INTRODUCTION
When Nobel Peace Prize laureate, Norman Borlaug, said in his Nobel lecture, “Civilization as it is known today could not have evolved, nor can it survive, without an adequate food supply” (Borlaug, 1970), he was emphasising on the importance food has been playing in human survival from the very beginning of human evolution. Food, the source of energy for humans, is obviously the most crucial element for human survival. In the past, when humans hunted and gathered their food, food shortages must have been prevalent. This may have led to limited human population growth. But with the advent of agriculture, including the domestication of animals, humans were able to stabilise the food supply to an extent and make a lifestyle switch from nomadic to permanent settlements as agriculturalists no longer needed constant motion in search of food. Yet still, challenges like natural disasters, disease outbreaks, pest infestations, etc. caused famines. With time, agriculture grew, and surplus food produced were preserved for later consumption. Ever since, the food system has been further changed by industrialisation, urbanisation, and globalization, today, the food system is highly complex and diverse. It includes everything from very short supply chains like subsistence farming, and intricate global supply chain networks by multinational companies. With the latter being more widespread than the former (Hueston & McLeod, 2012, p. 192).
To know the level of complexity in the current food supply chain, the case of burgers can be considered. Burgers due to its convenience to make and eat, exceptional taste from its multiple layers and low-cost, has become a staple in busy urban lifestyle (Smith, 2008, p. 4). But burgers travel a long way before anyone gets a bite of it. “Each cheeseburger includes more than 50 ingredients sourced from countries in every continent of the world except the Arctic” (Hueston & McLeod, 2012, p. 189). Figures 1 shows a flow diagram of the path each element in a cheeseburger passes through, figure 2 shows the list of ingredients in a cheeseburger, and figure 3 shows the various countries from where the ingredients were sourced.
This emphasises what Norman Borlaug mentioned in his Nobel lecture, “Since the urbanites have lost their contact with the soil, they take food for granted and fail to appreciate the tremendous efficiency of their farmers and ranchers, who, although constituting only five percent of the labour force in a country such as the United States, produce more than enough food for their nation.” (Borlaug, 1970). But also, there has been a rise in trend of people eating out even the most basic food. In the US, 44% of all the food spending in 2018 was on food away from home (Paulin, 2020). Thus, there is a growing dependence of humans on these long and complex food supply chain to satisfy their food requirements, and the Food Supply Chain Management (FSCM) must transform to sustain the hunger, health, and harmony of the current and future population.
IMAGE SOURCE: Heuston, W., & McLeod, A. (2012). OVERVIEW OF THE GLOBAL FOOD SYSTEM: CHANGES OVER TIME/SPACE AND LESSONS FOR FUTURE FOOD SAFETY. Retrieved from National Library of Medicine:
https://www.ncbi.nlm.nih.gov/books/NBK114491/
ARGUMENTATION AND EVALUATION
The more complex the food supply chain is the more complex the problems in the system will be. Since the current food system involves dynamic and interconnected subsystems, it is difficult to predict the property of the whole system considering just the individual subsystems or their parts. A small deviation in the system could have immense, slight or no impact on the food supply (Hueston & McLeod, 2012, p. 194). Also, the various stakeholders impacted by this may remain unknown.
For example, in the UK, following Brexit, fast food giants like McDonald’s and Nando’s suffered insufficient quantities of materials like milkshakes and peri peri chicken respectively. Nando’s had to close 45 of its UK restaurants due to shortages in its signature chicken. The main reason for this was shortage of truck drivers. Multiple factors such as Brexit, COVID-19
and low income were some of the reasons for the labour shortage showcasing domino effect
(Riley, 2021).
The current food supply chain even though is more efficient and highly interconnected, it makes
individual systems more sensitive to stress and less resilient. In the wake of unpredictable
climate disasters, and pandemics (Connolly, 2021), the food supply chain might collapse due to
lack of proper connection between the subsystems (Hueston & McLeod, 2012, p. 195).
