Overview of Agro-Food GVCS
Agro-foods comprise a variety of industries, from staple crops like rice, wheat, corn, and maize to poultry, dairy, edible oils, cocoa, coffee, tea, sugarcane, aquaculture (both seafood and freshwater fish), horticulture (fruits and vegetables), apiculture (beekeeping), in addition to processing these resources into packaged and processed goods. Horticulture also includes flowers which are beyond the scope of agro-food GVCs. Figure 4.1 illustrates the primary actors within agro-food GVCs.
Agro-food GVCs typically start with the farmers and flow through traders, food companies, and retailers. Not all actors within a GVC are vertically linked to a given chain—there are input companies that provide seeds, fertilizers, crop protection solutions, animal health and nutrition, crop insurance, feed ingredients for poultry and cattle rearing, and so forth. They engage horizontally with a variety of different chains. Food companies and retailers include some of the largest MNEs that control major market shares in their respective sectors.
Fig. 4.1 The primary actors within agro-food GVCs. Source: Adapted from KPMG International 2013: 5