Food supply chains: Business resilience, innovation, and adaptation

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Reardon, Thomas; and Vos, Rob. 2021. Food supply chains: Business resilience, innovation, and adaptation. In 2021 Global food report: Transforming food systems after COVID-19. Chapter 6, Pp. 64-73. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/9780896293991_06.

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Private sector enterprises all along food supply chains must play a central role in food system resilience and transformation; the pandemic revealed some of the sector’s weaknesses and strengths that can help to build greater resilience and reach other Sustainable Development Goals. KEY MESSAGES - The pandemic disrupted food supply chains through government-imposed lockdowns and restrictions, affecting labor supply, input provisioning, logistics, and distribution channels, and shifting consumer demand for food. - Impacts differed by the degree of integration and modernization of food supply chains. - “Transitioning” supply chains were the most vulnerable - these chains are long but still poorly integrated, face infrastructure limitations, and are dominated by SMEs that depend heavily on hired labor. - Traditional supply chains also suffered, but less so being generally short and relying on family labor. - Modern, integrated supply chains were better positioned to adapt and innovate. Businesses that were able to “pivot” or innovate rapidly fared well, using either their own capacity or intermediaries to expand e-platforms for supply and delivery. - Ongoing trends, most notably the growth of supermarket-style retail, e-commerce, and food delivery, were accelerated by the pandemic. - Recent innovations such as e-commerce offer opportunities for SMEs in food supply chains.

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