ABSTRACT: Paper no.

35 This research will address the issue of food security in Northeastern India by identifying the role of food supply chain in relation to the trends and developments in food consumer behaviour in the region. It will involve a theoretical and empirical study on food security, food supply chain and food consumer behaviour with particular reference to the issues in Northeastern India. Secondary studies will be carried out mostly at University locations while primary studies will be carried out at field locations.

Table of Content 1 What is the research3 1.1 The aim3 1.2 The objectives.3 1.3 Research Questions.4

2 Where is the research..5 2.1 Background.5 2.2 Theoretical Framework...7

3 How...13 3.1 Methodology.13

4 Bibliography14

1. WHAT IS THE RESEARCH:

1.1 The aim:

To address the issue of food security in Northeastern India by identifying the role of food supply chain in relation to the trends and developments in food consumer behaviour in the region.

1.2 The Objectives:

i.

The study of food supply chain from farm to fork in Northeastern India and its link to the state of food security in the region.

ii.

To investigate the food supply chain of the region with particular attention on how consumption trends and habits of the region is reflected or otherwise.

iii.

The study of food consumer behaviour in the region with particular attention to the major trends and developments and how these are transpired across the food supply chain.

iv.

This with particular emphasis on attitude towards local versus non-local produces.

1.3 Research Questions

i.

What is the state of food security in Northeastern India?

ii.

What are the major trends and developments in food consumer behaviour in Northeastern India?

iii.

What is the nature of the food supply chain from farm to fork in Northeastern India?

iv.

What relationship is there between food consumer behaviour and food supply chain in the region? (a) How is the food supply chain affected by the trends and developments in food consumer behaviour? (b) How does the food supply chain respond to the trends and demands in food consumer behaviour?

v.

Does this relationship play any role towards the state of food security in the region?

2. WHERE 2.1 Background Northeastern India, referred commonly as the Seven Sister States, a symbol of its relative isolation from the rest of India comprises the semi-autonomous states of Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, and Tripura. The region has a population of 39 million in 2001 (North Eastern Development Finance Corporation Ltd, 2002) which is about 3.8 percent of India's total. There is a high concentration of tribal population and a great ethnic and religious diversity within the seven states.

Totalling an area of roughly a quarter of a million square kilometres, the region accounts for around 7.9% of the total land space of India. The area is characterised by rich bio-diversity, the monsoon, green valleys and lush hills. It is filled with forest wealth that one would normally expect in a tropical region and is ideally suited to produce a whole range of plantation crops, spices, fruits, vegetables, flowers and herbs.

The history of the region since the corridor was opened to the British Colonists and mainstream India is arguably one dominated by western influence. Christianity plays a prominent role, literacy rate is relatively high compared to the rest of India, western music, tv shows, films and sports are the dominant medium of entertainment. Yet development in the region has lagged behind the rest of the country and is far from self-sufficient, not the least in food products where it relies heavily on assistance from Central Government. This despite 70% of the population primarily engaged in an agrarian livelihood.

Bearing this in mind, by looking at the trends and developments in food consumption and how these are transpired and reflected or otherwise across the upstream food supply chain, the writer aims to investigate the underlying factors leading to the food security issues in the region. A study will be carried out between the food consumer behaviour and the food supply chain in the region with the aim of identifying what role they play towards the state of food security in the region. From the farm to fork food supply chain through to consumer behaviour in the region, contributing factors will be investigated.

2.2 Theoretical Framework:

Figure 1. Ericksens Food Systems

The research will be based within the areas identified by Ericksen in his Food Systems, albeit a study on consumer behaviour and supply chain. Food System (Forward Look, 2008) is described as a set of dynamic interactions between and within the biogeophysical and human environments and include a number of activities leading to a number of associated outcomes. Food system activities include producing and storing food; processing, packaging and distributing food; and retailing and consuming food. Outcomes include some which contribute to food security, and others which relate to environmental and other social welfare concerns. Both the activities and the outcomes are affected by the range of interacting drivers which in turn are modified by the activities and outcomes. It is stated that food security is diminished when food systems are disrupted or stressed. Hence one may perceive the 7

food security of Norteastern India to be rather fragile since it is heavily dependent on the rest of country for supplies.

Figure 2. Generic structure of UK supermarket supply chains Duffy & Fearne. A Multiple Retailers Processors/prepackers/marketing organisations B C D E F G

1 tier supplier intermediary

st

Agent Market

Integrated Supply Chains

Pimary producers

Co-operatives

Chain 1

Chain2

Chain 3

Chain 4

Investigations within the supply chain will take place mainly in the areas identified by Duffy & Fearne (2004) as the generic supermarket supply chain although some adjustments will be made to suit the chains beyond multiple retailers such as independent traders and farmers markets. Moreover, in continuation to this model, a model of consumer behaviour outlined in figure 3 below may be added further downstream coming in from the opposite direction having considered the various factors affecting the buying behaviour of consumers and documenting the interaction between consumers and the channels of distribution.

