Supply Chains: How are they implementing Regenerative Agriculture?

Daisy Wood, Technical Officer, LEAF, UK

What is a Food Supply Chain?

A food supply chain is the journey that all food products go through, from production to consumption. The food supply chain comprises all the stages below:

  • Growth/Production – This is where the food supply chain begins at a farm level, and where the food is sourced. This step will follow local and international guidelines to ensure quality and safety.
  • Handling and Storage – This refers to the quality control and preparation steps that food undergoes once the product has been harvested. This step will occur before food is sent to be processed.
  • Processing and Packaging – This is where the food, whether it be from plants or animals, is converted into an edible form. Here it is especially important that the food meets all food safety requirements before it is packaged for sale and distribution.
  • Distribution – This is where, once the food is edible, it is transported and distributed to the necessary retail or supplier.
  • Retailing – This is the process used to deliver the products from suppliers to consumers and involves everything from obtaining the food to selling it on.
  • Consumption – This takes place once the customer purchases the food from a retailer.

It is essential we know if and how supply chains are implementing regenerative agricultural practices at the growth stage of this process, as they influence the production of the vast majority of our food globally.

 

Why is it Important to Consider Regenerative Agriculture within Supply Chains?

To protect our food systems from the catastrophic implications of the planet warming more than 1.5C, we must mitigate greenhouse gas (GHG) emissions as quickly as possible. Studies have shown regenerative agriculture can cut food sector emissions – which currently make up one third of GHG emissions – and simultaneously, sequester carbon. The Rodale Institute estimates, based on recent, global data from farming systems and pasture trials, that we could sequester more than 100% of current annual CO2 emissions if we transition towards regenerative agricultural practices. Therefore, regenerative agriculture must be implemented within supply chains if we are to mitigate climate change and produce food in a ‘future-proof’ way.

Approximately half of the world’s habitable land is used for agriculture (see here). The expansion of agriculture has been one of humanities largest environmental impacts and placed a great pressure on biodiversity. This expansion must slow significantly if we are to stay within global carbon budgets and minimise our human impact on the land. However, our agricultural outputs must contend with a rising global population and increasing food demand. This presents the challenge of still increasing food production whilst reducing our impacts within it.

Regenerative farming is becoming an important solution, through which we can uphold or even improve yields whilst simultaneously improving the environment. Some studies are finding regenerative practices are outperforming conventional farming. One experiment on clay in Australia (1968-2008) found higher soil organic carbon, and higher average grain yield when crop residues were retained through regenerative practices, and another in China found wheat yield rose by 16% under no-tillage systems. The implementation of regenerative agriculture by supply chains is a necessity as they have global influence over farming as well as the financial capacity to provide their farmers with regenerative methods and technology. As a result, their farmers will be more resilient and able to supply this chain with food and products throughout extreme weather events associated with forecasted climate change.

What are the Commonalities between the Supply Chain Targets?

Having researched a variety of food supply chains including Danone, Coca Cola, McCain, and Waitrose, it is clear that due to the lack of a synonymous definition for regenerative agriculture, each supply chain has their own definition and understanding of what regenerative agriculture is. Whilst their definitions are different, in essence they are working towards the same goal: adopt farming practices that encourage soil health improvement, enhance the natural environment, and build farmer and crop resilience to climate change. All the supply chains primarily focus on soil health and biodiversity improvements as their main regenerative targets. Supply chain targets broadly align on similar regenerative principles which lead to similar outcomes, for example implementing heterogeneous practices like minimum tillage or no synthetic fertilisers to work towards the homogeneous goal of improved soil health.

What are the Differences between the Supply Chain Targets?

Whilst the supply chains are essentially working towards the same goal, due to the lack of definition, each supply chain has produced a slightly different understanding of regenerative agriculture and therefore have differing attitudes towards the implementation, monitoring and reporting of regenerative agriculture. For example, Waitrose closely monitor their metrics and percentage outcomes to achieve their targets, whereas Kellogg’s does not list any percentages but instead works towards more broad goals through farmer partnerships.

