{"id":24343,"date":"2017-11-15T17:18:38","date_gmt":"2017-11-15T22:18:38","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/whole-foods-market-feeling-a-bit-under-the-weather\/"},"modified":"2017-11-15T17:18:38","modified_gmt":"2017-11-15T22:18:38","slug":"whole-foods-market-feeling-a-bit-under-the-weather","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/whole-foods-market-feeling-a-bit-under-the-weather\/","title":{"rendered":"Whole Foods Market: Feeling a Bit\u2026 Under the Weather?"},"content":{"rendered":"

\u201cI guess my position on it is that I don\u2019t think that\u2019s that big a deal.\u201d<\/strong><\/em><\/p>\n

-John Mackey, Whole Foods Co-Founder & CEO, upon being asked his views of climate change [1]<\/em><\/p>\n

On September 20, 1980, twenty-five year-old John Mackey, along with girlfriend, Renee Lawson, opened the first Whole Foods Market (WFM) in Austin, Texas. [2] Thirty-seven years later, upscale grocery hub WFM sits on the outskirts of a complex web of suppliers and distributors, whose pains are projected to grow astronomically in the face of climate change. How can WFM sustain itself as its supply chain suffers?<\/p>\n

Climate Change\u2019s Assault on the Food Supply Chain<\/strong><\/p>\n

The food industry\u2019s supply chain simplifies into five key players, as shown below. [3]<\/p>\n

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Farmer\u2019s Fight<\/span>: Crop yields are of major concern for the farmer. Increased atmospheric CO2 <\/sub>actually appears to improve yields for plants such as rice and wheat; however, the accompanying temperature increase doesn\u2019t play so nice. [4] For every degree Celsius increase in global mean temperature, wheat yields reduce by about six percent\u2013concerning for a crop that accounts for one fifth of the world\u2019s daily protein consumption. [5, 6]. Also, geography matters\u2014while some areas may experience warped growing seasons due to warmer temperatures, other areas may experience decreased water availability due to changing rainfall patterns. [4] Extreme weather such as flooding and drought also damages crop yields, and related challenges include built-up pest-resistance and growing disease-spreading susceptibility. [7]<\/p>\n

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Processor\u2019s & Distributor\u2019s Pains<\/span>:\u00a0Food safety regulations make food handling and storage a major concern, both in warehouses and transit. Careful refrigeration measures are complicated by rising temperatures. [8] Also, the potential for extreme weather events poses threats to food transportation via damage to physical infrastructure.<\/p>\n

Retailer\u2019s Struggle<\/span>: This all trickles down to two major challenges for the retailer: uncertain food availability and increasing food prices. \u201cChanges in the availability and quality of land, soil, and water resources\u2026 are later reflected in crop performance, which causes prices to rise,\u201d according to the UN\u2019s Food & Agriculture Organization. [9] When prices rise for the retailer, they often rise accordingly for the end customer. [10]<\/p>\n

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Current Efforts<\/strong><\/p>\n

Despite Mackey\u2019s comments, WFM\u2019s website boasts its \u201cGreen Mission\u201d; beyond Reduce, Reuse, Recycle<\/em>, WFM pursues composting, reusable grocery bags, renewable energy credits, and even sometimes on-site solar panels. [8] However, these near-term efforts illustrate how WFM tries to lessen its contribution to <\/em>climate change\u2014rather than how WFM tries to protect itself from <\/em>climate change.<\/p>\n

One instance of WFM protecting itself from <\/em>supply chain problems triggered by climate change is Gotham Greens\u2014WFM\u2019s operating partner that installed a garden on WFM\u2019s roof in Brooklyn, NY, supplying the store with fresh, on-site herbs and produce, as shown below. [11-14] This way, if the supply chain is unable to provide produce due to, say, farmland flooding, WFM can provide for its customers regardless.<\/p>\n

Partnership projects like Gotham Greens can help WFM following extreme weather events that block roads or ruin farmlands. On-site sourcing also gives WFM more pricing control; because WFM is already known for being high-end, increased tag prices from supply chain pains may make WFM less competitive. These types of measures help WFM stay afloat in the medium-term as supply chain problems intensify.<\/p>\n

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So what now?<\/strong><\/p>\n

Climate change attacks WFM\u2019s supply chain in endless ways beyond just those described here. WFM must prepare itself not only for the sake of its business, but also the communities it serves. Its best shot starts with diversifying sources, pursuing partnerships, and accepting climate change as a real threat.<\/p>\n