Technological Changes and Shock-Resistant Shortened Food Supply Chains
Market Corner by Kimberly L. Morgan, C-FARE Board Member and Professor at University of Florida
Challenges facing producers exist between and betwixt, such as decreasing access to farmland, retail pressure and market power, decrease in produce consumption trends, labor supply concerns, rising interest rates, and continued input supply disruptions resulting in higher prices due to global conflicts. Yet opportunities abound and offer ways to differentiate fresh and value-added produce market offerings, changing consumer focus towards selection of fresh produce with proven health benefits, or adoption of conservation-focused production, processing, and packaging practices.
Farms continue to get bigger and more economically efficient and achieve gains due to economies of scale and scope. Many produce operations have a corporate structure and have farms strategically located to follow the progression of seasons from south Florida to northern states to provide a year-round supply of produce as demanded by retail and foodservice buyers. However, we see small to medium size farmers are joining forces, and technology-driven tools offers benefit of savings in time and resources required to access market information. Given that market access and market share drive profitability, exciting new technologies are emerging that reduce the cost of KNOWING and empower the individuals making more informed decisions.
The goals of my research are to address the adoption of alternative production technologies, to inform management and mitigation of financial and human resource risks, and, to improve long-term profitability of the agribusiness sector through a better understanding of food-system channels. In my view, automation and mechanization offer profit-generating ways to build shock-resistant short food supply chains (SFSC). These SFSCs involve long-term commitments to building and maintaining cooperative relationships among economic agents with a shared vision to adapt to changes in consumption trends, environmental conditions, and the needs of humanity. I welcome future research and education collaborations to delve deeper into this intersection of SFSCs and rapid tech advances, as I believe this will result in competitive advantages and improved resiliency of food supply chains across geographic and temporal spaces.
