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Regeneration game: A gamechanger for the global food and beverage industry
Siân Yates

Siân Yates

22 July 2024

Regeneration game: A gamechanger for the global food and beverage industry

Regenerative agriculture, characterised by its focus on conservation and rehabilitation within food and farming systems, has emerged as a transformative force in the industry. It is gaining widespread adoption as manufacturers increasingly prioritise these practices at the forefront of their operations. Here, FoodBev Media's Siân Yates examines the factors driving the rise of this practice and profiles some of the companies making regeneration their primary focus.



The European Institute of Innovation and Technology (EIT) Food recently released its new report, titled 'Cultivating Resilience: Regenerative Agriculture,' which sheds light on European consumers' perceptions and attitudes towards regenerative agriculture.


Conducted by the Citizen Participation Forum across 17 countries, the study underscores a promising yet complex landscape for sustainable farming practices.


The report reveals that most European consumers believe products from regenerative agriculture are healthier than their conventional counterparts.


This perception stems from the practices' focus on soil health and reduced chemical usage, which are seen as beneficial for personal health and environmental sustainability.


However, despite this positive perception, the study identifies several hurdles hindering widespread adoption and consumer acceptance:


  • Price concerns: Consumers express apprehension about potentially higher costs associated with regenerative agricultural products. This financial barrier presents a challenge as consumers weigh the benefits against their budgets.


  • Knowledge gap: There is a widespread lack of understanding among consumers about what regenerative agriculture entails. Many consumers mistakenly believe it only applies to small-scale or local farming operations, which limits broader acceptance and support.


  • Relevance to processed foods: Consumers show less interest in regenerative agriculture when it comes to ultra-processed foods. The perceived complexity in verifying regenerative practices for such products, coupled with health considerations, diminishes consumer prioritisation.


"The study highlights a critical need for clearer consumer education and transparent communication about regenerative agriculture. Addressing these knowledge gaps is essential to fostering consumer trust and engagement." Klaus Grunert, professor at Denmark’s Aarhus University and director of the EIT Food Consumer Observatory.

From an environmental standpoint, regenerative agriculture offers promising benefits such as improved soil health, biodiversity conservation and reduced carbon emissions. However, the transition requires significant investments in time, resources and farmer education to maximise these gains effectively.


Sofia Kuhn, director of public insights and engagement at EIT Food, emphasised: "As regenerative agriculture gains prominence, it is imperative to develop cohesive strategies that align consumer preferences with sustainable farming practices. This involves collaborative efforts from industry stakeholders to standardise certifications and enhance consumer awareness."


 

What is regenerative agriculture?


Regenerative agriculture represents an advanced paradigm in farming and land management, emphasising the restoration and enhancement of agricultural ecosystems' health and vitality.


This approach transcends traditional sustainable agriculture by focusing not just on maintenance and conservation, but on the active regeneration of soil, biodiversity and natural resources.


Core principles of regenerative agriculture


Soil health: Prioritising soil health is fundamental to sustainable food production. Implementing practices such as cover cropping, crop rotation and minimal tillage builds soil organic matter, improves soil structure and enhances nutrient cycling.


Biodiversity: Enhancing biodiversity is crucial. This involves diversifying crop species, integrating livestock into cropping systems, and creating habitats for beneficial insects and wildlife.


Water management: Effective water management practices improve infiltration, retention and quality. Techniques like mulching, contour ploughing and rainwater harvesting are employed to conserve water and reduce erosion.


Carbon sequestration: Regenerative agriculture plays a key role in mitigating climate change through enhanced carbon sequestration in the soil. Healthy soils can store significant amounts of carbon dioxide, contributing to climate stability.


Economic viability: Regenerative practices not only improve environmental outcomes but also aim to boost farm profitability and resilience. This can be achieved through reduced input costs, improved long-term yields and additional income streams from ecosystem services, such as carbon credits.


Community and social wellbeing: Regenerative agriculture addresses the social aspects of farming by supporting rural communities, promoting fair labour practices, and enhancing food security and access.



 

Leading the charge


Here, we have put together some real-world case studies to illustrate how companies within the food and beverage industry have successfully implemented regenerative practices, which have led to sustainable and profitable outcomes.


General Mills: Focus on soil health


Overview: General Mills has committed to advancing regenerative agriculture on 1 million acres of farmland by 2030. Its focus is on improving soil health, enhancing biodiversity and increasing water efficiency.