Big food retailers and services follow Just-In-Time (JIT) supply chain where instead of stockpiling food supplies in the warehouse, they make agreements with their suppliers and use
real-time data on usage and inventories to customize shipment of only those food products that
are needed. In many cities, perishables like milk and eggs stay in the retail outlet shelves only
for a day or two. Even though this trend maximizes efficiency and cost savings, such strategies
fail in stressful times like COVID-19 when lockdowns halted transportation, and supply and
demand was volatile (What is the Just-In-Time supply chain strategy?, n.d.). JIT supply chain
also puts a lot of pressure on the suppliers like farmers as the yield depends on many uncertain
factors especially with the wake of climate change. But, due to the perishable nature of most
food products, JIT is suitable. Post pandemic many future-looking companies have adopted
Just-In-Case (JIC) supply chains where larger stocks are kept in the inventory in advance (What
is the Just-In-Time supply chain strategy?, n.d.).
For example, the ingredient flow of McDonald chains in India were temporarily affected by the
Ukraine Russia war. A popular dish, filet-o-fish burger was taken out of the menu after the
shipments of Alaska pollock fish from the Bering Sea was hit (Sarkar, 2022). Such incidents
are usually overcome by introducing multi-supplier model to avoid risks associated with
dependency on single supplier.
Another problem that arises when food supply chains become complex is food fraud and the resulting loss of consumer trust. The inability to trace the journey of food effectively has led to
fraudsters utilising this opportunity to gain monetary benefits. In fact, it is a global business
exceeding 50 billion dollars annually (FSNS, 2020). For example, in the case of the horse meat
scandal that came to light in 2013, the traders on trial made 30-40 % profits through fraudulent
labelling. A mixture of horse meat and beef was sold labelled as 100% beef to consumers and
legitimate businesses. This was a cross border fraudulent scheme that took advantage of the
increasingly globalised food supply chain, which means lack of traceability, a fragmented
system, and high complexity in finding the perpetrators. For instance, the companies involved
knowingly or unknowingly in this case were from different stages of the supply chain spread
across Europe, like Ireland, England, Italy, and Poland, with the investigators having to follow
a very long and tangled trail (Lawrence, 2017).
Blockchain technology is a possible solution for securing the food supply chain from food fraud. Clearing blind spots in the complex supply chains, enhancing outdated practices, connecting the fragmented subsystems, and regaining customer trust can be achieved by adopting blockchain technology. This technology is basically a shared digital ledger, where data
is stored in a decentralised and immutable manner eliminating opportunities for food fraud.
With blockchain technology businesses and consumers can ensure the authenticity of their raw
materials and packaged goods, increases visibility, and share certifications, registrations, and
inspections to establish accountability. In the future, blockchain technology with IoT can be
used by all supply chain actors for better connection, real-time data sharing, etc (Focus on food
fraud, n.d.).
The food supply has followed a linear model from the mid-20th century. Several factors like the
rise in industrial and economic development, globalization, decline in manufacturing cost, and
growth of purchasing power of consumers, have led to a trend of frequent purchase, use and
disposal of goods, or in short, the take-make-dispose model. This has led to significant increase in demand for natural resources, waste generation, carbon emissions, biodiversity loss, etc. Demand for natural resources has increased evermore due to the growing population as well.
Thus, there is a dire need to redesign the food supply chain to a circular model where reducing,
reusing, recycling, repurposing, repairing, refurbishing, and upcycling waste is practiced. There
are several strategies to adopt circular economy. One way is to development of a symbiotic
relationship between partners such that the waste from one is the raw material for another.
For example, McDonalds in the Netherlands, collaborated vertically with their key supply chain
partner, HAVI, and Neste, the world’s leading provider of renewable diesel, to recycle used
cooking oil from French Fries into Neste MY Renewable Diesel. This diesel is used by HAVI’s
trucks that deliver products to McDonald’s restaurants, thus closing the loop (Editors, 2020)
(Neste, 2021).
IMAGE SOURCE: Neste. (2021, January 16). Fries to miles – circularity partnership. Retrieved from Neste:
https://journeytozerostories.neste.com/circular-economy/fries-miles-circularity-partnership
Unlike textiles, plastics and other materials, food is intended to be consumed completely. Thus,
in a circular food supply chain, it is crucial to prevent food waste. A seemingly simple way to
do this is to trade directly with farmers. A restaurant in London named Silo, has adopted the
concept of zero waste and is known for being the first restaurant to do so. They cut out the need
for a bin by changing their supply chain. They source unprocessed whole foods directly from local farmers, in reusable or completely biodegradable containers. Processing, like milling
flour, is done by the restaurant themselves, and the resulting waste is composted. Most of the
furniture, decorations and cutleries are made from recycled materials. Moreover, their menus
are not constant and change as they try to upcycle any food waste produced (TEDx, 2018),
(Silo, n.d.).
