Impact of Climate Change on agricultural production : Paben Foods case study

Abstract

With new weather patterns each year, it has become more and more challenging for farmers to maintain a consistent supply. This not only poses risks to communities but also agriculture-based business such as Paben Foods. Paben food’s main ingredient are chili, garlic and onions that are all highly sensitive to temperature changes. Studies have showcased that although the food industry has been impacted by climate change and are aware of the risks, they do not see it as an immediate concern. This paper shows that Paben foods’ suppliers in Thailand and India have been negatively affected by climate change. Additionally, from 2020 onwards, India is expected to start producing lower yield of chili as temperatures rise above optimum levels. The paper’s recommendation for Paben Foods is to invest in R&D, build a climate change adaptation strategy, together with industry stakeholder spread awareness on the concerns. And most importantly, practice robust supply chain strategy to protect themselves from unforeseen risks, such as hedging contracts, negotiating contract terms, diversifying supplier etc.