The Gateway to a Market-driven Agricultural Economy: A Framework for Demand Chain Management in the Food Industry

Abstract

It has been recognized that agriculture and food companies have a long tradition of being commodity-driven, with an emphasis on production technology, high volumes, and quality consistency. In the context of global hyper-competitivity, the ability to understand customer needs and adapt to a wider variety of customer situations will become crucial. The purpose of this paper is to provide a structured demand chain design framework that can be linked with Gateway and Corridor management practices. Since a direct correlation exists between the wealth of a nation and how it consumes food, we first present five utilities and several factors that are perceived differently by customers once a nation becomes affluent. We then present supply and demand thrusts that could leverage Canada’s position in international food trade. Finally, some analysis and limitations are presented.