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The global food system is under pressure—and it’s forcing a structural rethink. In this video, FoodIndustry.com breaks down why the traditional food supply chain is evolving into a closed-loop Food Value System, and what that shift means for farmers, manufacturers, retailers, and consumers. Razor-thin margins, rising operating costs, digital disruption, and increasingly values-driven consumers are pushing food companies to move beyond linear, transaction-based supply chains. In their place: collaborative value loops focused on efficiency, data-sharing, resilience, and long-term alignment. In this video, we cover: Why the traditional supply chain model is breaking under cost and complexity How the Food Value Chain differs from a logistics-first supply chain Where the consumer food dollar actually goes—and why farmers see so little of it The financial reality of grocery retail at scale How digitization, automation, and e-commerce are reshaping food economics Key insights explored: Value Chain vs. Supply Chain: A value chain emphasizes collaboration, shared incentives, and social alignment across producers, processors, distributors, and retailers—while supply chains focus primarily on cost, volume, and logistics. The Food Dollar Breakdown: Of every $1.00 spent at the grocery store, farmers receive about $0.155. The remaining ~$0.845 funds processing, packaging, transportation, marketing, and retail operations. Retail Margins in Context: Even with over $1 trillion in U.S. grocery sales in 2024, average net margins sit around 1.7%, leaving little room for inefficiency. The Efficiency Imperative: Digitization is no longer optional—self-checkout now accounts for roughly 35% of transactions, and online grocery orders average $108, more than twice the in-store basket size. This shift toward a Food Value Loop isn’t just about technology—it’s about survival, alignment, and rethinking how value is created and shared across the entire food ecosystem. Subscribe for more analysis on the forces reshaping the global food industry. CHAPTERS: 0:00 Where Your Grocery Money Really Goes 0:43 Why Farmers Only Get 15.5 Cents Per Dollar 1:15 Food Supply Chain vs Food Value Chain 1:55 How the Food Value Loop Works 2:37 Why Grocery Stores Have Razor-Thin Margins 3:52 Why Food Transparency and Story Matter