A spatial approach to agri-food supply chain structure

Abstract

This study examines the role of structural components of the agri-food supply chain, respectively at the production, processing, distribution, retail, and restaurant segments. Using spatial regression models, we estimate how changes in local and neighboring county capacity affect reliance on locally supplied goods versus imports and exports. To measure reliance and the movement of goods through supply chain segments, we use the proportions of locally supplied goods relative to total supply and total demand at the county level from the IMPLAN dataset. Results indicate that each segment of the agri-food supply chain is distinct and require different policy interventions. In the production segment, expanding local production capacity may increase the proportion of goods exported and increase the reliance of imports. For processing, increasing local capacity can reduce the segments reliance on exports and imports. In the distribution, retail, and restaurant segments we found that increases in capacity increase the proportion of goods exported and decrease reliance on imports. Neighboring counties’ capacity changes most strongly impact the production and processing segments, with diminishing influence in downstream segments like distribution, retail, and restaurants. This research underscores the complexity of supply chains and the role of targeted solutions for each segment’s unique challenges and regional interdependencies.