Weeding Risk

The report identifies increased agricultural input prices and higher processing costs as the most financially material impacts of climate change and water scarcity on the food and beverage (F&B) sector in South and Southeast Asia. These risks affect all examined F&B subsectors, including aquaculture, beverages, confectionary, dairy/poultry, edible oils, starches, and sugar. Financial risks are driven by decreased crop and animal yields, operational disruptions to manufacturing plants, and increased costs for water filtration and food safety. Additionally, competition for water resources creates reputational risks for food processors. The analysis specifically targets publicly listed domestic companies in India, Indonesia, Malaysia, Philippines, Thailand, and Vietnam within a sector valued at USD 40 billion.

• The most significant financial risks for the food and beverage sector are the rise in agricultural input prices and processing costs, which impact all subsectors analyzed. These costs are influenced by supplier location, the ability to pass costs to consumers, and the sustainability of cultivation practices.
• Climate change and water scarcity negatively affect input prices by reducing animal and crop yields, with animal yields specifically threatened by rising water temperatures in aquaculture and limited access to clean water. Extreme weather events further increase the volatility of food commodity prices.
• Operational efficiency is compromised through disruptions to manufacturing plants and infrastructure, as well as increased costs for water treatment and filtration due to pollution. Furthermore, water scarcity and contamination increase food safety risks, particularly for animal-based products, and create reputational risks through competition for water with other stakeholders.

APA

World Resources Institute (n.d.). Weeding Risk. https://www.wri.org/research/weeding-risk

Chicago

World Resources Institute. Weeding Risk. n.d. https://www.wri.org/research/weeding-risk.

Wikipedia

{{cite report |author=World Resources Institute |title=Weeding Risk |url=https://www.wri.org/research/weeding-risk |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendweeding, author = {{World Resources Institute}}, title = {{Weeding Risk}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/weeding-risk}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }