What i would want to know is that the relevance of the four agriculture value chain

Question

How this chain can be used to increase crop production.

Answer 1

A value chain is a string of companies or collaborating players who work together to satisfy market demands for specific products or services. In agriculture, the chain starts with the farmer who raises the product.(The first value in the value chain.) I'm going to use soybeans as an example.  The farmer generally sell their beans to a grain elevator. The elevator will dry and clean the beans and separate then according to quality. They will sell their beans in smaller batches to  different companies according to their needs. (The second value in the chain). It will branch out here into many ways depending on the company so we will try to follow one chain. A company may buy a large quantity of beans to process into oil with soybean meal as a byproduct.(The third value added to the chain.) Another company will buy the bulk oil refine it a little more and bottle it for sale. (The fourth value added to the chain.) A grocery warehouse will buy bulk lots of this bottled oil and repack it into smaller cases and distribute it to individual grocery stores. (A fifth value added to the chain.) The grocery store buys the crates and sells the individual bottles to the consumer, along with many other products obtained the same way for the consumer's convenience. (The final value in the chain.)

The value chain is not intended to increase crop production, but it might increase the total amount of a crop by increasing the demand for the product. The concept of value added is a sound business practice. It's relevance to the farmer is that any step in the chain that he can provide himself by adding value he can make more money. A good example in the area where I live many farmers grow popcorn for a large  company. One farmer decided to dry and clean his popcorn himself (value added). He bagged it in small bags under his own brand (value added). He distributed his product to local stores for sale th the consumer (value added). He did so well that he soon was popping his corn and selling different snacks in his own store and selling his popcorn directly to the consumer. The result is that a small farm selling popcorn, by adding value to his product, became a large thriving business.