
Chocolate industry faces mounting supply threats from global warming: Report warns
Listen to article
Climate breakdown and biodiversity loss are exposing the European Union to mounting risks in its food supply chains, with cocoa imports at the heart of what experts have called a 'chocolate crisis,' a new report said on Tuesday.
The analysis by UK-based consultancy Foresight Transitions found that more than two-thirds of key food imports into the EU in 2023 came from countries ill-prepared for climate change.
The study mapped Eurostat trade data against environmental readiness scores from the Notre Dame Global Adaptation Index and biodiversity rankings from the UK's Natural History Museum.
It identified six key commodities – cocoa, coffee, soy, rice, wheat and maize – as particularly vulnerable.
Cocoa stood out as the most exposed. The EU sourced nearly 97% of its cocoa imports from countries with poor climate preparedness and 77% from nations with degraded biodiversity.
'These aren't just abstract threats,' said Camilla Hyslop, lead author of the report. 'They are already affecting prices, availability, and jobs — and it's only getting worse.'
Most cocoa comes from West African nations, where rising temperatures, unpredictable rains, and biodiversity decline are combining to stress farming systems.
The report argued that large chocolate manufacturers should invest in climate adaptation and biodiversity protection — not just as a sustainability effort, but as a risk management strategy.
'This is not an act of altruism,' the report noted, 'but a vital derisking exercise.' Ensuring fair prices for farmers, it added, would allow investment in climate resilience on the ground.
EU maize and wheat imports were also heavily reliant on countries with medium to low environmental readiness, according to the study. Maize was especially vulnerable, with 90% of imports coming from countries with poor climate scores.
Environmental experts warn the trend undermines the EU's assumption of food security.
'This paints an extremely worrying picture,' said Paul Behrens, a food systems expert at the University of Oxford. 'The EU likes to think of itself as self-sufficient, but the data show deep dependencies on fragile ecosystems abroad.'
The report, commissioned by the European Climate Foundation, also flagged concerns around coffee, soy and rice.
Uganda, for example, which supplied 10% of the EU's coffee last year, scored low on climate readiness and biodiversity intactness.
Ugandan coffee farmer advocate Joseph Nkandu called for increased access to international climate finance to help smallholders cope with erratic weather patterns.
'The weather in Uganda is no longer predictable,' he said. 'Our coffee bushes are suffering from prolonged dry spells and unseasonal rains.'
Oxford researcher Marco Springmann, who was not involved in the report, said deeper reform of food systems was needed.
'Resilience isn't just about stabilising current supply chains,' he said. 'We also need to move away from overreliance on crops like soy, which are primarily used to feed livestock.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
5 hours ago
- Business Recorder
US fund taps Pakistani tech duo with $10mn to lead startup investment initiative
The JR Dallas Tech Fund has announced $10 million investment to Pakistani technology leaders Mehwish Salman Ali and Malik Mudassir, entrusting them to inject the fund into exclusive US-focused startup investment initiatives, Business Recorder learnt on Friday. 'Under this landmark agreement, Ali and Mudassir will receive $10 million in dedicated capital to identify, evaluate, and invest in high-potential startups planning to scale operations in the United States. The duo will serve as lead investment partners with full authority to deploy capital across artificial intelligence (AI), cloud computing, digital health, and frontier technology ventures,' a press statement read. 'We are entrusting $10 million to two of the most visionary technology leaders of our generation,' said Jehangir A. Raja, Managing Partner at JR Dallas Tech Fund, which is the premier private investment arm of the US-based JR Dallas Wealth Management. Forbes Technology Council: Pakistani-origin Mehwish selected as member The two Pakistani technology leaders are running their offices in Karachi and Lahore. They represent 'perfect combination of technical expertise, entrepreneurial success, and strategic vision needed to identify the next generation of game-changing startups ready to conquer the American market,' Raja added. Mehwish Ali is a founding CEO of Data Vault that is claimed to be Pakistan's first solar-powered and quantum-encrypted AI data center. She is a co-founder of Zahanat AI, the country's first indigenous GPT model, and COO of AppsGenii Technologies. She is a TEDx speaker and Forbes Technology Council member. Mudassir is founding CEO of AppsGenii Technologies, operating across the US, UK, and Pakistan. He is a co-founder of ventures including GharPar, BoxesGen, and Dental Connect. He is also a member of the Central Executive Committee at P@SHA (Pakistan Software Houses Association). According to the statement, the $10 million fund operates under a rigorous investment framework designed to maximise both financial returns and economic impact. Startup Neem enters logistics space with Leopards Courier Services partnership The investment is targeted to be in the range of $250,000 to $1.5 million per startup. The investment should be focused in the sectors like AI/machine learning, cloud infrastructure, digital health, quantum computing and cybersecurity. The investor is aimed at investing the entire fund into 15-20 select companies over a period of two-year in the US-focused projects. The funding is projected to enable portfolio companies to create direct jobs, generating 300-500 high-skilled technology positions within 24 months. Strengthening Texas as a hub for international tech talent entering the US market. Accelerating breakthrough technologies in AI, healthcare, and cloud infrastructure. 'Portfolio companies (are) projected to contribute $50-100 million in US economic activity within three years,' the statement read.


