The farming of crops and livestock is more than 12,000 years old, but it is only over the past 200 years that the food supply chain has evolved into the form we see today. Accounting for more than $8 trillion of global GDP and a critical element of all countries’ infrastructure, the collective importance of food supply chains around the world is unrivalled.
Across the globe, there are four phases of food supply chain development: from local producers using local markets and direct selling through to the sophisticated mix of online sales and traditional retail in most developed economies today. Given the complexity, inter-dependency and competition, it is now widely recognised that the food supply chain is not so much a chain, as a complex network of producers, processors and retailers. This complexity is amplified by the pre-processing of raw ingredients, which are used for second stage processing.
Within this complex and evolving network, there are many opportunities for the insurance industry to provide insurance products that support this globally connected infrastructure.
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