#agrifood systems

[africaindustrializationday]

A global perspective towards fostering a just transition in the agri-food sector: bridging generations for sustainable change.

Agri-food systems are key levers towards climate change, while at the same time being among the largest emitters of greenhouse gasses and being affected by climate change. While the need to transform agri-food systems to achieve climate adaptation and mitigation is recognised, the meaning and application of just transition principles remains underexplored.

Watch A global perspective towards fostering a just transition in the agri-food sector: bridging generations for sustainable change!

[ruralwomenday]

Rural Women Sustaining Nature for Our Collective Future: Building climate resilience, conserving biodiversity, and caring for land towards gender equality and empowerment of women and girls.

Rural women are vital leaders in their communities and play a key role in finding solutions to global challenges such as poverty, hunger, the climate crisis and more. October 15th is International Rural Women Day.

[farmerstrend]

Putting a price on soils: can farmers benefit?

Healthy soils do much more than produce food. They perform a multitude of vital functions, like filtering water, supporting biodiversity, and even protecting the planet from climate change. Just as the environmental costs of intensive farming never factor into the price of food, farmers who build soil health are rarely compensated for the ecosystem services they provide. As a result of these…

[rjzimmerman]

Excerpt from this story from Grist:

One in 11 people worldwide went hungry last year, while one in three struggled to afford a healthy diet. These numbers underscore the fact that governments not only have little shot at achieving a goal, set in 2015, of eradicating hunger, but progress toward expanding food access is backsliding. 

The data, included in a United Nations report released Wednesday, also reveals something surprising: As global crises continue to deepen, issues like hunger, food insecurity, and malnutrition no longer stand alone as isolated benchmarks of public health. In the eyes of the intergovernmental organizations and humanitarian institutions tracking these challenges, access to food is increasingly entangled with the impacts of a warming world. 

“The agrifood system is working under risk and uncertainties, and these risks and uncertainties are being accelerated because of climate [change] and the frequency of climate events,” Máximo Torero Cullen, chief economist of the U.N.’s Food and Agriculture Organization, or FAO, said in a briefing. It is a “problem that will continue to increase,” he said, adding that the mounting effects of warming on global food systems create a human rights issue. 

Torero calls the crisis “an unacceptable situation that we cannot afford, both in terms of our society, in terms of our moral beliefs, but also in terms of our economic returns.” 

Of the 733 million or so people who went hungry last year, there were roughly 152 million more facing chronic undernourishment than were recorded in 2019. (All told, around 2.8 billion people could not afford a healthy diet.) This is comparable to what was seen in 2008 and 2009, a period widely considered the last major global food crisis, and effectively sets the goal of equitable food access back 15 years. This insecurity remains most acute in low-income nations, where 71.5 percent of residents struggled to buy enough nutritious food — compared to just 6.3 percent in wealthy countries. 

Climate change is second only to conflict in having the greatest impact on global hunger, food insecurity, and malnutrition, according to the FAO. That’s because planetary warming does more than disrupt food production and supply chains through extreme weather events like droughts. It promotes the spread of diseases and pests, which affects livestock and crop yields. And it increasingly causes people to migrate as they flee areas ravaged by rising seas and devastating storms, which, in turn, can fuel conflict that then drives more migration in a vicious cycle. 

[probablyasocialecologist]

