The exchange of produce and animal products has historically been a regional trade, which makes sense when considering the relative recent developments of refrigeration and perishable food preservation.

Now, agricultural trade extends around the entire world. 20% of calories consumed globally have crossed at least one border, according to the Organization for Economic Co-Operation and Development (OECD).

In the beginning of the 20th century, production was primarily focused on staple commodity crops like wheat, corn and soybeans that are generally used as future ingredients for processed foods, it has since changed to favor high value specialty crops. These are crops like coffee, tea, almonds and avocados. This development is due to the profitability of such crops, their favorability under U.S. legislation like the Farm Bill and their increased yield due to the application of technological advances.

Almonds, walnuts, grapes and citrus are some of the best examples of specialty crops that are exported in large numbers. Most of these crops are involved in global value chains , which are the processes in which a commodity is transformed into a saleable product.

For instance, almonds and walnuts might be harvested in one country, cleaned and de-shelled in countries with cheaper labor costs, and then exported to developed countries for consumption.

So, nuts might be harvested in the United States, sent to Hong Kong, China next, then re-exported to Vietnam for processing, before returning to the United States for sale. What a whirlwind, just to end up in the same place the journey started!

What Does the Modern Agriculture Supply Chain Mean for Farmers?

The agriculture supply chain has impacted the work of farmers around the world. It has profoundly changed the markets farmers interact with and has altered the considerations of consumers around the world.

For one, the development of a global agriculture supply chain has increased the distance between producers and consumers. Crops lose freshness and nutrient value the longer they’re in transit, which puts additional pressure on farmers to ensure their harvests are timely and are processed quickly. In addition, these long supply chains result in excessive food waste, with crops lost during harvesting, transit and at grocers.

The widespread integration of technology and the collapse of trade barriers has characterized this era of economic globalization. However, the profits from increased trade are not equally shared across the world.

North America, Western Europe, China, Japan and Southeast Asia have benefitted the most from this period, while the global south has experienced stunted growth.

Farmers in low-income regions are competing against subsidized imports from developed countries, putting them in a precarious position when further developing of their operations.

In addition to this, developed countries often shield their own producers from imports by taxing them at a higher rate than domestic goods. This makes it difficult for emerging economies to sell crops abroad, pitting them against highly productive commercial farms in the first world, forcing them into a perpetual race to the bottom.

What Does the Modern Agriculture Supply Chain Mean for Consumers?

For consumers, a major benefit of the agriculture supply chain comes from the fact that they can buy the produce they want, when they want it. They don’t want to wait for lettuce to be in season, they need it available year-round for a cheap price.

As the modern agriculture supply chain has developed, consumer tastes have grown alongside it. Consumers want cheap, fresh crops. This necessitates a truly global agriculture market.

Because countries on either side of the equator have opposite seasons, it means that for consumers to access out of season crops, they’ll need to purchase them from producers on the other side of the world. This stretches supply chains and can result in less nutritious produce overall. But the produce is available, nonetheless.

See the problem? The demands of the consumer put pressure on producers, which through economic trade channels creates the current agriculture supply chain.

How Can Hydroponics Solve the Agriculture Supply Chain’s Problems?

Hydroponics has numerous benefits when compared to traditional crop cultivation. It gives growers the choice to grow crops closer to the processing areas, reducing the length of supply chains.

Additionally it can localize harvesting, processing and cultivation.

Hydroponic cultivation can reduce the risk of crop loss due to drought and natural disasters.

In developing countries, hydroponics allows growers to continue cultivation on land that is suboptimal for traditional cultivation, including territories ravaged by famines, disasters or over-use of agricultural land.

How Can Container Farms Benefit Consumers?

Container farms can alleviate issues related to crop freshness by shrinking the distance between where consumers buy produce and where that produce comes from. Most produce loses 30 percent of nutrients in just three days after harvest. This means that centralizing food producers and consumers in the same location is beneficial for all involved parties.

For consumers, this means fresher, more nutritious produce in their grocery stores, restaurants, senior living centers and other places where fruits and vegetables are consumed.

While farming is only permitted in designated areas, which can be far from urban centers or suburban communities, container farms can be located anywhere with reliable power and water connections. Depending on the county’s zoning laws, this may allow growers to cultivate crops in urban areas, or alongside commercial buildings that sell their produce.

How Container Farms Can Assist in Solving the Agriculture Supply Chain

Container farms can be a powerful tool that countries around the world can utilize as part of their food security plans. Because they utilize grow lights and controlled interior grow systems, hydroponic farms have found success around the world, from developing to advanced economies.

Additionally, because container farms can be moved with a forklift and flatbed truck, growers can transport farms between locations when necessary. Try doing that with an acre of land!

Summary

Container farms provide an increased yield compared to traditional agriculture because they offer year-round cultivation, precise growing environments and their ability to grow crops around the clock with high-powered grow lights.

The growth of supermarkets and agricultural processing plants in developing countries promises opportunities for container farmers to move their operations closer to consumers, allowing for partnerships with grocery outlets that need fresh, high-quality produce.

However, this trend faces headwinds competing with low-cost imports, as is the case with conventional agricultural cultivation. Still, hydroponic container farms offer many benefits for growers across the world, providing them a climate-controlled space to grow high-yielding crops that supply local industries.

This cuts down on the length of the agriculture supply chains that reach around the world, resulting in fresher produce for consumers, more opportunities for local producers and more stable and consistent production of a variety of produce.

Interested in buying a container farm and trying your hand at hydroponic production? At Pure Greens, we manufacture climate-controlled hydroponic container farms that can grow crops from anywhere in the world with a stable power and water connection. Contact us today for more information, or for a quote.