Article

Strategies for increasing agricultural viability, resilience and sustainability amid disruptive events: An expert-based analysis of relevance

Authors:
  • Lithuanian Centre for Social Sciences
  • Vilnius University Business School
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Abstract

Responding to disruptive events is important to maintain supply chain viability. It is of the utmost importance to maintain functioning of agrifood supply chains as they provide essential goods for maintaining the population. However, there is a diverse pool of possible strategies to ensure the viability of agribusiness and agrifood supply chains. This paper seeks to identify the most relevant strategies for ensuring agrifood supply chain viability amid disruptive events. The case of Lithuania is analysed with a focus on the sustainability of the whole agri-food supply chain. Expert interviews involving farmers, associations, public sector representatives and academia are carried out to identify an effective policy path. Innovation, cooperation, diversification and knowledge-building are assessed as the candidate strategy options.

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View-only version: https://rdcu.be/clkgs or access article via: https://hal.archives-ouvertes.fr/hal-03681013 || Abstract: In the political discussion, the promotion of local food systems and short supply chains is sometimes presented as a means to increase the resilience of the food system, e.g. in the context of the COVID-19 pandemic, and it is also suggested as a means to improve the environmental footprint of the food system. Differentiating between local food systems and short supply chains, a review of the literature on the environmental, social and economic dimensions of sustainability is carried out. “Local food” cannot simply be equated with “sustainable food”; in most cases, it neither can ensure food security nor does it necessarily have a lower carbon footprint. For the environmental sustainability of food systems, many more factors matter than just transportation, not least consumers’ dietary choices. In terms of social sustainability, local food systems are not necessarily more resilient, but they can contribute to rural development and a sense of community. In terms of economic sustainability, selling via short supply chains into local markets can benefit certain farmers, while for other producers it can be more profitable to supply international markets.
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The coronavirus disease 2019 (Covid-19) pandemic has forced global food systems to face unprecedented uncertain shocks even in terms of human health. Urban agriculture is expected to be more resilient because of its short supply chain for urban people and diversified farming activities. However, the short-and long-term effects of the Covid-19 pandemic on urban farms remain unclear. This study aims to reveal the conditions for farm resilience to the Covid-19 pandemic in 2020 and the relationship between short-term farm resilience and long-term farm development using data from a survey of 74 farms located in Tokyo. The results are as follows. First, more than half of the sample farms increased their farm sales during this period. This resilience can be called the “persistence” approach. Second, short-term farm resilience and other sustainable farm activities contributed to improving farmers’ intentions for long-term farm development and farmland preservation. Third, the most important resilience attributes were the direct marketing, entrepreneurship, and social networks of farmers. We discussed the necessity of building farmers’ transformative capabilities for a more resilient urban farming system. These results imply that support to enhance the short-term resilience of urban farms is worth more than the short-term profit of the farms.
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Crop diversification finds an important place in the strategy of dealing with risk and uncertainty related to climate change. It helps to increase the resilience of farmers, significantly improving their income stability, but at the same time, it can lower the economic efficiency of small farms. The aim of the article is to identify the determinants of crop diversification and the impact of crop diversification on the economic efficiency of small farms in Poland. This article first provides a critical review of the literature on crop diversification, its role in stabilizing agricultural income and its impact on economic efficiency in small farms. Secondly, the level of crop diversification was determined and empirical research was conducted considering the economic, social and agronomic characteristics of farms. Thirdly, the economic efficiency of farms diversifying crops was compared with farms focused on one type of production. The research material consisted of small farms participating in the Polish system of collecting and using farm accountancy data (FADN) in 2018. The level of diversification was determined using the Herfindahl-Hirschman Index. The factors influencing crop diversification were identified using the logit regression model. The Mann–Whitney U rank sum test was used to assess the significance of the differences in distributions. The research results indicate an average level of crop diversification in small farms in Poland and its regional differentiation. In addition, a statistically significant positive impact on the probability of crop diversification in small farms in Poland was found of variables such as the level of exposure of agricultural production to atmospheric and agricultural drought and the location of the farm in the frost hardiness zone and a statistically significant negative impact of the variable: value of fixed assets. The existence of significant differences in the level of economic efficiency of farms diversifying crops and farms focused on one profile of agricultural production was proved. The study is an important voice in the discussion on increasing measures to strengthen support for small farms that diversify crops so as to ensure their greater stability and economic efficiency.
