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Food Sector's Resilience in the Face of FLOOD CHALLENGES

Proactive Measures and Collaborative Solutions in the Food Industry

Nature & climate risks

Agriculture, aquaculture & fishing

Publication date: 16 March 2024

By Xarina David

eye4b.com

AT A GLANCE

  • Rising flood risks due to climate change affect 23% of the global population, especially in low and middle-income countries.

  • Key players in the food industry maintain resilience through risk modelling and engineering methods.

  • Sustainable farming and regenerative agriculture solutions emerge as key diversification sourcing strategies.


Climate change and unplanned urbanization in flood zones are likely to further drive up flooding risks and damages, which exacerbates vulnerabilities in global agri-food systems. The World Bank estimates that 1.81 billion people or 23% of the world population, mostly from low and middle-income countries, are directly exposed to significant flood risk (flood depths greater than 0.15 meters in a 1-in-100-year flood event). there is an urgent call for the food sector to adapt and implement mitigation strategies to build resilience against anticipated damages, prevent loss of livelihoods, and safeguard food security.

Flood Preparedness Measures

Top businesses leverage risk engineering to ensure that construction of their facilities will be resilient against floods, hurricanes, and storms. Costco uses flood barriers, raises building foundations, and implements watertight panels as precautionary measures. Similarly, Seven&iHoldings installed watertight panels in their stores to prevent flooding. In preparation for anticipated disasters, Walmart conducts facility walks, roof checks, and pre-stage resources and mobile generators in the expected path of the storm.

Supply Chain Resilience

Ahold Delhaize buys property damage and business interruption insurance for weather-related events to minimize financial losses. They prefer producers and cooperatives investing in greenhouses suitable for regenerative agriculture. Ahold Delhaize and Costco reduce sourcing disruption risks by partnering with many producers and strategic partners in various locations, employing risk modeling to improve volume planning and supply chain resilience.

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Sustainable Farming Practices

 

To combat climate threats, agricultural methods are adjusted to safeguard crops against increased flood, drought, and erosion risks. Ahold Delhaize Belgium sells zero-kilometer products from rooftop urban farms. Carrefour supports suppliers shifting to organic and humane farming. Woolworths Group engages in projects like Regenerative Management Systems in New Zealand and the Australian Sustainable Agriculture Initiative to identify effective regenerative practices for their supply chains.

Community-level Disaster Efforts

Walmart, Aldi, and Woolworths Group have actively participated in providing relief efforts, such as donations of food, funds, and essential supplies to communities affected by floods, storms, and hurricanes. Woolworths Group also financially support affected local growers to aid them in the recovery process. By working together with communities and non-profits, they contribute to supporting short- and long-term recovery, complementing public sector efforts.

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FURTHER READING

  • Flood risk affects 1.81 billion people ( World Bank)
  • IPCC Sixth Assessment Report ( IPCC)
  • The Impact of Extreme Floods on Business Operations ( Tomorrow.io)