 

Supply Chain Matrix:

Supply ChainPlanKey themes/targetsMetricsKey Performance Indicators (KPIs)OutcomesAre there gaps?
WaitroseThe Waitrose Agriculture Plan

Adopt and encourage soil improvement and enhance the natural environment through restorative land management techniques that lead to topsoil regeneration, water cycle improvement and climate change resilience.

Reduce greenhouse gas emissions on the Leckford Estate to reach net zero targets ahead of Waitrose’s broader 2035 commitment.

100% raw materials in their own-brand products will be from more sustainable or recycled sources by 2025.

100% palm oil and palm kernel oil-based ingredients and derivatives used in all own-brand products to be RSPO (Roundtable on Sustainable Palm Oil) Segregated certified.

40% of the farmland will be committed to nature conservation and areas with unsuitable topography will be turned into natural spots to increase biodiversity.

100% shift away from the use of copper-based fungicides on organic fresh potatoes to combat late blight Phytophthora as part of ‘The UK Robust Potato Pledge’.

Dairy farmers will be encouraged to pledge 10% of their farm to biodiversity and habitat management.

To ensure 40% of the farmland at Leckford Estate is devoted to nature conservation, Waitrose have committed to the ’70 trees for the Jubilee’ avenues project under the Queen’s Green Canopy.

The Leckford Estate is LEAF Marque certified, meaning they use the LEAF Integrated Farm Management principles and work towards soil improvement and environment enhancement.

By 2026, Waitrose will only sell ‘robust’ organic, copper-based fungicide free potatoes.

Waitrose farms will provide homes for wildlife, protect soils and add to their carbon-capture capabilities.

The LEAF Marque certification enables Waitrose farmers to practice and monitor regenerative farming and measure its outcomes.

Waitrose recognise the need to develop protein diversification, however currently they have no solution to address this, and their targets are not working towards this goal.
McCainTake an ecosystem-based approach to farming that aims to improve farmer resilience, yield, and quality by improving and restoring soil health, enhancing biodiversity, and reducing the impact of chemicals on the environment.

100% of McCain potato crops will involve regenerative agricultural practices by 2030 (McCain Potato Farmer Pledge).

Boost water use efficiency by 15% by 2025.

25% reduction in CO2 emissions by 2030.

25% reduction in CO2 emissions from potato farming, storage, and freight by 2030.

3 ‘global farms of the future’.

Invest in funding to supply self-propelled harvesters, irrigation, health and safety, storage capacity and sustainability.

Testing potato varieties to look at attributes like yield, drought resistance and quality.

By 2030 potato crops will be climate resilient and there will be a reliable supply.

The use of rainwater and drip irrigation will boost water efficiency.

McCain will know the most climate resilient potato through variety testing.

The three global farms will help advance sustainable farming practices and explore innovative agricultural technologies.

If these targets are implemented effectively, they will lead to:

–          Improved climate resilience

–          Lower input costs

–          Reduced greenhouse gas emissions

–          Improved biodiversity

–          Improved soil health

–          Increased water holding capacity

Ensure the long-term sustainability of British agriculture, in the face of increasing climatic events like droughts and floods.

Kellogg’sThe Kellogg’s Origins programmeWork to build partnerships with farmers that support their climate, social and economic resiliency.Support 1 million farmers and workers, including women and smallholders, by 2030 through resiliency programs.

If this program is successful Kellogg’s would see increased climate, social and financial resiliency that also improve farmers’ livelihoods and promote climate-smart agriculture.

–          As of 2020 the Origins programme reached 440,000 farmers around the world.

Improved overall resilience of farming as they adapt to climate change and increasingly face extreme weather events.Kellogg’s targets are non-specific (e.g., they do not have metric, measurable goals) which increases the risk of greenwashing and underachieving.
Danone

Work to develop and promote regenerative models of agriculture that protect soils, empower farmers, and promote animal welfare.

They define regenerative agriculture as an outcome-based, holistic approach to farming with three dimensions – planet, people, and animals – which when adopted under the right conditions can maximise agriculture’s benefits.

100% of ingredients produced in France sourced through regenerative agriculture by 2025.

100% net zero emissions by 2025.

15% reduction in GHG emissions from fresh milk by 2025 in France.

20% less water usage, and 50% reduction in agro chemicals by 2050 in Mexico.

