What is a commodity chain?

A commodity chain is a network of production, distribution, and consumption activities that link raw materials, manufacturing, and distribution of a particular product. It is a concept used in economics and sociology to understand the global interconnectedness of products and the processes involved in their creation.

Commodity chains can be simple or complex, depending on the number of stages involved in the production and distribution of a product. They can also be geographically dispersed, with different stages of production taking place in different countries.

Commodity chains often involve multiple actors, such as producers, suppliers, manufacturers, distributors, retailers, and consumers. Each actor in the chain adds value to the product as it moves through the various stages of production and distribution.

Commodity chains can have social, economic, and environmental implications. They can impact labor conditions, income distribution, and environmental sustainability. Understanding commodity chains can help identify opportunities for improving working conditions, reducing environmental impact, and creating more sustainable products.

Overall, commodity chains are essential for understanding the global economy and how products are created, distributed, and consumed on a global scale.