According to the UN Food and Agriculture Organisation’s forecasts, world food production must increase by 70 percent by 2050 in order to feed a human population then likely to be 9.1 billion.
According to the Millennium Ecosystem Assessment approximately 60% of the ecosystem services evaluated are being degraded or used unsustainably.
The degradation of ecosystem services clearly has impacts for the long-term viability of the food supply chain. This can pose a number of risks which according to the Natural Value Initiative, including:
Operational risks:shortage and cost of raw materials directly used for the final products manufacture, disruptions to business operations caused by natural hazards.
Regulatory risks:emergence of new governmental policies (taxes, moratoria or rationing) as regard to activities related to ecosystems and biological resources.
Reputational risks:company image and reputation more exposed to media and non-governmental organisation campaigns, shareholder resolutions and changing customer preferences.
Financial risks:more rigorous investment and lending policies of the financial community taking into consideration dependency on biodiversity or growth potential reduction due to natural systems decline.