Incorporating Harvest, Maturity, Yield, and Demand Risk in Planning for Agricultural Supply Chains for Premium Products

Contents 14.1 Introduction ........................................................................................240 14.2 Contract Farming ............................................................................... 241 14.3 Agricultural Supply Chain with Contract Farming .............................243 14.4 Agricultural Planning Problem with Harvest, Maturation, Yield,

and Demand Uncertainty ................................................................... 245 14.5 Case Study: Alara Agri Business .......................................................... 247 14.6 Conclusions ......................................................................................... 249 14.A Appendix ............................................................................................. 250 References .................................................................................................... 251

14.1 Introduction Utilizing agricultural resources in the best way possible by increasing agricultural productivity has become one of the top priorities in the agricultural sector. Managing agricultural resources e‚ectively allows countries to improve their economies and increase their income, provide food and nutrition to their population by relying on domestic sources. In the last century, improvements in global agricultural productivity were not realized equally in all countries. With large populations, vast agricultural resources that are faced with natural risks, countries placed along the Silk Road can benet signicantly from e‚ective management of agricultural supply chains.