Challenges of creating sustainable agri-retail supply chains

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There is growing pressure on businesses and governments to pay more attention to the environmental and resource consequences of the ever-increasing production, distribution and consumption of agro-based products. Major issues in the sustainable development agenda include how to ensure the involvement of producers, particularly small farmers, in sourcing networks as well as in the institutional initiatives that help them to meet the stringent food safety and quality regulations. Corporates, especially in retailing, could play a critical role in creating sustainable agri-food chains.

Large retail chain operators, caterers, hotels, restaurants and domestic customers in urban areas require a regular supply of fresh fruits, vegetables, meat and other perishable food products. The emergence of supermarkets has led to changes in the retailing model of fresh produce and the management of the supply chain.

Supply chains of horticultural produce such as fresh fruits and vegetables (FFV) are particularly of interest as they involve a large number of players and have significant impact on many employment and social issues.

Due to the increased investment and focussed attention, there has been a spectacular change in the production and productivity of horticultural crops. Fruits and vegetables are largely consumed fresh in India with only a very small quantity going into the manufacture of various processed products such as pickles, ketchup, jams, chips and fruit drinks. The Government of India is aware that the horticulture sector is connected with generating employment, improving the economic conditions of farmers and providing nutritional value to people.

Steps have been taken to increase production, improve productivity of land, improve efficiency of agri-food supply chains and increase exports to enhance the economic strength of this sector. A number of studies and policy documents have highlighted the inadequacies of various types of infrastructure. The large retail chain operators, caterers, hotels, restaurants and domestic customers in urban areas require a regular supply of fresh fruits, vegetables, meat, and other perishable food products. The improving living standards and greater awareness brought about by globalisation have led to changes in ways of consumption and buying habits.

In developing countries, supply chain management is becoming increasingly important because the leading national and international supermarket companies are focussing on meeting the consumer's desire for products and conforming to global standards of food safety and health.

The produce industry relies on a careful orchestration of the supply chain. This includes planting the right varieties, harvesting at the peak of ripeness, packing in customised cartons.

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