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\hypersetup{pdftitle={How Information Rich, Grower Inclusive Supply Chains Can Foster Innovation in Natural Resource Management},pdfauthor={Thomas Oberthur, Simon Cook, Peter Laderach, Mark Lundy, Don Seville, Christian Witt, Chris Donough},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Coffee, innovation, natural resources, supply chains, systems management, uncertainty},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{How Information Rich, Grower Inclusive Supply Chains Can Foster Innovation in Natural Resource Management\footnote{\textbf{Contact Address:} Thomas Oberthur, International Plant Nutrition Institute Ipni, Ipni Sea, Jalan Batu Maung Batu Maung Bayan Lepas, 11960~Pernang, Malaysia, \mbox{e-mail}: \email{t.oberthur@gmail.com}}\\[0.8ex]}}
\normalsize{\textsc{Thomas Oberthur$^{1}$, Simon Cook$^{2}$, Peter Laderach$^{3}$, Mark Lundy$^{4}$, Don Seville$^{5}$, Christian Witt$^{6}$, Chris Donough$^{7}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$International Plant Nutrition Institute Ipni, Ipni Sea, Malaysia}}}
\item[]{\small{\textit{$^{2}$Agricultural Consultant, Australia}}}
\item[]{\small{\textit{$^{3}$International Center for Tropical Agriculture (CIAT), Decision and Policy Analysis Programm (DAPA), Managua, Nicaragua}}}
\item[]{\small{\textit{$^{4}$CIAT, DAPA, Colombia}}}
\item[]{\small{\textit{$^{5}$Sustainable Food Laboratory, United States of America}}}
\item[]{\small{\textit{$^{6}$Gates Foundation, United States of America}}}
\item[]{\small{\textit{$^{7}$Agricultural Consultant, Malaysia}}}
\end{itemize*}
\index[author]{Oberthur, Thomas}
\index[author]{Cook, Simon}
\index[author]{Laderach, Peter}
\index[author]{Lundy, Mark}
\index[author]{Seville, Don}
\index[author]{Witt, Christian}
\index[author]{Donough, Chris}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Agricultural management often changes slowly in response to new business opportunities. Put another way: growers often lag behind to supply the demand for specific products, and have little insight how they may capitalize better on the natural resources at their disposal. A major reason for this is the disconnection between growers, consumers and their intermediaries, and the uncertainties that prevent growers from realising potential new business opportunities. We argue that inclusion of growers in the supply chain and their innovation pools can lead to a structured approach to tackle key uncertainties and foster change in agriculture.







Uncertainty occurs at all stages in the supply chain and is a major obstacle to change. The problem is exacerbated by the disconnection between the agronomic and sourcing knowledge, which makes it difficult to identify where the major components of uncertainty are generated: through management of a heterogeneous natural resource or sourcing of the variable product it grows? It makes sense to combine both knowledge domains in a single innovation pool to identify and tackle the major components of undesirable variation --- wherever they occur along the supply chain. 







We propose a focus on grower"=inclusive supply chain management to promote innovation and stimulate change within the farm management. We see this as providing three major benefits:







1. It facilitates incentive"=based management of natural resources and the design of informed systems that underpin the goods produced by upstream chain partners. 







2. It tackles the major controllable management factors by analysing production and sourcing together as one system.







3. It provides a unified information base from which decision makers at any point in the supply can identify where benefits of change are likely to be significantly greater than cost. 







These principles are illustrated with an applied example from the coffee industry. Concepts are put forward to show how these ideas can be used by growers to respond to rapid and fundamental shifts in the demand structure of international markets with cocoa, maize and oil palm by capitalizing on advances made in site specific management for these crops.



}

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\noindent \textbf{Keywords:} Coffee, innovation, natural resources, supply chains, systems management, uncertainty
\index[key]{Coffee}
\index[key]{Innovation}
\index[key]{Natural!resources}
\index[key]{Supply chains}
\index[key]{Systems management}
\index[key]{Uncertainty}
\end{document}