Between COVID and the war on Ukraine, farmers in emerging markets are facing a new set of challenges amidst considerable chaos. The costs of energy, farm inputs, and loan interest rates are going up globally. As a result, farmers are having to address the challenges of increasingly expensive operations against the backdrop of climate change, which will continue to have a negative impact on major cereal crops in Africa, Asia, and South America.
However, as the saying goes, in chaos there is opportunity, and this could be true for farmers in emerging markets. There are significant economic and regulatory pressures on financiers and corporate buyers to help develop more resilient agriculture supply chains, generate lower carbon footprints, and support sustainable landscapes and food systems. International corporate buyers are also reviewing their procurement strategies and developing deeper long-term sourcing relationships with their suppliers, who are committing to adopting climate-resilient practices in exchange for improved purchasing terms. These practices are often tied to reduced carbon emissions, deforestation, and improved water and soil management.
Paul Faeth, Global Technical Director for Climate & Energy, Abt Associates
Manuel Bueno, Director of Climate Finance, Abt Associates
Songbae Lee, Agricultural Finance Team Lead, United States Agency for International Development (USAID)
José Pugas, Partner & Head of ESG and Agribusiness, JGP Crédito
Caroline Staub, Climate Adaptation Specialist, Abt Associates