Baratta Center Hosts Roundtable on the Global Food Value Chain

The Baratta Center for Global Business at Georgetown University’s McDonough School of Business hosted its first roundtable on the global food value chain, addressing the profound impacts of climate change and conflict on the global food supply and associated value chain. 

The event began with a keynote address by Joyce Chang, managing director and chair of global research at JPMorganChase, and was moderated by Matt McKenna (L’75), adjunct professor at Georgetown McDonough’s Business for Impact. Panelists included Sean Callahan, president and CEO of Catholic Relief Services; Gally Mayer (B’93), co-founder of Buena Vida Specialty Coffee; Barron Segar, president and CEO of World Food Program USA; and Rajiv Singh, co-chair of FoodShot Global and founder and managing partner of New Epoch Capital. 

In her keynote address, Chang discussed worldwide food insecurity in relation to the weaponization of commodities and the climate crisis, highlighting the negative impact of the war in Ukraine.

Chang discussed how weather and geopolitics are inextricably linked – extreme heat, climate change, and the loss of biodiversity have exacerbated the global food supply crisis, contributing to food and commodity price inflation. According to the World Economic Forum, extreme weather was identified as the top risk to present a material global crisis, while disrupted food supply chains were listed as a top 10 risk ahead of public debt distress and energy shocks. 

Additionally, Chang highlighted why emerging markets are disproportionately affected by food shocks. In such regions, food inflation has exceeded overall inflation and is stabilizing at a higher level than before the Russia-Ukraine conflict. This crisis is particularly severe in Africa and the Middle East, which are vulnerable to wheat and rice shortages, and South America, which faces weather-induced agricultural shortfalls.

“We’ve seen a number of food shocks where you can’t ignore the geopolitics… In aggregate, there are 22 countries that maintain export restrictions or bans on foods or fertilizers… affecting 40% of global trade,” said Chang. “If we think about this from a broader trade perspective, one-in-five calories consumed is actually dependent on trade.”

Addressing the fundamental question of whether we are generating enough food to feed the world, Chang argued that while entirely possible, the current approach is inefficient. The global food crisis is part of a broader cost of living crisis, and addressing it requires innovative technologies to use resources – such as water, land, and fertilizers – more efficiently. 

The roundtable panel discussion began with a comment from Segar to recognize that there’s enough food in the world to feed everyone, but access, availability, and disruptions prevent it from reaching those who need it most. This problem is particularly acute for the most vulnerable populations, who suffer disproportionately due to climate change and conflicts. 

Segar emphasized that the countries emitting the least greenhouse gasses are often the hardest hit by these disruptions. He described the World Food Program’s focus on emergency assistance, innovation, insurance, and preparedness to address these challenges.

Mayer and Callahan both stressed the importance of addressing food security at a local level. Mayer pointed out that policymakers often overlook practical, micro-level solutions, suggesting the need to simplify approaches and return to basic practices that prioritize local needs. She emphasized consumer education, advocating for informed purchasing decisions that can drive systemic change. Callahan added that the food crisis is not only a business issue but also a moral imperative, necessitating grassroots efforts to supplement macro-level political solutions. He argued that local leaders, such as mayors and community representatives, play a crucial role in implementing effective food security measures. 

Singh brought a private sector perspective, emphasizing the need for long-term capital investments to support sustainable agricultural practices and innovative solutions. He highlighted the role of consumer demand in driving these investments, suggesting that increased awareness and education could foster a market for eco-friendly products. 

“The era of the conscious consumer has arrived, and that’s what gives me hope… the consumer is creating this demand pull [toward sustainably-sourced food] and inevitably capital will come in and meet it,” said Singh.

Singh also stressed the importance of collaboration between the public and private sectors, noting that partnerships must be approached altruistically to maximize mutual benefits and drive meaningful change.

Throughout the discussion, the panelists addressed themes of innovation and adaptation. Segar discussed the World Food Program’s efforts to anticipate future needs with drought-resistant crops and solar-powered irrigation, while Singh highlighted the need for venture capital to support growth-stage innovations. Both emphasized the importance of insurance models to protect farmers from risks and ensure investment in sustainable practices. 

Questions were then fielded from the audience, centering the discussion on the vulnerabilities of subsistence farmers and the potential benefits of insurance models to mitigate food insecurity. Post-harvest loss was identified as a critical issue, highlighting the need for proper storage solutions. Concerns were raised about the misallocation of subsidies in current farm bills, which often support irresponsible farming practices. The conversation also tackled the challenge of making agricultural issues more engaging and transparent, emphasizing the importance of clear communication and understanding how funds are utilized to create jobs and avoid greenwashing. Additionally, the conversation differentiated between the need for calories versus nutrition, with a focus on producing locally-grown, home-produced food to reduce waste. Lastly, the vital role of soil health in sustainable agriculture was highlighted, underscoring the need for better soil management practices to enhance food security.

In summarizing the day’s takeaways, Anil Khurana, executive director of the Baratta Center, emphasized the critical issue of the weaponization of food as a major global risk. He highlighted the paradox of our times: despite producing enough food to feed everyone, millions still go hungry. This inefficiency is rooted in the world’s poor management of the “first mile” – the farmers, soil, water, and the overuse of chemicals and fertilizers. Khurana stressed that it’s the responsibility of all companies, regardless of size, within the value chain to mindfully address these issues. He noted the growing consumer awareness around food and the first mile, underscoring the importance of purpose-driven investing in the agriculture and food sectors. Such impact investing, while requiring patience, has been shown to yield long-term returns comparable to traditional investments.