Food waste can also be prevented in the typical industrial food systems with the use of technology. For example, Neighbourly is a platform that connects food donors and food recipients. Food donors, like businesses can add donations along with location and expiry date,
which can be accepted online by project teams like charities, and later collected (Neighbourly,
2015). Another solution for kitchens is to use software like Leanpath, which is an automated
food waste tracking technology, that offers data-collection tools, cloud-based analytics, and
expert coaching (Leanpath, n.d.) (Kor, Prabhu, & Esposito, 2017, p. 5).
One of the specific characteristics observed increasingly in the food supply chain of EU is consolidation. Consolidation is the relatively high degree of concentration of some food supply
chain actors such as food processing industries and retailers. In most EU Member States, five
largest retail sections account for over 50% of the market. This could account for benefits like
higher efficiency, economies of scale and scope, lower prices, and strong brands that signals
better quality. But to avail these benefits vigilant competition policy must exist otherwise
negative side-effects like anti-competitive agreements or abuses of dominant positions might
arise. Consolidation also makes it hard for new entrants, and weaker competition can lead to
higher prices. Also, there is a growing market share of discounters in EU which is pressurising
other retailers to focus on price rather than other dimensions of the product. This again limits
the entry of new businesses, even those that focus on sustainability, fair trade, quality, etc
(Bukeviciute, Dierx, & Ilzkovitz, 2009, p. 21).
Sustainability is booming in the food industry especially due to the rise in awareness about the
contribution of the food system in the GHG emissions and the impact it has on climate change.
There is also increasing interests among consumers for eco-friendly products and services, but
they are reluctant to pay for them. An article by Prof. Katherine White and others, in 2019
suggests five approaches to tackle this issue in all business categories not specific to food. They
are, using social influence, shaping good habits, leveraging the domino effect, deciding whether
to talk to heart or the brain, and favouring experiences over ownership. For example, alternative protein food products can be promoted by a combination of social influence and leveraging the
domino effect. The buffets at public events can make vegan options as the norm and thus
encourage people to try out convincing meat alternatives which can lead to a snowball effect
due to which the consumers may expand their alternative protein choices. Loss aversion is also
used by alternative protein companies where they communicate to the consumers what’s at
stake (White, Hardisty, & Habib, 2019, p. 127).
SUMMARY
The complex, globalised nature of food supply chain is the cause of many issues such as lack
of traceability, food fraud, supply and demand volatility, fragmentation of subsystems, lack of
resilience, etc. Also, the linear nature of the typical food supply chain has led to a take-make-
dispose model, which has caused natural resource exploitation, biodiversity loss, waste
generation, carbon emissions, etc. The current food supply chain is also facing consolidation
especially in the retail sector that benefits the food system by reducing food prices and
increasing efficiency. But negative side-effects could arise due to weak competition like anti-
competitive agreements or abuses of dominant positions, which could in turn lead to high food
prices, lack of new innovators, etc. But advancing technologies, consumer awareness, circular
and short supply chains that do not compromise efficiency and economy will help the future of
the food supply chain to be sustainable in social, economic, and environmental aspects.
BIBLIOGRAPHY
Heuston, W., & McLeod, A. (2012). OVERVIEW OF THE GLOBAL FOOD SYSTEM: CHANGES
OVER TIME/SPACE AND LESSONS FOR FUTURE FOOD SAFETY. Retrieved from National
Library of Medicine: https://www.ncbi.nlm.nih.gov/books/NBK114491/
Borlaug, N. (1970, December 11). Nobel Lecture. Retrieved from The Nobel Prize:
https://www.nobelprize.org/prizes/peace/1970/borlaug/lecture/
Paulin, G. D. (2020, April). Meal Appeal: Patterns of Expenditures on Food away from Home.
