Source: adapted from Humphrey, J. and O. Memedovic (2006) "Global Value Chains in the Agrifood Sector", United Nations Industrial Development Organization Working Paper, Vienna. J.W. Grievink (2003) The Changing Face of the Global Food Industry, OECD Conference, The Hague.
The Agri-food Supply Chain
The agri-food supply chain, which is a standard sequence ranging from inputs to the final delivery concerns several actors. Since food supply can be considered as the most extensive and prevalent, its consumer base is essentially the population. In the case of Western Europe 89 million customers are using 170,000 retail outlets. There are about 3.2 million food producers supplying tier suppliers and manufacturers. However, in spite of its size, the purchasing power is concentrated in a rather limited number of buying desks that are the agencies responsible of purchasing food products on behalf or large retailers. 110 buying desks account for 85% of the total retail food in Western Europe. The shape of this supply chain structure has been labeled as a funnel since a small number of actors have a high level of control and pricing power.