We already produce 1.5x of the world’s food demand.
Yet, 800 million people still remain and suffer from chronic states of malnutrition.
Either due to active or passive behaviour some industries will see their supply chain displaced and in need of reorganisation.
We already experienced a shortfall in distribution and logistics that has led to worldwide hunger. Now we need to be prepared that, in the mid term, we will also be impacted by yields and production capabilities, food security, and ever increasing challenges with a seamless global distribution network.
As of 2016 more than 800 million people were suffering from chronic undernourishment and this is under a reality where we are already highly efficient and produce roughly 1.5x the world’s population needs.
What will happen when yields decrease due to localised climate change?
In a post COVID world, should we utilize the same rational for comparative advantages and production optimisation? Or do we need to start to factor in de-globalization and carbon neutral initiatives?
There is a need to simplify the supply chain and reduce the dependencies on the typical production spots. Although they are more efficient on a standalone basis, when put together with supply chain shocks, they become problematic.