Retrieved from U.S. BUREAU OF LABOR STATISTICS:
https://www.bls.gov/spotlight/2020/food-away-from-home/home.htm
Hueston, W., & McLeod, A. (2012). Improving Food Safety Through a One Health Approach:
Workshop Summary. Overview of the Global Food System: Changes over Time/Space
and Lessons for Future Food Safety National Academies of Sciences, Engineering, and
Medicine. 2012. Improving Food Safety Through a One Health Approach: Workshop
Summary. Washington, DC: Th, 189. Retrieved from NATIONAL ACADEMIES PRESS:
https://nap.nationalacademies.org/read/13423/chapter/1
Smith, A. F. (2008). Hamburger A Global History. Reaktion Books.
Connolly, P. M. (2021, December 16). Q&A: Future pandemics are inevitable, but we can
reduce the risk. (J. Smith, Interviewer)
What is the Just-In-Time supply chain strategy? (n.d.). Retrieved June 2023, from GEP:
https://www.gep.com/knowledge-bank/glossary/what-is-just-in-time-supply-chain-
strategy
Sarkar, J. (2022, May 21). Filet-o-fish off McD menu as war hits ingredient flow. Retrieved
from Times of India: https://timesofindia.indiatimes.com/business/india-
business/filet-o-fish-off-mcd-menu-as-war-hits-ingredient-
flow/articleshow/91699956.cms
Riley, C. (2021, August 24). McDonald’s has run out of milkshakes in the UK. Retrieved from
CNN business: https://edition.cnn.com/2021/08/24/business/mcdonalds-milkshake-
shortage-
uk/index.html#:~:text=McDonald's%20has%20been%20forced%20to,pandemic%20c
ontinue%20to%20slam%20companies.
Lawrence, F. (2017, July 26). Horsemeat trial shines light on key part of international fraud.
Retrieved from The Guardian: https://www.theguardian.com/uk-
news/2017/jul/26/horsemeat-trial-shines-light-international-fraud
FSNS. (2020, January 31). An Update On Food Fraud. Retrieved from FSNS:
https://fsns.com/an-update-on-food-fraud/
Focus on food fraud. (n.d.). Retrieved from IBM:
https://www.ibm.com/downloads/cas/YDKZAB6O
Editors, M. (2020, July 22). Turning used cooking oil into fuel. Retrieved from McDonald's:
https://corporate.mcdonalds.com/corpmcd/our-stories/article/cookingoil-to-
fuel.html#:~:text=This%20project%20will%20enable%20us,oil%20into%20renewable
%20biodiesel%20oil.
Neste. (2021, January 16). Fries to miles – circularity partnership. Retrieved from Neste:
https://journeytozerostories.neste.com/circular-economy/fries-miles-circularity-
partnership
Silo. (n.d.). Zero Waste. Retrieved June 2023, from Silo: https://silolondon.com/story/
Neighbourly. (2015, October 6). Introducing neighbourly Food. Retrieved from Neighbourly:
https://www.neighbourly.com/blog/introducing-neighbourly-food-2
Leanpath. (n.d.). About Leanpath. Retrieved from Leanpath:
https://www.leanpath.com/about/
Kor, Y. Y., Prabhu, J., & Esposito, M. (2017, December 19). How Large Food Retailers Can Help
Solve the Food Waste Crisis. Retrieved from Harvard Business Review: https://hbr.org/
Bukeviciute, L., Dierx, A., & Ilzkovitz, F. (2009, May). The functioning of the food supply chain
and its effect on food prices in the European Union. Retrieved from European
Economy:
https://ec.europa.eu/economy_finance/publications/pages/publication15234_en.pdf
White, K., Hardisty, D. J., & Habib, R. (2019, July-August). The Elusive Green Consumer.
Retrieved from Harvard Business Review: https://hbr.org/
TEDx, T. (2018). Waste is a failure of the imagination | DOUGLAS MCMASTER | TEDxISM.
Retrieved from YouTube: https://www.youtube.com/watch?v=LwHut5N7Rr0
INTRODUCTION
When Nobel Peace Prize laureate, Norman Borlaug, said in his Nobel lecture, “Civilization as it is known today could not have evolved, nor can it survive, without an adequate food supply” (Borlaug, 1970), he was emphasising on the importance food has been playing in human survival from the very beginning of human evolution. Food, the source of energy for humans, is obviously the most crucial element for human survival. In the past, when humans hunted and gathered their food, food shortages must have been prevalent. This may have led to limited human population growth. But with the advent of agriculture, including the domestication of animals, humans were able to stabilise the food supply to an extent and make a lifestyle switch from nomadic to permanent settlements as agriculturalists no longer needed constant motion in search of food. Yet still, challenges like natural disasters, disease outbreaks, pest infestations, etc. caused famines. With time, agriculture grew, and surplus food produced were preserved for later consumption. Ever since, the food system has been further changed by industrialisation, urbanisation, and globalization, today, the food system is highly complex and diverse. It includes everything from very short supply chains like subsistence farming, and intricate global supply chain networks by multinational companies. With the latter being more widespread than the former (Hueston & McLeod, 2012, p. 192).
