
Chocolate industry faces mounting supply threats from global warming: Report warns
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
an hour ago
- Business Recorder
Financial markets: another volatile week ahead?
Switzerland is the next nation to make headlines following the impact of Indian imports under 'reciprocal tariff' pressures. The Trump administration's imposition of a 39 percent import tax on Swiss products is the highest seen, contributing to a nearly 38-40 percent deficit for the US. The estimated effective tariff rate in the US stands at about 19 percent. This situation has exerted stress on the Swiss Franc, which fell before partially recovering over the weekend. The new tariff on Swiss imports is approximately 2.5 times greater than that levied on goods from the European Union. In response, the Swiss President quickly traveled to Washington to negotiate a potential deal aimed at protecting key industries, including chocolates, watches, gold and machinery. But returned without any agreement. Backdoor talks are underway. However, the gold sector is particularly impacted, as possible tariffs on 1 kg gold bars threaten to disrupt Switzerland's substantial gold refining business. This development underscores the need for further clarification on the matter, particularly because futures in New York depend on Swiss gold bars, the primary source of gold bars. The market is currently awaiting a response from the White House regarding whether an executive order might ease the situation. Switzerland is actively pursuing diplomatic measures to resolve the crisis, which largely hinges on Washington's willingness to offer some form of relief. Tariffs continue to be an unresolved topic with countries like China, Japan, Canada and India, an issue unlikely to be settled soon, potentially affecting the global financial system until it is resolved. On the US economic front, the past week has been relatively quiet in terms of data releases. Nonetheless, the ISM service figures published last week fell to 50.1, indicating a decline in the Us economy as it approaches the crucial 50 benchmark, below which signifies contraction. The outlook remains discouraging as business activity, confidence, new orders, and employment are all on the decline. This week, the market will focus on the US consumer price index (CPI). Following a disappointing jobs report that indicated a decline in employment, combined with strong labour productivity, concerns about stagflation are rising. Furthermore, the tariff rates that the US has implemented on its trading partners are currently in effect, showing signs that the economy is benefiting financially from these actions. However, the full impact of the tariff costs on US importers has yet to be felt, as there is typically a lag time. This situation poses risks to growth while potentially driving inflation higher. Another significant development on the horizon is President Donald Trump's anticipated meeting with Russian President Putin to discuss the ongoing war in Ukraine, although the date and location of this meeting remain unknown at this point in time. In the meantime, as expected, the Bank of England (BoE) has slashed its rate by 25 basis points from 4.25 percent to 4 percent. A 5-4 vote indicates that policymakers are concerned about inflation exceeding target levels. Future cuts are likely to be postponed until next year, as the BoE waits for clearer signals until inflation subsides. This week, the market will seek more clarity on the US tariffs regarding gold bar imports from Switzerland. While there are claims from the White House labeling reports about gold tariffs as 'misinformation,' official clarification is still necessary. Market participants will also be monitoring updates regarding the potential Trump-Putin meeting. Initially, these two factors are expected to affect gold prices. Beginning Tuesday, the market will closely track the release of US economic data. On Wednesday, some Fed officials will be speaking at key events. Thursday will bring data on the US producer price index and jobless claims, while Friday will see announcements on US retail sales, the NY Empire State Manufacturing Index, and the preliminary Michigan consumer sentiment index. Overall, the financial markets are likely facing another volatile week ahead. WEEKLY OUTLOOK — Aug 11-15 GOLD @ US$ 3398— After witnessing some volatility, the market may be poised for another chaotic week. If gold surpasses the US$ 3430-35 range, the next target to keep an eye on is US$ 3455-60. On the downside, a drop below US$ 3372/75 could lead to further declines. Upside momentum is likely to persist as long as tariff and geopolitical uncertainties prevail. However, any reduction in uncertainty will lead to fall in gold prices. EURO @ 1.1640— Euro might gain some strength. If it breaks past 1.1710, it could pave the way for a rise to 1.1760. Support is found near 1.1570, which should hold firm. Otherwise, we may see a drop to 1.1520. GBP @ 1.3451— Pound Sterling is anticipated to see further gain towards 1.3525-35. A breakthrough at this level would suggest a move toward 1.3590-00. Support at 1.3350 is expected to remain intact, but if it doesn't, we may see a decline to 1.3290. JPY @ 147.73— The $/JPY pair finds solid support at 146.40, which is expected to hold for the upward movement. A break above 148.90 would boost confidence toward reaching 149.50. Or else watch for 145.80. Copyright Business Recorder, 2025


