Based on conversations with entrepreneurs, we outline in a number of practical examples how these companies respond to the consequences of climate change in their supply chain.
1. Potato, fruit and vegetable companies look to deepen relationship with growers
The fact that there are clear climate risks in the cultivation of crops is emphatically evident in discussions with companies that process potatoes, fruit and vegetables. Apart from diversifying sourcing, another recurring strategic choice is to seek closer cooperation with growers. On the one hand, this cooperation provides a better insight into the state of the crop on the land; on the other, it helps them to make plans together on how they can reduce their vulnerability to the negative effects of climate change (such as drought).
2. Dried fruits and spices: climate change affects quality and increases the need to diversify suppliers
Subtropical fruits, nuts and spices are good examples of products that often come from outside Europe and find their way to companies in the food industry, such as bakeries and meat processors via trade. One of the dilemmas posed by climate change is that farmers are more likely to face higher disease pressure due to the combination of wetter and warmer weather. To secure their harvest, they will be more inclined to use more pesticides. However, this increases the risk that raw materials no longer comply with strict European residue directives, which in turn leads to a smaller suitable supply. For food producers and trading companies, good contacts with alternative suppliers in the same region or elsewhere are often very valuable.
3. The fishing industry sometimes sees fish move to other areas and can create markets for new species
Adapting to changing conditions is a constant for many fish processors and wholesalers. Companies in the Netherlands have broadened their scope to include other species such as salmon and cod, pangasius, tilapia and tropical shrimp. As a result, purchasing has become much more geographically dispersed. Furthermore, the strong growth of farmed fish has also made supply more predictable. As seawater warms, fish populations adapt, for example by migrating. Since farmed fish do not have the freedom to migrate to cooler waters, more research is being done into what higher water temperatures mean for farmed salmon and cod. These insights influence both the working methods and the location of aquaculture companies.
link