The Impact of Water Shortage

 

Water Shortage pic

Water Shortage
Image: un.org

An investment professional in Sydney, Australia, Tim Hornibrook possesses a background in agricultural funds management, and most recently managed $1.2 billion in global assets. Tim Hornibrook gives sound investment guidance based on the latest research on environmental factors impacting agriculture, such as water scarcity.

Water scarcity is expected to increase as natural waterways, such as Saudi Arabia’s Lake Layla, disappear. In fact, within two decades, the United Nations (UN) expects water demand to exceed available reserves. In countries with limited access to fresh water, people will begin transporting supply in from other regions, which will result in costly expenditures. Further, water shortages will negatively impact local agriculture, creating food deficiency and making it necessary to import goods to replace foods that can no longer be grown domestically.

On average, nearly 800 gallons of virtual water, or water used to produce goods versus supply consumed, is used per day in developing countries, according to the World Water Development Report released by the UN in 2012. The amount is expected to increase in correlation to urbanization.

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