Climate change is reshaping the food system – how food ERP software is helping businesses adapt

The food industry is no stranger to change. Climate change is amping up the heat (literally), putting pressure on every aspect of food production – from farm to fork.

From unpredictable weather patterns to rising costs and disrupted supply chains, food manufacturers and distributors are facing a new set of challenges that demand smarter, more sustainable ways of working.

Necessity is the mother of all inventions, and if one thing’s certain, climate change is a reality impacting every person from production to food safety. Companies looking to grow and thrive must adapt to climate change before it adapts their businesses.

Climate change is affecting food production – are you ready to respond?

The effects of climate change are already being felt across the UK food industry. Warmer temperatures and shifting rainfall patterns are affecting crop yields, while extreme weather events like floods, droughts and heatwaves are damaging harvests and disrupting supply chains.

According to the UK Met Office, the country experienced its warmest year on record in 2024, with rainfall patterns becoming increasingly erratic and making it harder for farmers to plan and grow crops reliably. And it’s not just crops – fish stocks are also under threat, with warming seas affecting breeding patterns and migration routes.

Warmer conditions are also increasing the prevalence of pests and diseases, which can reduce food quality and drive up production costs. The food industry is under pressure, and concerns about potential food shortages are growing.

From farm to fork – how climate change is disrupting distribution and retail

It’s not just food manufacturing that’s feeling the strain. Distribution, storage and retail are also being hit hard. Extreme weather can disrupt transport routes, damage infrastructure and delay deliveries. For food businesses dealing with fast-moving consumer goods (FMCGs), even short delays can lead to spoilage and waste, costing thousands in losses.

Supply chains are becoming more unpredictable, and that’s driving up prices. According to the Food and Drink Federation’s Q2 2025 State of Industry Report, total production costs for UK food and drink manufacturers rose by 6.3% over the year to June, while selling prices only increased by 4.4%.

How food ERP software helps businesses adapt to climate change

Adapting to the effects of climate change can’t be done alone, and this is where food ERP software like Dynamics Food comes into its own. Built on Microsoft Dynamics 365 Business Central and designed specifically for food manufacturers and distributors, Dynamics Food helps businesses overcome the challenges of climate change and continue to grow and stay resilient – despite constant uncertainty.

• Supply chain visibility: Dynamics Food gives full visibility across your supply chain, including 3PLs, so you can respond quickly to disruptions, transfer stock between locations, and adjust purchase orders on the fly
• Smarter production planning: from shop floor to top floor, Dynamics Food gives real-time data and advanced forecasting tools so you can align production with actual demand – reducing waste and avoiding costly overstocks. You can also optimise your Materials Planning Requirement (MRP) by expiry date, so you’re using ingredients before they go to waste
• Built-in quality and compliance: with embedded quality checks at various stages and traceability tools, food ERP software makes it easy for businesses to ensure products meet the highest standards – even when sourcing ingredients from multiple suppliers
• Waste reduction and sustainability: reducing food waste isn’t just good for the planet – it’s good for your bottom line. Dynamics Food helps you track and reduce waste at every stage, from raw materials to finished goods. You can even calculate your mass balance to understand the true cost of quality and scrap.
• Data-driven decisions: with built-in reporting, Power BI dashboards and Microsoft Copilot integration, Dynamics Food puts actionable insights at your fingertips. Whether it’s spotting trends, managing sustainability efforts, overseeing costs or planning for the future, you’ll have the data you need to make confident decisions

Food manufacturers and distributors – it’s time to rethink your sustainability approach

The UK food system is changing – and fast. Staying competitive in the UK food industry means adapting – and fast. That means embracing more sustainable agricultural practices (think efficient water management), reducing waste, and investing in integrated technology that supports agility and resilience.

Food manufacturing software like Dynamics Food isn’t just about managing production– it’s about future-proofing your business. With the right ERP software for the food and beverage industry, you can respond to challenges posed by climate change and evolving market demands with confidence, protect your margins, and continue delivering high-quality products to your customers.

Looking for food manufacturing software that tackles your industry needs? Get in touch today to find out more.

Feeling the pressure of working in the food industry?

Working in the food industry can feel like a game of whack-a-mole. Conquer one challenge, and another pops up. Whether it’s new regulations, rising costs, or sustainability demands, tackling these challenges—alongside internal targets and external changes—can make growing your food business feel like a minefield.

Join our free online session on Tuesday, 23rd September at 10am: Navigating Food Industry Pressures with Dynamics Food Powered by Microsoft Dynamics 365 Business Central.

We’ll cover everything from staying compliant without spreadsheets and managing rising costs to shelf life management. Plus, see Dynamics Food in action!

Book your place here. We look forward to seeing you there!