- ADB says food system resilience requires shared investment from all stakeholders.
- Public infrastructure spending must be matched by private-sector investment.
- Mobilising private capital will be critical as climate and geopolitical risks grow.
While policymakers increasingly agree on the need for more resilient food systems, the bigger question is who should pay for what’s needed to achieve it.
Speaking to AgNavigator, Isabel Chatterton, Director General for Private Sector Operations at ADB, said that no single stakeholder can bear the cost of preparing food systems for future shocks.
“The cost of resilience is a shared responsibility, but upfront investment should be made by those best placed to manage it,” she said.
Governments, for instance, should be the ones to provide funding for the infrastructure, such as irrigation, ports, rural roads, storage, and contingency logistics. Additionally, they should also fund public goods such as food safety regulation, market information, and targeted social protection.
“These investments reduce system-wide risk, attract private capital, and protect consumers, especially low-income households,” said Chatterton.
Chatterton will be speaking at the APAC Agri-Food Innovation Summit in Singapore from October 27 to 29. She will be joined by more experts in examining how stronger supply chains can help build a more resilient and competitive agri-food system.
The private side
Resilience cannot be built and sustained on public funding alone, which is where private capital comes in.
Chatterton said private industry should invest in supplier diversification, traceability, climate-smart procurement, logistics, and processing capacity to strengthen business continuity and reduce long-term costs.
“Consumers may pay some of the cost through prices or taxes, but good resilience investments should lower volatility and reduce long-term economic losses,” she added.
Chatterton also highlighted the importance of multilateral development banks like ADB and how they help align public and private interests.
“ADB provides risk-sharing and countercyclical support to maintain financing for essential food and agricultural supply chains during market stress, thereby reducing disruptions and limiting consumer costs, even when financing constraints emerge despite adequate food supplies.”
Chatterton highlighted the importance of trade finance, citing ADB’s Trade and Supply Chain Finance Programme as an example.
“Trade finance is a clear example of resilience in practice. It is less visible than ports, warehouses, or roads, yet during disruptions, it ensures that commercially viable transactions continue even when market uncertainty tightens liquidity.”
The programme supported US$5.7bn in trade transactions in 2025, including US$1.7bn linked to food security.
“These figures show that development finance can help maintain the flow of essential goods when commercial risk appetite declines,” she said.
Asia’s weak spot
Resilience in the food supply chain has taken on a greater urgency following a series of disruptions in recent years that exposed vulnerabilities across global supply chains, from the COVID-19 pandemic to Russia’s war in Ukraine and ongoing tensions in the Middle East.
The disruptions have exposed weaknesses in the region’s food security.
“APAC’s biggest vulnerability is its reliance on imported agricultural inputs, particularly fertiliser and energy, and on a limited number of trade corridors and exporting countries for key staples. Fertiliser is critical because it is energy-intensive to produce and essential for crop yields. When fertilizer prices rise or supply tightens, farmers may reduce use, lower future harvests and increasing food prices months later,” said Chatterton.
She singled out rice as a key concern, given its status as the staple food for much of Asia.
“Rice deserves special attention as the main staple for much of Asia. Its production is sensitive to weather, water availability, and input costs, making it vulnerable to fertiliser market disruptions and El Niño conditions.”
Recognising the vulnerabilities associated with fertiliser, ADB recently loaned US$50 million to Rustavi Azot Indorama in Georgia to modernise fertiliser production and strengthen resilience at the production level.
In addition, ADB coordinated a joint statement by Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs), together with the US Treasury, on 31 August.
The statement committed participating institutions to strengthening fertiliser supply chains, improving food-system resilience, supporting nature-based solutions, expanding financing and market access for smallholders and agri-enterprises, and promoting more efficient resource use.
Chatterton concluded: “Future resilience will depend on sound public policy, modern infrastructure, private sector investment, and financial instruments that keep trade flowing even in volatile markets. Mobilising private capital at scale will be critical to food security in the decade ahead.”
