Food supply chain Networks A processing-based and organised agri-supply chain functions as a part of a very complex network. a generic supply chain at the organization level within the context of a complete supply-chain network. Each firm is positioned in a network layer and belongs to at least one supply chain, i.e. it usually has multiple (varying) suppliers and customers at the same time and over time.

The advantages for supply chain members Individual suppliers, producers and marketers who are associated through a supply chain coordinate their value creating activities with one another and, in the process, create

greater value than they can, when they operate independently. Supply chains create synergies in one of three ways:

i) They expand traditional markets beyond their original boundaries and thus increase sales volume for members;

ii) They reduce the delivered cost of products below the cost of competing chains and thus increase the gross margin for the working capital committed by members of the chain ;

and

iii) They target specific market segments with specific products and they differentiate the service, product quality or brand reputation of the products they deliver to these market  segments and thus increase consumer perception of delivered value. In this way, they allow chain members to charge higher prices.

Generally, supply chains increase market contestability both at the producer end and at the consumer ends of the chain. At the consumer end, chains compete primarily through price, differentiated products and services and differentiated terms of sale. At the producer end of