Sourcing food in biotech  factories requires a reorganization of the food system to be highly centralized, arranged into corporate-mediated value chains flowing from industrial processing facilities. To my mind that is exactly the corporate industrial food chain model at the root of so many of our current problems. We don’t want the food system concentrated in the hands of less and bigger corporations. Such a concentrated food system  is unfair,  extractive, easy to monopolize and  very vulnerable to external shocks  - which we are going to see more of in our unfolding century of crisis. Consider which food system is more likely to fall over in the face of climate catastrophe, dictatorship  or cyberattack: - a handful of large electrically dependent food brewers  or a distributed network of millions of small farms and local food relationships  spread across diverse landscapes? Which brings us to Chris’s other central premise in ‘Saying No to a Farm-free Future’ - the one that George does attempt a partial response to. Chris argues that the way to organise food to survive in the face of climate crisis is to withdraw away from the corporate controlled industrial agrifood chain  and attempt instead  to put power back into the distributed local ‘food web’ of small growers, local markets and peasant-type production . This ‘food web’ may sound  ‘backwards’ to modernist global north sensibilities of someone like George but it is what still characterizes much of  the food systems of the global South. It is also better suited to our times of crisis and challenge. Strengthening food webs is not a “one stop” bold  breakthrough. Rather its a distributed social process of ‘muddling through’ together  in diverse and different ways that are at best  agroecological and collective, culturally and ecologically tailored to different geographies. The food web (or ‘agrarian localism’ as Chris terms it) can’t be summed up in one shiny totemic widget. It doesn’t fit  a formulaic  “stop this, go that” campaign binary (“stop eating meet , go plant-based”).   Leaning into the complexities of  local agroecological diverse food webs is maddeningly  unsellable as a soundbite.  George presents agrarian localism as a ‘withdrawal’  but its more in the gesture of “staying with the trouble” - a phrase feminist scholar Donna Harraway so brilliantly coined to dismiss  big, male, over simplistic technocratic solutionists who claim to have the ‘one big answer’ to our global polycrisis. (sound familiar?). Staying with the trouble and leaning into food webs means embracing a messy politics of relationship, nuance, context, complexity and co-learning. It means a single clever journalist sitting in Oxford can’t dream up a cracking saviour formula all by himself in the space of a 2 year book project. . its why (and how) we build movements - to figure this stuff out collectively. So relax - take off the armour - make friends.

[solarpunkbusiness]

Recognition is growing that the development of a bioeconomy in Africa will increase the economic and social value of regionally traded, biologically based goods and services. These goods and services emanate from technologies and investments aimed at adding value to agricultural production; converting biological waste into useful material (thus promoting circular production); and connecting national, regional, and global biologically based value chains. Consequently, countries with a vibrant bioeconomy would arguably be the ones to fully participate in and benefit from the ACFTA.

Given its distributive nature, a bioeconomy will incentivize micro-, small and medium-size enterprises and the informal sector, which together make up a large part of the African economy. Therefore, African countries should develop bioeconomic clusters of innovation and entrepreneurial activities based on renewable biological resources and their unique needs and natural advantages. These efforts should culminate in what would become the African bioeconomy, connecting with the rest of the world.

Citation

Ecuru, J., & Osano, P. (2024). Making the business case for a bioeconomy in Africa, in Tadesse, G., Glatzel, K., & Savadogo, M. (Eds.), Advancing the Climate and Bioeconomy Agenda in Africa for Resilient and Sustainable Agrifood Systems. ReSAKSS 2024 Annual Trends and Outlook Report. Kigali and Washington, DC: AKADEMIYA2063 and International Food Policy Research Institute (IFPRI)

[cookie-nom-nom]

COP29 NOV 11--Blue Zone

review of the notes from my first day of the UN COP29 Climate Change Conference. Disclaimer I'm just a ~silly guy~ not a policy or geopolitical expert. My observations and opinions do not reflect AC or RINGOs. This is what I witnessed, overheard, remember, and (crucially) understand, and may not be representative of final policy decisions.

I was in the Blue Zone today (official UN ground, where negotiations occur). From the RINGO meeting, rumor was the night before COP29 officially began officials were up till 4 am arguing about the agenda. Article 6.4 of the Paris Agreement (mechanisms of carbon markets) was deeply contested in particular. Also arguments about unilateral and multilateral trade agreements. Also weather Global Stocktake (assessment of global progress on Paris Agreement) would be filed under general or financial sections. US/EU/Australia/smaller island nations were wanting it to be considered broader, with BASIC (Brazil, South Africa, India and China) wanting it under strictly Finance. More Paris Agreement stuff.

This resulted in the opening plenary beginning at 11 am, followed immediately by break for closed door discussions on the second item of the day, the agenda. This was a completely unprecedented delay, and the agenda was only resolved at 9pm.

This is the previous COP president Sultan Al Jaber, who did the opening address of plenary and handed over the presidency to Muhktar Babayev (photo below) with an embrace.

Notes of claims from Babayev's address to the plenary body:

We are set to break records on renewable energy and its investment.

