What is commodity chain?

A commodity chain is a network or system of interconnected activities and processes involved in the production and distribution of a particular commodity or product. It includes all the stages of production, from raw material extraction to manufacturing, distribution, marketing, and ultimately consumption.

Commodity chains can be complex and involve multiple actors and organizations, including producers, suppliers, manufacturers, retailers, and consumers. These chains often span across different countries and regions, with each node in the chain adding value to the commodity before it reaches the final consumer.

Commodity chains can also vary in terms of their structure, with some chains being highly centralized and controlled by a few key players, while others may be more decentralized and involve multiple smaller producers and suppliers.

The concept of a commodity chain is often used in the study of globalization and supply chain management, as understanding the dynamics of commodity chains can help businesses and policymakers make more informed decisions about production, distribution, and consumption processes. It can also shed light on issues such as labor rights, environmental sustainability, and economic development in different parts of the world.