How has supply chain impacted Food security Assignment

How has supply chain impacted Food security - Assignment Example Moreover, drastic climate changes have become common due to the rising global warming. To ensure food security, it is necessary that innovations be made in the food production, storage and distribution processes. Resources need to be utilized effectively and in constrained manner to determine the boundaries of future food production environment. Improving food security is also necessary for economic development of nations since hungry workers cannot be productive. Almost 75 percent of global population lives in rural areas and are dependant on agriculture. Enhanced food security can help them fight poverty and make them resilient so that they can participate in economic activities. Global food crisis leads to rising food price, and in recent years food price inflation has sparked political demonstrations in many countries leading to national and regional instabilities (Sustainable economic development, 2011, p.3). Shortage of food and difficulty in distribution process are common ele ments in many countries especially in the developing countries. This leads to chronic hunger among a large proportion of global population resulting in malnutrition, higher infant mortality rates and premature deaths due to failure of vital body organs. That growing commodity prices have become a matter of grave concern has been accepted by the United Nations through its warning that there is paucity of funds to curb global malnutrition in this â€Å"new face of hunger† (Borger, 2008). The head of UN’s World Food Programme (WFP), Josette Sheeran has expressed concern that an extra half billion dollars is needed to bring the situation under control. The major causes that have been recognized are huge disparities of income between developed and developing countries, usage of land for production of biofuel, drastic climate changes etc (Borger, 2008). The first part of this paper focuses on food security systems of five nations, and the second part discusses the impact of supply chain on food security programs. Section I Food Security According to the World Food Summit of 1996, food security is â€Å"when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life† (WHO, 2013). In other words, food security ensures that nutritious food is affordable and easily accessible to all sections of the world population to satisfy both their dietary requirements and food preferences. In reality, malnutrition and diarrhea have become common food related problems in most countries. Food security is essentially based on three pillars which are availability, accessibility and nutrition. This means food must be consistently available at reasonable prices to all people, there should be sufficient resources for all people so that they can access all food items, and there should be knowledge and awareness about proper nutrition and care (World Bank[1], 2009, p.14). Global experiences and events Persistent incre ase of food prices every year all over the world is a major contributory factor for global food crisis. UN’s WFP is assisted by voluntary contributions and it provides basic food items to 78 million people in 73 countries which is not even one-tenth of the total malnourished population of the world. In 2008, WFP’s budget was ?1.5 bn which was not even sufficient for maintaining existing food supplies because of rapid

GNLD and its product Nutritional Supplements Assignment

GNLD and its product Nutritional Supplements - Assignment Example It is through the fast changing health industry that new ways and methods of diagnosis and promotion of better health has been implemented. All these proceedings have brought about patient care, worker efficiency, and hence better health. To achieve these objectives, several companies like GNLD, which manufacture and sell nutritional food supplements, have been introduced. This product has however been impacted by market forces as discussed in this paper. Degree of Rivalry With the increased need for better health, and the extensive research being carried out in the health industry, rival firms have increased competition drawing the profits that GNLD used to make initially. This has made the competition imperfect; hence, each other firm is struggling to achieve competitive advantage and a higher market share than its rival company. In addition, the controversy on the quality of products of the increasing nutritional food supplements companies and slowed down the market growth. This h as consequently led to need for storage of the products hence high cost. Further, some of the products are perishable thus; the company decides to sell the products at relatively lower prices. The exit barrier in any health related firms are high. This is because the costs of plants and machinery cannot be forgone thus the firm decides to keep competing no matter the state in the market. Though successful, GNLD has been forced to keep competing due to this factor (http://www.mlm-home-business-training.com/GNLD-Int-mlm-leaders-call-team-money-training-scheme-scam/secretsuccess.htm). Threats of Substitutes In a free market economy, restriction of entry into, and exit out of the market is not prohibited. This means that competitors with related commodities will venture in to the market. This threat will definitely occur since the demand of the products of GNLD has been affected by the prices changes in substitute product. For instance, a survey carried out in Kenya showed that GNLD pro ducts are highly affected by the prices from TIASHI, a competing food supplement company. From the research, it was found out that to become part of the marketing team in GNLD, a sum close to $36 is required then the individual should purchase products of high value. For TIASHI, a sum of $18 is required and the initial purchase is relatively lower. This determines the prices at which each the products are sold. Evidently, the close substitute products have constrained the ability of GNLD to raise prices (http://www.healthybusiness.co.za/GNLD%20Products%20Guide/introduction/i3.html). Buyers bargaining power This is the power potential buyers have on any industry that is producing commodities. In many market structures, the forces of demand and supply determine prices of commodities. It is obvious that buyers will expect such market structures. Since GNLD does not exist as a monopoly, the prices at which the food supplements are sold should be dependant of the market mechanisms. On th e contrary, the food supplements from GNLD have fixed prices. The only advantage extended to the buyer is the ability to buy smaller quantities. This means that the buyer does not have bargaining power. It is thus possible in such a case to shift to other substitutes which give the