B Corp certified by 2025.

Adopt models that can regenerate the planet, whilst feeding a growing global population.

Danone brands are working towards these targets:

–          Horizon Organic is pledging to be carbon positive by 2025 through regenerative practices.

–          Alpro is working to develop regenerative practices for its key ingredients like soy, almond and oats.

–          Happy Family Organics launched a new regenerative and organic line so that farmers can minimise their impacts on climate change.

Improved soils, empowered farmers and improved animal welfare.

Danone have already converted 12% of their direct sourcing to regenerative practice.

Danone acknowledge they still have a long way to go before they can achieve their targets. They may need to review their regenerative targets and implement more sturdy practices in order to achieve them.
NestleThe Nestle Model alongside their Farm Assessment Tool (FAT).

Nestles corporate vision for agriculture is to build a central building block for a regenerative food system and advance those systems at scale.

Provide resilient and fair livelihoods and dignified work that enable people across the world to support themselves and their families.

20% of their key ingredients sourced from regenerative agricultural methods by 2025, and 50% by 2030 (estimated 14 million tonnes).

Source 100% Nescafe coffee responsibly by 2025, and source 20% of that regeneratively.

Source 50% of Nescafe coffee through regenerative agriculture methods by 2050.

Deploying regenerative practices at scale and transparently measuring their progress with a robust methodology and clear indicators.

Lower coffee farming carbon emissions, improve farmer income and provide better social conditions.

Become central to the regenerative food system and advance those systems at scale.
Coca ColaPrinciples of Sustainable Agriculture (PSA)

Work to implement a series of systematic changes to our agricultural supply chain.

Sustainable agriculture offers solutions to interrelated issues such as human rights, water security, climate resilience, greenhouse gas emissions reduction and women’s empowerment.

25% reduction in greenhouse gas emissions by 2030.

Increase water security through 2030 Water Secure Strategy.

100% sustainably sourced agricultural ingredients over time.

Agriculture and livestock production is resilient, environmentally sustainable, causes minimal damage, and where possible, is restorative to the surrounding environment in all areas of the farm.

Management plans are in place to ensure the health, safety, and integrity of all Coca Cola products.

Improve the issues of human rights, water security, climate resilience, greenhouse gas emissions reduction and women’s empowerment.Coca Cola do not specify when ‘over time’ is for the ‘100% sustainably sourced agricultural ingredients’ target. This puts them at risk of underachieving.
PepsiCoSustainable Sourcing Program and Sustainable Farming Program with a Landscape Approach

Positive agriculture aims to extend regenerative farming practices and embed integrity, fairness, and stewardship throughout the agriculture supply chain.

PepsiCo is taking a landscape approach to advancing regenerative agriculture by collaborating with stakeholders to advance shared sustainability goals.

100% adoption of regenerative practices across 7 million acres.

Net-reduction of at least 3 million tons of greenhouse gas (GHG) emissions by 2030.

15% improvement in water efficiency by 2025.

100% sustainably sourced key ingredients.

250,000 lives improved in the agricultural supply chain and communities.

Adopting a landscape approach to regenerative agriculture will optimise social, environmental, and environmental objectives whilst reducing GHG emissions and contributing to a measurable improvement in water use efficiency for farmers.The LEAF Marque certification enables PepsiCo, Quaker Oats farmers to practice and monitor regenerative farming and measure its outcomes.

PepsiCo have evaluated their progress so far, however they have not taken those learnings and adapted their practices to help achieve their targets by 2025/30.

They also state the complexity of their global supply chains means making an impact in upstream farming communities and requires partnerships with other stakeholders, which can be difficult to implement.

Conclusion

Supply chains and associated companies are increasingly advocating regenerative approaches. Whilst this blog has looked at how supply chains are individually implementing various regenerative practices, many farms and organisations will need to come together to successfully drive this movement and take regenerative agriculture to the forefront of consumer buying habits. Having a shared understanding of regenerative agriculture may help supply chains effectively implement its practices and therefore achieve associated outcomes for the benefit of our environment and society. Consumers can help influence supply chain’s implementation of regenerative agriculture by making conscious purchases that support regenerative systems.

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