There is a goal of low-carbon growth (as opposed to zero, which I think is an important distinction)

853 million put into the Loss and Damage fund

A call to increase climate financing ambitions. This is not charity, but in the self interest of all countries who with to mitigate the ethical and economical consequences of climate change.

A reinforcement of the call to transition away from fossil fuels (important, as last year is the first time such phrasing was used for the UNFCCC)

Emphasizing the cooperation required of everyone.

Genocide and the environment

Social justice is deeply tied into climate change efforts. Here in the Blue Zone we had a demonstration to end genocide (as relevant by its massive carbon emissions, if the human rights angle doesn't suffice), with particular emphasis on Palestine and reclaiming Indigenous lands. Demonstrations within the blue zone are allowed with permission, and can have a maximum of 20 people actively participating. Those in solidarity of the demonstration raised their fists in support. Also, this could not happen in the Green Zone (public conference) due to it being controlled by the host country, and Azerbaijan has strict laws against protests.

USAmerican election and its future climate policy

I proceeded to get rather lost trying to find a conference on USAmerican climate response to the Trump election, but got there too late because the Blue Zone is massive oof. Did catch the people coming out, and the strategy thus far is that the Biden administration's environmental policies were designed to endure regime shifts and should be difficult to undo without significant political effort. So, we'll be unfortunately testing that durability, particularly with how Trump likes to flout the rules and the Supreme Court deemed that legal.

Additionally, NDCs (Nationally Determined Contributions) are due in February but the US may potentially do theirs sooner before the regime shift. Effectiveness is questionable because the accountability of countries upholding their NDCs is already kinda honor code.

Subfederal action is going to be a main proponent of climate action from here on.

Conference: Transparency for transforming the agrifood system

I...must admit I was constantly blacking out and jerking back awake during this meeting because of jet lag. So the merit of these notes may be questionable particularly bc I'm having trouble reading them. However, notes from representatives from Mongolia, Pakistan, Georgia, UN, and others.

10% of global green house gas emissions are from agriculture (Technically this was from Babayev's speech but I think it's a useful reference point for this conversation. Production, manufacturing, distribution, and waste of food produces a lot of emissions).

Data quality is of large concern for transparency and effectiveness of implementation purposes. Countries have different methodologies and argue about which is superior, and the quality of others' methods. This can be particularly of note in the carbon markets. Data collection is a large logistical and technological challenge.

Everyone wants increased transparency. Or claim to. I think, aside from technical difficulties in data collection and funding thereof, the countries would actually prefer others are transparent and less themselves to be. As evidenced by things like high levels of methane unaccounted by the summation of all countries' submitted emission reports. But that's just my opinion.

BTRs (Biennial transparency reports) are difficult, and the country representatives present were apologizing for delays.

Calls for increase of human capacity. Imma be level that seems like a vague ideal to me, but I think it might mean carrying capacity (kinda a deeply flawed concept already, sustainability is extremely difficult to ascertain without prolonged unsustainability to confirm it)

Double counting is a problem for carbon removals

Efforts to work with farmers in data collection and to better improve their methods

A claim on carbon neutral livestock farming to balance cattle methane emissions with soil carbon sequestering through grazingland ecosystem management.

Conversion of carbon sink ecosystems into farmland. From personal research: In 2019, 17% of global cropland was newly converted since 2003, and the rate of yearly conversion is accelerating.

Potentially using IPCC software for consistency in data collection and analysis

Ecocide as a tool of war

Lastly, there are country pavilions in the Blue Zone where they raise issues. I did not particularly look too much into most of them, but would like to share Ukraine's because it was amazing imo.

One, the walls are literally full of seeds, and I think it will be really cool seeing them begin to sprout by the end of the conference

Two, how destroying the environment is a concentrated effort to destroy its people. Because again, protecting the environment/climate is protecting the people.

Lastly, these solar panels damaged in the war. A large emphasis in this pavilion was rebuilding from the bombing and coming back greener, which I found particularly admirable. The bravery to forge something new while grieving the comfort of what was lost. The circumstances presenting the opportunity to reinvent their infrastructure is obviously horrendous, but seizing said opportunity nonetheless is inspiring. Renewable energy is also a way to be energy independent, which is particularly important if you’re say Ukraine and the closest major oil exporter is Russia.

