Evaluating alternate strategic options for agricultural value chains

Abstract

Making strategic innovations to agricultural value chains can be difficult. Complex biophysical and logistical interactions make a priori estimates of chain-wide impacts difficult. This paper gives the results of applying an agent-based, value chain modelling framework, developed and applied in participation with stakeholders in three sugar mill case studies, which evaluated the viability of maximising the co-generation of electricity by harvesting the whole crop (i.e. cane leaves as well as stalk). The existing practice of harvesting predominantly cane stalk (as in the 2003 production year) was the base case for comparing a scenario where electricity co-generation (from crop residues) was an added revenue stream. Increased revenues were compared to costs within sectors as per changes in biophysical flows for the grower, harvesting, transport and milling segments in the chain. In general, predicted impacts on the farming and milling sectors were greater than anticipated by stakeholders, while the impacts on the harvesting and transport sectors were less than anticipated because of increased logistical efficiency possible in the sectors. A virtual experience of their supply chain facilitated more complete knowledge transfer about possible impacts of whole-crop harvesting to managers across the chain and thus increased their capacity to evaluate innovative business models involving the co-generation of electricity.

An improved way to determine nitrogen fertiliser requirements of sugarcane crops to meet global environmental challenges

“…However, the value of P may be different when trash is removed by other means or for another purpose, e.g. whole crop harvesting for biofuel production (Archer et al 2008).…”

Agricultural decision support systems facilitating co-learning: a case study on environmental impacts of sugarcane production

“…Outcome 1, Figure 1). The processes described by the framework are consistent with those employed by Archer et al (2008) in a DSS-based study evaluating options for maximizing production of 'green' electricity within an agricultural value chain. While there was no ongoing use of the DSS in that study, consensus was reached to maintain the current production system (i.e.…”

“…Many of the IWRM studies have been conducted in a regulatory and formal governance environment where some form of 'agreement' is necessary. In our case study and others (Carberry et al, 2002;Nelson et al, 2002;Archer et al, 2008), the DSS is clearly being applied in a voluntary environment where all stakeholders are free to agree or disagree as they see fit. Thus, while the concepts in our framework have strong similarities to those used in IWRM (e.g.…”

“…Such work often has a goal, which may be implicit, of sustained use of the DSS to guide farming practice (Matthews et al, 2008), and so lack of sustained use is often seen as failure. However, agricultural DSSs are also used in group settings for more strategic analyses, for example seeking 'step changes' in farming system management (Archer et al, 2008), as opposed to adjustment of day-to-day practices in response to external influences (e.g. immediate past or projected climatic conditions).…”