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The importance of agri-food systems for global sustainability calls for researching and advancing socio-technical transitions towards environmentally friendly models of farming. These transitions hinge on many prerequisites, one of which is providing access to land for farmers and new entrants who experiment with sustainable farming models. However, for socio-technical transitions in farming to be viable, access to land should be complemented with securing access to “intangible” resources such as skills, knowledge or networks. It seems that increasingly often these resources are being provided by various grassroots initiatives. The goal of this paper is to identify how the strategies employed by grassroots initiatives support farmers and new entrants in transitioning to sustainable farming models. In order to answer that question, we perform case studies of three Polish initiatives—Agro-Perma-Lab, PermaKultura.Edu.PL and the Ecological Folk High School in Grzybów—active in promoting agroecology, permaculture and organic farming. The results show a diversity of strategies employed by these initiatives that reflect the frameworks in which they operate. Considering these strategies from the perspective of transition studies suggests that they can be replicated in other contexts and potentially contribute to advancing socio-technical transitions of agri-food systems.
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Purpose The main objective of this study is to test whether firms with a higher level of intellectual capital (IC) perform better in terms of their supply chain resilience compared to those with lower levels of IC. Likewise, the study also examines the impact of IC (characterized by human capital, relational capital and structural capital) on supply chain resilience directly and through supply chain learning. Design/methodology/approach Data were collected from the 159 processed-food sector firms using a close-ended questionnaire during the corona virus 2019 (COVID-19) pandemic. Partial least squares structural equation modelling (PLS-SEM), partial least squares multigroup analysis (PLS-MGA) and one-way analysis of variance (ANOVA) were used to test a set of hypotheses emanating from a conceptual model of IC and supply chain resilience. Findings Empirical results revealed a significant influence of all dimension of IC on a firm's supply chain learning and supply chain resilience. Likewise, findings also exhibit a momentous role of supply chain learning in reinforcing the impact of IC on supply chain resilience. Cross-firm size comparison reveals that supply chain resilience of firms with a higher level of IC performed significantly better than those with lower levels of IC. Firms with a higher level of structural capital had a highly resilient supply chain. Practical implications Findings of the study imply that IC and supply chain learning should be considered as a strategic tool and should be strategically developed for uplifting a supply chain performance of a firm. The development of IC and supply chain learning (SCL) not only improves the supply chain resilience of a firm but also can help to integrate the internal and external knowledge for harnessing supply chain resilience. Originality/value This research study was conducted during the COVID-19 pandemic which provides a unique setting to examine resiliency and learning.
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There is no shortage of data demonstrating that diversified cropping systems can sustain high levels of productivity with fewer external inputs and lower externalities compared to more simplified systems. Similarly, data exist indicating diverse cropping systems have greater capacity to buffer against and adapt to weather extremes associated with climate change. Yet, agriculture in the US Corn Belt and other major crop production regions around the world continues to move toward simplified rotations grown over increasingly large acreages. If our goal is to see more of the agricultural landscape made up of diverse agricultural systems and the ecosystem services they provide, it is critical we understand and creatively address the factors that both give rise to monocultures and reinforce their entrenchment at the exclusion of more diversified alternatives. Using the current state of farming and agriculture policy in the US as a case study, we argue that a pernicious feedback exists in which economic and policy forces incentivize low diversity cropping systems which then become entrenched due, in part, to a lack of research and policy aimed at enabling farming practices that support the diversification of cropping systems at larger spatial scales. We use the recent example of dicamba-resistant crops to illustrate the nature of this pernicious feedback and offer suggestions for creating “virtuous feedbacks” aimed at achieving a more diversified agriculture.
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Lately, there has been increased interest among researchers in studying the resilience of manufacturing supply chains. However, the Covid-19 pandemic has caused severe disruptions in global supply chains, which have led to calls for greater resilience in these supply chains. This study provides insights into the impact of the Covid-19 pandemic on supply chain resilience by conducting a multiple case study in three intertwined industries based on the dynamic capability view and the relational capability view as a theoretical underpinning. Data were collected during the pandemic in a two-stage interview process with 18 supply chain and production experts directly involved in crisis management. Internal and external documents supplemented the interviews. The results revealed seven higher-level capability groups for building resilience in intertwined supply chains during a pandemic outbreak: agility, collaboration, digital preparedness, flexible redundancy, human resource management, contingency planning, and transparency and visibility. Each capability group is supported by associated capabilities extracted from the data analysis. The findings obtained based on the results of the multiple case study are discussed, and implications for management and future research directions are presented.
