Transparency in Sourcing and Supply Chain Activities in the Food Industry from a Consumer Perspective

What Are The Challenges In This Industry?

The food business is confronted with a slew of regulatory and compliance issues relating to composition, marketing, and traceability from the procurement of ingredients to the table of consumers.?

With the world's population expected to reach 10 billion by 2050, governments face the challenge of ensuring inexpensive, nutritional, and environmentally sustainable food for everybody. Furthermore, the emergence of a global middle class, climate change risks, disease outbreaks, and long-running conflicts increase food supply uncertainties and hazards.

Food insecurity in the Middle East is particularly complicated, as the region faces several dangers to ensure food security. Conflicts are harming agricultural output in several nations, increasing the possibility of large-scale famine. Furthermore, the region’s agricultural output is low due to a lack of arable land, water shortages, and climate-related shocks. High food import levels have exacerbated food system stress, unsustainable diets, food loss and waste, economic shocks, global food crisis, shifting oil costs, and the COVID-19 pandemic.?

Regarding this, we are seeing enforcement actions and hearing a lot about food service workers' immigration and labor employment status and anti-human trafficking compliance. This aspect of compliance risk is particularly noticeable among franchisors in the food business, which needs to be addressed soon.?

How To Tackle These Challenges?

While facing major environmental issues, Mediterranean countries are undergoing culinary and nutritional changes that affect the health of their citizens. Water scarcity in agriculture, the ability to maintain local food production, and the region's reliance on food imports are all interconnected challenges that must be addressed to ensure food security and nutrition in the Mediterranean.?

To address these grave challenges, a grassroots overhaul of the global food system is required and engagement with international players to effect the necessary changes. The Middle East, one of the primary sources of energy, can influence the delivery of a sustainable, cheap, nutritious, and inclusive food system for its population by focusing efforts on shared global priorities.?

Furthermore, agricultural technology advancements are paving the path for increased output. The Abu Dhabi Investment Office has put $100 million into four agritech companies developing research and production centers in the UAE last year. Earlier this year, Dubai launched the Food Tech Valley, including research facilities, an innovation center, a smart food logistics center, and vertical agricultural areas. The UAE now has 1,000 hydroponic farms, up from 50 in 2009.?

What Are the Suggestions For Improving The Industry???

Although the government is doing its part wholeheartedly, some modifications can be adopted to find the solutions to these problems. Some of the suggestions include:

• Regional governments should develop strategic agreements with other countries, international agencies, research centers, academic institutions, farmer associations, and private sector enterprises to invest in key sectors.
• Food losses will be reduced from farm to retail if supply chain efficiencies, transportation, and storage improve.?
• Special pricing policies will provide low-income populations with more reliable options for staple and healthful foods.?
• Incentives and low energy price to countries that have large arable land and such countries to increase further the arable area
• Policymakers should also encourage consumer behavior toward sustainable and healthful diets through nutrition education programs, food labeling, and waste reduction strategies.
• A thorough risk assessment and mapping hazards to applicable rules and regulations should begin when developing a compliance program.

Whether it's calorie disclosure, organic or GMO labeling, farm-to-table traceability, sourcing from facilities that have confirmed ethical animal care, or other issues, the market will respond positively if a company makes transparency a trademark of its brand.