---
title: "Food and agriculture supply chains | IslamicOpenFinance™"
description: "Quality and origin run from farm to shelf; the financing should follow the same goods. Salam for harvests, Input murabaha, Commodity-linked liquidity and more for Food and agriculture supply chains on IslamicOpenFinance™."
url: https://islamicopenfinance.com/sectors/food-supply-chains/
lang: en-GB
source: "IslamicOpenFinance"
---

> Quality and origin run from farm to shelf; the financing should follow the same goods. Salam for harvests, Input murabaha, Commodity-linked liquidity and more for Food and agriculture supply chains on IslamicOpenFinance™.

1. [Home](https://islamicopenfinance.com/)
2. [Sectors](https://islamicopenfinance.com/sectors/)
3. Food and agriculture supply chains

Real economy

# Food and agriculture supply chains

Quality and origin run from farm to shelf; the financing should follow the same goods.

Food chains link farmers, processors, certification bodies, distributors and retailers, often across borders. Financing that follows the goods, such as salam for harvests and murabaha for inputs, keeps money and product in step. IslamicOpenFinance™ ties each financing step to the documents of the goods it finances.

[Request a demo for this sector](https://islamicopenfinance.com/#start) See the live demo

Financial products

## What you build on IslamicOpenFinance™

1

### Salam for harvests

Buyers pay farmers in advance for specified produce delivered at harvest.

2

### Input murabaha

The financier buys seed, feed or packaging and sells it to the producer on deferred terms.

3

### Commodity-linked liquidity

Where the institution's Shariah board has approved it, tawarruq provides working capital with each commodity leg recorded.

4

### Distributor finance

Distributors finance stock by murabaha against purchase orders from retailers.

5

### Document trail

Purchase orders, delivery notes and certification documents are attached to the financing as evidence.

Value chain

## The actors in this chain

IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.

Farmer Processor Certification body Distributor Retailer Islamic bank

[Standard setters and regulators in the directory](https://islamicopenfinance.com/directory/?sector=food-supply-chains)

Typical flow

## A typical flow, step by step

1. **Supply agreement**
2. **Advance payment (salam)**
3. **Harvest and delivery**
4. **Processing**
5. **Distribution**
6. **Retail sale**
7. **Settlement**

Live demo

## See it in the terminal

A commodity leg bought from broker A, sold on deferred terms and sold on to broker B, each step recorded (demo). Demo data

**Demo** All institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.

Glossary

## Key terms for this sector

[Salam](https://islamicopenfinance.com/glossary/salam) [Murabaha](https://islamicopenfinance.com/glossary/murabaha) [Tawarruq](https://islamicopenfinance.com/glossary/tawarruq) [Gharar](https://islamicopenfinance.com/glossary/gharar)

Other sectors

## Related sectors

[Real economy Real estate and construction Buildings are financed before they exist; the contract has to follow each stage. - Istisna for construction - Parallel istisna - Ijarah on completion See the sector](https://islamicopenfinance.com/sectors/real-estate/) [Real economy Energy and infrastructure projects Long-lived assets, many parties and decades of payments. - Project sukuk - Construction istisna - Forward lease See the sector](https://islamicopenfinance.com/sectors/energy-infrastructure/) [Business E-commerce and marketplaces Shoppers want to pay over time at checkout; the financier has to buy before it sells. - Murabaha at checkout - Profit-rate routing - Takaful at sale See the sector](https://islamicopenfinance.com/sectors/ecommerce/)

## Build Food and agriculture supply chains on IslamicOpenFinance™.

[Request a demo for this sector](https://islamicopenfinance.com/#start) [All sectors](https://islamicopenfinance.com/sectors/)