There is little doubt
that climate change will cause serious supply chain disruptions over
the next few decades. And egg producers won't be exempt from the
problems. Despite persistent denials by climate change sceptics, the
connection between human behaviour and the warming of our planet has
been well established.
Carbon dioxide emissions between 1850 and 1950 amounted to an
average of 2 billion tonnes per year. During the 1980s this rose to
7.1 billion and by 2020 it's estimated to reach 9.8 billion.
Freak weather events caused by these changes are triggering
unexpected commodity shortages and price volatility as well at causing havoc
with many farming operations. This creates unprecedented supply chain
instability and introduces new levels of risk and uncertainty into
markets.
Only those farm and other businesses that can adapt will survive.
Stable supply chains in the future will depend on action being taken
at multiple levels to reduce greenhouse gas emission and mitigate
climate change.
Most businesses currently externalise the cost of natural
resources, creating a distorted picture of financial performance and
business value. It can be demonstrated that many of the ‘services’
provided by the environment and which are essential for long term
viability, are not factored into mainstream financial reporting.
The pressure on business to correct this distortion through True
Cost Accounting is growing—a system in which the monetary value of
natural resources such as water, timber and fossil fuels are included
as costs that are reflected in the bottom line.
If True Cost Accounting is accepted as a normal business tool, and businesses pay for their use of natural resources, market
dynamics will drive businesses to reduce their dependency in order to
survive.
Production at Freeranger Eggs is aimed at sustainability and we
believe we are well placed to meet an uncertain future – although
there are bound to be problems from time to time with feed shortages
and cost increases.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment