Climate policy shift forces tropical food farmers to grow more on less land

Public and private finance will be needed to enable small-scale palm oil growers - who are responsible for about 40% of output from top producing countries Indonesia and Malaysia - to also improve their yields.

KUALA LUMPUR: Tropical farmers will struggle to meet rising food demand unless they sustainably boost yields on the same land, with rising forest protection and carbon prices aimed at fighting climate change expected to hinder agriculture expansion, researchers said on Monday.

A report by thinktank Orbitas looked at the financial risks to tropical farmers and agricultural businesses - including palm oil, soybean and beef - if they do not adapt to new climate actions by governments, companies and consumers.