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  • Published October 3, 2024

Climate Change and How Hectar is Rethinking Global Agricultural Supply Chains

Summary

Climate change is proving to be a more severe threat to global agriculture than initially predicted. The recent El Niño event (June 2023 - April 2024) has given way to an ENSO-neutral period, but extreme weather events continue to disrupt agricultural production worldwide.

Recent Climate-Related Agricultural Disruptions

 

1. Southeast Asia

  • Typhoon Yagi: Caused significant damage across the Philippines, Vietnam, Laos, Thailand, and Myanmar.
  • Vietnam: 262,000 hectares of paddy and fruit trees damaged, particularly in the Red River Delta.
  • Myanmar: Over 260,000 hectares of paddy farms affected.
  • Thailand: 119,488 hectares of main paddy crop impacted by flash floods since mid-July.

2. China

  • Frost threatens corn and soybean crops in the northeastern grain belt.
  • Heatwaves and high temperatures put cotton and paddy productivity at risk.
  • New typhoon heading towards Northeast China.

3. India

  • Excess rains and flooding in key kharif crop-producing states
  • Potential damage to paddy, pulses, sugarcane, and nutri-cereals across nearly half a million hectares.

4. Europe

  • Flash floods affecting multiple countries, including Austria, Romania, Poland, Czechia, Slovakia, Hungary, and Moldova.
  • Grain production lowered by 5% to 296 million tonnes.
  • France expecting its worst soft wheat production in 40 years, down 25% from last year.

5. Africa

  • Nigeria: Over 100,000 hectares of farmlands washed away by floods.
  • Potential loss of over 50% yield in various crops.

6. Other Regions

  • Dry weather in parts of central Brazil, Argentina, eastern Ukraine, and western Russia potentially delaying soybean, corn, and winter wheat sowing.

Implications for Buyers and Importers

  • Anticipated supply shortages across various agricultural commodities.
  • Need for a "China-plus-one" approach to diversify supply chains.
  • Importance of expanding sourcing networks to ensure consistent supply and competitive pricing.

Hectar Global's Role

In this challenging climate, Hectar Global plays a crucial role in:

  • Expanding buyers' reach to new supply sources.
  • Ensuring access to required supplies at competitive prices.
  • Facilitating diversification of supply chains to mitigate climate-related risks.

By leveraging Hectar Global's expertise and network, businesses can better navigate the increasingly complex and volatile global agricultural market shaped by climate change.

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