Organic food supply chains: challenges and prospects

The aim of this chapter is to explore the supply chain challenges faced by the organic food industry. As has been elaborated in the previous chapters, the organic food industry is fast growing due to the increased demand for organic products by the health-conscious consumers. Simply put, a supply chain facilitates the smooth flow of goods from the place of production to the place of consumption. Broadly speaking, a supply chain facilitates movement of goods from the supplier's supplier to the customer's customer. This means, a supply chain is responsible for the smooth flow of all the raw materials and components along the interconnected web of supply chain partners until the final product has been consumed by the consumer. In order to ensure the efficiency and effectiveness of the organic food industry, it is crucial that the organic food is delivered to consumers at the right time, at the right cost, at the right quantity and at the right quality in the most efficient way. This can only be achieved through a well-lubricated and well-designed supply chain. Therefore, it is important to understand the specific needs of organic food industry and the related supply chain requirements. It is commonly accepted that the supply chain partners of organic food are faced with unique operational issues that may not be effectively addressed by conventional supply chains. Therefore, it is necessary to explore the unique requirements of organic food supply chain partners in order to help develop effective supply chains for the organic food industry. The rest of the chapter is organised in five sections. The next section examines the importance of an efficient and effective supply chain with special reference to the organic food industry. Secondly, the chapter explores the current supply chain issues faced by the growers and processors in the industry. Thirdly, a detailed elaboration of the supply-chain related issues faced by the organic food consumers is presented. In the fourth section, the chapter outlines a way forward for the organic food supply chains