Glytabs February 2025 Newsletter

Recent Economic Policy Shifts: The Ripple Effect on Global Food Systems

Recent economic policy shifts in various countries triggered by the US government are already shaking up industries worldwide, with ripple effects reaching food production, packaging, and humanitarian aid. Coca-Cola is reconsidering its reliance on aluminum cans due to tariffs on foreign metals, while manufacturers of life-saving therapeutic foods face uncertainty after a freeze on U.S. foreign aid payments. These developments highlight a broader challenge—how trade policies and economic shifts impact businesses, supply chains, and global food security.

Coca-Cola, a leader in the beverage industry, is reportedly exploring alternative packaging after U.S. tariffs drove up aluminum costs. While PET plastic bottles may offer a cost-effective solution, they also raise sustainability concerns, given the company’s commitment to reducing plastic waste. This dilemma underscores the balancing act businesses face between cost efficiency and environmental responsibility.

On another front, the U.S. foreign aid freeze has jeopardized critical food aid programs, with suppliers of ready-to-use therapeutic foods (RUTF) like Mana Nutrition and Edesia Nutrition struggling to stay operational. These organizations provide nutrient-dense foods for severely malnourished children, but with USAID funding halted, their ability to continue production is shaky. The broader impact extends beyond the humanitarian sector, threatening U.S. agricultural suppliers and disrupting supply chains supporting local economies.

At Glytabs Consulting Limited, we recognize the global interconnectedness of policy decisions, the quest for food security, and the impact on business resilience. Whether it’s ensuring compliance with export standards, mitigating supply chain disruptions, or supporting sustainable food production, these trade and economic policy shifts, coming at the cost of food access, safety, or sustainability, pose great danger to the quest for global food security and stability.

Now more than ever, businesses must stay agile in a constantly evolving landscape. Collaboration between policymakers, businesses, and stakeholders is crucial. Strategic planning and proactive solutions can ensure that essential food products remain available, sustainable, and accessible to meet critical needs. We therefore stand ready to offer business advisory services in support of organizations navigating these challenges while advocating for policies that will better strengthen our global food system.