Providing Food for the Future

Providing food for the future: The role of the food supply chain

The future of food is an increasing concern all over the world. As the global population continues to grow, the effects of climate change are becoming more apparent, and our natural resources are struggling to keep up to the ever-increasing demand.

Food shortages, caused by supply chain disruptions originating from events, such as the COVID-19 pandemic and Ukraine-Russia conflict, have recently amplified long-term challenges and emphasised issues around the sustainability of global food production. Unfortunately, food shortages not only affect global food security but cause increased costs of living, poverty and social instability.

It is estimated that billions of people will not have access to safe, nutritious food by 2050. This would not only be devastating for people in the hardest hit areas, but would have major repercussions around the world.

A significant change is necessary in our food production and distribution systems. But whose responsibility is this?

Increasing pressure to change

Supply chains and the food industry are feeling the pressure and recognising the fact that a change in food production and distribution is required to future-proof the global food supply. They realise the need to commit to more sustainable production methods and avoid food waste, otherwise they won’t be able to meet the expected future demand for nutrition in an eco-friendly way.

Informed consumers also play a role in making this vital change more apparent. Nowadays, consumers want to know about the ethical and sustainable practices of the food producers they get their products from. Without their consumers’ trust, players in the food industry may struggle to develop a solid clientele and maintain a good reputation.

Businesses in the food industry are thus finding themselves at a crossroads. They can either start making the necessary changes on their own by taking initiative, or they can wait until it is forced upon them by external pressures.

Regulatory bodies are already starting to create and implement new requirements to encourage the necessary changes.

Challenges impacting the future of food

It’s clear that creating a sustainable and more robust food system has become a priority. But there are many challenges that need to be addressed.

Climate change

One of the biggest challenges we as a species are facing today is climate change. Growing levels of greenhouse gasses are causing temperatures to rise. This has led to unpredictable weather patterns and more frequent extreme weather events, including droughts, floods, and heatwaves. Shockingly, one-third of greenhouse gas emissions come from food production.

The changes in climates are severely affecting crop yields and food production, putting significant pressure on global supply chains. There is also no real solution to curb the amount of harmful emissions, which means that climates will likely deteriorate further.

Water scarcity

Droughts and heat waves, high-scale industrial farming and increasing populations are putting immense pressure on our water supplies. Sufficient water is essential for the growth and production of nutritious food, which means that its scarcity is another daunting threat to the future of food production.

Population growth

The global population is estimated to reach 9.8 billion by 2050. This means that more food will need to be produced, which will have a significant impact on the environment.

Food waste

One-third of all the food that’s produced goes to waste. This is a sad and worrying statistic. To address the issue of food scarcity in future, we need to talk about and reduce food waste today.

Poor planning, bad handling of fresh produce, and inadequate cooling and storage solutions are only some of the reasons why so much food is wasted. To combat this, we must all start throwing less food away.

Solutions that are being implemented

Thankfully, sustainability concerns are being recognised. Across the globe, players in the food supply chain have started looking into better production and distribution solutions and greener agricultural practices. Regulatory bodies have also jumped in and are starting to enforce stricter regulations, and consumers are starting to do their bit for change.

Regulatory changes

New regulations and standards in the food production sector are forcing companies to start making the necessary changes to operate more sustainably. Annual reporting on their sustainability efforts has become a requirement for both consumers and investors, as the global population is becoming more aware of the food crisis we’re facing. Animal welfare standards and the use of certain fertilisers are only some examples of the metrics that food production companies are now measured by.

Environmental, social and governance (ESG) requirements

With stricter laws and regulations for food production, companies are already impacted. This intensification requires them to adhere to and meet mandated ESG requirements. Companies will now need to be transparent about and report on their ESG performance, and those with low compliancy are less likely to be considered for investment allocations.

Reducing food waste

According to the United Nations (UN), almost 1.3 billion tonnes of the food is lost because of delays and inadequacies during harvesting, distribution, and retail. This is largely due to supply chain underinvestment and the lack of digital technologies. Eradicating these losses would make it possible to feed more than 2 billion people.

To resolve this, food supply chains need to be more transparent. This is further encouraged by the fact that an increasing number of consumers are demanding comprehensive information about the origins of their food, from farm to table.

Organic farms

By choosing to farm more organically, the food supply chain can move towards more diverse and less intensive forms of food production. Organic farms have also come to be more profitable than conventional high-intensity farms. Despite higher labour costs and smaller yields, organic farming is up to 35% more profitable due to the price that organic products go for. More consumers want to know where their food is coming from and are willing to pay for something that was farmed sustainably.

Agricultural Technology (AgTech)

Businesses across the food supply chain are encouraged to embrace technology, especially Artificial Intelligence (AI) and data solutions. Farmers, for example, can be more precise about certain inputs such as water, light, fertiliser, pesticides, and other soil treatments. Ultimately, these inputs can help enhance productivity while at the same time reducing the environmental impact.

AgTech offers many advantages. Imagery tools and AI can help farmers monitor their crops and manage pests better as they can be used to see below the ground, which hasn’t been possible before.

For the transformation from unsustainable to sustainable food production systems to happen, all levels of society must be engaged. Including consumers, policymakers and everybody involved in the food supply chain.

Businesses in the food industry, specifically, should start optimising across production, transportation, and consumption. Each stakeholder needs to think about and take responsibility for their part in this monumental change that’s required, and establish how to maximise their impact.