Agrilogistics – A never ending tale of two markets


Agrilogistics is the backbone of agribusiness. It enables connectivity between cultivation, production, and the value chain in itself. Efficiency associated with agrilogistics depends on the quality of the product through its state of transit from production to consumption. Agrilogistical services ensure that crop production is not compromised while transportation. These facilities enable cold chain, farmer producer organizations, traders, processors, exporters, and corporates with the safekeeping of the produce. Moreover, they also fast track the delivery to the markets.

The Malthusian Theory of exponential population growth and the arithmetic growth in food supply explains the need for agrilogistics. According to this theory, the high rate of population growth surpasses the food supply. Therefore, the demand is greater than the supply hence people could potentially die of food shortage. Thus, adequate means of food production, as well as logistical transportation, is necessary to facilitate the smooth functioning of the supply chain.

One of the most integral components of agrilogistics is its cold chain. Transporters and containers with the appropriate temperature, humidity, pressure as well as chemical conditions cater to the preservation aspect of the product. Hence, technology serves as one of the factors that drive production. Agrilogistics spearheads subsidy driven growth. Optimization of the logistical network helps reduce the price discrepancy and the varying crop-based geographic mapping. Automation of cold chain helps with the expansion of the value chain for crop production. The integration of technologies like IoT and sensor-based systems within the cold chain has been revolutionizing refrigerative transportation.

For instance, elemental components like ethylene are used as plant hormones which can facilitate ripening as well as the flowering of a crop. This substance is used extensively to control the freshness associated with crop production in horticulture. Crops that are extremely sensitive to the usage of ethylene must be subjected to this atmosphere in an ideal manner. Excess exposure to ethylene promotes crop degradation. Some of the detrimental effects include- premature ripening, rotting, etc. The control of this chemical is hereafter necessary since increased exposure can reduce crop quality. Therefore, methods like absorption and stripping are employed to reduce the amount of ethylene within airborne packaging.

Other techniques like ozone sanitizing and insulated box technology are used to increase the unit value associated with a supplier base. These systems help maintain the thermal efficiency associated with a crop to increase its lifecycle. Global Market database can be used to study the trends for the global shift in technologies and drivers for agribusinesses. Global Market Database is a cloud-based, B2B market research platform that studies the shift in line with changing market trends. It is a market intelligence tool that provides free secondary research data. Global Market Database provides information across 600 different markets and 12 different industries. The platform provides free market data for 5 different GMD industries of the user’s choosing.

Some of the other systems used to curtail the levels of ethylene within a transportation network include integrated absorption systems for CO2 as well as ethylene. Gases contained in a medium such as plastic bags can be optimized using a palletized storage system. The use of potassium permanganate to reduce the levels of ethylene is a conventional technological application. Although this procedure is proven cost cumbersome since the efficiency of the pellets reduces with time. Moreover, the OPEX associated with this system increases since the absorbent needs to be replenished at regular intervals. Additionally, high humidity reduces the utility associated with the pellet.

According to a study conducted by FAO, it was recorded that roughly 115 Kgs per capita per annum of food in cold chain is lost before reaching the consumers in South and South-Eastern Asia. This study was conducted in the year 2014. These losses include whole foods. An additional food wastage of 11 kgs per capita per annum was recorded at the point of consumption. The loss translates to a value of roughly 2700 lakh tons of food produced within this region. On a global scale, the losses incurred were recorded to be 30% of the crop produced.

Industry specialists state that well managed cold chain generate losses as minimal as 5%. Moreover, in the case of perishable food substances-good post-harvest practices will incorporate crop specific conditions. Methods like refrigerated transportation help reduce food losses. This allows the expansion of the logistical network to long haul destinations as well, thus enabling global exports.

The integration of modern aggregation centers is also one of the factors that support agrilogistics. The use of lightening chambers and enhanced transportation support across platforms like ships and railways helps reduce the gap between the demand and the supply.

The supply chain intensification provided by IoT can be studied analyzed through Global Market Database. The platform is works on the core of Dynamic Market Data (DMD) Technology. The platform provides relevant market research information that can comprehensively analyze upcoming markets and trends. The high growth market segments can be studied extensively using Global Market Database.