Practices:

  • Soil health: Partnering with farmers to implement regenerative practices such as cover cropping, crop rotation and reduced tillage. These practices build soil organic matter, improve soil structure and enhance nutrient cycling.

  • Education and support: Providing educational resources and technical support to encourage the adoption of regenerative practices.

  • Monitoring: General Mills is using advanced soil health indicators and technologies to monitor and measure progress.


Outcomes:

  • Significant improvements in soil health and increased carbon sequestration.

  • Enhanced crop yields and resilience to extreme weather conditions.

  • Positive impacts on biodiversity and water quality, benefiting local ecosystems and communities.


 

Danone North America: Sustainable dairy farming


Overview: Danone North America has launched a comprehensive regenerative agriculture programme to support sustainable milk production. The programme emphasises soil health, carbon sequestration and farmer profitability.


Practices:

  • Rotational grazing: Collaborating with dairy farmers to adopt rotational grazing, which enhances pasture quality and soil health.

  • Diverse forage planting: Encouraging the planting of diverse forage crops to improve soil fertility and biodiversity.

  • Research and measurement: Investing in soil health research and carbon measurement tools to track progress.


Outcomes:

  • Improved pasture quality and soil health, which leads to better forage for dairy cows and higher milk yields.

  • Increased carbon sequestration in soils, contributing to Danone’s climate goals.

  • Enhanced economic viability for farmers through reduced input costs and potential revenue from carbon credits.


 

Nestlé: Regenerative coffee production


Overview: Nestlé has integrated regenerative agriculture into its coffee supply chain, focusing on soil health, water conservation and improving the livelihoods of coffee farmers.


Practices:

  • Agroforestry: Implementing agroforestry practices, including planting shade trees and diversifying crops that enhance biodiversity and soil health.

  • Soil conservation: Promoting soil conservation techniques such as contour planting and organic mulching to reduce erosion and improve soil fertility.

  • Farmer training: Providing training and support to coffee farmers on regenerative methods.


Outcomes:

  • Increased soil fertility and reduced erosion, leading to higher-quality coffee beans.

  • Enhanced water retention in soils, improving resilience to drought & climate-related challenges.

  • Providing improved economic stability for coffee farmers through higher yields and diversified income sources.


 

PepsiCo: Scaling regenerative practices across supply chains


Overview: PepsiCo is incorporating regenerative agriculture across its global supply chains, focusing on soil health, carbon reduction and sustainable water use.


Practices:

  • Cover cropping and no-till farming: Collaborating with farmers to implement cover cropping and no-till farming to build soil health and reduce carbon emissions.

  • Precision agriculture: Using precision agriculture technologies to optimise inputs and improve crop yields.

  • Partnerships: Partnering with NGOs and research institutions to advance regenerative agriculture science and policy.


Outcomes:

  • Enhanced soil health and increased carbon sequestration across PepsiCo’s agri supply chains.

  • Improved water efficiency and reduced runoff, contributing to better watershed management.

  • Strengthened farmer relationships and enhanced supply chain resilience.


 

ADM: Advancing agriculture globally


Overview: Following the release of its second annual report, ADM is expanding its regenerative agriculture efforts globally, focusing on farming practices, carbon reduction and enhancing soil health.


Practices:

  • Programmes: Implementing regenerative practices across regions including North America, Latin America, Europe, and Asia Pacific to boost soil health and biodiversity.

  • Farmer partnerships: Collaborating with thousands of farmers and technical assistance partners like Farmers Business Network and American Farmland Trust to integrate regenerative practices.

  • Technological support: Use cutting-edge technologies and provide financial incentives to facilitate the adoption of regenerative methods among farmers.


Outcomes:

  • Reduced scope 3 emissions by 310,000 metric tons and sequestered 263,700 metric tons of CO2.

  • Managed 2.8 million regenerative acres in 2023, with a goal to reach 3.5 million acres in 2024.

  • Finalists in the Reuters Responsible Business Awards and the Fast Company World Changing Ideas Awards for leadership in regenerative agriculture.


 

By adopting regenerative practices, companies can achieve significant environmental and economic gains, such as improved soil health, increased biodiversity, enhanced water management and reduced carbon footprints.


Furthermore, these initiatives support farmer livelihoods and contribute to sustainable food systems, aligning with corporate sustainability goals and meeting consumer demands for responsible production.


















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