This post is by Emma Piercy, head of climate change and energy policy at the Food and Drink Federation.
The codependence of food manufacturers and the environment means we need ways to produce food that is beneficial to both sides. Regenerative agriculture (or RegenAg) practices offer a solution to increasing food security and the protection of natural assets. A revolution is already underway.
Britain’s food system relies on a healthy natural environment. As extreme weather becomes more frequent and severe, food manufacturers must adapt to the realities of climate change. They are facing impacts across their supply chains, irrespective of whether sourcing relies on UK crops or international production. Poor soil quality is already costing the sector £246 million a year in lower yields and higher fertiliser costs.
While food production depends on the health and sustainability of nature, it is also contributing to its decline. The food industry accounts for a quarter of global greenhouse gases (two thirds of which is coming from the production of ingredients), 80 per cent of global biodiversity loss and 70 per cent of freshwater withdrawals.
RegenAg focuses on rebuilding soil health, improving biodiversity and making farms more resilient to climate change. It includes practices such as reduced tillage, cover cropping and better nutrient management, all of which reduce fertiliser requirements, improve soil health and build resilience to drought and flooding.
Major companies are already supporting it
For food and drink manufacturers, this is no longer a niche idea. Several major UK-based food and drink manufacturers, including Nestlé, PepsiCo, McCain Foods, Danone and General Mills, have committed to scaling up these practices within their supply chains.
We have great examples of manufacturers already making substantial progress. For example, the Nestlé Milk Plan, primarily in partnership with First Milk, is designed to transition dairy farming toward regenerative practices. Last year, it celebrated its 21st anniversary.
McCain also works with farmers close to its production sites and aims to have 100 per cent regenerative agriculture implemented on land used to grow its potatoes by 2030. It is becoming an essential tool for managing risk, securing future supplies and contributing to meeting climate and nature targets.
Up and down the supply chain, from retailers to wholesalers and hospitality, supported by the government, banks and insurance companies, a range of partners are supporting farmers in the transition to RegenAg. For example, with new training and equipment and financial support to cover the significant capital outlay required and bridge the period of lower yields expected in the first three to five years.
Cost is a challenge
But, whilst there’s a clear argument for investment and positive progress is being made, challenges remain, including the gap between what customers say they value and what they’re prepared to pay. In the midst of a cost of living crisis, consumers aren’t willing to pay a premium for RegenAg products. Volatile markets and pressure to keep prices low increase the challenges of balancing commercial priorities with longer term sustainability.
Additionally, a lack of consistent industry approaches to data collection and carbon accounting complicates investment decisions and marketing claims. The challenges of defining RegenAg are widely recognised.
Resources are available to help the business case
Central to securing internal business support for investment, and ensuring successful implementation, is building the skills and knowledge of everyone involved in ingredient production and sourcing. Likewise, when competing for capital within a business, strong storytelling and a consistent narrative help to secure leadership buy-in.
But how can businesses do this? We recommend the guidance of the Green Finance Institute, which provides a range of resources on how to present a business case to boards on how and why they should invest in supply chain sustainability.
Our Nature Handbook is another useful resource for manufacturers, launched as part of our Ambition 2030 sustainability programme. This covers the drivers for action, including why they should act, what they can do and how they can measure and disclose progress. It outlines that the first step businesses can take towards making their supply chains more sustainable is assessing the practices of their suppliers. Depending on the focus, this can involve reviewing on-farm practices of direct suppliers, the policies of intermediary suppliers or the sustainability credentials of commodities sourced.
The Taskforce on Nature-related Financial Disclosures’ (TNFD’s) ‘LEAP’ process also offers a useful step by step approach. Its four main components are: to locate your interface with nature; evaluate your reliance and impacts on nature; assess your nature-related risks and opportunities; and prepare to respond to nature-related risks and opportunities, ie with a mitigation strategy.
Once a business has assessed its supply chain, it can consider a procurement strategy that prioritises collaboration with suppliers on shared environmental ambitions. It can support farmers both directly and via intermediaries. Collective action projects such as those co-ordinated by Landscape Enterprise Networks (LENs) bring together a range of stakeholders to combine resources and facilitate farm investment, reducing costs and other barriers to entry.
With the positive progress already made, we can say that a new agricultural revolution is underway. Now, we need to learn from trials, pool resources and address wider challenges, to match the pace of environmental change with industry-wide action to secure Britain’s food security.
Read more on what’s needed to prepare the UK food system for climate change in Green Alliance’s ‘UK food security in a climate changed world’ report.
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