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Cargill soybean terminal in Santarém, Brazil. Photo: Matt Hintsa / flickr

Stakeholder perspectives on cross-border climate risks in the Brazil-Europe soy supply chain

In a case study of the Brazil-Europe soy supply chain, this paper aims to explore how stakeholders perceive past and future shocks, how climate change impacts affect stakeholders differently, and how they might respond.

Journal Article

Published on 2 November 2023

Climate change impacts in one country can lead to impacts in distant locations, for example, via internationally traded crops. Previous work has highlighted a need to include cross-border climate change impacts in climate risk assessments, to describe the exposure and transmission of cross-border climate risk across actors, and understand options for managing this risk. In a case study of the Brazil-Europe soy supply chain, this paper aims to explore how stakeholders perceive past and future shocks, how climate change impacts affect stakeholders differently, and how they might respond. Soy is a key internationally traded commodity and Europe relies on imports for the majority of its soy consumption, used widely in livestock feed. Via 96 semi-structured expert interviews, we found different stakeholder groups are vulnerable to different types of weather shocks, experience different price and supply consequences, and have different capacities to respond. While some responses can reduce risk of impacts across the supply chain (e.g. new soy cultivars, improving transport infrastructure), we also identified examples where responses exacerbate risk for other stakeholders (e.g. export bans, changing demand). A holistic cross-border approach to analysing risk in the soy supply chain can help avoid maladaptation and offer opportunities for more collaborative adaptation.

Topics: Trade