Figure 3. Shiffman & Kanuks (1997) Basic Model of Consumer Decision Making. Input External Influence Environmental influences Political Economic Social Cultural Marketing stimuli Product Price Promotion Place
Sociocultural Environment

Culture & Subculture Social (family, friends, social class) Personal

Process Consumer decision-making Need recognition Pre-purchase search Evaluation of alternatives

Psychological field

Motivation Perception Learning Personality Attitudes

Experience Purchase (1) Trial (2) Repeat purchase Output Post-purchase evaluation (satisfaction or dissatisfaction)

Post decision behaviour

Based on this framework of food supply chain through to the consumer market, special attention will be given to areas identified by the Food and Agriculture Organization (FAO, 1997) as critical for the overall improvement of market condition

and the promotion of common goals between farmers, consumers, businesses and governments in Less Developed Countries (LDCs).

Market Research: Despite the size of the industry and the number of people involved, it remains questionable whether sufficient market researches are undertaken in most LDCs, not the least in Northeastern India.

Market infrastructure: Increasing privatisation in the farming sector will furthermore increase the demand of various types of services even more such as wholesale, retail and assembly markets, storage facilities, etc (Khaitov et al, 2004).

Market linkage for farmers: Large producers with greater production and access to capital can invest in the production while smaller producers like most producers in Northeastern India do not have the means to do so and find it difficult to access mass markets.

Urban Food Marketing: As urban areas expand rapidly, the supply of food to them with emphasis on the channels of distribution and marketing, facilities and services through which the food needs of consumers are satisfied is a challenge for LDCs.

Marketing Policy: Too often, the ability of the private sector to develop and to take over activities previously carried out by government bodies is constrained by poor and often conflicting policy, or by good policy which is ineffectively implemented.

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Legislation: The end to central planning and move towards marketing liberalization in many LDCs makes a prudent legislation essential for the effective functioning of the food industry.

Marketing extension: Farmers need advise not only on how to grow crops but also on marketing, storing, packaging and financial understanding such as cost of production, margins as well as marketing costs.

Credit systems: In many LDCs, due to the nature of unpredictability in agricultural production and resulting from high dependency on exogenous factors, credits from commercial banks are extremely difficult which is a huge set-back to the farming community (ICO, 2000).

Market information services: The need to overcome failures in agricultural market knowledge in developing economies are acute, and the inability to do so is an important source of market failure and of losses to agricultural producers (Poole & Lynch, 2003).

Farm input marketing: The micro-level realities of agricultural market in much of the developing world includes poor communications and transport infrastructure, weakened policies, limited rule of law, and restricted access to commercial finance, all of which makes marketing input function much less effectively than textbook models typically assume (Barrett and Mutambatsere, 2005).

Farm ownership and control: Farmers with secure legal ownership will have more incentives and better ability to invest, due to a lower perceived risk and a favourable

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access to institutional credit. The problem in many LDCs is few farmers have the secure legal ownership.

Impact of Supermarkets: Given the growth of supermarkets around the world, farmers require assistance in adapting to the new realities of supplying their produce to large retailers with high bargaining powers.

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3. HOW 3.1 Methodology: This research will take the form of an explanatory study in determining, analysing and evaluating data as it will seek to explain the relationship between variables (i.e. between food supply chain and food consumer behaviour in the context of food security). As Saunders et al (2000) puts it, the emphasis here will be on studying the situation or problem in order to explain the relationship between the variables.

Primary Research: This stage of the research will take place on field locations in Northeastern India and is expected to be a two-folded process. Firstly in the study of food supply chain, qualitative studies such as informal discussions with employees and more formal approaches on management through in-depth interviews will be considered. Meanwhile, quantitative data such as figures on sales and grants are also expected to surface.

Secondly, with the study of food consumer behaviour a more quantitative approach in the form of questionnaire will be strongly considered. However the benefits of interviews, focus groups and observation are not overruled. When appropriate and if robust, findings of other consumer survey and studies may also be considered.

Secondary Research: The systematic review, summary, collation and/or synthesis of existing research, reports and publications will take place at University location. Data collected will be carefully analysed and used to generate both qualitative and quantitative findings using the appropriate data analysis software.

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4. BIBLIOGRAPHY 1. The Food and Agriculture Organisation , 1997. Issues and opportunities for agricultural education and training in the 1990s and beyond. Rome: Rural Development Division. 2. Forward Look. 2008. European Food Systems in a Changing World. Strasbourg: European Science Foundation. 3. North Eastern Development Finance Corporation Ltd, 2002. General Information: North East India. Guwahati: Nefdi. 4. Khaitov, A. et al (2004). Developing market infrastructure for farming entities. Tashkent: Centre for Economic Research. 5. The International Coffee Organisation (2000). Short and medium term finance for smallscale farmers in Kenya, Uganda, Tanzania and the Democratic Republic of Congo. London: The International Coffee Organisation. 6. Poole, N. D. and Lynch, K. (2003). Agricultural Market Knowledge: Systems for Delivery of a Private and Public Good. Wageningen: The Journal of Agricultural Education and Extension. Available from: 7. Barrett, C. B. and Mutambatsere, E. (2005). Agricultural markets in developing countries. New York: Department of Applied Economics and Management, Cornell University. 8. Saunders, M. et al (2000). Research Methods for Business Students. Harlow, Essex: Pearson Education Ltd. 9. Shiffman, L G. and Kanuk, L (1997). Consumer Behavior, 6th Ed. New Jersey: Prentice Hall. 10. Duffy, R and Fearne, A (2004). Partnerships and Alliances in UK Supermarket Supply Networks. Food Supply Chain Management. Oxford: Blackwells Publishing Ltd.

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