Despite the world’s ability to produce enough food for everyone, hunger remains a significant issue. Every year on October 16, World Food Day serves as a global reminder to address food insecurity and its root causes, encouraging individuals to take meaningful action. This year’s theme is “Right to Foods for a Better Life and a Better Future.”
Key statistics from Thought for Food and Second Harvest underscore this crisis:
- Approximately 1 in 10 people globally are undernourished
- 3 billion individuals cannot afford a healthy diet
- 1/3 of total food production is wasted, which could feed an additional 2 billion people
This indicates the issue lies not in food scarcity but in its inefficient distribution. As World Food Day approaches, let’s discuss disruptions that contribute to the hunger crisis and how resilient supply chains ensure access to healthy food for all.
Empowering farmers with the future of agribusiness through AI
With the advancements in AI and machine learning across various sectors, agrifood companies have become essential in addressing supply chain inefficiencies. These innovative leaders are leveraging advanced technologies to create solutions that improve food distribution networks.
A prime example is KWS Saat, the world’s fourth-largest seed manufacturer, which has embraced digital transformation throughout its logistics value chain – from seed production to delivery. This approach allows for real-time data capture and analysis, optimizing operations and enhancing supply chain efficiency. By employing data from drones and sensors, KWS can improve logistics and ensure timely seed delivery to farmers. This collaborative intelligent agriculture not only streamlines planting processes but also promotes sustainability and efficiency in producing high-quality seeds.
Supporting farmers, particularly small and medium-sized ones, is a big win for the agribusiness sector. By fostering digital connections and collaboration among these farmers, they can boost their competitiveness and create a more reliable income stream through better crop planning.
How can real-time data help us reduce waste?
FAO estimates that 30-40% of total food production is lost before it reaches the market leading to significant resource waste – labor, water, and energy.
If we could save just one-fourth of the food that is lost or wasted globally, it would be enough to feed all of the world’s 870 million hungry people four times over. Plus, this substantial food loss not only deprives those in need but also contributes to environmental issues like deforestation and greenhouse gas emissions.
Agranimo, a Chilean startup partnered with SAP, utilizes data from climate and soil sensors along with satellite imagery to offer farmers actionable insights. By integrating data from climate and soil sensors, satellite imagery, and weather forecasts, the startup enhances the decision-making process for farmers, ultimately leading to more sustainable agricultural practices.
This includes reducing water usage and fertilizer application, which not only saves costs but also lessens environmental impact. For example, insights might include optimal irrigation schedules, timing for pesticide application, and assessments for frost damage.
This innovative method makes informed decisions that enhance productivity and optimize water and fertilizer usage, improving pest management strategies for sustainable agricultural practices.
Supply chains are the backbone of food distribution
Not just during production but also due to inadequate storage, inefficient transportation infrastructure, and refrigeration can cause food loss at various stages of the supply chain.
Fonterra, a New Zealand dairy distributor working with over 10,000 farmers, has consolidated seven distribution centers into a single temperature-controlled facility that accommodates various types of dairy products during storage and distribution. This system enables the freshness and safety of perishable items such as cultured products with short shelf lives, as well as longer-lasting items like cheese and milk during storage and distribution processes.
Achieving global food security necessitates a collective effort focused on improving supply chain management. As more companies embrace new technologies, governments, NGOs, and consumers demand more transparency the industry is evolving towards a future where technology significantly contributes to creating a smarter and greener agricultural landscape. Together, we can work towards a future where everyone has access to healthy and sustainable food.
To learn more about how to get on the sustainable path to a risk-resilient supply chain, download the Oxford Economics Report: “Five Supply Chain Strategies to Achieve Resiliency and Avoid Risk”
