Agroindustrial project analysi

THE PROCUREMENT FACTOR 113Salient points for project analysisAgroindustrial procurement systems can be organized in differentways and should be tailored to the needs of each project. Nevertheless,the analyst should consider the following questions when assessinga procurement system's organization.What are the number, size, and location of the operators in thestructure of the existing system?* Number of producers, transporters, buyers?* Implications for organization and control of system?* Percentage of crop handled by each?* Size of supplier and its interaction with plant?* Supplier location?* Implications of suppliers' location for plant's location, logisticalcontrol, and vulnerability of agronomic supply?What is the suppliers' crop mix?* Current crops?* Extent of specialization?* Degree of crop shifting?What are the patterns of land ownership?* Land ownership, renting, or sharecropping?* Farmer mobility?* Effects on plant's procurement relations?What are the routes, timing, and accessibility of the rawmaterial's flow?* Channels?* Size of flow?* Timing of flow?* Availability to plant?What does the analysis of channel power reveal7- Locations of power in system?* Extent of power?* Basis of power?* Basis and strength of project's power?Should producers integrate vertically backward?* Added control over quantity, quality, and timing?