Now, I had left the Blue Zone by then (needed dinner where there isn't price gouging! Yikes!) but plenary did eventually assume very late, and massive progress on Article 6 was made!

This is about Carbon Markets, some people are happy others aren't, etc. Also the agenda was implement as the original plan (GST under finance) with acknowledgements made that it was broader consideration. And now plenary can actually continue instead of being stymied! In consideration for the day of lost time, sessions will run later than usual. After today it's going to get busy!

[victorysp]

Her Majesty Queen Máxima paid a working visit to Foodvalley in Wageningen on Wednesday morning, May 15. The Foodvalley organization guides companies involved in the transition to a sustainable food system, from ideas and ambitions to practice. Foodvalley focuses on themes such as protein transition, circular agrifood and food and health. The working visit fits in with a series of visits by Queen Máxima in the field of sustainability and circularity.

📷 Royal House of the Netherlands

[thxnews]

World Bank: Cutting Greenhouse Gases through Agriculture

A recent World Bank report unveils a promising pathway: by adjusting farming practices, we can slash global greenhouse gas emissions by nearly a third. This shift not only promotes sustainability but also fortifies food security for the most vulnerable.  

Sustainable Practices: The Heart of Change

Agricultural Techniques for a Cooler Planet Transforming agricultural methods can have a profound impact on our planet's health. By adopting climate-smart agricultural practices, farmers can significantly reduce emissions. Techniques such as precision farming, which optimizes the use of resources like water and fertilizer, and integrated pest management, that minimizes pesticide use, are at the forefront of this movement. Such practices not only lessen environmental impact but also improve yield efficiency.   The Role of Technology in Sustainable Agriculture Technology plays a pivotal role in modernizing farming techniques. Innovations like drone technology for crop monitoring and automated irrigation systems can drastically cut down resource wastage and emissions. These technologies, once perceived as luxuries, are now becoming necessities in the fight against climate change.  

Policy Support and Economic Incentives

Reforming Agricultural Subsidies A significant portion of the change hinges on policy reform. Currently, many subsidies encourage practices harmful to the environment. Redirecting these funds towards supporting sustainable practices can catalyze a major reduction in agrifood emissions. For instance, subsidies for cover cropping or organic farming can promote soil health and carbon sequestration.   Financial Models and Investments The financial investment required to halve agrifood emissions by 2030 is substantial—estimated at $260 billion annually. However, the returns, such as improved public health, job creation, and enhanced food security, far outweigh the costs. It is crucial for both governmental bodies and private sectors to collaborate in financing these green initiatives.  

Global Cooperation for a Sustainable Future

International Collaboration and Support High-income countries have a unique position to lead global efforts by providing technical and financial assistance to lower-income nations. This support is essential for adopting low-emission farming methods and technologies across the globe. Additionally, international partnerships can facilitate the transfer of knowledge and resources, enabling a unified approach to tackling climate change.   A Unified Approach Across Income Brackets While high-income countries can lead by example, middle and low-income countries also play critical roles. Middle-income countries can reduce up to 75% of global agrifood emissions through greener practices, while low-income countries can focus on avoiding high-emission pitfalls of industrialized nations.   A Recipe for a Livable Planet The journey to a sustainable agrifood system is complex but achievable. With concerted global effort, strategic investments, and a commitment to transforming agricultural practices, we can significantly reduce the carbon footprint of our food systems. The benefits of such transformations extend beyond environmental impacts, promising a healthier planet and a sustainable future for all. It's time for stakeholders across the board—policymakers, farmers, investors, and consumers—to unite in this vital cause. Together, we can cultivate a greener, more sustainable world.   Sources: THX News, WB Report & World Bank. Read the full article

[notwiselybuttoowell]

Research published on Friday by the Food and Agricultural Organisation (FAO) at Cop28 reveals the huge impact of livestock emissions on the climate. Livestock produce methane, a greenhouse gas 80 times more powerful than carbon dioxide, so are a key contributor to the climate crisis.

The FAO found that livestock agrifood systems – which include cattle, buffaloes, sheep, goats, pigs and chickens – are responsible for 6.2 gigatonnes (Gt) of carbon dioxide equivalent (CO2eq) emissions.

This accounts for approximately 12% of all emissions in 2015, the baseline year chosen for the study.

