The following is an op-ed piece by Giulia Carbone published in Reuters.
Deforestation in Brazil’s coffee-growing region has led to reduced rainfall and soil health, crop drought and lower yields, affecting supply and pricing. This supply chain shakeup is one example of many, as deforestation and its impacts are hitting consumer wallets and company bottom lines.
As C-suites finalise 2026 strategies, they are confronting a risk that doesn’t fit neatly into balance sheets and which is driving up the cost of everyday commodities.
While deforestation has historically been viewed as an environmental issue, healthy forests are the foundation of a stable commodity economy. Forests provide many valuable ecosystem services critical to agriculture, from water filtration to soil health – for instance, healthy soil function is valued at $11 trillion annually – and deforestation is threatening ecosystems’ abilities to deliver these services.
As supply chains for companies reliant on agriculture, forests and water become more volatile, businesses face a tough choice: absorb higher input costs, hurt margins, or pass those costs on to consumers who are already tightening their purse strings.
By 2050, climate change and land degradation are expected to reduce crop yields worldwide by 10% on average – and by up to 50% in certain regions.
Leaders in the food and beverage sector recognise that the industry, whose business models are founded upon reliable agricultural inputs, is facing systemic risks that will only compound as nature degradation continues. Businesses can no longer afford to ignore the risks within and beyond their value chains. 2026 must be a year of action; it’s time to invest in resiliency.
Read more here.
