Is Your Business Ready for an EU Food System Stress Test? 🚨🔍

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Read time: 3 minutes 46 seconds

Hello Innovator 👋,

Welcome back to our latest edition, where we tackle one of the hottest topics in the food tech universe: the resilience and challenges of the (EU) food system.

With the recent global upheavals, the war in Ukraine and the new round of Israeli-Palestinian conflict, ensuring food security is more critical than ever.

Let's dive and see what are actionable opportunities that can help your business not just survive, but thrive in these unpredictable times – watch out for the opportunity emoji 🌟

1. [Insight]: Is Your Business Ready for an EU Food System Stress Test? 🚨🔍

Unveiling the Fragility of Our Food Systems 🚨

Remember the early days of the pandemic when supermarket shelves were bare? In Germany, we even ran out of toilet paper – who knew it would become the ultimate symbol of crisis?

That was just a glimpse. The COVID-19 pandemic has pulled back the curtain on just how fragile our global food systems are. Labour shortages, transportation hiccups, and disrupted supply chains have exacerbated the situation, leaving many struggling.

In 2024, these issues persist due to additional challenges such as climate change, geopolitical instability (thanks Putin 😖), and rising energy costs, further complicating efforts to stabilize food supply chains and ensure food security. The EU is feeling…and feeding the burden.

When we look at individual EU countries, such as Germany, we see that the self-sufficiency rate for fruits and vegetables is 23% and 36%, respectively.

This means that the country cannot meet its own needs and must rely heavily on imports, making it vulnerable in essential categories like fruits and vegetables.

Conversely, for meat and dairy products, Germany has a self-sufficiency rate of 124% and 108%, respectively, indicating an overproduction in these areas. Not very future-proof!

When we look at self-sufficiency across the EU, some countries fall short in certain areas. But thanks to the common market and strong trade relations, EU nations can support each other. This cooperation boosts overall self-sufficiency rates beyond what individual countries can achieve alone.

For example, the EU hits 116% self-sufficiency in cereals and 142% in olive oil. The real strength of the EU lies in its ability to balance out each country's weaknesses through cooperation, ensuring a stable food supply across the region.

While the EU is largely self-sufficient in many agricultural products, it is not immune to food security challenges. The EU's ability to produce its own food remains robust, but affordability and distribution are ongoing concerns. Factors such as the Russia-Ukraine conflict have further disrupted agricultural markets and increased energy costs, impacting food prices and availability​.

If our food system is fragile, it also poses a risk for businesses operating in the food sector across various supply chains, as they depend on imports and other external factors.

🌟How can you as a business tackle this? It's time to shake things up and make your supply chains more resilient:

• 🌍Think about spreading your bets by working with multiple suppliers from different regions. This way, you're not putting all your eggs in one basket and can better handle any global hiccups. 👥

• 📊Use smart software, like Hypersonix, to keep an eye on your inventory levels in real-time and use predictive tools to spot potential supply chain bumps before they happen. 🤖

• 🏭Where economically feasible, consider investing in and changing to local production facilities and partnerships, at least as a backup. This means less reliance on international shipping and more control over your supply.

During the pandemic, companies like Crowdfarming, an EU-based platform connecting consumers directly with farmers, managed to maintain a steady supply chain by relying on local European producers.

On the other hand, companies heavily reliant on international supply chains faced significant disruptions.

This happened, for instance, to Kraft Heinz, who experienced supply chain issues due to their dependence on imported ingredients and packaging materials.

This led to product shortages and delays in production, and they just couldn’t ketchup 😏 with the demand!

I've come up with something fun for you... Check out this ABCD of Food System Resilience framework to ensure your business can withstand any challenge. 🌟

Regularly revisiting the ABCD principles can fortify your business against crisis situations, making sure you're always prepared. 🌱✨

2. Fast Snacks

Happy Day,
Lia

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