Question

Discuss the importance of collaboration in the development and maintenance of an international agri-food market.

Answer 1

The importance of collaboration in the development and maintenance of an international agri-food market can be understood in this way that agri-food market is a sensitive arena of business where companies operating in it has to see a lot of factors to sustain in the market, the factors include availability of quality products in the both side of value chain, developing and maintaining quality to maintain demand in the product etc.

Agri-food market even on a national levels demand a huge investment and know how to manage things effectively and when our area of concern becomes international there will be situations which will become tough for a single company to manage.

One of the most important reason due to which collaboration is required is the contact and relationship of different companies in different markets, agri-business requires strong relationships with local farmers and understanding with them it is not possible for any random company to get into any market and start purchasing raw materials and producing their products and here collaborations can help.

Financial support is the second reason which can be achieved by collaboration and which will ultimately help in the development and maintenance of international agri-food market.

We need to understand that there are number of giant companies which operate in the sphere of agri-food business throughout the globe but they specialize in different parts of the word and if the entire world becomes their area of concern it can create a lot of problems for them which can only be managed by collaborating with different giants.

Collaboration with governments and farmer groups is also required for maintenance of an international agri-food market as they are the main stakeholders in the development of such business and if they do not lend their support it would become almost impossible for any company to operate.

Collaboration can also help in the development of new processes which ultimately will bring more sophistication to agri-food market and thereby increasing the sustainability.