Vertical integration level selection for value addition of herbal products: A farmer’s perspective

Abstract

The value addition process for agriculture produces in general and for herbal produces in specific can be carried out at different levels of the supply chain. For herbals produces, the vertical integration level is discussed in details along various dimensions taking farmer’s perspectives and a methodology using Fuzzy Analytic Hierarchy Process (FAHP) is proposed for its selection in rural areas. The proposed methodology was applied to rural areas of Rajasthan (India) for herbal produces such as Aloe vera and Gooseberry (Amla). Rural employability, certification, waste reduction and business sustainability were found to be significant factors for vertical integration and vertical integration at village level was found to be the best alternative on farmer’s perspectives.