The food economy needs to be rebuilt.
Africa – and the rest of the world – is facing a food crisis. Shortages caused by supply chain disruptions emanating from the COVID-19 pandemic and Ukraine-Russia conflict have amplified long-term challenges to the sustainability of global food production, including: population growth, climate change, and increased reliance on resource-intensive farming.
It is not mere ideology to assert that the nature of global food production and distribution must change. It is a simple matter of facts and figures, inputs and outputs, as well as supply and demand. Our Megatends research has underscored the long-term impact of climate change and demographic shifts on global food security and, linked to this, cost of living, poverty and social (in)stability.
“Today, the world needs to treat food security and affordability as critical issues for global prosperity and well-being. Just as agriculture was a key building block in the post-Second World War era of reconstruction, our food economy needs to be rebuilt again. This time it should be done sustainably.”
Thankfully, change is happening across the food production value chain.
The good news is that sustainability concerns are increasingly understood and recognised across the African continent. Food producers and their partners are beginning to look at new sustainable agricultural practices, regulators are beginning to shape new requirements, and consumers are calling for change.
Our report ‘The sustainable food revolution: Future-proofing the world’s food supply’ considers several levers that the food industry can pull to meet the expected future demand for nutrition in a sustainable way without significantly increasing food prices. These include 1) avoidance of food losses in the supply chain, 2) cleaner/greener methods of food production, and 3) food substitutions at consumption level.
In this blog, we highlight five points associated with the first two categories: avoidance of food losses and greener production methods. To add regional context, we also include some relevant African examples.
PwC is well positioned to help you take action
Revising the status quo of food production not only helps reduce risks related to climate change or supply chain disruptions. Adapting now helps food players prepare for a world where food production and supply evolve very rapidly, including new production models and viable new markets.
The current crisis is so profound that change is inevitable. Yet food industry stakeholders still have a choice: it is the choice of making changes now on their own initiative, or merely waiting until they have to react to external pressures.
The food industry needs to optimise across a complex landscape covering procurement, production, storage, transportation, and consumption, as well as shifting expectations on environmental and social justice. Each stakeholder needs to think about their part in this change and how to maximise impact.
PwC is well positioned – and has the required capabilities and expertise - to lead the farm-to-fork transformation of the food industry in Africa.
Frans Weilbach
Partner | Assurance and outgoing Africa Agribusiness Leader, PwC South Africa
Tel: +27 (0) 82 571 3227