Current challenges in agricultural supply chains: an empirical assessment based on expert perspectives

Abstract

The food industry is an essential sector of any country, and it should ensure the continuous supply of food to consumers. Currently, more and more companies are turning to international trade to meet the demands of their markets and at the same time ensure the profitability of their own business. This market transformation has resulted in food supply chains evolving from simple regional supply to a complex network supply that is highly vulnerable and unstable, due to the inhomogeneity of supply chain actors, especially in times of crisis. This vulnerability is related to numerous challenges and associated consequences. This study examines the impact of the current crises on the food supply chain, as well as the strategies adopted by supply chain actors to ensure the stability and sustainability of their businesses. For this purpose, a qualitative analysis was undertaken, based on 17 expert interviews with representatives of the entire supply chain, ranging from seed producers to retailers and including agricultural cooperatives, consulting companies, food networks. The results revealed that the combined effects of the Ukraine-Russia conflict, the COVID-19 pandemic, and customer behavior have had a significant impact on the food supply chain, such as a pronounced shortage of raw materials, supply shortages, price volatility and increased energy costs. The causal consequence of this is unrestrained market volatility which ultimately results in planning uncertainties for the companies involved; at the same time, supply chain actors are responding by implementing strategies to address these challenges. Strategies include the discovery of new markets and target groups, renewable energy sources and the consolidation of strategic suppliers, as well as the relocation of operations from abroad to the domestic market. The results of the study explain recent experience and serve as a starting point for further research that can help better understand and predict future crises.