Business Recorder
7 hours ago
- Business Recorder
Russian Urals oil to India sells at narrowest discounts since 2022, traders say
MOSCOW/NEW DELHI: Discounts for Russian flagship Urals crude oil for delivery to Indian ports in July hit their narrowest levels since 2022 as spot supplies have tightened, four traders involved in the market said on Friday. Narrowing discounts and tight spot supplies are nudging Indian refiners to scout for alternatives through buying tenders. Spot discounts for Urals crude narrowed to $2.25 per barrel on average for cargoes arriving in India in July, from $2.70 to $3.10 per barrel to dated Brent on delivery ex-ship (DES) basis in the previous month, the sources said. That is the narrowest discount for Urals oil cargoes sold to India since the Ukraine war broke out in 2022. India became the largest buyer of Russian seaborne crude after Moscow diverted its energy supply away from the European Union which imposed a ban. India's GAIL sells LNG cargo as early monsoons cause weak power demand, say sources Some Indian refiners which do not have long-term supply agreements with Russian oil companies are not getting enough Urals oil in July, the sources said. India's largest private refiner, Reliance Industries, locked in a term supply contract with Russian oil giant Rosneft last year, which reduced the availability of Urals in the spot market, they said. Russian oil traders cited higher demand for the grade from refiners in Turkey, which has recently increased buying, boosting competition with Indian refiners over the supply. Turkey's largest oil refiner, Tupras, resumed buying Urals in April after stopping earlier this year, because of tougher U.S. sanctions on Moscow. Two of the traders also said improving refining margins globally also helped boost Russian oil demand as refiners are eager to increase crude runs. India remains the biggest buyer of Russian Urals oil by sea, with imports hitting a 10-month high in May.


Business Recorder
7 hours ago
- Business Recorder
EU open to lowering tariffs on US fertilisers in trade talks
BRUSSELS: The European Union is open to lowering tariffs on U.S. fertiliser imports as an offer in trade talks with the Trump administration, but will not weaken its food safety standards in pursuit of a deal, EU agriculture commissioner Christophe Hansen told Reuters. 'That is definitely an option,' Hansen said, of reducing U.S. fertiliser tariffs. 'That will be on the table. And I think that would be a huge way forward, and an offer as well to the U.S.,' he said in an interview with Reuters on Thursday, adding that whether that would mean zero tariffs, or a reduction of current rates, would need to be negotiated. U.S. exports face the EU's standard tariffs of 5.5% on imports of ammonia, and 6.5% on nitrogen fertilisers, as well as an extra 29.48 euro-per-tonne anti-dumping duty on U.S. urea ammonium nitrate (UAN). UAN comprised around three quarters of EU imports of U.S. fertilisers last year, EU trade data shows. Thyssenkrupp Steel Europe: US tariffs have limited impact but put pressure on trade Reducing tariffs could boost Europe's purchases of U.S. fertiliser, to fill a gap as the EU cuts supplies from Russia. Around 24% of the EU's nitrogen fertiliser imports came from Russia in 2023, while the U.S. accounted for 8%, EU data shows. 'I believe most of the Europeans would prefer buying fertilizers from the U.S. than from Russia,' Hansen said. The EU will hit nitrogen-based fertilisers from Russia with tariffs rising to 100% over three years, a level that would effectively halt annual trade flows currently worth 1.3 billion euros ($1.5 billion). Hansen said the EU was also open to discussing increasing its purchases of hormone-free beef from the U.S., and a deal to have zero-for-zero tariffs on EU and U.S. wines. But he said the bloc would not compromise on its stringent food safety standards as it seeks a deal. 'I don't see room for manoeuvre to roll back our high quality standards. But of course, on other points, on other products, we are very open to negotiations,' Hansen said.