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Supply chains have been challenged by the Covid’19 Pandemic more seriously than ever before. A global health crisis left supply chain managers with solutions developed for limited and foreseeable crises. This paper aims to understand how well existing solutions served to build supply chain resilience in UK perishable goods market. In line with the aim, a research model based on supply chain resilience literature is developed and tested with Covariance-Based Structural Equation Modeling. The data is collected from 282 employees of retailers. Supply chain velocity is preferred as a resilience measurement. Findings demonstrated that the disruption of the pandemic affects resilience-building activities, and both proactive and reactive approaches towards resilience building worked during the pandemic; yet they were not good enough to remove all the negative effects of the pandemic. Innovation appeared as the most effective factor, followed by robustness, empowerment, and risk management via reduced risk. The effect of firm size is significant only on supply chain risk management. Larger companies are more efficiently apply risk management practices. The results show the importance of innovation in supply chain resilience. Regardless of firm size, innovation works for every company. Empowerment is another costless and effective tool. Therefore, it is safe to conclude that innovation and empowerment can help organizations to manage their supply chains effectively during crises. Companies can strengthen their supply chain resilience by developing strong relationships with their supplier and employees.
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Chapter
The COVID 19 pandemic was a two-edged sword; it exacerbated the already inefficient agri-food system but, in doing that, made us reflect, rethink possible and sustainable solutions to address SDG’s 1, 2, 11, and 5. A lot has been written on the immediate effect of the pandemic on different crops/animals and nodes of the value chain. In this chapter, we look at the negative and positive effect of the pandemic on sustainability in the context of a dynamic agri-food chain focusing on areas of localized input supply and food system sustainability, diversification, and Resilience, and consumer behavior Surveys were carried out in May/June 2020 to understand the effects of COVID 19 on the agri-food system in Southern, West, Central, and Eastern Africa and strategies to secure sustainable solutions and resulting policy implications. For this chapter, we reflect on the results from ten countries from Southern and Eastern Africa. Results show that farmers in Eastern Africa had a diverse portfolio of processed livestock products than those in Southern Africa. Secondly, most farmers in Eastern Africa had diverse processed products. Thus, product diversification created resilience capacities for dairy systems. Diversity in access to inputs also increased the resilience and sustainability of supplies during precarious periods. The findings also reveal that sustainable consumer behavior during pandemics goes beyond responsible consumption. Instead, consumers need to rethink and devise consumption models that alleviate the food consumption-related effects of the pandemics and increase the availability and consumption of alternative products with social, economic, health, and environmental impacts.
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Agricultural innovation is a key component of the global economy and enhances food security, health, and nutrition. Current innovation efforts focus mainly on supporting the transition to sustainable food systems, which is expected to harness technological advances across a range of fields. In this Nano Focus, we discuss how such efforts would benefit from not only supporting farmer participation in deciding transition pathways but also in fostering the interdisciplinary training and development of entrepreneurial-minded farmers, whom we term “AgTech Pioneers”, to participate in cross-sector agricultural innovation ecosystems as cocreators and informed users of developing and future technologies. Toward this goal, we discuss possible strategies based on talent development, cross-disciplinary educational and training programs, and innovation clusters to build an AgTech Pioneer ecosystem, which can help to reinvigorate interest in farming careers and to identify and address challenges and opportunities in agriculture by accelerating and applying advances in nanoscience, nanotechnology, and related fields.
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The Agri-food Supply Chains (AFSC) dealing with perishable items have suffered a lot due to the COVID 19 pandemic. During this uncertain time, developing resiliency has become a priority for management. Therefore, the main purpose of the study is to explore the impact of COVID-19 on AFSC and the possible strategies for improving the resilience of the AFSC. Impacts on AFSC and possible strategies are explored through the literature review and experts’ opinions. The importance rating of impacts of COVID-19 on AFSC is determined using the Best-Worst Method (BWM). These impacts are further correlated with the strategies for improving the resilience of AFSC using Quality Function Deployment (QFD). The findings of the study will help farmers, food processors, distributors, and retailers to maintain the uninterrupted flow of food items from farmers to end-users during the uncertain business environment. It will also contribute to formulating effective policies by the government and other stakeholders for improving the resilience of AFSCs.
