Supply chain: Only as strong as its weakest link
The journey from grain to bread. Or cocoa bean to chocolate. For each agricultural product that moves from the farm to the consumer, it’s the food and agribusiness (F&A) supply chain that is responsible. And yet the F&A supply chain is coming under increasing pressure, as price volatility, shifting market power and margins, and the need to feed a burgeoning population all take their toll.
The long-term challenge of feeding the world from a finite resource base means that the F&A sector will have to improve productivity and resource efficiency soon. Supply chains will need to cooperate more and provide a basis for innovation, as they move towards adopting a closed loop supply chain, which needs to become the norm, not the ideal.
Supply chain numbers
- We now face limited or even overexploited natural resources
- Only 10-15% of supply growth will come from land expansion
- On average, the productivity increases of the major agricultural commodities are no more than 0.75 percent. They should be 1.2% to keep up with increasing demand
Meet Gerjan Snippe
Gerjan Snippe is a Dutch farmer who reinvented the family farm with an organic mixed farming system that has transformed the farm with an innovative closed loop solution.