Taking Stock of Origin in Food Supply Chains

Canaan Bridges Consulting Inc.

More and more consumers are concerned about where their food comes from, how it is made, and whether it is sustainable. Global food supply chains present both challenges and opportunities for producers and innovators. Successfully linking food production to its origin creates sustainable futures in global food trades. It is sometimes easy for the core attributes that connect food with its origin to be lost along value chains. This is especially problematic when several production and distribution channels are involved in getting foods to consumer markets. Origin is important to food supply chains when the reputation, quality or characteristics of the product – in terms of what makes the food item special in consumer markets – is based on its affiliation with a specific place.

Making Origin Count: Some food ingredients come from far away regions or countries. Spices, for instance, may be sourced from the Indo-Pacific or Caribbean regions and used in food along with other ingredients. Coffee beans sourced from world-renown farms known for the quality of their output is another example of how origin can impact food branding. When the end product derives most of its distinctiveness or popularity from place-based food ingredients sourced from other countries, using a branding strategy that augments these connections can have beneficial impacts on the businesses and communities from which the core ingredients are sourced. This of course depend on at least three factors:

• Distributor and Manufacturers Interests: How much do  downstream distributors integrate origin into their branding? Many consumers make food selections (affordability permitting) based on the type of information that is provided about how and where their food is sourced from. If this information is worthwhile but missing from the distributor or manufacturer’s marketing strategy, there could be significantly less chances for origin-based factors to drive higher consumer demand patterns. This can influence how much revenue the product generates and ultimately, the level of interest distributors and manufacturers have in pursuing long term sourcing from markets that are far away (especially if preferential tariffs do not apply to these imports).

• Origin Distributors: Market Savvy and Globally Conscious: A few things to think about in this realm: how well origin producers know the cultural, traditional, and scientific significance of their food or agricultural product, and whether this reflects in their quality standards; how many stakeholders are involved in making the food or agri-product and if management and other key stakeholders have a blue-print for marketing and sustaining it.

• Food Sustainability Factors: A crucial dynamic here is whether the origin country’s food system promotes human welfare goals for farmers and producers involved in food production and pivots its growth. These might not be easy targets, but they are important to consider when branding foods based on origin.