Top Three Challenges While Managing Organic Food Supply Chains
With the rising popularity and demand for organic food, companies in the food and beverage industry are forced to adapt to industry demands and identify new ways of procuring and sourcing food products. They are faced with pressure to revamp their supply chains to keep pace with the retail sales of organic products. Also, they need to revise their procurement strategies to cater to consumers and remain competitive, as the growth of the organic food market is not expected to slow down anytime soon.
According to SpendEdge, a provider of procurement market intelligence solutions, the three top challenges in maintaining organic food supply chains are:
Risk and threat of pests
The supply chains rely on organic farming. They face unprecedented risks from pests and other crop destroying factors. Moreover, it is expensive and time consuming for farmers to switch to organic farming. They can’t use prohibited substances and pesticides 36 months before the produce is grown, thereby reducing the number of organic farmers and suppliers that can meet industry demands.
Transporting organic food
Transporting organic products and keeping it separate from non-organic produce is one of the major challenges. Companies offering organic and non-organic products have to use two different machines for each step of production to maintain organic standards and practices. This increases production costs significantly.
Insufficient growth of organic food
The seasonality of organic food crops makes it difficult for suppliers to meet supply chain demand. Companies have to collaborate with multiple suppliers from different regions to source items for one type of product. This leads to high import costs and complicates the supply chain.
Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor at Smart Market News, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.