Water Stress and Immigration

Welcome back, Food Junglers. The US presidential election is on the horizon with both candidates’ food policies getting scrutinised. Elsewhere, climate change and supply chain disruptions are stalling progress on malnutrition. Let’s dig in.

This week:

🌊 Water scarcity is fast becoming the next big, global issue.

⚖️ Donald Trump’s immigration plan could make food more expensive.

☕️ Starbucks is using nostalgia to fuel success.

⛑️ Malnutrition worsens in African countries.

🍫 A major chocolate company does a little bit of good for farmers…

CLIMATE
GLOBAL WATER STRESS

Three new independent studies, published last week, have concluded that the global food supply is under threat, as much of what we eat is concentrated in countries that are experiencing extreme water shortages.

The Global Commission on the Economics of Water, for example, has stated that 50% the world’s food production is in areas where water availability is projected to decline.

Solutions for the problem include plugging leaks with dams, reducing food waste, restoring wetlands and setting corporate targets for sustainable water use.

ZOOMING OUT: It looks like water stress will be the next big issue as the biggest food and commodity producers – Brazil, China, and Southern Africa – are experiencing their worst droughts in decades. Europe, too, is under increasing pressure, as global warming affects vegetable yields.

POLICY
AN FLAWED IMMIGRATION PLAN

In a recent election rally, Donald Trump threatened mass deportations of undocumented migrants in the United States. Economists and immigration advocates all say, however, that the entire US food supply would suffer if that were to happen.

The Center for American Progress estimates that nearly 1.7 million undocumented workers labour in some parts of the US food supply chain.

If those workers were to be deported, the labour supply in agriculture would be reduced by 16% and prices in the sector would rise by more than 10% for the foreseeable future.

ZOOMING OUT: If Trump’s plan to unceremoniously deport 11 million undocumented migrants succeeds, there’s no predicting how food prices will rise, especially with inflation already affecting consumer spending.

And, with hurricanes on the east coast damaging farmland, a deportation plan seems risky.

BUSINESS
BACK TO BASICS

Starbucks’ CEO, Brian Niccol has expressed his desire to rethink the company’s product offerings by focusing on selling premium coffee, something for which Starbucks initially became successful.

As a result, the coffee giant will no longer be offering excessive promotions and discounts to lure inflation-weary customers.

The world’s largest coffee chain by location and sales will be emphasising their handcrafted, premium coffee, while promoting their seasonal drinks through advertising. On top of that, Niccol aims to create a more welcoming environment by changing the layout and design of the stores.

ZOOMING OUT: After numerous labour union disputes, PR nightmares, and discount frenzies, I’m curious to see what Niccol has planned. And it seems as though he wants to remind customers of Starbucks’ initial appeal: a home away from home with awesome coffee.

SUPPLY CHAIN
EXHAUSTED, STRESSED, AND HUNGRY

According to a new study by the United Nations Children’s Fund, nearly two million children may die of malnutrition, as a specific product used to treat the condition is in extremely short supply.

Four countries – Mali, Nigeria, Niger, and Chad – have exhausted their supplies of the peanut-based, high-nutrient product, called ready-to-use therapeutic food, or are on the brink of doing so. Another eight nations may also run out by mid-2025.

Severe acute malnutrition, or wasting, can result from poor nutrition during gestation and in infancy, limited access to safe drinking water, and infection. Currently, severe acute malnutrition affects an estimated 19 million children under the age of 5 worldwide.

ZOOMING OUT: Despite a global desire to solve malnutrition, civil war, climate change, and economic downturns have completely disrupted supply chains. Until something is fixed, hunger emergencies will continue to affect around 400,000 children per year. 

THE BRIGHT SIDE
CHOCOLATE FOR THE BETTER

Despite the turbulence the world is going through at the moment, I’m glad to see that even some of the biggest companies are doing their small part to make the food supply chain more sustainable

Chocolate giant – Hershey – has signed a five-year agreement with nine cocoa cooperatives in the Ivory Coast, as part of its $500 million “Cocoa For Good” strategy that aims to improve the livelihoods of cocoa farmers in the area.

As part of the agreement, Hershey will invest into community-based resources so that cocoa farming can be “professionalised”, rather than a product of unorganised cooperatives, and farmers can support themselves in spite of inconsistent harvests.

Of course, my hope is limited to the visible change I see, as I’m frequently sceptical of corporate initiatives for sustainable growth. Nonetheless, this is a step in the right direction. Food Jungle approved ✅ 

BEFORE YOU GO…

• Boston-based chef, Barbara Lynch, is closing all her remaining restaurants.

• Major US food retailers have issued a nationwide recall of ready-to-eat meals due to a potential Listeria outbreak.

• Nestlé has announced significant organisational changes to streamline operations and enhance decision-making processes.

• Pork giant - Danish Crown - is set to cut approximately 500 salaried positions to address a financial crisis.

• The European Court of Justice (ECJ) has stated that France’s proposal to ban ‘meaty’ names for plant-based foods would disrupt EU harmonisation.

• Denmark’s government will allocate at least $2.2 billion to green research and innovation until 2030.

TAKE A BREAK

If you’re interested in some quality ORIGINAL journalism on what’s been going on in the food industry, look no further than Green Queen.

Founded in 2011, by Sonalie Figueiras, the team looks to analyse and discuss the latest news in food, from cultivated meat to food waste. Thoroughly recommend! 🤩