It also found:

 Of all the six animal species considered, cattle contribute to more than 60% of global livestock emissions.

 Of the edible animal products – meat, milk and eggs – two-thirds of the emissions are linked to meat production across all species.

 A further one-third of emissions comes from the production, processing and transport of feed inputs.

By 2050, demand for animal products is likely to grow by a fifth from 2020 levels

Without intervention, this upward trend could result in increased emissions from livestock systems, potentially undermining efforts to reduce GHG emissions and exacerbating global temperature rises.

The FAO concludes that more sustainable practices are needed, including breeding livestock for lower emissions and changing their feed, as well as changing human diets.

The report included some data that will trouble campaigners. Cattle in sub-Saharan Africa produce relatively far more emissions than North American cattle, according to the study, although most conservationists would regard subsistence herding as more acceptable environmentally than the mega farms of the US midwest.

The report notes that the absolute emissions of US intensive livestock farming are far greater than those of African herds, but said there was scope for interventions in Africa that would reduce emissions.

Campaigners will not want to see the US given a clean sheet and subsistence farmers taking the blame – that would be the wrong conclusion to draw from their data.

FAO will also present, separately, on Sunday a road map for the world food systems for staying within 1.5C .

Ivo Vlaev, a professor of behavioural science at Warwick Business School at the University of Warwick, said: “Shifting public dietary habits, especially in affluent countries where meat consumption is high, is a complex challenge. People’s food choices are deeply ingrained and influenced by cultural, social, and personal factors.

“Interventions to change these behaviours must account for these influences, potentially employing strategies like social norming (highlighting the growing popularity of plant-based diets), framing (emphasising the personal health benefits of reduced meat consumption), and facilitating ease of access to alternative protein sources.”

X

Preliminary reporting on the roadmap here

[cross-border-communications]

The Importance of Technological Protection for Spring Heritage. The thermal water of the Baths of Popoli

image credit vitamina project

The Popoli community has a longstanding connection with its spring heritage. The Pescara Springs, a notable aspect of their community, are home to a vital Blue Ecosystem. The waters flow from four caves creating a small lake called Capo Pescara. It is essential to protect this ecosystem using technology.

The image is a close-to-reality setting of the regional nature reserve "Sorgenti del Pescara," digitally reproduced by The Board Behind

The Municipality of Popoli Terme - Comune di Popoli - located in Abruzzi, is focusing on water access, protection, enhancement, water monitoring, and reviving inland communities. The hamlet is situated between the lower reaches of the Aterno-Sagittario River to the northwest, the Peligna Valley to the south, the Maiella massif to the southeast, and the Riserva naturale regionale guidata "Sorgenti del Pescara" .

The community is committed to improving and safeguarding water resources, and the International Water Academy was created to achieve this goal. The Ampioraggio Foundation - Fondazione Ampioraggio - initiated this innovative project, which aims to transform the area's rich raw materials into a lever for sustainable and technological development.

The 'image is a close-to-reality setting of the regional nature reserve "Sorgenti del Pescara," digitally reproduced by The Board Behind.

The International Water Academy is an open ecosystem that brings together researchers, businesses, administrators, and organizations to focus on conserving and enhancing water resources.

Through knowledge and technology, this community of innovators is working towards transforming Popoli Terme Terme di Popoli into a "water city," a center for education, research, and innovation on culture, environment, energy, use, and work, while adhering to the principles of sustainability and water resource protection. Popoli Terme - Città delle Acque

The 'image is a close-to-reality setting of the regional nature reserve "Sorgenti del Pescara," digitally reproduced by The Board Behind.

This group of innovative individuals in Popoli Terme is working towards transforming their community into a "city of water," an international hub for all things water-related. Their goal is to promote sustainable practices and water resource protection through training, research, and innovation in areas such as culture, environment, energy, use, and work.

This innovative initiative is a peripheral area that deserves attention and dissemination as a good practice for other sites facing water access and safety issues.

In today's world, we require new ideas and technologies to improve the resilience of our water supply system. Some examples include better management of water resources with the assistance of artificial intelligence and moisture capture systems that create drinkable water in areas lacking infrastructure.

