Friday, November 1, 2024

Supply Lines: Losing farm workers

Climate change isn't just making it harder to grow food, it's also preventing workers from collecting it.A record 512 billion potential hour

Climate change isn't just making it harder to grow food, it's also preventing workers from collecting it.

A record 512 billion potential hours of labor were lost globally due to high temperatures in 2023. Agriculture was the hardest hit, accounting for 63% of those lost hours, according to the latest edition of the Lancet's study of climate and health.

Since farm workers are typically based outdoors, they're more vulnerable to heat exposure — with those in less developed countries even more so. They're also often among the world's poorest and least resilient to major economic shocks.

That's exacerbating food insecurity and undernutrition at a time when climate change is reducing crop yields, straining access to water and disrupting supply chains, the eighth annual Lancet Countdown on health and climate change report warned. It's not just a problem on land — global warming also compromises marine resources by affecting things like oxygenation and ocean acidification.

"No individual or economy on the planet is immune from the health threats of climate change," said Marina Romanello, executive director of the Lancet Countdown at University College London.

Representing the work of 122 global experts, the report also showed that the impact of heat waves and drought on food security has continued to rise. Some 48% of the world's land area was affected by at least one month of extreme drought last year, the second-highest level ever recorded.

More frequent heat waves and droughts caused 151 million more people to experience moderate to severe food insecurity in 124 countries in 2022, than annually between 1981 and 2010.

Tackling Shortages

Labor shortages for fruit pickers to meat packers and restaurant staff — something that was a huge problem during the Covid pandemic — have plagued food supply chains and contributed to inflation. Technological advances have seen more robots helping out on farms, but their uptake is still fairly limited so growers are looking for different solutions.

Take blueberries, for example. Labor accounts for up to half of a grower's blueberry cost price. As labor becomes even more challenging, producers will have to resort to things like growing varieties that are bigger or detach more easily, or extending seasons, according to Rabobank.

"Machine harvesting is undergoing a steep learning curve and must align with the orchard structure and variety grown," Rabobank analysts including Cindy van Rijswick said in a report this week. "If all these factors are addressed, it will become successful. The question is when."

Agnieszka de Sousa in London

Charted Territory

Bird flu | Dairy farmers in California are grappling with a steadily advancing outbreak of avian flu in their herds — a problem few of them want to talk about publicly, but that none of them can afford to ignore. Bird flu has been reported in more than 170 herds in California since late August, with the state accounting for nearly half of all US cases detected in dairy cows since the outbreak began in March. California produces more milk than any other US state. While the outbreak hasn't yet led to shortages, that could change if the flu continues to spread. (Read the full story here.)

Today's Must Reads

  • Donald Trump plans a mass deportation of undocumented immigrants if he wins back the White House. Such a policy would make food inflation even worse.
  • Salmon farmers in Norway should put in place measures to deal with the impact of jellyfish on their fish stocks, the country's regulator has warned.
  • A shift in lifestyles, such as wasting less food and eating more plant-based meals, is key to getting the world on track to meet the Paris Agreement commitments, according to a study published Wednesday.
  • McDonald's sales plummeted following news of E. coli infections linked to the chain's Quarter Pounders.
  • Starbucks will discontinue its lineup of olive-oil drinks as the company moves to tame its sprawling menu. 
  • The US is set to become the largest export customer of Minerva, the leading South American beef supplier, eclipsing China.  
  • It has been six years since the restaurant world's most famous names assembled in Copenhagen to plot the future of their industry. But in May, chef Rene Redzepi and nonprofit MAD will reconvene them for the return of its seminal symposium.
  • Peak beef could already be here, argues Bloomberg Opinion's David Fickling. For climate doomers and denialists alike, this is good news in the quest to rein in emissions.

On the Bloomberg Terminal

  • More than a quarter of active-duty troops meet the Agriculture Department's definition for food-insecure, according to an April report by the department's economic research arm, Bloomberg Government writes. 
  • A startup trying to break through traditional agriculture by selling more climate-friendly seeds to farmers is one step closer to its goal, Bloomberg News reports.
  • Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
  • Use the AHOY function to track global commodities trade flows.
  • See DSET CHOKE for a dataset to monitor shipping chokepoints. 
  • For freight dashboards, see {BI RAIL}, {BI TRCK} and {BI SHIP} and {BI 3PLS}
  • Click HERE for automated stories about supply chains.
  • On the Bloomberg Terminal, type NH FWV for FreightWaves content.
  • See BNEF for BloombergNEF's analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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