Supply chain modelling in organic farming for sustainable profitability

Abstract

Globally, people started gravitating toward organic food as health consciousness rose. From the farm to the consumer's fork, organic food is produced using a comprehensive method. Organic farming has provided farmers and producers with many opportunities, but there are still difficulties concerning the cost of production and distribution. Due to environmental sustainability challenges, climate change, soil fertility, biological assortment, and consumer well-being, organic farming is attracting more attention than conventional farming. Organic farming can be done using standardised methods and has many common issues with conventional farming. Organic farming has some unique problems as well. With the right strategies, careful planning, and government assistance, many difficulties faced by farmers can be addressed. The downstream material flow of the supply chain, and in particular demand estimation, market price, and identifying customer segments, has been identified as a significant problem in organic farming. Massive losses have been incurred along with the entire supply chain a due to the inadequate demand estimation that has caused surpluses and shortages in the produce. A few farmers have resolved the cash flows and material information controlling problem. This article proposes various related hypotheses associated with identifying customer segments, forecasting demand for the product, and profitability as market price changes in the crop.

Keywords

• customer segment
• demand estimation
• downstream supply chain
• market price
• sustainable profit