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Food Business Review | Thursday, August 08, 2024
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Some of the main challenges that organic food supply chains confront are a lack of organic farms, inadequate growth of organic food, and insect dangers and threats.
FREMONT, CA: Supply networks for organic food are under tremendous pressure to increase production in order to meet the retail sales of organic food items. The food and beverage business has seen significant changes as a result of the rising demand for organic products. Several notable modifications impacting food supply chains include adjusting to industry demands and implementing innovative techniques for manufacturing, sourcing, and obtaining organic goods.Since a decrease in the organic food business is not anticipated anytime soon, industry participants should become aware of potential obstacles and devise strategies to overcome them.
The following is a summary of some of the major issues that organic food supply chains face:
Inadequate organic farms: The market for organic products and beverages is dependent on organic farming, which is a laborious process fraught with difficulties such as pest infestations, a shortage of suitable land, and higher expenses. Because of this, organic farming is becoming rare, which lowers the buyer's negotiating position and raises the danger of erratic supply. The issue of insufficient organic farms can be addressed by converting conventional agricultural farms into organic cropland, increasing production.
Business management: The challenges faced by vegan and organic restaurants are beginning to resemble those of their non-plant-based counterparts as the demand for their goods soars. These hurdles include problems with the supply chain, issues with quality control, a shortage of dependable raw materials, and more. In order to take advantage of new international markets, the company needs to integrate its supply chains, production methods, product development, and distribution systems.
Since a decrease in the organic food business is not anticipated anytime soon, industry participants should become aware of potential obstacles and devise strategies to overcome them.
Threats and hazards from pests: The substantial risk involved in organic farming must be considered when examining the organic food supply chain. The costly and time-consuming transition to organic farming adds to the physical risk posed by the increased crop-destroying conditions and pest threats. According to the guidelines for organic food production, the land must be free of forbidden contaminants for at least three years before harvesting an organic crop. As a result, fewer suppliers and organic farmers are available to meet market demands.
Transporting organic food: One of organic food's main supply chain challenges is moving organic items while keeping them apart from non-organic ones. To maintain standards and ensure proper organic food practices, businesses that sell both organic and non-organic goods must utilize different machinery for each stage of the production process. As an alternative, they may choose to lower the production pace by properly cleaning the machinery between non-organic and organic use. Transporting organic food needs to be done in a refrigerator to prevent spoiling.