Supply chain disruptions are here to stay - Time to make fresh produce procurement smarter

Since the onset of globalisation, food plates across households worldwide have undergone significant transformation. In India, the new generation no longer consumes what their parents once considered staples, mirroring a broader global shift in eating habits. Today, no country operates a food system that is entirely reliant on domestic sources.

Take the United States, for instance, over 80% of its avocados come from Mexico, which also supplies nearly half of all imported vegetables and 40% of imported fruit. Canada plays a critical role as well in meeting U.S. food demands. Staple grains like wheat, rice, and corn are heavily traded globally, with many countries relying on imports to secure their food supply. Even the morning ritual like coffee would face disruption if trade from Brazil, Vietnam, Colombia, and other key producers across Latin America, Africa, and Asia were affected. The same applies to chocolates, spices, and a wide range of fruits and vegetables.

The very foundation of food habits and food security has faced increasing disruptions in recent times. The key culprits: Covid-19, climate change, geopolitical conflicts, trade wars, and isolated incidents like shipping disruptions. While humanity has made tremendous progress over the decades, the recurring supply chain and food security crises highlight, in part, our inability to think at scale. In the Age of AI, many of these challenges are, in fact, solvable.

The need of the hour is a resilient supply chain model — one that can withstand the uncertainties we increasingly face. In the wake of current tariff disruptions, I propose key shifts for global food system stakeholders: food retailers, CPG companies, food processors, traders, and seed manufacturers. While tariff conflicts may find resolution, larger, more persistent threats such as climate change, trade wars, and geopolitical tensions stand like the Sword of Damocles.

I urge every agri-food business to embed these strategies at the core of their operations: 

Regional Sourcing Intelligence - Know where, when, and how to grow and procure: While manufacturers are shifting factories with precision in response to trade tensions, food producers and traders face greater challenges. Unlike factories, agriculture production is intricately tied to climatic conditions, weather changes, soil quality, and farmer expertise. However, with the power of AI, agri-food businesses can now navigate these complexities. Solutions like Cropin Sage enable potato producers or sourcing companies to swiftly identify optimal conditions and adapt their sourcing regions. With Gen AI advancements, transforming fresh produce production is as agile as managing a factory, moving seamlessly with just the touch of a button.

Complete Visibility into Food Production: For a coffee trader or supplier, having full visibility into crop production intelligence can make all the difference in times of crisis. Similarly, if wheat or corn production is threatened by a climate event, businesses can take proactive risk mitigation measures. This level of visibility empowers countries to secure food supplies and helps agribusinesses anticipate future risks, making informed strategic decisions.

End-to-End Traceability: It is essential for digitizing the journey of every crop, from farm to fork, ensuring better compliance and transparency regarding crop origin. This is crucial for meeting regulatory requirements and addressing consumer demand for healthy, sustainably produced food. This will help responsible businesses to avoid unexpected compliance risks and gain customer trust. A traceability solution helps organizations safeguard their brand reputation by verifying authenticity and enabling quick resolution of any issues related to crop sourcing.

The reversal of globalization to nationalization: This could emerge as a key trend to mitigate food security risks during crises. In the face of geopolitical conflicts and supply chain disruptions, countries will likely be compelled to prioritize domestic food security. This shift will lead nations to take precautionary measures to protect against unforeseen shocks that could impact food availability. As a result, creating a favorable and modern environment for growing staple crops domestically, rather than relying on foreign imports, will become a strategic priority for many countries.

Just as the world’s largest accommodation provider doesn’t own a single hotel room, the world’s largest ride-hailing service doesn’t own a single vehicle, and top digital payment facilitators don’t issue cards or run traditional banks, the future of agriculture will be AI-powered. The largest agri-food companies of tomorrow will empower millions of farmers and enterprises with intelligence, without owning a single farm!

Krishna Kumar

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Krishna Kumar is CEO & Founder of Cropin.