To know the level of complexity in the current food supply chain, the case of burgers can be considered. Burgers due to its convenience to make and eat, exceptional taste from its multiple layers and low-cost, has become a staple in busy urban lifestyle (Smith, 2008, p. 4). But burgers travel a long way before anyone gets a bite of it. “Each cheeseburger includes more than 50 ingredients sourced from countries in every continent of the world except the Arctic” (Hueston & McLeod, 2012, p. 189). Figures 1 shows a flow diagram of the path each element in a cheeseburger passes through, figure 2 shows the list of ingredients in a cheeseburger, and figure 3 shows the various countries from where the ingredients were sourced.
This emphasises what Norman Borlaug mentioned in his Nobel lecture, “Since the urbanites have lost their contact with the soil, they take food for granted and fail to appreciate the tremendous efficiency of their farmers and ranchers, who, although constituting only five percent of the labour force in a country such as the United States, produce more than enough food for their nation.” (Borlaug, 1970). But also, there has been a rise in trend of people eating out even the most basic food. In the US, 44% of all the food spending in 2018 was on food away from home (Paulin, 2020). Thus, there is a growing dependence of humans on these long and complex food supply chain to satisfy their food requirements, and the Food Supply Chain Management (FSCM) must transform to sustain the hunger, health, and harmony of the current and future population.
IMAGE SOURCE: Heuston, W., & McLeod, A. (2012). OVERVIEW OF THE GLOBAL FOOD SYSTEM: CHANGES OVER TIME/SPACE AND LESSONS FOR FUTURE FOOD SAFETY. Retrieved from National Library of Medicine: https://www.ncbi.nlm.nih.gov/books/NBK114491/
ARGUMENTATION AND EVALUATION
The more complex the food supply chain is the more complex the problems in the system will be. Since the current food system involves dynamic and interconnected subsystems, it is difficult to predict the property of the whole system considering just the individual subsystems or their parts. A small deviation in the system could have immense, slight or no impact on the food supply (Hueston & McLeod, 2012, p. 194). Also, the various stakeholders impacted by this may remain unknown.
For example, in the UK, following Brexit, fast food giants like McDonald’s and Nando’s suffered insufficient quantities of materials like milkshakes and peri peri chicken respectively. Nando’s had to close 45 of its UK restaurants due to shortages in its signature chicken. The main reason for this was shortage of truck drivers. Multiple factors such as Brexit, COVID-19 and low income were some of the reasons for the labour shortage showcasing domino effect (Riley, 2021).
The current food supply chain even though is more efficient and highly interconnected, it makes individual systems more sensitive to stress and less resilient. In the wake of unpredictable climate disasters, and pandemics (Connolly, 2021), the food supply chain might collapse due to lack of proper connection between the subsystems (Hueston & McLeod, 2012, p. 195).
Big food retailers and services follow Just-In-Time (JIT) supply chain where instead of stockpiling food supplies in the warehouse, they make agreements with their suppliers and use real-time data on usage and inventories to customize shipment of only those food products that are needed. In many cities, perishables like milk and eggs stay in the retail outlet shelves only for a day or two. Even though this trend maximizes efficiency and cost savings, such strategies fail in stressful times like COVID-19 when lockdowns halted transportation, and supply and demand was volatile (What is the Just-In-Time supply chain strategy?, n.d.). JIT supply chain also puts a lot of pressure on the suppliers like farmers as the yield depends on many uncertain factors especially with the wake of climate change. But, due to the perishable nature of most food products, JIT is suitable. Post pandemic many future-looking companies have adopted Just-In-Case (JIC) supply chains where larger stocks are kept in the inventory in advance (What is the Just-In-Time supply chain strategy?, n.d.).
