The agri-food complex must become more resilient. This is stated by the Food and Agriculture Organization (FAO) of the United Nations in a recent report. “The corona pandemic highlights both the resilience and the weakness of our food system,” said Director-General QU Dongyu during the presentation of the State of Food and Agriculture report. Diversification is the key word for the future.
The Food and Agriculture Organization of the United Nations (FAO) presented the State of Food and Agriculture (SOFA) last week. The food organization says the world is not on track to eliminate 'hunger and malnutrition' by 2030. According to the report, approximately three billion people worldwide cannot afford a healthy diet. An additional one billion people could be added if their incomes fall by 33%. Problems in the logistics chain in particular pose a threat to the agri-food complex.
Logistical chaos
And let it be precisely that sector that has remained disrupted this year. “The coronavirus pandemic highlights both the strengths and weaknesses of the agri-food system,” said the director-general of the Food and Agriculture Organization. "Historically, food production and supply chains have been vulnerable to climate extremes, but the problem is that the frequency and severity of these 'shocks' are increasing. The agri-food complex needs to become more resilient," he said during the presentation of the report.
While low-income countries generally face greater challenges, middle-income countries are also increasingly at risk. This is what the report reads. The organization cites Brazil as an example, where 60% of the export value comes from only one trading partner. The options for 'shocks' that affect the supply chain are therefore small. The same problem also applies to countries such as Australia and Canada, where incomes are high. "For half of the countries, closing network connections would increase transport time by at least 20%, driving costs and food prices up."
Diversification and Connectivity
"Without proper preparation, unpredictable shocks will continue to undermine agri-food systems," the report said. That's why it's so important to stay resilient, according to the Food and Agriculture Organization. "It has to become a strategic part of the policy." Diversification is the keyword here. Think of diversification of input sources, production, markets and supply chains. Good connectivity helps. "Networks that are well connected are better able to cope with disruptions by shifting supply sources and channels."
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