Sri Lanka’s agri business urged to explore more value additions to increase business opportunities
Sri Lanka’s Agriculture Sector Modernization Project has recently noted that the country’s agri-businesses need to look for business opportunities to add value to their businesses through value chain gaps.
Speaking at a webinar organised by Sri Lanka’s Export Development Board (EDB) under the theme, ‘Value Chain Development and Business Opportunities in Agriculture sector In Sri Lanka,’ Rohana Gamage, Project Director of the Agriculture Sector Modernization Project under Sri Lanka’s Ministry of Plantation has reportedly stated that the value chain is a process in which a company adds value to its raw materials to produce products and eventually sell those products to consumers.
“Agribusiness is an industry that is engaged in the producing, manufacturing and distributing of farm equipment and supplies, and the processing, storage, and distribution of farm commodities and the supply chain represents all the steps required to get the product to the customer.”
He has noted that the value chain provides companies a competitive advantage in the industry, while the supply chain leads to overall customer satisfaction, according to the Daily News.
“The value chain in agriculture identifies a set of factors and activities that bring a basic agricultural product from production in the field to final consumption. This is where at each stage value is added to the product. A value chain can be a vertical linking or a network between various independent business organizations and can involve processing, packaging, storage, transport and distribution,” Gamage has stated.
He has also noted however that the terms value chain and supply chain are often used interchangeably.
Sri Lanka’s agriculture sector is exploring the introduction of new developments and technologies. Sri Lankan authorities are focused on increasing productivity as well as the crop yield in the country’s agriculture sector. Foreign businesses/investors could therefore explore business opportunities in Sri Lanka’s agriculture sector and introduce new value addition mechanisms to minimise wastage on the agriculture sector.
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