AREC 550 Assignment 1

Why Is Understanding Agricultural Supply Chain So Important?

An agricultural supply chain refers to the network of individuals, organizations, resources,

activities, and technology involved in the production, processing, distribution, and consumption
of agricultural products. Effective management and understanding of agriculture supply chains has
an important role in framing agricultural policy (Zilberman et al., 2023) and identifying disruption
risk on supply chain (Norwood and Peel, 2021).

Zilberman et al. (2023) highlights the evolution of supply chains in agriculture and the food sector,
emphasizing the impact of factors such as innovation, research, education, and cyber-infrastructure
on supply chains. Thus, understanding supply chains is essential for effective agricultural policy
as it enables policymakers to enhance efficiency, build resilience against risks and disruptions,
drive innovation, improve market access, and promote sustainability in the agricultural sector.

Supply chains are living entity and thus adjustments to shocks and trend is crucial (Zilberman et
al., 2023). Disruptions are unavoidable in a long run, so it is both wise and economic to be prepared
to such changes and shocks in advance to minimize cost of adaption that comes with such sudden
changes. One of such preparation can be adaption of supply chain mapping.

Norwood and Peel (2021) emphasize the importance of supply chain mapping as a strategic tool
to prepare for future disruptions, particularly pandemics. The authors highlight the impact of
COVID-19 on supply chains of toilet paper that lead to its shortage due to two different
independent and inflexible supply chains with different target consumers.

By mapping supply chains, companies can identify vulnerabilities, enhance resilience, and
improve transparency in sustainability efforts (Norwood and Peel, 2021). Proactive supply chain
mapping helps in identifying and mitigating potential risks and ensuring business continuity in the
face of unforeseen events.

The most interesting finding of Norwood and Peel (2021) is the creation of supply chain junctions
within the supply chain maps. These junctions provide intra supply chain flexibility and enables
companies to adapt quickly to changes in demand, supply disruptions, or market conditions. By
strategically managing supply chain junctions, businesses can strengthen their competitive
advantage and ensure long-term sustainability in a dynamic business environment.

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However, supply chain mapping can be challenging as companies can face problems to collect
data as firms are reluctant to share their source of input and output markets (Norwood and Peel,
2021) and also because supply chains are dynamic and evolving with time. Alternatively, this also
creates an opportunity for companies to involve in multiple stakeholders collaborative supply
chain mapping initiatives to create a more interconnected and resilient network.

The other future research potential can be to explore how supply chain mapping can be leveraged
to promote sustainability practices as demand for environmental impact information in food
systems are rising rapidly (Deconick et al., 2023). Better information and incentives resulting from
environmental impact reporting can encourage stakeholders to shift towards more sustainable
production and consumption pattern, which in return will potentially lead to reorganization of
supply chains.

The recent trends on facilitating the progress of measuring environmental impacts have been
adoption of 'supply chain thinking' (Deconinck and Hobeika, 2022), supply chain traceability,
adoption of measurable outcomes and transparency of agri food systems (Deconick et al., 2023).
However, there are several challenges associated with environmental impact reporting in food
systems. Deconick et al (2023) in their study highlight the need for reliable measurements,
comparable methodologies, and the avoidance of conceptual, technical, and organizational pitfalls.

The study highlights various research gaps, such as understanding environmental impacts of
specific products and regions, exploring optimal methods for measuring impacts and reducing
costs and investigating implications of environmental impact reporting on producers, consumers,
and value chains, including pricing dynamics and consumer responses to environmental labeling.

To conclude, the importance of understanding agricultural supply chains lies in their role in
shaping agricultural policy, managing disruption risks, and promoting sustainability. Supply chain
mapping is a powerful strategic tool to enhance resilience, transparency, and sustainability efforts
and thus further research should be done on bringing multiple stakeholders together to collaborate,
accessing data for mapping and on keeping the map up-to-date. Furthermore, leveraging
environmental impact reporting within supply chain mapping can help companies adopt more
sustainable practices, leading to changes in how goods are produced, traded, and consumed on a
global scale.

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References

Deconinck, K., Jansen, M., & Barisone, C. (2023). Fast and furious: the rise of environmental
impact reporting in food systems. European Review of Agricultural Economics, 50(4), 1310-1337.

Deconinck, K., & Hobeika, M. (2022). Improving environmental outcomes along food supply
chains: A review of initiatives and their effectiveness.

Norwood, F. B., & Peel, D. (2021). Supply chain mapping to prepare for future pandemics. Applied
Economic Perspectives and Policy, 43(1), 412-429.

Zilberman, D., Cooper, J., Hochman, G., Reardon, T., & Shoemaker, S. (2023). Understanding
Supply Chains Is Crucial for Good Agricultural Policy. Choices, 38(4).