Research paper The sustainability of the supply chain for fresh potatoes in Britain K. Vasileiou and J. Morris Cranfield University, Silsoe, UK Abstract Purpose – In the context of increased interest in the sustainability of food supply chains, this paper aims to assess perceptions of the relative importance of economic, social and environmental factors as they influence decision making by growers, merchants and retailers, using fresh potatoes in Britain as a case study. Design/methodology/approach – Following exploratory interviews with key informants, a two-staged survey of 240 potato growers, 17 potato merchants, and four retailers was carried out to assess perceptions of sustainability. Data analysis used a range of non-parametric statistical methods. Findings – Economic and related market factors associated with staying in business and maintaining competitive advantage were the dominant concern for all supply chain participants. Greater importance, however, is now given to social and environmental factors both as influences on decision making and as indicators of business performance. The social capital of the supply chain, as it describes relationships amongst participants, is an important moderator of business uncertainty. Environmental performance, measured in terms of the use of natural resources and the risk of pollution, is driven by a mix of compliance requirements and perceived market drivers. Research limitations/implications – This research design was constrained by limited access to objective verifiable quantitative data, in part due to commercial confidentiality. Practical implications – This paper confirms the relevance of sustainability criteria to measure and report supply chain performance. Originality/value – This paper measures perceptions of sustainability as it affects business decisions in the supply chain. It confirms the need for a set of objectively verifiable indicators to guide and report supply chain performance. Keywords Economic sustainability, Social factors, United Kingdom Paper type Research paper Background There is increasing debate at international, national and local levels about the consequences of development which fails to reconcile the often conflicting objectives of economic growth, social progress, protection of the environment and prudent use of natural resources. This concern finds expression in the concept of Sustainable Development which attempts to determine how the needs of the present human generation can be met without compromising the ability of future generations to meet their needs (WCED, 1987). Sustainability attempts to balance the three components of development which define the quality of human life in the broadest sense, namely: economic, social and environmental objectives (OECD, 1997; DETR, 1999). In this context, questions have been raised about the sustainability of food production for human consumption, especially regarding the the degradation of natural resources, environmental pollution, potential health and safety risks associated with intensive farming. At the same time, overall decline and increased volatility of farm profitability has negatively affected employment and livelihoods in rural areas (Plowden, 1996; Skinner et al., 1997; Pretty, 1998; MAFF, 2000; Pannell and Glen, 2000; PCFFF, 2002). For these reasons, the UK Government, for example has adopted broad measures of agricultural sustainability which go beyond conventional performance indicators (MAFF, 2000). Furthermore, environmental protection has become a key compliance requirement as a condition for farm income support, as well as a central feature of voluntary (LEAF, 1997; Defra, 2003) and market based quality assurance schemes (Assured Produce, 2004; Red Tractor, 2004). To be consistent with its underlying principle, any assessment of sustainability must apply to the supply chain as a whole, rather than any one part of it. Otherwise, for example, the benefits of improvements in the environmental performance of farming systems (where most of the focus in the food supply chain has been to date) could be lost if subsequent processing or distribution stages result in increased waste or environmental risk. For this reason, The current issue and full text archive of this journal is available at www.emeraldinsight.com/1359-8546.htm Supply Chain Management: An International Journal 11/4 (2006) 317–327 q Emerald Group Publishing Limited [ISSN 1359-8546] [DOI 10.1108/13598540610671761] The assistance of British Potato Council, Fresh Produce Consortium, and the many growers, merchants and retailers who took time to engage in the study are gratefully acknowledged. 317