For example, the ingredient flow of McDonald chains in India were temporarily affected by the Ukraine Russia war. A popular dish, filet-o-fish burger was taken out of the menu after the shipments of Alaska pollock fish from the Bering Sea was hit (Sarkar, 2022). Such incidents are usually overcome by introducing multi-supplier model to avoid risks associated with dependency on single supplier.
Another problem that arises when food supply chains become complex is food fraud and the resulting loss of consumer trust. The inability to trace the journey of food effectively has led to fraudsters utilising this opportunity to gain monetary benefits. In fact, it is a global business exceeding 50 billion dollars annually (FSNS, 2020). For example, in the case of the horse meat scandal that came to light in 2013, the traders on trial made 30-40 % profits through fraudulent labelling. A mixture of horse meat and beef was sold labelled as 100% beef to consumers and legitimate businesses. This was a cross border fraudulent scheme that took advantage of the increasingly globalised food supply chain, which means lack of traceability, a fragmented system, and high complexity in finding the perpetrators. For instance, the companies involved knowingly or unknowingly in this case were from different stages of the supply chain spread across Europe, like Ireland, England, Italy, and Poland, with the investigators having to follow a very long and tangled trail (Lawrence, 2017).
Blockchain technology is a possible solution for securing the food supply chain from food fraud. Clearing blind spots in the complex supply chains, enhancing outdated practices, connecting the fragmented subsystems, and regaining customer trust can be achieved by adopting blockchain technology. This technology is basically a shared digital ledger, where data is stored in a decentralised and immutable manner eliminating opportunities for food fraud. With blockchain technology businesses and consumers can ensure the authenticity of their raw materials and packaged goods, increases visibility, and share certifications, registrations, and inspections to establish accountability. In the future, blockchain technology with IoT can be used by all supply chain actors for better connection, real-time data sharing, etc (Focus on food fraud, n.d.).
The food supply has followed a linear model from the mid-20th century. Several factors like the rise in industrial and economic development, globalization, decline in manufacturing cost, and growth of purchasing power of consumers, have led to a trend of frequent purchase, use and disposal of goods, or in short, the take-make-dispose model. This has led to significant increase in demand for natural resources, waste generation, carbon emissions, biodiversity loss, etc. Demand for natural resources has increased evermore due to the growing population as well. Thus, there is a dire need to redesign the food supply chain to a circular model where reducing, reusing, recycling, repurposing, repairing, refurbishing, and upcycling waste is practiced. There are several strategies to adopt circular economy. One way is to development of a symbiotic relationship between partners such that the waste from one is the raw material for another.
For example, McDonalds in the Netherlands, collaborated vertically with their key supply chain partner, HAVI, and Neste, the world’s leading provider of renewable diesel, to recycle used cooking oil from French Fries into Neste MY Renewable Diesel. This diesel is used by HAVI’s trucks that deliver products to McDonald’s restaurants, thus closing the loop (Editors, 2020) (Neste, 2021).
IMAGE SOURCE: Neste. (2021, January 16). Fries to miles – circularity partnership. Retrieved from Neste: https://journeytozerostories.neste.com/circular-economy/fries-miles-circularity-partnership
Unlike textiles, plastics and other materials, food is intended to be consumed completely. Thus,
in a circular food supply chain, it is crucial to prevent food waste. A seemingly simple way to
do this is to trade directly with farmers. A restaurant in London named Silo, has adopted the
concept of zero waste and is known for being the first restaurant to do so. They cut out the need
for a bin by changing their supply chain. They source unprocessed whole foods directly from local farmers, in reusable or completely biodegradable containers. Processing, like milling
flour, is done by the restaurant themselves, and the resulting waste is composted. Most of the
furniture, decorations and cutleries are made from recycled materials. Moreover, their menus
are not constant and change as they try to upcycle any food waste produced (TEDx, 2018),
(Silo, n.d.).
Food waste can also be prevented in the typical industrial food systems with the use of technology. For example, Neighbourly is a platform that connects food donors and food recipients. Food donors, like businesses can add donations along with location and expiry date, which can be accepted online by project teams like charities, and later collected (Neighbourly, 2015). Another solution for kitchens is to use software like Leanpath, which is an automated food waste tracking technology, that offers data-collection tools, cloud-based analytics, and expert coaching (Leanpath, n.d.) (Kor, Prabhu, & Esposito, 2017, p. 5).
