Where is food logistics going?

Logistics costs play a decisive role in food price development, especially when looking at local agricultural supply chains, e.g. for fruit and vegetables. The logistics cost burden on groceries varies greatly, depending on the prevalent supply chain setup. This article discusses the pros and cons of a traditional supply of agricultural produce into cities versus a modernised logistics setup, involving organised retail chains. This comparison is illustrated using the example of India, a country where the Government has recently decided to legalise foreign direct investment (FDI) in the retail sector.