Olam’s CEO argued that “the world’s food and agriculture system is broken” during a farmers’ event in India last week. Agriculture accounts for 25% of greenhouse emissions, uses 71% of the world’s fresh water and has already resulted in a 60% decline in wildlife. As such, he said, the world needs to invest nearly USD 50 billion in farm research to combat these problems against the current spend of USD 5 billion. At an event in the Philippines, he argued that companies needed to focus on environmental, social and governance (ESG) policies. Taking Olam as an example, he argued that it made it easier to get loans, reduced risk in the eyes of investors and unlocked opportunities in the fast-growing market for sustainable development.
At yet another event in Singapore, he asked all those involved in the rice supply chain to adopt the Sustainable Rice Platform (SRP) standard. He explained that rice fed half of the world’s population but its production was responsible for as many CO2 emissions as the whole of Germany. And because those who consume rice can’t afford a sustainability premium – unlike premium products like cocoa and coffee – it was up to brands and retailers to push for the change and educate consumers by procuring only SRP rice. “We must reimagine the whole supply chain,” an Olam official added. The company was also recently awarded an AGROW award for its involvement in helping small agriculture stakeholders.
Cargill has launched an alternative to fish oil for aquaculture feeds made from canola oilseeds. The company said that the plant-based product provided a much needed alternative source of omega-3 fatty acids to the fish industry at a time of growing demand. It is sustainable as it reduces the use of marine ingredients as well as entirely traceable since Cargill manages the whole value chain. In Ecuador, meanwhile, Cargill inaugurated a production plant which can make 165,000 mt/year of shrimp feed. Called the “world’s most modern shrimp feed plant,” it will contribute 20% of the 800,000 mt/year of feed produced in the country.
In India, the company has launched its first blended oil in the hope of capturing a bigger part of the country’s healthy oil consumption market. It also tied up with Safal, the retail arm of Mother Dairy that sells fresh fruits and vegetables, to sell its bran wheat flour.
In Ghana, Wilmar Africa is urging the government and private farmers to scale up the cultivation of palm oil to help produce its frying oil Frytol. The company currently imports 70% of the palm oil it needs. Wilmar also recently launched a cholesterol-free version of the oil in a bid to win over sceptical consumers, highlighting its health component and the fact that it was made locally.
The Danish Agriculture and Food Council along with the EU is trying to draft a system where a number on the label of a food product would reflect the impact on climate during its manufacturing. The policy would cover meat as well as plant products and would take into account water and land use, feed for livestock and CO2 emissions, among other things.
On a more global scale, seven food multinationals have come together under the Global Coalition for Animal Welfare to promote animal-friendly standards through the global food supply chain. Aramark, Compass, Elior, IKEA Food Services, Nestle, Sodexo and Unilever, which have a combined revenue of EUR 139 billion (USD 165 billion) and a consumer base of 3.7 billion people a day, will ensure animals are not caged, improve standards of chicken and fish welfare, antimicrobial resistance and adopt global criteria for transportation and slaughter.
In Australia, a 2017/18 audit found that half of Queensland’s cane farming businesses were not complying with the fertilisers law made to protect the Great Barrier Reef, according to Right to Information documents. No farmer has faced prosecution for flouting the rules or paid a fine, it said. The government launched a voluntary programme called best management practices under which it allowed farmers to decide the amount of fertiliser they wanted to apply within the legal limits. However, despite spending AUD 1 billion (USD 710.54 million) on this programme, there has been no indication of improvement in water quality, scientists said.
While the food industry has been the focus of sustainable and transparent policies, a Californian startup is hoping to bring the wine industry under the same lens. Ava Winery has managed to synthesise wine using molecular plant science, something they call “clean wine”. The founder explained that the aim was to make expensive wine more affordable, but also to bring transparency to the wine industry. At the moment, the use of a lot of ingredients, including pesticides sprayed on grapes, is not mentioned. The bioengineered wine should also use much less water and land.
This summary was produced by ECRUU
