Supply Chain Farms producing specific products under contract with large corporate entities. Supply chains select farms based on high volume and efficiency criteria. Farm increasingly relies on supply chain to provide genetic traits and key inputs used in production. Farm gains a preferred position in supplying supply chain processors to meet consumer demand. Farm gains access to proprietary information, research and education resources targeted to address unique problems and management strategies for the supply chain.
Competition exists primarily among supply chains.
Farms shift some market risks to the supply chain. Provide farmers with access to information on industry contracting standards and alternatives. Set minimum contract standards and assure ability to monitor complaints. Avoid exclusive buy back and bundling requirements for generic non-essential inputs. Assure contract problems are adjudicated in local courts of jurisdiction for the farmers.