El Niño overview: how food giants are protecting supply chains
- El Niño threatens food production through disrupted weather and yields
- Nestlé prioritises sourcing flexibility and climate-resilient agricultural practices
- Kraft Heinz develops localised seeds and precision irrigation technologies
- Barry Callebaut cites stronger cocoa stocks and sourcing diversification
- Danone focuses on supplier partnerships, risk management and resilience
Every two-to-seven years, the El Niño phenomenon causes temperatures to rise globally and rainfall patterns to change.
It can often put a strain on food production, but 2026/27 is predicted to be a ‘super El Niño’, according to the organisation World Resources Institute (WRI), with even more severe effects.
This is only compounded by the effects of climate change, which are already pressuring crop yields globally.
Yet many of the food giants have practices in place to protect their supply chains against climate volatility of the sort that El Niño is likely to bring.
Nestlé
While Nestlé is monitoring El Niño closely, it views it as a smaller part of the larger picture of climate volatility, explains a spokesperson for the company. It is prioritising the resilience of supply chains most exposed to such risks, including coffee, cocoa and dairy.
In cocoa, it is investing in regenerative agriculture, farmer productivity, improved agronomy and climate-resilient farming practices, the spokesperson explains, through various initiatives including the Nestlé Cocoa Plan and the Nestlé Income Accelerator Program.
It is aiming to diversify sourcing and increase flexibility, in order to avoid dependence on one region.
Kraft Heinz
To protect its tomato supply chain, Kraft Heinz has developed unique seeds for different locations around the world, explains Jake Lake, global head of agriculture and seed at Kraft Heinz.
For example, in California, the US, tomato plants have been developed that have more extensive root systems, and can therefore reach water and nutrients deeper underground.
The company is now investing in regenerative agriculture to strengthen supply chain resilience.
It’s also using new technology in agriculture, Lake explains. For example, in Spain it’s using precision drip irrigation systems to feed plants the right amount of water and nutrients at the right time.
Barry Callebaut
Chocolate major Barry Callebaut is optimistic about its position when it comes to El Niño.
“Barry Callebaut is closely monitoring the development of El Niño and its potential impact on cocoa-producing regions”, says a spokesperson for the company.
Barry Callebaut is in a better position to deal with climate volatility than it was two years ago, the spokesperson suggests. It has strengthened its sourcing flexibility, increased origin diversification, and enhanced bean blending capabilities.
The chocolate industry as a whole is also in a better position as it enters the 2026/27 crop than it was when entering the 2023/24 crop, the last time El Niño took place, says the spokesperson.
At that time, “El Niño coincided with the main crop and marked the third consecutive year of deficit. In contrast, today, we are coming from a position of a strong surplus with ample cocoa stocks entering the new crop year.”
Danone
Danone also laid out its strategy for El Niño.
“Danone continuously monitors climate-related risks across its sourcing, supply and logistics networks”, says a spokesperson for the company.
“We focus on building resilient supply chains through diversified sourcing, strong supplier partnerships, robust risk management processes and long-term investments that support the resilience of agricultural systems and sourcing regions.”
In short, these food giants already have measures in place to try to protect their supply chains from the climate volatility that will likely come about as a result of El Niño.
