high velocity

Activities Analysis of the value chain allow the separation of the particular underlying activities that firms employ to design, produce, market and distribute their products or services. Michael Porter grouped activities of value chain analysis under two headings: (1) Primary Activities: Directly concerned with creating,delivering a product (2) Support Activities: Not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management)

Primary activities of Value Chains Analysis Directly concerned with the production or delivery of a product of services and consist of: 1. Inbound Logistics : refer to activities such as receiving, storing and distributing the inputs to the product or service. e.g. materials handling and stock control 2. Operations : conversion of the various inputs into final product or services 3. Outbound Logistics : to collect, to provide storage and the distribution of the product. e.g. warehousing and transport 4. Marketing and Sales: promotion of product or service to

OBJECTIVES OF THE VALUE CHAIN ANALYSIS Classify price spread of supply chain Identify bottle neck faced by growers Problems over the marketing chain Policy implication for the improvement in the existing marketing system to: – increase the margin of the entire stakeholder in the supply chain

Key Elements of Value Chain There are six key elements to a supply / value chain: Production Supply Inventory Location Transportation, and Information

Importance of VCA The VCA can be a powerful tool in increasing an organization’s competitive advantage;  by correctly pricing products  and assessing the true costs of materials and labor,  improvements in efficiency, quality, and profits with its strategic objectives

Existing Scenario of Citrus Citrus fruits rank first in international fruit trade in terms of value. Trade liberalization and technological advances in fruit transport and storage, the citrus fruit industry is becoming more global in scope Citrus is the largest grown fruit in Pakistan. The market value of citrus produced in was Rs billion About 94 percent of the citrus area is located in the Punjab province Pakistan is the sixth largest producer of kinnow and oranges in the world with 1472(‘000’ tones) in

Existing Scenario of Mango Mango is the second major fruit crop in Pakistan. At present it is grown on an area of hectars with production tonnes. The main mango growing districts in the Punjab province are Multan, Bahawalpur, Muzzaffar garh and Rahim yar Khan. In the province of Sindh Mir pur Khas, Hyderabad and Thatta and in the province of NWFP it is grown in Peshawar and Mardan. Poor knowledge regarding proper picking, grading, packing, and transportation, increase, post harvest losses. Lack of technical knowledge about plants raising the, selection of varieties, matching the soil type of the area, water and nutrient requirement and pest management of the plants result in poor health of fruit. Lack of proper storage and transportation facility, and market practices result in hurdles in efficient value chain

Existing Scenario of marketing Due to ineffective marketing practices, Pakistan had not able to materialize its valuable resource and established a name and reputation in the international market, despite high potential in production, domestic consumption and export of fruit ()citrus Ineffective marketing result in high post harvest losses, prices,low supply, consumption and market share on other hand Necessary to investigate the prevalent marketing systems and channels, the marketing cost, marketing margin and price spread in different channels as well as in different markets and other general problems faced by growers

Marketing Channel For Mango Value chain For Mango Fruits Grower Pre-Harvest Contractors Cold Storage Commission Agents Exporters Wholesalers Retailers Consumers Processors

Value chain For Citrus

Components of Chain Grower: first element of the chain, having a citrus orchard and well-informed about all techniques and aspects of production Contractor: main assembling agent Processor : adding value to the produce Commission Agent: principal agency, middle person who arranges sales between buyer and consumer, around which all the market activities rotate Whole-Saler: or Pharia buy and sell large quantity of product Retailer Exporter Consumer