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.