Business Recorder
2 hours ago
- Business Recorder
Remittances — from lifeline to leverage
Pakistan's remittance inflows in Jul-25 reached $3.21 billion, up 7.4 percent year-on-year, though 5.6 percent lower than June's $3.4 billion due to seasonal normalization after the end-of-fiscal surge. The growth marks a strong start to FY26, following FY25's record $38.3 billion in remittances—a 27 percent increase from the previous year that even exceeded total export earnings. According to the State Bank of Pakistan, Saudi Arabia remained the largest contributor in July with $823.7 million, followed by the UAE at $665.2 million (including $456.8 million from Dubai), the UK at $450.4 million, the EU at $424.4 million, the US at $269.6 million, and other GCC countries including Qatar, Oman, and Kuwait contributing $296 million. This distribution underscores the continued reliance on Gulf-based labour migrants while highlighting steady inflows from Europe and North America, reflecting a diversified base that now includes professionals, students, and freelancers alongside traditional workers. Several factors have supported recent inflows. A crackdown on hundi/hawala networks and money laundering has made formal banking channels more attractive, while a more competitive exchange rate has reduced incentives for informal transfers. Rising income from freelancers and Pakistan-based professionals working remotely for foreign companies has also added to the inflow, offsetting stagnant outward migration as some Gulf states tighten work visa quotas. Despite their importance in shoring up foreign exchange reserves and easing the current account, remittances remain vulnerable to external job markets, oil prices, and host country policies. Heavy reliance on them also risks a 'Dutch Disease' effect—drawing labour into low-productivity sectors like construction, boosting imports, and delaying the structural reforms needed to enhance export competitiveness. Seasonal peaks, such as around Eid or the fiscal year's start, can mask underlying volatility, while shifts in the global economy or slower Gulf growth could quickly put inflows under pressure. This is why policymakers must view the current remittance windfall as a strategic opportunity rather than a permanent cushion. Maintaining the enforcement environment that channels inflows through formal means is necessary, but not sufficient. The real imperative is to channel these funds into productivity-enhancing investments—expanding value-added manufacturing, upgrading skills, and integrating into global supply chains. July's performance is encouraging, but the measure of success will be whether the country can convert this inflow into long-term resilience, reducing dependence on a revenue stream that is ultimately shaped by forces beyond its control. Copyright Business Recorder, 2025


Business Recorder
a day ago
- Business Recorder
Euronext wheat rises on short-covering
PARIS/HAMBURG: Euronext wheat rose on Thursday, boosted by short-covering in front-month futures and spillover from an export-fuelled rebound in Chicago. September wheat on Euronext settled 1.9% higher at 197.50 euros ($229.81) a metric ton, after approaching a contract low earlier this week. December wheat ended 1.6% up at 201.50 euros a ton, recovering from a contract low of 197.50 euros on Wednesday. A large short position held by investors has prompted short-covering in September futures in the run-up to the expiry of options next week, according to dealers. Chicago wheat rallied around 2% to rebound from a five-year low, encouraged by higher than expected weekly US export sales that countered supply pressure from Northern Hemisphere harvests. 'US wheat is very competitive during this first phase of the new marketing year and American exports are buoyant,' commodity data firm Expana said in a report. The firm, which has acquired consultancy Strategie Grains, increased its estimate of the European Union's ongoing wheat harvest while raising its outlook for EU wheat exports. However, it lowered its EU maize crop forecast for a second month due to harsh weather in southeast Europe.