The upcoming events at the International Water Academy will focus on expert discussions regarding "Funds and Open Innovation for Water Management," "AgriFood for Water Innovation," "Innovative Ideas to Support Water Savings," and "Tools for On-the-ground Management."

The image is a close-to-reality setting of the regional nature reserve "Sorgenti del Pescara," digitally reproduced by The Board Behind.

🟠 The published article was originally authored by Domenico Letizia in La tutela tecnologica del patrimonio liquido 🟠 More: L'innovazione Tecnologica per Tutelare e Monitorare L'ora Blue

⏩ The Board Behind ⏩

[thoughtlessarse]

How can non-animal methods (NAMs) be maximised under existing EU regulations? That was the challenging question for attendees and speakers at the European Partnership for Alternative Approaches to Animal Testing (EPAA) Annual Conference on 13 November. The European Partnership for Alternatives (EPA) is a joint European Commission-industry partnership focused on phasing out animal testing by developing and promoting NAMs - variously understood as non-animal methods or new approach methodologies to testing and is of central concern to animal welfare activists. Instrumental in fostering collaboration between sectors and facilitating dialogue between industry and the Commission, the EPA’s work includes projects on systemic toxicity, carcinogenicity and environmental safety assessment. Kristin Schreiber, Director for Chemicals, Health, Retail and Agrifood at DG GROW in the European Commission, opened the conference by highlighting the various projects developed by EPA working groups in 2024, including those on systemic toxicity and carcinogenicity. Animal-free assessments Schreiber emphasised that shifting to animal-free assessments is not only ethical but can also bring economic and industrial benefits as well. “Maximising the uptake of new animal-free methods is not only an ethical imperative due to animal welfare considerations, but such methods can also improve our understanding of how chemicals act and lead to adverse effects, and it’s hence also a chance for improving the protection of our citizens and the environment even further than today,” said Schreiber. She added: “I think that should not be forgotten either, shifting to animal-free assessments can bring clear benefits to our economy by reducing reliance on traditional animal testing. Companies can streamline their processes and cut down on expensive and often time-consuming testing procedures.” Tilly Metz, MEP, also welcomed the EPA’s role in fostering collaboration between regulators, scientists, industry, NGOs, and stakeholders to promote animal welfare and innovation. However, she noted the challenges given the high numbers of animals used in experiments despite the time elapsed since the directive.

continue reading

[ruralwomenday]

2023 International Rural Women's Day Commemoration Seminar.

According to the latest FAO report, women play a crucial role in agricultural and non-agricultural activities, which emerge as agrifood systems develop and economies change. There, women work as farmers, retailers, wage laborers, entrepreneurs, among other tasks. However, gender inequalities in agrifood systems cause women to be disproportionately affected by food and nutritional insecurity, monetary and time poverty in Latin America and the Caribbean.

In view of this situation, the FAO Regional Office for Latin America and the Caribbean, in the framework of the Commemoration of the International Day of Rural Women and the strengthening of its program for the economic empowerment of this group, invites counterparts from government, civil society, academia, private sector and UN agencies to discuss and propose strategies for closing gender gaps in agrifood systems, during a seminar to be held in hybrid format on October 10, 2023, in Santiago, Chile.

Objectives

The seminar will seek to provide a regional overview of the advances and challenges that promote or obstruct the economic empowerment of rural women in all their diversity, and will make recommendations to strengthen the economic empowerment program for rural women and generate inputs for the FAO Regional Conference -LARC 38, the Regional Conference of ECLAC-UNWomen, among other initiatives within the framework of the rural women's agenda in the region.

During the seminar, examples of legislation, policies and programs will be presented with a focus on what has worked and specific recommendations will be shared on how to make more and better interventions with and for rural women. From a vision of collective action, the seminar will seek to generate alliances and identify strategies and interventions with scalability potential, based on the agenda of rural women in the region, to accelerate their economic, social and political empowerment.

Methodology

The Seminar will begin with welcoming remarks by FAO, followed by thematic talks that will delve into the central aspects of sustainable rural development from a transformative gender equality approach, followed by a space for guided reflection, and ending with a session of agreements and closing. The interventions will incorporate success stories and review the strategies mobilized to bring about the necessary change towards an egalitarian welfare state.

