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Climate adaptation: Ensuring food affordability, availability and production across APAC
Climate adaptation is crucial in Asia where agricultural systems are increasingly affected by climate change.
As climate change intensifies, the agri-food sector across Asia Pacific faces growing challenges to ensure food security, affordability and sustainability. Yet rising temperatures, erratic weather patterns and more frequent extreme weather events, such as droughts, floods and typhoons, pose significant challenges to agricultural productivity. In September 2024, Vietnam and surrounding regions were devastated by Typhoon Yagi, the most powerful storm to hit the South China Sea in 30 years, causing widespread damage to crops and livelihoods.
That APAC is experiencing some of the more severe effects of climate change is significant: the agricultural systems in this region are particularly vulnerable to climate change due to its status as both a major producer and consumer of major stable crops. Much of the world’s rice, for example, is grown in India, China, Thailand and Vietnam, and this presents pressing concerns about the availability of rice and other staple crops which are vital to both the region’s economy and global food supply.
“Due to climate change, 2023 broke records in the number of heatwaves, droughts, wildfires and floods, both in intensity and frequency – 2024 is already exceeding this record,” says Laurence Jassogne, Head of Nature and Climate Solutions, Olam Agri.
“Not only does this have a devastating impact on agrifood systems which threatens the livelihoods of farmers, but the impact is disproportionately more destructive on smallholder farmers in the Global South.”
Amidst these changes, climate adaptation strategies are now more crucial than ever. How can agribusinesses, governments and organizations collaborate to protect farmer livelihoods and ensure the resilience of the entire food system?
The importance of climate adaptation
Rice is a key food staple that supplies one-fifth of global calories intake. Over 90% of the world’s rice is produced and consumed in the Asia-Pacific region.1 Rice is also a source of livelihood for nearly one billion people globally.2
Yet rice is highly sensitive to environmental conditions. As climate patterns continue to shift, rice yields are becoming more unpredictable, threatening both food security and farmers’ livelihoods. Rice is also highly dependent on water, particularly in irrigated systems where paddies are kept flooded to ensure proper growth.
Furthermore, smallholder rice farmers face limitations with accessing crucial knowledge and resources necessary to adapt to climate change and maintain market competitiveness of their crops.
To tackle these challenges, scaling up climate-adaptive agricultural practices and technologies is essential. Techniques such as Alternate Wetting and Drying (AWD) enable farmers to reduce water usage by up to 40%, making them more resilient to drought conditions.3 Additionally, crop diversification reduces reliance on vulnerable crops, opening more income avenues, while natural and tailored fertiliser formulations help farmers lower nitrogen use, leading to cost savings and healthier soil.
These methods not only improve the livelihoods of smallholder farmers but also demonstrate the tangible benefits of climate-adaptive techniques on their land. By adopting these practices, farmers enhance the resilience of their rice farming against climate risks while boosting productivity and income. Scaling these solutions across Asia is vital for ensuring long-term food security and improving the wellbeing of farming communities in the face of ongoing climate challenges.
As governments and businesses align their efforts to create a more sustainable and secure food future for the region, public-private partnerships are playing key roles in driving this transformation.
Building agricultural resilience
Olam Agri recognizes the importance of close collaboration with governments, customers, development agencies, and other stakeholders to build resilient and sustainable practices across the supply chain. Additionally, alliances with the Sustainable Rice Platform and the International Rice Research Institute (IRRI) ensure alignment with international standards for sustainable and responsible production.
One of Olam Agri’s key strengths is its presence across the entire value chain, from working directly with farmers to delivering sustainable rice to consumers. Collaborations with clients like Nice Rice and Westmill Foods drive traceable, sustainably produced rice that meets the rising consumer demand for ethical food choices, delivering full transparency from farm to fork.
As a major rice merchant, Olam Agri is committed to enhancing the livelihoods of smallholder farmers in Asia. Recognising the urgency of addressing climate impacts on rice production, the company has been collaborating with the public and private sectors to implement initiatives that enable the adoption of climate-smart agriculture.
