We’ve all heard about it before – the infamous risk behind global warming. But how might this risk affect fresh produce supply in the years to come? One supermarket chain in the United Kingdom is already claiming that 95% of its fresh produce is at risk from climate change and it could be getting worse as time goes on. How will this data and research affect suppliers and retailers globally?
Asda, a UK grocer owned by Wal-Mart, brought in consultants PwC to map its entire global fresh produce supply chain against the models being used by the Intergovernmental Panel on Climate Change, according to The Guardian. Chris Brown, Asda’s Senior Director for Sustainable Business, claimed that the impacts from climate change are already being felt and will get progressively worse. Supermarkets are already making a concerted effort to manage supply risks because of the danger global warming poses. Brown notes that while these results show that supermarkets need to start thinking strategically about the implications of these risks, it is unlikely there will be a shortage of products on shelves. However, that does not necessarily mean we should not care about the impacts global warming can have.
“I am not sure the shopper will recognize much difference as there will be strategic investments to manage weather implications, for example, growing salad crops under cover,” said Brown. “The ingenuity and capacity of the supply chain to cope will insulate consumers, but we cannot be certain which is why we need to make these studies and review the implications.”
Although Asda is already taking steps to review its fresh produce selection and assessing better water management strategies, it seems that it’s more important than ever for retailers to keep track of their global fresh produce supply chain. Never before has data like this been so illuminating to illustrate how much global warming is affecting produce.
The U.S. Environmental Protection Agency states that although warmer temperatures may make crops grow more quickly, they could also reduce yields. According to this graph below, “extreme weather events have caused significant yield reductions in some years.” With California’s drought now affecting 100% of the state, more research may need to be done to find what impacts the supply chain will feel. Could we see an increase in prices, for example?
U.S. Environmental Protection Agency
Just to reiterate, Wal-Mart said that 95% of its subsidiary's fresh produce supply is affected. How much longer can Asda go on before its entire supply chain is affected? It's crazy to think we've gone on for so long without noticing. Hopefully this study will continue shedding light on global warming and fresh produce. Stay tuned to AndNowUKnow as we continue following any new updates on the fresh produce supply chain and global warming impacts.
