Deloitte: Food Supply Chain Overhaul for Sustainable Future
By 2070, the global population is anticipated to near 10 billion, necessitating a 40% surge in calorie production to satisfy growing demand.
However, this increase must be achieved in a manner that is environmentally sustainable.
A Deloitte report highlights the urgent need for a comprehensive transformation of the global food system, emphasising the critical role of food supply chains in enhancing food security, minimising environmental impact and generating substantial economic benefits.
Reinforcing production and supply chains
The analysis by Deloitte reveals that a sustainable transition could amplify global food production by 9.2%, equating to an additional US$22tn in output over the coming decades.
This enhanced production, projected to deliver 1,030 trillion additional calories in 2070, could ensure adequate nutrition for an extra 1.6 billion people.
Such progress will only be possible through collaboration among sectors, including finance, technology, production, supply chains and government.
“The way we have historically increased food production is no longer viable,” said Dr. Pradeep Philip, Partner at Deloitte Australia.
Continued reliance on current methods will only exacerbate hunger and increase food prices, which is unsustainable.
Pradeep added: “Feeding the world sustainably requires large-scale, fundamental change. Across every part of the global economy, we must align our goals and objectives to transform our food systems, whether through investment in agricultural research and development, protection of our land, water and ecosystems or continued decarbonisation efforts.”
Equity for low-income regions
Lower-income regions like Sub-Saharan Africa, Southeast Asia, Oceania and South America stand to benefit the most from such sustainable transformations.
These areas could experience a 12% GDP increase and a rise of up to 626 additional calories per person daily by 2070.
“The world is facing a burgeoning ‘polycrisis’ of our global food system, given that the combination of climate change, biodiversity loss, a strain on finite resources and smaller harvests significantly hinders our ability to feed the world sustainably,” explained Randy Jagt, Deloitte Global Future of Food leader.
Transforming our food system with a sustainability focus not only addresses these challenges but also aids populations that are currently most impacted by food insecurity, enhancing their resilience.
The consequences of inaction
The potential cost of failing to act could reach US$190tn globally by 2070. This includes a US$13tn decline in the value of primary food sectors like crops, livestock, dairy and fisheries.
Moreover, food manufacturing and services might incur losses amounting to US$12tn. Without proactive measures, agricultural land may expand by 13%, threatening essential ecosystems and further depleting natural resources.
“COP29 is a pivotal moment for global leaders to come together to weigh the significant costs of inaction on climate change, which could have tremendous impacts for both human well-being and the global economy,” said Jennifer Steinmann, Deloitte Global Sustainability Business leader.
Investing in sustainable food systems presents an opportunity to alleviate malnourishment, conserve resources, and mitigate climate change. Achieving sustainable food production is a global imperative, demanding immediate and cooperative efforts across all regions.
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