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Value chain strategies in developing countries

“Food production and distribution in South Africa, as in most other countries, is undergoing major structural changes caused by changing and diverse consumer demands, new technologies (e.g. bioand information technologies), new product characteristics, changing firm sizes and more exposure to world markets... the structural realignment in agriculture and the formation of new supply chains are partly a response to increasing concerns by food processors, retailers and food service companies about food safety, health and nutritional issues ... Another major reason for the formation of supply chains is to reduce costs, particularly transaction costs, in order to promote competitiveness. Thus, attempts to satisfy changing consumer demands and to lower costs, including transaction costs, drive efforts to enhance the competitiveness of agri-food supply chains.