How does market power affect the resilience of food supply?

Synergies and trade-offs in drought resilience within a multi-level UK food supply chain

Weather extremes are the biggest challenge for supply chains worldwide, with food supply chains particularly exposed due to agriculture's sensitivity to weather conditions. Whilst attention has been paid to farm-level impacts from, and adaptation to, weather extremes, there remains a need to better understand how different actors along the supply chain suffer, react and adapt to these natural hazards and how their resilience-building strategies affect other actors' and the whole system's resilience. Taking the UK potato supply chain as a case study, this paper analyses the synergies and trade-offs in drought resilience in a multi-level food supply chain. Data from an online survey (87) and interviews with key informants (27) representing potato supply-chain actors (growers, packers, processors, retailers) were used to analyse drought risk perceptions, impacts and coping strategies, long-term resilience measures and further actions to build system resilience. Results suggest that the potato supply chain has increased its resilience to weather extremes due to retailers and packers having a wider geographical spread of supply, an increasing reliance on forward contracts and favouring growers with water security. However, a conceptual framework of resilience-building strategies adopted by supply chain actors shows that these measures are largely designed to reduce their own risk without considering implications for other parts of the chain and the system as a whole. A more integrated approach to promote drought resilience in complex food supply chains that enables improved vertical collaboration and trust between actors is therefore needed.

Dynamic Impacts of External Uncertainties on the Stability of the Food Supply Chain: Evidence from China

The food supply chain operates in a complex and dynamic external environment, and the external uncertainties from natural and socio-economic environment pose great challenges to the development of the food industry. In particular, the COVID-19 pandemic and Russia–Ukraine conflict have further exacerbated the vulnerability of the global food supply chain. Analyzing the dynamic impacts of external uncertainties on the stability of food supply chain is central to guaranteeing the sustainable security of food supply. Based on the division of food supply chain and the classification of external uncertainties, the TVP-FAVAR-SV model was constructed to explore the dynamic impacts of external uncertainties on food supply chain. It was found that the impacts of external uncertainty elements were significantly different, the combination of different external uncertainty elements aggravated or reduced the risks of food supply chain. And some uncertainty elements had both positive and negative impacts in the whole sample period, as the magnitude and direction of the impacts of various uncertainties in different periods had time-varying characteristics.