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Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction |
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Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction |
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154 Part II - Chapter 10
However, the myriad of agricultural producers and those that rely on the sector for their livelihood all experience different types of vulnerabilities and exposures along the value chain.
At every step of the chain, transport and associated infrastructure can be at risk of direct damage from hazard events, meaning that interruptions at critical points or nodes can ripple through the supply chain. Those investing in agricultural production, processing and trade, therefore, have a vested interest in the uninterrupted functioning of this infrastructure and in reducing damage owing to disasters.
Nevertheless, producers are usually in the supply chain’s most vulnerable position. In other sectors, producers are better able to estimate accurately output volume in relation to a desired level of production and a given set of inputs. In farming, however, production is subject to highly unpredictable and uncontrollable conditions, including weatherrelated hazards and pest and diseases in crop and livestock. Additionally, there is a large time gap be-
tween the moment farmers make decisions regarding what crops to produce and when they are able to harvest and sell their production. During this gap, in addition to other hazards, farmers face risks related to price volatility that are greater than in most other sectors (
 Fava Neves and Alves Pinto, 2012 Fava Neves, M. and Alves Pinto M. 2012.,Analysis of the relationship between public regulation and investment decisions for disaster risk reduction in the agribusiness sector., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. 10.2
Drivers of production
and price: local and global
vulnerabilities Dynamic global food markets and volatile prices are affected by disasters but also act as an important driver of food insecurity and disaster risk.
Despite inherent uncertainty and risk in the sector, constant hikes in global prices for agricultural commodities since 2000, including exceptional food price spikes towards the end of the last decade (Figure
(Source: UNISDR, adapted from
Fava Neves and Alves Pinto, 2012 Fava Neves, M. and Alves Pinto M. 2012.,Analysis of the relationship between public regulation and investment decisions for disaster risk reduction in the agribusiness sector., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. Figure 10.3 The multiple dimensions of disaster risk in agriculture
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