Oxford Economics – Climate Change and Food Prices in Southeast Asia

Oxford Economics and Food Industry Asia collaborated to publish a report on climate change and food prices in ASEAN countries, highlighting the urgent need for action in the region. The report reveals that a 1% increase in average temperature leads to a 1-2% rise in food producer prices in Thailand, Vietnam, Malaysia, Indonesia, and the Philippines, with the Philippines being the most vulnerable due to extreme weather events. The transition to a low-carbon economy will also impact food prices, with an estimated 31%-59% increase in production costs by 2050 if net zero emissions are achieved. To mitigate these effects, ASEAN governments are urged to support climate-smart agriculture, welfare spending for vulnerable households, and infrastructure investments in renewable energy. The region's high foreign direct investment inflows present an opportunity for governments to attract and retain investments in the food sector through policy reforms and support for domestic industries. Collaboration between governments and the food industry is crucial to address the challenges posed by climate change and ensure sustainable food production in Southeast Asia.