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Food Business Review | Saturday, February 05, 2022
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About 80% of the food consumed in developed countries is grown and manufactured in developing countries.
In the U.S., over 50% of fresh fruit, 30% of green vegetables, around 95% of seafood, and more than 90% of spices consumed by the people are imported, mostly from the developing countries. Food delivery is being revolutionized; it is now delivered more effectively through e-commerce (EC), online shopping, or home delivery.
An advanced digital channel EC adopted by the World Trade Organization in 1998 markets food that has improved the last mile of delivery to the consumers. EC offers superb choices, convenience, and access to food products that consumers could not access through traditional trade.
EC is also recommended for an extremely fragmented food supply chain as it has the potential to bring tremendous opportunities, mainly centering on the small and medium-sized enterprises (SMEs) by directly linking them with agricultural input markets and consumers.
Considerable growth in the EC of food has been noticed, including perishable foods. EC can raise the farm gate price by 20-30% because fewer steps exist between SMEs and consumers. Additionally, EC can directly connect SMEs to the global market, enabling them to extend their sales beyond their limited geographic boundaries.
EC is also affordable compared to the price on the restaurant's menu. Therefore, ordering online has become a convenient way for people of all ages, particularly millennials, to get their meals around the globe. Hence, the money spent on online food delivery was approximately $82 billion in 2018 and is anticipated to reach $365 billion by 2030.
EC can also present unique food safety risks and challenges. Securing food safety must be split equally by the public authorities, consumers, and the food industry. Steps have to be led by the international and local food safety authorities and trade organizations to concentrate on the safety issues involved in the changing world of food production and delivery. The initiative must be taken by focusing on the food safety problems prevalent in the changing food production and delivery world.