Imagine eagerly opening a takeout box of fried chicken only to find fewer fries than expected, with compromised texture. This isn't imagination—it's climate change quietly altering our plates. Lamb Weston, a global french fry supplier, recently disclosed production challenges during its Q3 earnings call, with CFO Bernadette Madarieta acknowledging that poor potato yields forced production slowdowns and increased per-pound costs.
The Climate Culprit Behind Shrinking Fries
The primary cause traces to climate change. Lamb Weston's primary potato-growing regions in the Pacific Northwest endured extreme summer heat in 2021, reducing both potato yields and quality. CEO Tom Werner explained: "It now takes more potatoes to produce one pound of fries because the potatoes' size and quality have deteriorated."
Where one large potato might previously yield numerous fries, current harvests produce fewer usable strips, with many potatoes too small or misshapen for processing. This mirrors cooking with shrunken vegetables—the same effort yields diminished output.
Compounding Challenges: Pandemic Disruptions
Beyond agricultural impacts, Omicron variant outbreaks in January and February 2022 caused significant worker absences at processing plants, further slowing production. Facilities operating at half-staff capacity inevitably reduced output.
Rebounding Demand Meets Constrained Supply
As food service recovers from pandemic lows, Lamb Weston's sales volume paradoxically decreased 5% despite 7% net sales growth—a gap highlighting unmet demand due to production limitations. This resembles restaurants struggling with kitchen capacity amid customer surges.
Supply Chain Pressures Intensify
The potato shortage exposes broader supply vulnerabilities. Lamb Weston now purchases higher-cost potatoes from open markets, transporting them via expensive trucking from Midwest and Eastern regions to Northwest plants—a costly measure during freight price surges.
Madarieta noted increased reliance on trucking over rail to fulfill customer commitments, alongside rising ingredient and packaging expenses—a perfect storm of inflationary pressures.
Corporate Countermeasures: Price Adjustments
To mitigate profit erosion, Lamb Weston has implemented customer price increases. Werner expressed cautious optimism: "We're confident in navigating this inflationary period, and average yields next year would provide relief."
The Broader Climate Context
The Pacific Northwest's 2021 heat dome established record temperatures, with June-August becoming the hottest recorded months. A regional water assessment report noted: "Climate change impacts are increasingly diversifying, affecting agriculture, water supplies and natural resources." Food giants like Nestlé and Campbell's face similar climate threats.
Adaptation Strategies
Lamb Weston's European joint venture, LambWeston/Meijer, now modifies product specifications to accommodate climate-affected crops. Their 2019-2020 ESG report details adjustments: "This means implementing measures to handle inconsistencies—fries may vary in length and shape, with more skin-on products." Essentially, they're tailoring production to changing raw materials while maintaining quality standards.
Climate Change's Expanding Menu Impact
Beyond fries, climate change affects global food systems through:
- Crop yield reductions: Extreme weather diminishes agricultural output
- Food price inflation: Scarce supply elevates costs
- Quality degradation: Nutritional value and taste profiles shift
- Safety risks: Increased contamination vulnerabilities
Industry Implications
The Lamb Weston case reveals critical considerations for food businesses:
- Climate risk integration: Strategic planning must incorporate climate variables
- Supply chain resilience: Diversified sourcing and logistics become essential
- Sustainable operations: Environmental responsibility aligns with long-term viability
- Consumer education: Transparency about climate impacts builds understanding
- Technological innovation: Efficient, eco-friendly production methods gain priority
Sector-Wide Responses
Other food corporations are implementing climate strategies:
- Nestlé: Committed to net-zero emissions by 2050 via sustainable agriculture
- Unilever: Targeting 2039 for net-zero across its value chain
- Danone: Pursuing carbon neutrality by 2050 through regenerative farming
These initiatives demonstrate growing industry recognition of climate change as both challenge and imperative for transformation.