EIT Food: Financing supply chain transitions key to averting impending global F&B crises

Whistleblowers within the UK’s biggest food producers, manufacturers, and retailers flagged an “interconnected set of crises” in an anonymous memo earlier this week, warning that degrading soil health, water scarcity, and climate change pose imminent and unique threats to the country’s food security.

The group, known as Inside Track x Food, warned that growing volatility in agricultural yield, quality, and supply in critical sourcing regions is bound to impact British F&B businesses.

“These concerns are not new, and actors across the food system have long been calling for urgent, practical mitigation action from policymakers and investors to address threats to food security,” says Ilario Ingravallo, mission lead, Reducing Risk for a Fair and Resilient Food System, EIT Food, as he discusses pathways to ensuring supply chain resilience against climate-induced disruptions with Food Ingredients First.

He draws attention to a 2024 project called Food Alert, which “stress-tested” Europe’s food system by simulating a food crisis, focusing on external triggers and shocks caused by severe climate change.

Food Alert found that more shocks to the EU food system are inevitable and emerging at faster rates and shorter intervals. It also noted that the EU should aim to reduce livestock production to lower its dependence on feed imports in the short and long term and use agricultural land more effectively. Moreover, the project report underscored resilient trade links as crucial for diversifying supply, given the state of geopolitics.

“Practitioners across policy, industry, academia, civil society, and media concluded that EU-level political action is needed for short-term crisis preparedness and longer-term crisis prevention, ” says Ingravallo.

The “ripple effect” of climate change

Ingravallo explains that climate change-induced disruptions in one region can affect price and availability for both local producers and global consumers.

For example, the memo highlighted that droughts in Spain have directly impacted Britain’s ability to source salads, tomatoes, and broccoli. At the same time, cocoa, coffee, and sunflower oil supply chains have come undone due to inflation and geopolitical tensions.

For F&B businesses, prioritizing regenerative agriculture is crucial to building secure supply chains.

“Adopting regenerative agriculture practices has huge potential to restore soil health, improve water efficiency, and sequester carbon, increasing resilience against climate impacts. Businesses can also work toward diversifying their supply chains — particularly, investing in protein diversification, which can help lower environmental impact, reduce import reliance, and improve food security.”

However, resilience doesn’t hinge on single business interventions alone, Ingravallo asserts.

“We need a more interconnected approach, which is not only about transitioning from singularly extractive production toward regenerative models but also about changing what food we produce and where and supporting dietary shifts that alleviate stress on food value chains.”

He says that a lack of collaboration across food networks is one of the most significant gaps in the current industry strategy for attaining long-term food security. A holistic approach is necessary to innovate at the required pace and finance the transition to a sustainable food system.

“Insufficient investment in sustainable agriculture remains a major challenge. This recent memo emphasizes that the investment community has not adequately addressed the scale of food system risks. Addressing these gaps requires an approach that integrates sustainability, robust risk management, and clear leadership.”

Start-ups tackle soil and water woes

Ingravallo notes that some start-ups are helping address “the most pressing challenges” of soil degradation and water scarcity “from the ground up.” He mentions Deep Planet, which uses AI to help farmers monitor and manage soil health. Co-founder and CEO Sushma Shankar sat down with Food Ingredients First last year to unpack how the machine learning platform enables the agri-food industry to address environmental outcomes.

Ingravallo notes that some start-ups are helping address “the most pressing challenges” of soil degradation and water scarcity.“Its technology leverages satellite imagery and learning to provide insights into key indicators such as soil carbon, moisture levels, and crop maturity. This enables farmers to make more informed decisions that improve soil resilience and optimize inputs like water and fertilizers,” shares Ingravallo.

Another UK-based start-up, Elaniti, uses AI and bio-based solutions to decode the soil’s microbiome and offer tailored insights to farmers.

“This helps farmers move away from synthetic chemical inputs commonly used in conventional agriculture, such as chemical fertilizers and pesticides. Instead, it promotes natural alternatives that support soil health and reduce environmental harm,” says Ingravallo.

“In collaboration with EIT Food, Elaniti is also exploring how soil microbiomes impact early crop establishment — a crucial factor in improving crop resilience and reducing the risk of early failure.”

While systemic changes within the agri-food sector are urgent, Ingravallo says regulatory progress remains “slow and inconsistent” despite some advancement.

“More rapid and consistent action is required to fully address the complexity of climate risks and achieve resilience in food systems. By embracing innovation, fostering collaboration, and channeling greater investment into the transition, the sector can ensure long-term food security and sustainability,” Ingravallo concludes.