Global Food Supply Chain

Global Food Supply Chain

August 11, 2018 0 By admin

Intro

One of the things that I personally believe becoming food self sufficient is important is because it helps the Global Food Supply Chain. You might ask how does this help the food supply chain? Lets examine what are some issues/challenges with the current supply chain.

Global Food Supply Chain

A simple model of the stakeholders in the chain are:

  1. Producers/Growers/Farmers
  2. Distributors
  3. Consumers
  4. Waste Removers

This is of course a very simple model as there are other pieces involved but this is the basic large portion of the supply chain. These are what I would consider to be the most important pieces with some implied players that are necessary for execution. As an example transportation companies, financial instruments/wall street, growing suppliers/seed suppliers, etc. For the purposes of this post we will stick what I consider the ones. All of us on planet earth fall into one of these categories.

That category is of course the consumer. All of us eat and have food demand. This to me makes to global food supply chain unique in my opinion. Most industries have a limited number of consumers that is much less than the entire human population. Food on the other hand is a demand of every single person in the world. Thus the demand signal is at the true limit of number of consumers. While consumption varies amongst people, everyone needs food. Of course there are many different categories within the food space but that is not a piece of this post.

How Food Self Sufficiency Helps The Global Food Supply Chain

One answer to how you help by providing your own food is very simple: cost reduction. Having a background in supply chain it makes me astonished how cheap some food is given how far it has to travel. That means to cost of production on things like bananas are pretty darn low and/or the way they are being transported is fairly cheap. They travel thousands of miles and they are still 58cents a pound in the US. That is pretty amazing. Having said that there is increasing risk of increased food prices due to resource constraints.

When you create your own food you don’t require near the level of some constrained resources, oil as an example you reduce the total cost of supplying food to everyone. While a handful of people doing that is inconsequential to the entire supply chain, when many do it there is a huge impact. In addition to the cost reduction there is also less resources used which makes things more sustainable.
If you marry that with a hydroponic or aquaponic strategy it then becomes more water efficient as well. So the impact you can have as an individual is great!

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