The seminar will be simultaneously interpreted from Spanish into English and Portuguese.

[adalidda]

Critical Risks in Payment Against Documents (PAD) for Fresh Fruits Shipped by Air Cargo

In recent years, fraudulent schemes targeting fresh fruit exporters have intensified, particularly those using Payment Against Documents (PAD) with air cargo shipments. Understanding these schemes and implementing preventative strategies can help protect your business from significant losses.

Understanding the PAD Fraud Risk

In PAD transactions, goods are shipped, and payment is due upon the buyer's presentation of shipping documents—typically handled through the banking system. However, with air cargo’s rapid turnaround, goods often reach the buyer before payment can be fully verified, creating a window for fraudulent activity.

Fraudsters exploit this delay through tactics such as:

• Fake Payment Slips: Scammers may send realistic-looking payment slips to “confirm” the transaction. These slips often include bank logos, transaction IDs, and signatures, making them appear legitimate and giving sellers a false sense of security.

• Manipulated Bank Transfers: Some fraudsters initiate actual bank transfers but withdraw or cancel them shortly after. This creates a temporary appearance of payment in the banking system, prompting the seller to ship goods without realizing the payment will not be finalized.

Real-World Case of Fresh Fruit PAD Fraud

Consider a recent case where an African fruit exporter agreed to a PAD transaction with a new client in the Middle East for a large shipment of mangoes. The buyer provided a convincing payment confirmation that included official bank logos and details typical of a genuine transfer notice. Reassured, the exporter shipped the mangoes via air, which arrived within two days. Only after attempting to withdraw funds did the exporter discover that no payment had been made. The buyer could not be contacted, and the exporter not only lost the shipment’s value but also incurred unexpected freight and handling costs.

Key Risks in PAD Transactions for Air Cargo Shipments of Fresh Fruits

Fake or Cancelled Bank Transfers: Scammers exploit the rapid shipping time, creating fake or temporarily initiated transfers that deceive sellers into releasing goods before confirming payment.

Customs Clearance Speed: Air cargo for perishable goods often clears customs quickly, making it challenging for sellers to retrieve goods once they’re released to the buyer.

Difficulty in Retrieving Goods: Once the goods are in the buyer’s hands, recovery is nearly impossible and usually requires costly legal proceedings.

Recommendations to Prevent PAD Scams in Air Cargo Transactions

Require an Irrevocable, Confirmed Letter of Credit (LC): This payment method is far more secure than PAD, especially with new or unverified clients. An irrevocable, confirmed LC ensures payment upon verification of shipping documents and offers protection if the buyer defaults.

Request Full or Partial Payment in Advance: Requiring at least 50% upfront establishes the buyer’s commitment and credibility. While full prepayment may be unusual with established clients, it’s prudent for new clients or regions with elevated PAD fraud risks.

Utilize Trusted Escrow Services: Escrow services act as neutral third parties, holding funds until both parties meet their obligations. This ensures payment verification before goods are released.

Partner with Trade Insurers: Trade insurance can help cover potential losses from non-payment or fraud. Specialized policies for agrifood exporters can protect against unpaid transactions and support dispute resolution if issues arise.

Conduct Comprehensive Due Diligence on New Clients: Always verify new clients by requesting trade references, validating their business registration, and confirming bank details with the bank directly. Red flags include reluctance to provide references, delays in payment discussions, or urgent shipment requests without prior transactions.

Independently Verify Payment Before Shipping: Confirm directly with your bank that payment has cleared before shipping, especially for high-value, time-sensitive shipments like fresh fruits. Avoid relying solely on buyer-provided documents, insist on verification from your bank or an independent source.

By staying vigilant and choosing secure payment methods over PAD, exporters can reduce the risk of fraud, safeguard their assets, and avoid costly disputes. Protecting your business begins with thorough due diligence and a strong stance on verified payments.

Photo: Fresh mangoes ready for shipping by air cargo (credit: Sahel Agri-Sol / Public Domain)

#ExportFraud #AirCargo #PADFraud #FruitExport #SecurePayment #TradeInsurance #ExportProtection #PaymentAgainstDocuments #AgriFoodIndustry #ExportSafety #LetterOfCredit #TradeScams #EscrowService #DueDiligence #ExporterTips

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