Climate Change is a Major Threat to Food and Beverage Supply Chains
The impact of climate change on global food and beverage supply chains, including popular snacks like Doritos, was discussed at the Gartner Supply Chain Symposium/XPO. Concerns were raised about the availability of key ingredients such as corn, sunflower oil, dairy, and salt, which have been affected by droughts, geopolitical conflicts, and disruptions. To minimize the impact of climate change, supply chain professionals are advised to advocate for climate awareness, handle potential disruptions, collaborate with stakeholders, and implement preventive planning measures.
The global supply of corn is decreasing due to droughts, while the war between Russia and Ukraine has disrupted the supply of sunflower oil. Dairy supply chains have been affected by droughts and labor costs, leading to an increase in milk prices. The demand for salt, used in processed foods, has risen but faces supply disruptions. Gartner suggests a four-step approach, dubbed CHIP, which involves climate advocacy, handling disruptions, involving others, and preventive planning, to mitigate the impact of climate change on supply chains and avoid a world without Doritos.
Chick-fil-A's recent announcement about a shift in their chicken policy might surprise some fans.