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Purpose The present paper is aimed at 1) performing a systematic literature review (SLR) on applications in the perspective of sustainable agri-food supply chain (SC) of blockchain technology (BCT); 2) analyzing the selected literature, focusing on the advantages of the sustainable uses of the blockchain of the aforementioned SC and 3) presenting an outlook and research directions capable of addressing unresolved problems. Design/methodology/approach The SLR was conducted using detailed criteria to identify academic articles. Moreover, specific keywords and databases were used. The time frame considered included the years 2010–2020. Findings The review analysis indicates that the use of BCT or BCT supported by ICT/IoT contributes to sustainability of agri-food production. However, this technology can lead to several challenges such as scalability, privacy leakage, high cost and connectivity problems. Research limitations/implications The paper demonstrates that BCT can widely use agri-food supply chain due to its intrinsic characteristics. However, it is not excluded that the criteria chosen may not have identified important articles regarding BCT, the agri-food sector and sustainability. Originality/value Although the body of academic literature published on this topic is expansive, the effect of BCT on the agri-food SC's sustainability aspects has not yet been adequately analyzed. Thus, the article is aimed at investigating how BCT is used in the SC. In particular, the article is intended to update information about BCT and its impact on sustainability.
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This article reviews and categorises early policy responses to the COVID-19 pandemic, based on a dataset of 496 measures taken by 54 countries between January 1 and April 28 and collected by the OECD from government officials and additional sources. Findings show a large diversity of measures, some of which were urgent and necessary, some that may continue to be beneficial once the pandemic has subsided, while others are potentially disruptive for the functioning of markets or damaging for the environment. National allocations of measures show differences between developed OECD countries, which used more agriculture or support related measures, and emerging economies, which focused on trade policies, information provision or food assistance. A minimum USD 47.6 billion was allocated by OECD governments to the agriculture and food sector, mostly in the form of domestic food assistance and support to agriculture and the food chain.
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Sugarcane and cassava are major economic crops in Thailand. They are usually grown in similar geographical conditions, so they effectively compete for the same land. This paper analyzes the social performance of sugarcane and cassava products using Social Life Cycle Assessment (S-LCA), together with an analysis of product yields and expected demands for these crops. This study will help with making sustainable agricultural production and consumption decisions. More specifically, it could be used to inform the decision of which crop to choose when the land is suitable for both crops. The key stakeholder groups considered in the study included workers, farm owners, machine owners, and local community. The main social sustainability indicators considered were fair wages, health and safety, working conditions, economic growth, access to technology and loans, market security, and employment generation. The study found that the overall social performance of cassava was slightly better than sugarcane, although both were assessed at the level of very good. Following consideration of the social performance, together with product yields and expected demands for these crops, it is suggested that sugarcane be promoted. However, the challenges of promoting sugarcane also need to be considered.
Article
Firms today are striving to adopt innovations to ensure their survival, value creation and success. Innovation is increasingly seen as an outcome of a collaborative process, involving various stakeholders both within and outside the firms, in supply chain relationships. Collaborative arrangements are gaining traction and the focus of innovation is shifting from firms to their supply chain networks. This leads to the notion of supply chain innovation, which has been widely accepted as an important ingredient for improving the organisational and supply chain performance of firms. Inefficient practices such as improper crop selection, involvement of too many intermediaries, flood irrigation, over-fertilization and food waste necessitate innovative practices that will improve the sustainability of the food supply chain. In this regard, there is a need to investigate how collaboration among food supply chain entities leads to innovative practices and how these innovative practices in turn improve the sustainability of the food supply chain. This study aims to address this gap using the case of the Indian Farmer Producer Organisations (FPOs). Further, using the Supply Chain Operations Reference (SCOR) model, the supply chain of FPO is divided into five levels - plan, source, make, deliver and return and the case is analysed across these levels. The findings show that the formation of FPO through collaboration facilitates many innovative practices that result in several economic, environmental and social benefits to the FPO.
Article
The purpose of this study is to propose and validate a theoretical model to investigate the mediating effect of risk management capabilities (RMCs) on the relationship between supply chain innovation (SCI) and competitive advantage (CA). In addition, by utilizing contingent resource-based theory, we propose a moderating effect of the buyer-supplier relationship on the relationships between SCI and RMCs (i.e. robustness and resilience). We collected data through a survey with time-lagged observations in the construction industry in Pakistan. Structural Equation Modelling (PLS-SEM) was used in the study to investigate the theoretical framework. Our results show a positive impact of SCI on CA through the two risk management capabilities (mediating effect). Further, the findings provide evidence for the moderating effect of the buyer-supplier relationship on the SCI-CA relationship, with resilience capability as a mediator. However, the moderated mediation effect of the buyer-supplier relationship and robustness capability is not supported by our data. Our study addresses the question of the contribution of SCI to robustness and resilience capabilities and finally its impact on the competitive advantage of firms in the construction sector. Our study contributes to the empirical research on SCI and validates a model that links it to CA through the robustness and resilience capabilities of firms in the construction sector. Our study also provides insights for managerial decisions on investment in technology and process innovations and shows that SCI and RMCs are both necessary to achieve competitive advantage.