Farmer or logistics agent: Who should launch the RFID in an agricultural product supply chain?

Abstract

This paper considers how the upstream members of agricultural products supply chain will cope with the frequent food safety problems and increasing fierce market competition of agricultural products, and finds out who (farmers or logistics agent) should launch the RFID technology so that the whole supply chain will reach the optimal status. Based on the practices of agricultural products supply chain in China, the profits, demand and price variation as well as reasons of farmers and logistics agent when they adopt the RFID technology respectively is analyzed by establishing three models. The results show that any member of supply chain can increase its product safety level by launching the RFID, and facilitate the product safety of other members of the supply chain. This benefits the RFID executor through the improved traceability of supply chain. However, it is better for the logistics agent to launch RFID rather than farmers for most cases.