Weather Disruptions Force a Food and Drink Supply Rethink

High-impact weather events are a structural threat to the food and drink industry's logistics. Floods, storms and unseasonal tropical systems are becoming increasingly regular disruptions for supply chains, rather than isolated threats.

Going forward, it is clear that businesses must now take preparatory steps to build resilience.

Storms in Asia, floods in Europe and droughts in the Americas have caused port closures and manufacturing delays in 2025, and climate scientists are warning that this turbulence will become constant as global temperatures rise.

A DP World report highlights the scale of the issue, noting that 93% of perishables cargo owners have faced climate-related disruption in the last three years.

Climate volatility is reshaping food distribution

The challenges have been spread wide this year. A recent DP World report found that 76% of perishables cargo owners faced crop shortages, while many were affected by droughts impacting the Panama Canal and low water levels in the Rhine.

Alfred Whitman of DP World states that climate volatility is reshaping food distribution. He notes the sector feels pressure more often and with less warning, upending traditional routes.

He calls for earlier risk insight, more predictable movement and stronger cold chain infrastructure to ensure reliable delivery from producer to consumer. The impact is already clear in key commodities.

Globally, coffee and cocoa face disruptions from droughts and flooding, leading to supply issues and price hikes.

Production of coffee and cocoa under threat

Brazil, a major coffee producer, suffered from both wildfires and floods, while Vietnam, the top robusta producer, is recovering from drought.

Consequently, world coffee prices jumped by 40% in 2024. Projections suggest rising temperatures could halve the land suitable for coffee growing by 2050.

The cocoa industry faces similar issues. In the Ivory Coast and Ghana, heavy rainfall spread disease, followed by drought. These disruptions caused cocoa prices to soar by 136% between 2022 and 2024.

Sir Dave Lewis of WWF-UK warns that ecological tipping points are being surpassed, making extreme weather the norm. He stresses that building resilience requires system-wide collaboration as no single company can tackle these threats alone.

Building resilient food and drink supply chains

To mitigate risk, businesses must build resilience by addressing the whole value chain, including emissions. Companies can adopt sustainable fuels, electrify fleets or use renewable energy.

These changes decrease greenhouse gas emissions. Tackling Scope 3 emissions, which make up over 90% of a retailer's total, is crucial. Better data tracking and transparency can help businesses adjust their operations.

Embedding risk management into core operations is key. Practical steps include:

• Mapping climate risk across all suppliers
• Diversifying supplier networks to reduce regional dependency
• Increasing buffer stock for critical items
• Creating port and routing contingency plans
• Using advanced tools for better visibility and forecasting

Adopting these practices will help businesses navigate an unstable climate and secure the future of the food and drink supply.