Agri-food corporations’ role in water sustainability and water resilience of global supply chains

Carole Dalin , Kyle Frankel Davis, Elena De Petrillo, Felice Diekel, Paolo D'Odorico, Rick J Hogeboom, Megan Konar, Maria Cristina Rulli, Marta Tuninetti, Landon Marston

Agriculture is both a major contributor to water scarcity and highly vulnerable to it. The agri-food sector accounts for approximately 70% of global human water abstraction and 90% of water consumption, with irrigation practices leading to detrimental effects such as reduced streamflow, groundwater depletion, and environmental degradation. As water stress impacts crop and livestock productivity, exacerbated by climate change, the sector faces increasing water-related risks. While much research focuses on food production, little attention has been given to the intermediaries in the food supply chain, which can significantly influence water outcomes. This review explores the role of agri-food trading corporations in shaping water sustainability and resilience within food systems.
Agri-food corporations occupy a critical position in the food supply chain, connecting farmers to consumers, yet their influence on water use is often overlooked. These corporations — including transnational commodity traders like ADM, Bunge, Cargill, and Louis-Dreyfus (the "ABCDs") - control vast portions of the global food market, thereby influencing water usage patterns through sourcing practices, commercial decisions, and supply chain management. Unlike farmers, whose numbers are vast, and consumers, whose demands are widespread, corporations are fewer in number but wield significant control over resource allocation and production choices, including water use.
Despite this influence of transnational trading corporations (TNCs), current metrics for assessing the water risks and sustainability of food supply chains are often inadequate and lack the robustness needed for transparent decision-making. A comprehensive approach that includes intermediaries in water risk assessments, alongside farmers and consumers, is essential for improving water outcomes. To address these challenges, agri-food corporations must integrate water risks into their business models, set clear, measurable targets for water usage and ensure greater transparency throughout the supply chain. This review argues that the path to a water-secure world requires transforming corporate strategies to prioritize water sustainability, thereby fostering innovation, resilience, and long-term growth. Achieving such transformation requires concerted efforts across all levels of the food system, ensuring that water risks are adequately accounted for and managed and sustainable practices are mainstreamed throughout global food production.