One of the specific characteristics observed increasingly in the food supply chain of EU is consolidation. Consolidation is the relatively high degree of concentration of some food supply chain actors such as food processing industries and retailers. In most EU Member States, five largest retail sections account for over 50% of the market. This could account for benefits like higher efficiency, economies of scale and scope, lower prices, and strong brands that signals better quality. But to avail these benefits vigilant competition policy must exist otherwise negative side-effects like anti-competitive agreements or abuses of dominant positions might arise. Consolidation also makes it hard for new entrants, and weaker competition can lead to higher prices. Also, there is a growing market share of discounters in EU which is pressurising other retailers to focus on price rather than other dimensions of the product. This again limits the entry of new businesses, even those that focus on sustainability, fair trade, quality, etc (Bukeviciute, Dierx, & Ilzkovitz, 2009, p. 21).
Sustainability is booming in the food industry especially due to the rise in awareness about the
contribution of the food system in the GHG emissions and the impact it has on climate change.
There is also increasing interests among consumers for eco-friendly products and services, but
they are reluctant to pay for them. An article by Prof. Katherine White and others, in 2019
suggests five approaches to tackle this issue in all business categories not specific to food. They
are, using social influence, shaping good habits, leveraging the domino effect, deciding whether
to talk to heart or the brain, and favouring experiences over ownership. For example, alternative protein food products can be promoted by a combination of social influence and leveraging the
domino effect. The buffets at public events can make vegan options as the norm and thus
encourage people to try out convincing meat alternatives which can lead to a snowball effect
due to which the consumers may expand their alternative protein choices. Loss aversion is also
used by alternative protein companies where they communicate to the consumers what’s at
stake (White, Hardisty, & Habib, 2019, p. 127).
SUMMARY
The complex, globalised nature of food supply chain is the cause of many issues such as lack
of traceability, food fraud, supply and demand volatility, fragmentation of subsystems, lack of
resilience, etc. Also, the linear nature of the typical food supply chain has led to a take-make-
dispose model, which has caused natural resource exploitation, biodiversity loss, waste
generation, carbon emissions, etc. The current food supply chain is also facing consolidation
especially in the retail sector that benefits the food system by reducing food prices and
increasing efficiency. But negative side-effects could arise due to weak competition like anti-
competitive agreements or abuses of dominant positions, which could in turn lead to high food
prices, lack of new innovators, etc. But advancing technologies, consumer awareness, circular
and short supply chains that do not compromise efficiency and economy will help the future of
the food supply chain to be sustainable in social, economic, and environmental aspects.
BIBLIOGRAPHY
Heuston, W., & McLeod, A. (2012). OVERVIEW OF THE GLOBAL FOOD SYSTEM: CHANGES OVER TIME/SPACE AND LESSONS FOR FUTURE FOOD SAFETY. Retrieved from National Library of Medicine: https://www.ncbi.nlm.nih.gov/books/NBK114491/
Borlaug, N. (1970, December 11). Nobel Lecture. Retrieved from The Nobel Prize: https://www.nobelprize.org/prizes/peace/1970/borlaug/lecture/
Paulin, G. D. (2020, April). Meal Appeal: Patterns of Expenditures on Food away from Home. Retrieved from U.S. BUREAU OF LABOR STATISTICS: https://www.bls.gov/spotlight/2020/food-away-from-home/home.htm
Hueston, W., & McLeod, A. (2012). Improving Food Safety Through a One Health Approach: Workshop Summary. Overview of the Global Food System: Changes over Time/Space and Lessons for Future Food Safety National Academies of Sciences, Engineering, and Medicine. 2012. Improving Food Safety Through a One Health Approach: Workshop Summary. Washington, DC: Th, 189. Retrieved from NATIONAL ACADEMIES PRESS: https://nap.nationalacademies.org/read/13423/chapter/1
Smith, A. F. (2008). Hamburger A Global History. Reaktion Books.
Connolly, P. M. (2021, December 16). Q&A: Future pandemics are inevitable, but we can reduce the risk. (J. Smith, Interviewer)
What is the Just-In-Time supply chain strategy? (n.d.). Retrieved June 2023, from GEP: https://www.gep.com/knowledge-bank/glossary/what-is-just-in-time-supply-chain- strategy
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