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Industry News
Beverage Industry NewsClimate risks to affect food beverage firmsWorld Resource Institute (WRI) said climate change and water scarcity impact three value drivers for food-and-beverage firms in the Southeast Asian region.In a study sent to the BusinessMirror through e-mail, the WRI said, “Climate-change and water-scarcity trends can create risks and financial impacts for three of the food-and-beverage sector’s widely accepted value drivers—agricultural inputs, operating efficiency and reputation.”“Climate change and water scarcity could lead to declining crop yields that can contribute to higher prices for agricultural inputs. Declining animal yields can directly impact aquaculture, meat and dairy production,” said the study titled “Weeding Risk: Financial Impacts of Climate Change and Water Scarcity on Asia’s Food and Beverage Sector.”The study of 216 food-and-beverage companies in six Southeast Asian countries revealed that climate change and water scarcity “can increase operating costs through expenditures to adapt to lower water availability and quality, as well as operational disruptions from lack of water or extreme weather events.”
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