Fresh produce chain –  from a supply to value chain orientation

Alistair Mowat

Innovation and Strategic Management Consultant 

 

Retail strategies, food safety requirements, rationalisation of supply and innovation have all been significant factors in the ongoing transformation of fresh produce chains.

Strategically, retailers have been exerting greater control over product specifications in order to create a clear point of difference for the consumer. This control over specifications has also been important in managing variation in product supply.

Through these drivers, fresh produce chains have been evolving from a supply to a value chain orientation. This has required the building of trust between chain partners and the facilitation of information flows between these partners.

The greater the orientation, the more integrated partners become in the sharing of information. Chain partners become aligned in the creation and delivery of value that can benefit end-users.  At the same time these partners are identifying and removing costs in a way that does not erode value.

Within fresh produce chains technology is transforming how data can be captured to generate the information needed to optimise these chains. For example, historically, a disconnect has often existed between the comprehensive sharing of information between pre-harvest and post-harvest operations.

In some seasons, this disconnect can result in high storage losses. Precision farming technologies are now being used to better define and manage orchard variability. This information is being shared with the post-harvest sector to optimise the storage conditions of fresh produce on the basis of pre-harvest crop development.        

As technologies advance, we will see greater amounts of information being exchanged between the partners within a value chain to enable the whole chain to be more transparent and responsive to changing conditions. 

This value chain transparency can also create additional benefits for consumers who are seeking out fresh produce grown and handled with integrity and in an ethical way.