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Overview of Production & Supply Chain Management in Agro Processing Industry

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Overview of Production & Supply Chain Management in Agro Processing Industry ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 2, February 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ OVERVIEW OF PRODUCTION & SUPPLY CHAIN MANAGEMENT IN AGRO PROCESSING INDUSTRY (WINE INDUSTRY) J S KADAM*; JAYSHRI J KADAM** *Assistant Professor, I B M R D Ahmednagar, Maharashtra. **Assistant Professor, I B M R D Ahmednagar, Maharashtra. ABSTRACT This paper reviews the recent Indian wine industry in terms of the area, production and marketing of wines in the country. Approximately 38 wineries are presently operating in the country with a total production of 6.2 million liters annually. Maharashtra is leading among the states with 36 wineries and 5.4 million liter production. Apart from this, 72,000 wine cases are imported mainly by ITDC, Sansula, Brindco, E & J Gallo and other private companies. At present 7,62,000 wine cases are sold every year, which includes 46,000 cases of sparkling wines Agro processing is a large sector that covers activities such as agriculture, horticulture, and plantation. It also includes other industries that use agriculture inputs for manufacturing of edible products. Agro processing Industry is one such major player in Agro processing sector. Greater delegation and competitiveness in agro based industries require new forms of co-ordination between farmers and other agencies to increase quantity within catchment area. [2,3]. KEYWORDS: Agro, Agro processing, supply chain Management, production, Wine Grapes. ______________________________________________________________________________ INTRODUCTION Historically, grapevine is grown mostly for wine making in the world over. In India on the contrary remarkable success has been achieved in table grape production and yield levels of fresh grapes are among the highest in the world. At present in India grape is grown over an area of 60,000 ha with an annual production of 1.6 million tonnes ( FAO, 2005). Wine has been made in India for as many as 5,000 years. It was the early European travellers to the courts of the Mughal emperors Akbar, Jehangir and Shah Jehan in the sixteenth and seventeenth centuries A.D. who reported tasting wines from the royal vineyards. Both red (Kandhari) and white wines (Bhokri, Fakdi, Sahebi etc.) were produced. Under British influence in the nineteenth century, vineyards were established in Kashmir and at Baramati in Maharashtra and a number of Indian wines were exhibited and favourably received by visitors to the Great Calcutta Exhibition of 1884. However, Indian vineyards were totally destroyed by unknown reasons in the 1890s. Due to limited domestic consumption of wine and non availability of standard wine varieties to produce good quality wines of international standards, much emphasis was not given for research www.zenithresearch.org.in www.zenithresearch.org.in during previous decades in India. Commercial wine grape production, however in India has begun only since 1980’s. Although exact figures are not available regarding the current area 183 ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 2, February 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ and production of wine grapes in India it is estimated around 1000 hectares in Maharashtra and about 200 hectares near Bangalore in Karnataka Agro processing ational level. Although India’s average farm size is smaller, the industry maintains that smaller farmer is a valuable part of the grower base and will continue to be so into the immediate future. This characteristic underlies the importance of initiatives such as sharing of farm equipment and harvesting by grower owned cooperatives or partnerships as well as the need to support farmer’s diversity of income sources[1,2]. WINE MAKING PROCESS GRAPE HARVEST: Winemaking commences with the annual grape harvest which can be accomplished by mechanical harvesting or hand harvesting. The type of harvest – handpicking, mechanical harvest or a combination of the two, is largely influenced by the winemaker’s budget and wine style. CRUSHING: After the grapes are harvested they are crushed and de-stemmed. The objective of crushing is not necessarily to squeeze all the juice out of the grape, but to split the external skin and allow the juice to start its run. Crushing can happen in two ways – by mechanical means with a heavy spiralled steel roller or in grape stomps. FERMENTATION: It is during fermentation that the grape’s sugars are converted to alcohol. The process of red wine fermentation typically takes place in stainless steel tanks, large vats and oak barrels. White wine fermentation often takes place in stainless steel tanks with lower heat levels that are closely monitored, with the oxygen level strictly guarded. www.zenithresearch.org.in 184 ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 2, February 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ During fermentation the enrichment may be added to the winemaking process to increase the alcohol levels or acidification may be added to the process if acidity is low. Occasionally, wine may undergo secondary fermentation to give bubbles to the wine. MATURATION: The fermented wine is stored in oak barrels or steel tanks for weeks or months for maturation. Oak offers protection and impacts flavour. Steel tanks are becoming increasingly popular as they are inert, economical and easy to maintain. FILTRATION: Filtration is the process of removing bigger solids like dead yeast cells and other particles, so that the wine is no longer cloudy, but bright and clear, as a consumer would expect. BOTTLING: The wine bottle is slowly filled and topped with either nitrogen or carbon dioxide to displace any oxygen. The bottles are then capped with either a traditional cork or a modern screw cap. Finally, all the wine bottles are labelled and cased for distribution to the customers.[7] SUPPLY CHAIN www.zenithresearch.org.in www.zenithresearch.org.in 185 ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 2, February 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ The supply chain of Wine Industry in India is fairly linear. The flow of orders comes from the bottom of the channel i.e. from customers and goes to the top and the flow of products is from the top to the bottom. The winemakers are the key to the industry and define the quality of the wine. The description and the role of each of the contributors to the supply chain are discussed below. GRAPE GROWERS – The wine industry derives grapes, its most important raw material from the grape growers. FRUIT AND VEGETABLE PROCESSORS– Ascorbic and citric acids are inputs required for some wine types. These require fruit processed from growers. FLOUR AND STARCH MANUFACTURERS- They produce yeast, which is an input into wine making. SOLID PAPERBOARD CONTAINER MANUFACTURERS– They provide containers which are used in storage and transportation of wine bottles. GLASS AND GLASS PRODUCTS MANUFACTURERS – They provide glass bottles which are essential for storing wine and preserving the quality over significant time periods, and for transport to markets. WINE MANUFACTURERS– They hold the key and are the centre to the wine industry. These winemakers produce the wine, starting with selecting the grapes or other produce and ending with bottling the finished wine. Branding is vital for their success. LIQUOR WHOLESALERS - They purchase wine from producers and supply to retailers, pubs, hotels and restaurants. LIQUOR RETAILERS/FOREIGN EMBASSIES– They purchase wine from wholesales and provide them to the customers. PUBS, TAVERNS AND BARS– They purchase significant quantity of bottled wine from the wholesalers for sale to consumers. HOTELS AND RESTAURANTS– Mini bars in hotels, in-house bars, and restaurants which are licensed to sell wine, are an important channel in the distribution and consumption of wine.[3] www.zenithresearch.org.in www.zenithresearch.org.in 186 ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 2, February 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ LIFE CYCLE The life cycle stage is introduction LIFE CYCLE REASONS Current market size of the wine industry is small. The current competition in the wine industry is low. Industry is trying to establish a market and build consumer demand for wine. Research and development is required in India in order to improve quality of wine. [3] www.zenithresearch.org.in Substantial awareness about the health benefits of wine is required 187 ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 2, February 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ LIFE CYCLE ANALYSIS The Wine Industry in India is at its introduction stage of its life cycle. General measures are been taken to increase awareness and improve the quality of wine in India. For example, Indian Grape Processing Board has been set up to increase awareness. The Maharashtra Industrial Development Corporation (MIDC) established two wine parks. Apart from providing basic infrastructure facilities, these parks have other interesting features such as wine festival ground, exhibition centre, wine therapy centre and a three star hotel. The competition in the industry is fairly low with more than 80% of the market been occupied by three major players. Additionally, more than 46 new wineries have gone into production recently, and another 100 farmers have set up small wineries.[6] CONCLUSIONS Presently Indian wine industry is in a nascent stage, though it has kick started only from Maharashtra much remains to be seen at the national level. The growers will have to reorient themselves for wine grapes cultivation. The Indian wine Markets should learn from new world’s wine makers and strictly adhere to international quality standards so that exports of wines will be their prime target. Indians will have to go generously and in celebrating manners for wine consumptions and be able to discriminate wines with other alcoholic liqueurs.
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