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This analysis focuses on defining and describing the unique economic characteristics of agrifood supply chains. The analysis includes seven specific economic characteristics of agrifood supply chains that distinguish them from other industrial manufacturing and service supply chains. The seven characteristics are: 1) risk emanating from the biological nature of agrifood supply chains, 2) the role of buffer stocks within the supply chain, 3) the scientific foundation of innovation in production agriculture having shifted from chemistry to biology, 4) cyberspace and information technology influences on agrifood supply chains, 5) the prevalent market structure at the farm gate remains oligopsony, 6) relative market power shifts in agrifood supply chains away from food manufacturers downstream to food retailers, and 7) globalization of agriculture and agrifood supply chains.

Seven Fundamental Economic Characteristics Exclusivity of Agrifood Supply Chains (part 2)