• Entry
  • Reader's guide
  • Entries A-Z
  • Subject index

A COMMODITY CHAIN is the connected path across which raw materials travel to become processed into finished goods, and eventually consumed. For example, coffee may move along a commodity chain from the site in Columbia, where it is grown by a peasant producer, through a buyer in Argentina, to a processing plant in Jacksonville, Florida, to a big box store in Des Moines, Iowa, where a consumer buys it and drinks it in Cedar Rapids. At each point along the chain, the coffee is physically transformed and value is added to the product. With each successive sale, an increasing profit is made; processors generally earn more than growers, retailers more than processors.

Commodity chains encapsulate systems of social and spatial relationships connecting production and consumption. ...

    • Loading...
    locked icon

    Sign in to access this content

    Get a 30 day FREE TRIAL

    • Watch videos from a variety of sources bringing classroom topics to life
    • Read modern, diverse business cases
    • Explore hundreds of books and reference titles