Page 42 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

Figure 2: Comparison of the fundamental differences between the supply

VALUE CHAIN

CONSUMER Consumer Planning Innovation

Linkage and Product
distribution development

SUPPLY CHAIN

SUPPLIER
Supplying Logistics Production

Selling and Consumer
advertising

A simple way of understanding, the supply chain focuses on the product’s path, so developing
a supply chain focuses on solutions for products from producer to consumer quickly, smoothly
and efficiently. Meanwhile, the value chain usually focuses on the added value generated from
the chain’s operations. Therefore, value chain development often begins with understanding
the needs of consumers (who pay the total amount for added value and costs), to adapt and
apply innovations to activities and actors in the chain to maximize consumer pay (including
the added value) for products and reduce operational costs in the chain. Then distribute added
value reasonably and fairly to the actors participating in the chain.

4242 Guidelines for the Strategy for sustainable agriculture and rural development
Guidelines for the Strategy for sustainable agriculture and rural development
in the period 2021-2030, and vision to 2050
in the period 2021-2030, and vision to 2050