4 prominent food companies investing in regenerative agriculture

With the threat of climate change becoming more aggressive by the day, stakeholders everywhere are looking to minimize their environmental footprint. Many in the food industry are turning to regenerative agriculture — a more sustainable approach to farming and agriculture that has gained significant traction in recent years. 

A lack of a standard definition has stalled efforts for measurable change, garnering substantial criticism. Recently, some of the most prominent names in the industry have moved to rectify this by launching a global framework for regenerative agriculture. Other reports show the term cropping up in the industry’s largest events, with companies redirecting their focus towards the practice. 

Then there’s the long-term impact that could arise out of regenerative agriculture — pointing to its potential to build more resilient food supply chains worldwide. It’s an attractive solution for the food industry that addresses environmental and supply concerns. 

Four leading food companies turning to regenerative agriculture

This article highlights four distinguished players in the industry investing in regenerative agriculture projects. 

Unilever 

In 2021, Unilever proposed a set of principles for regenerative agriculture. This detailed plans to work with farmers, suppliers and partners towards a net zero pathway. The company has put forward four projects to implement these principles across various crops and landscapes. 

In Badajoz, Spain, cutting-edge sensors and soil probes to monitor water use have seen a 37% decrease in greenhouse gas emissions for every kilogram of tomatoes. Furrow irrigation and a wetting and drying method have further decreased methane outputs in rice fields in Arkansas, US, by 76%, generating 48% less emissions (kg CO2eq per kg rice) than before the project. 

A cover crop planting project of the soil used to grow soybeans in Iowa, US, has resulted in 14% less nitrate run off water and 6% less greenhouse gases than comparison fields. Other findings from four demonstration farms — which generated more than 50% reduction in pesticide, herbicide and fungicide residue — will be rolled out to over 200 rice farmers in Italy. 

Danone 

Multinational food company Danone turned to regenerative agriculture in 2017, in which it announced an outcome-based holistic approach to farming. Partnerships and projects with farmers to improve soil health and reduce agricultural emissions date back to 2014. 

The Danone Ecosystem is a central pillar. Its projects aim to address local challenges linked to sustainable sourcing and regenerative agriculture. It has helped over 75,000 people build a more sustainable and inclusive economy and created more than 100 projects worldwide. 

For example, the Danone Ecosystem H’lib Dzair Project provided Algerian smallholder farmers with training and best practices to transition towards more sustainable farming models. More than 1,400 Algerian dairy farmers have been supported, resulting in several positive impacts across the whole system, including a 4% reduction in carbon footprint across one year. 

PepsiCo

PepsiCo’s 2030 agenda focuses on utilizing regenerative farming practices across seven million acres — approximately equal to all the land used to grow key crops and ingredients for its products. Two other focal points are water use efficiency and 100% sustainable sourcing of key ingredients. 

The company is moving quickly to spread regenerative agricultural practices across its value chain. In 2022, 89 regenerative demonstration farms were adopted into its program, with more than 3,000 farmers engaged in regenerative agriculture practices — covering more than 900,000 acres. 

PepsiCo has also worked with farmers to plant cover crops on over 700,000 acres of land around the globe, issuing an approximately 450,000 metric ton net reduction in on-farm emissions. 

The company is planning a $218 million multi-year investment in long-term, strategic partnership agreements to speed up regenerative agriculture practices across the US. 

McDonald’s

McDonald’s revealed a plan to work with key suppliers across China on regenerative agricultural practices earlier this year. This will focus on five key areas: nature, soil, water, livestock, and farmers. 

The first phase, which takes place from 2023 to 2028, will drive forward four major actions: promoting regenerative agriculture ideas and practices, accelerating the development and upgrades of test farms, ensuring implementations are in line with local agriculture, and growing collaboration partnerships to increase coverage. 

According to the company, around 2,000 core farmers will benefit from the plan’s empowerment, more than 20,000 farmers in their communities will begin implementing regenerative agriculture practices, and 10 test farms will be put in place by 2028. 

McDonald’s initiative will span across nine of its key suppliers, including Cargill.