The food industry is paramount to human life, as the supply chain helps provide for the growing population that is about to reach ten billion by 2100. The expansion effects might lead to challenges in healthcare and infrastructure and even trigger a disease outbreak along with severe climate change.
Unfortunately, the supply chain is also in trouble due to overpopulation, as demand will increase, and supply must be provided. Considering the difficulty of maintaining a stable supply chain in our current times, the future calls for a new model of economic growth that can support an increasing level of necessities.
Life expectancy is on the rise, meaning nutrition contributes to lengthening one’s life. However, sometimes health is below profit and sustainability, which is why the food system is heavily challenged. Let’s see what is one of the trickiest situations that require change in the food sector this year.
Image source: https://unsplash.com/photos/person-slicing-tomatoes-h_s7AUBPss8
Presidential elections might affect foreign suppliers
2024 is a monumental year because presidential elections are happening around the globe. The European Union, the United States of America and India are some of the biggest economies whose elections will occur in 2024, but also in the Russian Federation, Ukraine and South Africa.
Depending on the candidates’ policies, the economic climate and political polarization, the supply chain might be in danger of risks and disruptions, as well as uncertainty in trade policies. The costs and flow of imported and exported products might change if newly elected individuals come up with new trade agreements or want to alter foreign relations. At the same time, if regulations and labor laws will change, the cost of production and worker availability will automatically differ.
So, it’s best to prepare yourself depending on which region you live in because the presidential elections might trigger various disruptions in the supply chain. In some cases, it would be a good idea to expand your area of research for your favorite products. For example, you may choose a different cocoa manufacturer that might not be implicated in your country's political state.
Red Sea conflicts affect global trade
Attacks in the Red Sea considerably affect global trade between Asia and Europe. More precisely, the Suez Canal, which is used as the shortest maritime route between the continents, has now reduced traffic, which has made most companies take the path by the Cape of Good Hope, adding ten or more days for usual deliveries.
The volume of trade in this area decreased by half in only a few months, which may concern supply chains in the affected countries and trigger an increase in inflation due to massive shipping costs. These situations have influenced import growth in countries like Africa, the Middle East, and Europe and have slowed down recently.
Still, companies are prepared better because the situation is similar to what happened during the 2020 global pandemic disruption and the blockage of the Suez Canal in 2021. Businesses have a better inventory balance and consider consumer demand when handling disruptions, so you may still be able to access products from your favorite nuts supplier, but just in a different form. However, you should still expect some shipping to take longer than usual.
China’s economic problems will affect exporters
China, one of the leading world economies, had a rough year in 2023, and experts forecast that 2024 will follow the same route. The property crisis and high young unemployment put a toll on the economy, as previous bad decisions, such as massive amounts of liquidity and the zero-Covid policy, contributed to decreasing trust in Chinese companies.
But the effects of a declining economy will be felt throughout the world, as China is the number one exporter. The supply chain will be challenged, as exporters like Australia, Brazil, and even Africa will notice a slowdown in production. At the same time, the country is known for its massive infrastructure investments overseas, helping other economies grow to make trading more efficient and strengthen foreign relations.
What’s sure is that many of the Chinese products we use today might not be provided at the same rate as before, such as rice, mushrooms, garlic and fish.
Global climate change is worsening
Climate change reached worrying stats, so we should expect 2024 to be hotter than any previous year. Considering that 2023 was settled as the hottest year on record, we should expect the worst to happen. These aggressive temperatures will affect farmers and ranchers, as drought and floods affect crops, while warmer water will influence the quality and availability of seafood.
Many factors of climate change affect the food sector, such as the following:
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The increasing CO2 levels can lower yield and reduce some crops’ proteins;
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Floods and droughts will finder crops’ growth;
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Warmer and wetter climates will trigger weeds, pests and fungi;
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Livestock will be affected by heat stress, low feed supplies and more parasites;
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Marine diseases will also burst;
Unfortunately, the effects of continuous pollution and waste will threaten food security. Availability, access and quality will be altered by climate change, especially in developing areas, where there are limited resources to cope with extreme weather and climate variability. Current statistics show that one in ten people barely have access to food, leading to inevitable deaths and illnesses.
Are there any ways to restore food availability and quality?
Handling this issue implies several factors of governmental policies and consumer behaviors. Generally, by reducing food waste, conserving water, and taking care of the soil, nature might replenish, and the economy can stand again. Still, these practices must be adapted for each country but established on a global scale to be truly efficient. Lastly, an economic reevaluation might be needed.
Only challenges ahead in the food industry in 2024
2024 is an important year for most of us, as presidential elections happen everywhere, and they will decide our future while ongoing conflict outbursts from where we expect less. Hence, we should expect food disruptions this year, as transportation channels are affected, global economies are getting weaker, and climate change is worsening by the year. However, hope should not be lost because technology and sustainability might help control the situation.
