Dutch food industry vulnerable to climate change

The Dutch food industry, with an annual procurement exceeding thirty billion euros in agricultural raw materials, faces considerable challenges due to global climate change. This global purchasing exposes companies in the food sector to increasing climate-related risks.

A significant portion of these agricultural raw materials are sourced from countries outside the European Union, like Brazil for grains and Ivory Coast for cocoa. These countries are not only vulnerable to climate change but often also experience high trade concentrations. Other key ingredients for the Dutch food sector, such as palm and coconut oils, follow this same trend. Furthermore, the Netherlands plays a pivotal role in the transshipment of coffee and cocoa, which are also sourced from a limited number of countries. The growing conditions for these crops are becoming increasingly challenging, directly impacting the food industry. Research indicates that Dutch consumers consider coffee an indispensable part of their diet.

Emphasis on climate risk management

Food producers have recognized the need to prepare for the consequences of climate change. These preparations are crucial given the risk of failing to meet supply contracts, potentially leading to customer dissatisfaction and reputational damage. The CSRD legislation, mandating companies to report their climate risks, highlights the importance of these challenges. By conducting impact analyses, businesses can identify vulnerable raw materials and adapt their production processes flexibly to use alternative ingredients. This approach offers better risk management and can also provide competitive advantages. More and more purchasers, like supermarkets, are evaluating producers based on supply reliability, consistent quality, and environmental performance.

Looking to the future

The report 'Climate Change: An Increasing Risk for Food Producers' provides a thorough analysis of the challenges facing the Dutch food industry. It addresses the impact of climate change on global agriculture and its specific effects on Dutch producers. It also offers insights into potential strategies to address these challenges and analyzes consumer behavior regarding climate change. This report is essential reading for anyone involved in the food industry.

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