Climate change policies and technology developments are shifting consumer demand towards more sustainable diets, leading to significant disruptions for the global agriculture sector, according to a report.
The sector is facing pressure to address drivers of deforestation and land-use change, which could lead to higher raw materials costs, more supply chain investments and reduced demand for certain products, Fitch Ratings said.
The emergence of cell-based meats and meat alternatives could create opportunities for some players in agribusiness while causing demand destruction for others, it said.
“The agribusiness sector has been largely shielded from climate-related policies because of the difficulty in monitoring emissions from the sector and concerns that it would raise food prices,” the credit rating agency said.
“In addition, curbing emissions is often equated with reduction of production volumes, which is unpopular in view of food security concerns and the economic importance of agricultural exports for some countries.”
The agriculture, land use and forestry sector is the second-largest contributor to global climate change emissions after energy, accounting for 22 per cent of global greenhouse gas emissions in 2019, the report said, citing the Intergovernmental Panel on Climate Change. Agricultural production made up about half of the sector's emissions.
Most emissions from agriculture are in the form of methane and nitrous oxide, which have a much more significant warming effect than the carbon dioxide that the energy sector emits.
Agriculture also accounts for 70 per cent of all fresh water withdrawn from rivers, lakes and aquifers, and for 80 per cent to 90 per cent of fresh water consumption by human activities.
Fitch expects governments to act on Cop26 pledges related to agribusiness by broadening emissions-trading schemes, implementing environmental trade protectionism rules and increasing funding for private sector-led climate mitigation initiatives in 2022.
The global agriculture sector will be reshaped by climate policies, more investor scrutiny and shifting consumer preferences for healthier and more sustainable products, the report said.
“Its main challenge will be to feed 1.5 billion more people sustainably and nutritiously by 2050, while reducing greenhouse gas emissions from its key sources, including livestock, fertilisers, rice production and energy use,” Fitch said.
This is a complicated task because emissions from agriculture are a result of the activities of two billion farmers and not large companies, making it difficult to enforce compliance with sustainability standards.
The responsibility will therefore lie with large companies in the value chain such as commodity traders and processors, as well as consumer-facing food companies.
As many of these businesses are privately owned, they face fewer requirements for disclosure and improving climate performance than publicly-traded companies.
“The fragmented nature of the agribusiness sector will present challenges for implementing tighter emissions standards, but pressure from investors and regulators to limit land conversion will grow,” Fitch said.
Animal protein producers will face the biggest disruption within the agriculture sector as a coming rise in regulations will increase operating costs and capital expenditure while reducing their potential market access and revenue, it said.
“Fitch expects the impact to be more imminent in developed countries as many of them have already introduced greenhouse gas emission reduction targets and regulation for agriculture,” the agency said.
Global meat consumption will peak by 2030 and decline quickly after meat alternatives become more affordable by 2035, Fitch said.
A technological breakthrough in cell-based meats will significantly reduce production costs and make the nutrition, texture and taste of cultured meat more similar to animal meat.
“This could accelerate the consumption shift towards alternative protein sources. Affordability could also make it easier for people in emerging markets to adopt new diets,” it said.
Alternative meats could have a 28 per cent market share of meat consumption by 2050, it said.
A decline in meat production will also reduce fertilisers used to make fodder as less feed will be required.
Part of the current pasture and range lands can then be replaced with forests and cropland, which will help to capture greenhouse gases from the atmosphere and further limit global warming, Fitch said.
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Honeymoonish
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EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
KILLING OF QASSEM SULEIMANI
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Company%C2%A0profile
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The years Ramadan fell in May
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
UAE currency: the story behind the money in your pockets
The biog
From: Ras Al Khaimah
Age: 50
Profession: Electronic engineer, worked with Etisalat for the past 20 years
Hobbies: 'Anything that involves exploration, hunting, fishing, mountaineering, the sea, hiking, scuba diving, and adventure sports'
Favourite quote: 'Life is so simple, enjoy it'
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
The years Ramadan fell in May
More from Neighbourhood Watch:
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
More on Quran memorisation:
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
Global state-owned investor ranking by size
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United States
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China
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3.
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Votes
Total votes: 1.8 million
Ashraf Ghani: 923,592 votes
Abdullah Abdullah: 720,841 votes
