Question

Technology has improved on agricultural business and as a result new smart agribusinesses are enhancing agricultural value chain. Farmers are provided with marketing opportunities that help them link their products with potential customers. Other agribusiness entrepreneurs are adding value to raw materials and selling new products at competitive prices. There is the need to create an online trading platform for farmers to trade their commodities at favourable prices or store them to receive warehouse receipts. The receipt system will give farmers the opportunity to deposit goods (mainly grains) in order to acquire a warehouse; a financial instrument that shows deposit proof with the quality and quality of the goods in question. Farmers can delay the sale of their commodities to a period when prices are more favourable. Warehouse receipt systems can therefore mobilize credit for agricultural sector and improve agriculture trade.

One of the main criticisms of existing initiatives is that they do not cater for the needs of smallholder farmers and market Queens and traders. For example, to become a member of the Ghana Commodity Exchange, you need to have a valid business registration certificate and a business net worth of GHS80, 000.

The Ministry of Food and Agriculture in collaboration with National Board for Small Scale Industries (NBSSI) are at the forefront of leveraging technology to ensure an efficient agriculture value chain.

Required:

i) Develop a business case for the AgriMarket project.

ii) Identify stakeholders needs in AgriMarket project.

iii) Define the scope of the solution.

iv) Develop requirements, including a use cases diagram.

please help me solve it according to the questions ask under it

Answer 1

Answer:-

Traditional value chain for agricultural commodities has too many intermediaries who take away the bulk of the margins leaving only sustainable margin for the farmer. Farmers do not have storage facilities and therefore are forced to sell their produce at unfavorable prices to agents or traders who then hoard these stocks and sell them at Competitive prices when prices go up.Too many intermediaries have conventional supply chain for agricultural products that take away the bulk of the margins, leaving the farmer a viable margin. Farmers do not have storage facilities, and therefore must sell their commodity to brokers or traders at unfavorable prices, who then stock it up and sell it at reasonable rates when rates are, Thus, as the case implies, a technology-based marketplace funded by warehouse receipt financing has been strongly required to allow farmers to exchange electronically and obtain good prices.

Farmers may store their goods and collect electronic receipts for funding at exchange-based warehouses. But it still prohibits small-scale marginal farmers from engaging in this online trade as the case shows. The development of a Farmer Produce Cooperative may provide a potential way to collect and trade products from marginal farmers.

The various parties to the project Agrimarket are: producers, financial institutions, electronic trade, warehouse owners and buyers. In the response above, the needs of farmers were emphasized. Financial institutions must reimburse farmers in time for the credit they offer to farmers.

The electronic exchange for trade-in farming commodities requires adequate liquidity and the number of purchasers and sellers is sufficient to ensure a fair discovery of prices. The warehouse winegrower needs to use their warehouses according to efficiency and to give their investments a decent return. The consumers have the advantage of buying goods of high quality at fair prices.

The solution 's reach consists in aligning the needs of all stakeholders in order to create a trading platform for both small and large farmers to sell goods on good prices. This platform should be well-regulated by government agencies and trade and distribution processes such that all stakeholders are equally handled and benefit from the solution.A sufficient number for a fair market discovery of sellers or buyers. Regulatory supervision and well-established trading and distribution requirements to ensure that the system can not be abused, with the aid of electronic price discovery and secure, well-ventilated warehouses.

The requirements for this AgriMarket project are:

a) Enough number of buyers and sellers for fair price discovery

b) Regulatory supervision and well laid out trading and delivery criteria to ensure there is no manipulation of the system.

c) Infrastructure in terms of electronic price discovery and safe and well ventilated warehouses

d)Formation of farmer produce organizations to ensure small and marginal farmers can trade on the exchange.