Analysis: Corporations Are (Finally) Starting to Invest in Resilient Food Supply Chains
The rising cost of the weekly trip to the grocery store, which just hit a 40-year high in the U.S., does not start and end at the supermarket.
Global food supply chains are only as resilient as the 500 million smallholder farmers who produce up to 70% of the world’s food and $1.5 trillion worth of major commodities like cocoa and coffee.
Smallholders are having to contend with the pandemic and the ripple effects of the ongoing conflict in Ukraine. They are also facing the most direct consequences of climate change. In the past 50 years, climate change has lowered global agricultural productivity by an estimated 21%, and by up to 34% in Africa and Latin America.
For companies to de-risk supply chains, reduce volatility in food prices, and achieve the ambitious livelihood and sustainability goals many have set, they must invest in smallholder resilience strategies that successfully reduce climate vulnerability in the long term.
The good news is that regenerative agriculture–farming practices that help restore ecosystems and reduce carbon emissions–can shore up smallholders against shocks and stresses, enabling them to continue and grow their operations and livelihoods.
Photo courtesy of CDG.