Abstract
Background: The world is experiencing frequent extreme weather events like droughts, floods, snowstorms, and shifting of seasons due to climate change. Increasing frequencies and severity of these extreme weather events threaten food security because agriculture is extremely vulnerable to climate change. Higher temperature reduces overall yields of the desirable crops but proliferates weeds and harmful pests. Current data shows that every year U.S. farmers spend more than 11 billion USD to fight weeds and this number is expected to rise in the coming years due to climate change. Due to droughts, the water required for irrigation is becoming scarcer. Since many areas are becoming climatically unusable for crop production, the amount of farmland area is shrinking rapidly. In addition, changes in precipitation patterns are causing crop failures and negatively impacting expected yields. In this study, we investigated how different extreme climate events impact different stages of a food supply chain. Approach: As a case study, we chose Idaho’s potato supply chain (SC). Idaho is the top potato producing state in the U.S. and contributes around 30% of the nation’s potato production. Using the agent-based modeling (ABM) approach, we developed a multi-echelon potato supply chain computer simulation model with six types of agents – seed producers, farmers, shippers, processors, retailers, and logistics companies. In addition to the baseline scenario, we developed two additional climate-related disruption events – drought and snowstorm. We investigated how each of these disruption events impacts different stakeholders across the supply chain in terms of revenue and some other key performance metrics such as lead time, food waste, number of delayed orders, and order fulfillment rate. Results: Extreme climate events not only impact the growers but there is also cascading ripple effects downstream of the supply chain. The methodology developed in this study could be applied to other food and agricultural SC to understand the vulnerabilities of the different links. The findings would potentially help to adopt new policies for the well-being of the overall SC.