“Our mission is to uplift the lives of the farmers themselves,” says Jassogne. “There is a real need to support the farmers who grow the crops that countries around the world depend on for staple food. We need to ensure the soil stays healthy so that crops grow properly, with quality not compromised, and the farming system is sustainable.”
In Thailand, for example, Olam Agri has introduced training programs that promote sustainable farming practices like alternate wetting-and-drying, laser levelling, and improved nutrient management. These practices have not only helped reduce nitrogen and phosphorus use by 40% and 21% respectively but also significantly lowered GHG emissions.4
In Thailand, Olam Agri’s involvement in the Thai Rice Green Climate Fund (GCF) is helping to benefit over 250,000 smallholder farmers in Thailand by improving income opportunities and reducing environmental impacts.5 These efforts ensure that farmers are not only producing high quality rice but are doing so in a way that protects the planet for future generations.
The integration of new technologies on farms is designed to ease the physical burden on farmers and reduce reliance on chemicals like fertilizers. These innovations not only deliver cost savings and boost profits per harvest, but also help protect crops from the impacts of climate change.
"Take fertilizer optimization, for example. 'It's important to integrate mineral fertilizers with other inputs like compost and biochar to bring nutrients back to the soil and make them more available. This works to reduce the reliance on mineral fertilizers to create a more balanced, sustainable approach,' says Jassogne. “In Thailand, for instance, farmers are tackling the overreliance of mineral fertilizers by using compost from organic farm waste.”
Olam Agri is also involved in the Inclusive Sustainable Rice Landscapes (ISRL) project, which aims to transform the rice production system by helping 45,000 farmers – half of them women – adopt these climate-smart practices by 2027. This approach ensure that farmers can continue to produce high quality rice while protecting the environment and maintaining their livelihoods.
In India, Olam Agri’s Sustainable Rice Project (SRP), launched in collaboration with the International Finance Corporation (IFC) focuses on reducing water usage through wet-and-dry irrigation techniques and introducing climate-friendly technologies like drip systems and laser levelling. The project has reduced water consumption by 15-20% while maintaining rice yields.
The program also helps smallholder rice farmers address gender disparity and other challenges associated with paddy cultivation - the Krishi Sakhi Effect empowers women in agriculture, helping address gender disparities and promoting sustainable farming practices that are key for the region’s future.
“It is a systematic approach that will take years to solve, but we are already seeing positive results,” says Jassogne.
Meanwhile, the Carbon Offsetting Rice Emissions (CORE) project in India enables smallholder farmers to adopt climate-sensitive practices. Olam Agri continues to support these farmers through technical training and partnerships with organizations like the United Nations Environment Programme and the Global Environment Facility.
This approach of integrating innovative climate-smart practices with solid partnerships across the public and private sectors ensures that sustainable rice production is both commercially viable and environmentally responsible.
A nature-positive vision for the future
By measuring its carbon footprint and adhering to climate risk disclosure guidelines, Olam Agri continues to demonstrate its commitment of integrating climate adaptation to its business strategy and future vision. Further, its support of the Task Force on Climate-related Financial Disclosures (TCFD) ensures that its sustainability goals align with global climate targets.
As climate change continues to impact the agri-food sector in APAC, Olam Agri’s work in building climate resilience for farmers is more important than ever. By inviting like-minded partners to collaborate on a journey to make a tangible difference on global crop production and sustainability, Olam Agri is proving that it is possible to create a resilient agri-food system that can meet the growing global food demand for generations to come.
References
1. Papademetriou MK. Food & Agriculture Organization of the United Nations. Rice production in the Asia-Pacific region: Issues and Perspectives.
2. Sustainable Rice Platform. About Rice: Why Sustainable Rice?
3. Olam Agri. Building A Climate & Nature Positive Future.
4. Olam Agri. Large scale sustainable rice project improves incomes of smallholder farmers and makes Positive Impact on Environment.
5. Olam Group Limited Annual Report 2023.