COVID‐19 and Food Supply Chains

By Lauren Chenarides, Mark R. Manfredo, Timothy J. Richards. Applied Economic Perspectives and Policy, 2020

133 citations recorded by the source corpus.

Abstract The Covid-19 pandemic exposed critical weaknesses in the US food supply chain Faced with the near-complete loss of the foodservice distribution channel, stories of wasted food, failing suppliers, and food shortages were common We argue that the pandemic revealed a fundamental lack of resilience in the food supply chain that, while causing short-term welfare losses, need not have happened, and resulted from a failure of vision rather than a market failure in the traditional sense We present a model of supply chain flexibility, grounded in real options theory, that demonstrates how firms can increase shareholder value by maintaining flexibility across supply chains We present an example from the US fresh produce industry (onions) to demonstrate our hypothesis

Subfields: Finance, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/15e66e5b95b8864b25c94a617b9201e069313a2c