Is the future of food as appetising as it seems?
Earlier this month I attended Future Food Systems, a focussed, panel-led event dedicated to discussing the mammoth global challenge of food system sustainability. A recent report by HSBC Global Research notes that food consumption could rise by as much as 70% by 2050. Agricultural yield increases alone are unlikely to bridge this uptick in food demand. Instead, making better use of currently available land in terms of sustainability and productivity is critical.
Expert commentators from major food and beverage manufacturers, CVCs, financial organisations, start-ups, research institutes, think tanks and NGOs were convened to deliberate topics ranging from regenerative agriculture to supply chain resilience, and using innovation and communication to drive more informed consumer choices. The ultimate aim of the event was to unite stakeholders across the food value chain to accelerate the shift to a more sustainable, resilient, and just food system.
The passion and commitment of those individuals in the room to drive transformation in the food industry was palpable and inspiring, and it was heartening to hear of efforts and initiatives already in place to improve quality, equity and resilience of the food system. However, the audience was also served a healthy dose of realism. There was no denying that there is still a massive ‘mountain to climb’, and that aligning all stakeholders to achieve the common goal of a sustainable food system remains an almost impossible task. Progress is often too slow and no one organisation or initiative has sufficient scale or influence to drive long lasting meaningful change. Collaboration is imperative. Dr Sally Uren, OBE from Forum for the Future summed this up perfectly when she said “no one organisation can shift a system, we need to collaborate our socks off”. This was one of several ‘take-aways’ from the event that really resonated with me and demonstrated consistency with findings and reflections from recent sustainability-focused studies we have undertaken here at Strategic Allies Ltd (SAL). Below are my ‘top 5’ take aways from this event, and from ongoing work within SAL, on the global food system.
1. Is the risk of innovation ever greater than the risk of standing still?
Innovation of course comes with inherent risk, but if our food system fails to adapt to climate change and population growth, more people will be forced into food poverty and malnutrition. In 2023, an estimated 9% of the global population had insufficient access to food needed for a healthy and active lifestyle. At the same time, 1 billion people in the world are now living with obesity. Innovation must address not only the availability of food, but the nutritional content to stem the global epidemic of obesity and diabetes. Doing nothing is no longer an option.
2. Companies need to prepare for annual crop failures
A study by the Woodwell Climate Research Center predicts that crop failure rates could be 25x current rate by 2050 as a direct consequence of factors including extreme temperature events, flooding, drought, and soil erosion. The food industry therefore has to expect and manage annual crop failures, and this places ever increasing strain on a system which is already at breaking point.
3. We need to de-risk regenerative agriculture for farmers
A report by BCG shows farmers can expect a 15-25% return on investment after transitioning from conventional to regenerative agriculture systems, however the transition can take up to 5 years. The food industry needs to consider how it can better support and incentivise farmers during this transition period, through methods such as crop insurance reform, payment of premiums, honouring purchasing commitments, offering low-interest loans, or agreeing longer contracts etc.
4. Consumers won’t pay for sustainable packaging – they will pay for added benefits
A fact highlighted by Sarah Webster from Carlsberg Britvic, and evidenced in consumer purchasing patterns. A recent survey by Mintel revealed less than a quarter of UK shoppers list buying more sustainable products among the top three changes they expect to make to food and drink shopping once the cost of living crisis eases. At the same time another survey found 86% of consumers were willing to pay a premium for food and beverages with functional benefits. As discussed in our recent article “Selling Sustainability: Shhhhh, don’t use the ‘S-word’!!” selling sustainability is hard, and often companies need to find and promote other benefits that resonate more with consumers.
5. “Every consumer wants nature to thrive”
Ultimately, it isn’t all doom and gloom, everyone wants nature to thrive and there are sustainability messages that do broadly resonate and ‘make sense’ to consumers. Small and big players alike across the food value chain recognise this and greater collaboration is starting to drive more impactful change.
Conclusion
It’s clear that the journey toward a sustainable food system is both challenging and essential. At Strategic Allies Ltd, we are committed to being part of the solution.
In the past year, we’ve collaborated with global food manufacturers and agritech companies to tackle sustainability issues head-on. From improving operational efficiencies – Reducing Manufacturing Complexity – to helping reducing the reliance on chemical herbicides – Organic Weed Control – and landscaping technologies to identify stress-tolerant crops, our work is driven by a shared vision for a more sustainable future.
While the road ahead may be challenging, with the right support, it can be an incredibly rewarding experience rather than a daunting one. Isn’t it time to embark on the path to sustainable food production and take your first steps with an experienced guide? Explore our case studies for inspiration, or if you’re ready, reach out to John Allies at john@strategicallies.co.uk to start a conversation.