In the context of climate change, the agrifood sector faces immense challenges, particularly in supporting small farmers to transition to regenerative agriculture. This article explores how major companies from various areas of the agrifood industry—including distribution, FMCGs, fragrances, and pet food—are aiding small-scale farmers. This cross-sector global movement illustrates the industry’s commitment to sustainability, addressing the unique challenges these farmers face and the strategies and initiatives that are proving effective.
1. The Importance of Small Farmers in the Supply Chain
Small farmers play a crucial role in the global supply chain, producing a significant portion of the world’s food. However, they often lack the resources and knowledge needed to implement sustainable practices. The transition to regenerative agriculture, which emphasizes soil health, biodiversity, and carbon sequestration, requires substantial support from larger agrifood companies.
Emmanuel Faber, former CEO of Danone, highlights this point: “Our suppliers are our partners in sustainability. By working together, we can achieve our shared goals for a sustainable future.”
2. Challenges Faced by Small Farmers
Small farmers encounter several challenges when transitioning to regenerative agriculture, including financial constraints, lack of access to technology, and limited knowledge of sustainable practices. Additionally, the need to comply with rigorous standards set by large companies can be overwhelming.
Financial Constraints
Transitioning to regenerative agriculture often requires initial investments in new equipment, seeds, and training. Many small farmers struggle to secure the necessary funding to make these changes.
Jo Raven, Director of Thematic Research and Corporate Innovation at FAIRR, notes: “The complexity of global supply chains requires a coordinated effort from all stakeholders. Companies need to invest in building the capacity of their suppliers and fostering a culture of continuous improvement.”
Access to Technology and Knowledge
Small farmers may not have access to the latest agricultural technologies or the knowledge needed to implement regenerative practices. This gap can hinder their ability to make sustainable changes.
Mark Schneider, CEO of Nestlé, emphasizes: “Traceability and transparency are essential for ensuring sustainable practices. We are committed to providing our suppliers with the tools and knowledge they need to succeed.”
3. Strategies for Supporting Small Farmers
To help small farmers overcome these challenges, large agrifood companies are implementing various strategies, including financial support, training programs, and technological assistance.
Financial Support
Providing financial assistance is crucial for enabling small farmers to invest in regenerative practices. Companies like Nestlé and Danone have established funding programs to help farmers transition to sustainable methods.
Nestlé has launched a CHF 1.2 billion regenerative agriculture initiative to support farmers in adopting sustainable practices. This funding helps cover the costs of new equipment, seeds, and training. Despite these efforts, the main challenge remains the scalability of these initiatives, as many small farmers still face financial barriers to fully adopting regenerative practices.
PepsiCo has committed $216 million over multiple years to support regenerative agriculture through financial, agronomic, and social programs. This investment aims to transform over 3 million acres of U.S. farmland by 2030. However, achieving consistent implementation across such a vast area and ensuring long-term commitment from all stakeholders has proven difficult.
Training and Education
Training programs are essential for equipping small farmers with the knowledge and skills needed to implement regenerative agriculture. Companies are partnering with agricultural experts and local organizations to provide comprehensive training.
Unilever has launched 50 regenerative agriculture projects through its brand Knorr, aiming to reduce greenhouse gas emissions and water use by 30% while improving biodiversity, soil health, and livelihoods. While Unilever has seen progress, the challenge lies in maintaining consistent training quality and reaching farmers in remote areas.
Technological Assistance
Access to modern agricultural technologies can significantly enhance the ability of small farmers to adopt regenerative practices. Companies are investing in technological solutions to support their suppliers.
Walmart, through its partnership with IBM, is using blockchain technology to enhance traceability and provide farmers with real-time data on crop performance and supply chain dynamics. This technology helps farmers make informed decisions and improve their practices. However, the adoption of such technologies can be slow, particularly among older farmers who may be less familiar with digital tools.
4. Case Studies: Successful Initiatives and Ongoing Challenges
Danone’s Partner Program
Danone has established long-term partnerships with its suppliers, offering technical support and resources to help them implement sustainable practices. The company’s Ecosystem Fund provides financial assistance and training to small farmers, enabling them to transition to regenerative agriculture. Despite these efforts, ensuring widespread adoption and consistent practice among diverse farming communities remains a significant challenge.
Nestlé’s Regenerative Agriculture Initiative
Nestlé’s CHF 1.2 billion initiative focuses on promoting regenerative practices among its suppliers. The company collaborates with over 500,000 farmers and 150,000 suppliers, providing them with the necessary resources and support to adopt sustainable methods. However, the scale of the program means that achieving uniform results across all regions is a persistent issue.
PepsiCo and Walmart’s Collaboration
PepsiCo and Walmart have announced a $120 million, 7-year collaboration to support U.S. and Canadian farmers in adopting regenerative agriculture practices. This initiative aims to improve soil health and water quality on over 2 million acres of farmland and reduce greenhouse gas emissions by approximately 4 million metric tons by 2030. One major challenge they face is ensuring that all farmers adhere to the prescribed practices consistently over time.
Unilever’s Projects in Asia
Unilever is scaling up its regenerative agriculture projects in Asia, including Nepal. The company aims to implement regenerative practices on 300,000 hectares by 2024, with a goal of 1.5 million hectares by 2030. Unilever’s collaboration with Regrow Ag and other partners helps in providing measurement, monitoring, and reporting for these projects. Despite these efforts, integrating local practices with regenerative methods and ensuring continuous engagement from farmers remains a hurdle.
Firmenich’s Regenerative Agriculture Efforts
Firmenich focuses on sustainable sourcing and regenerative agriculture through its “Naturals Together” initiative. This program supports farmers in adopting regenerative practices that enhance soil health, biodiversity, and crop resilience. Firmenich collaborates with small farmers globally to ensure that their sourcing practices align with the highest sustainability standards. The primary challenge for Firmenich is to ensure these practices are maintained long-term and scaled appropriately across different regions.
Cargill’s RegenConnect Program
Cargill has been instrumental in supporting farmers through its RegenConnect program, which helps farmers adopt regenerative practices like cover cropping, reduced tillage, and nutrient optimization. This program connects farmers to new market opportunities and provides financial incentives for carbon sequestration. Despite these efforts, widespread adoption and ensuring consistent practice among all participants remain challenging.
ADM’s re™ Program
ADM is expanding its re™ program to support regenerative agriculture across its supply chains. The program aims to cover 2 million acres in North America and 4 million acres globally by 2025. ADM provides financial incentives, technical support, and access to digital farm-management tools to help farmers implement practices like cover cropping and conservation tillage. The challenge lies in the uniform adoption of these practices and maintaining engagement from all stakeholders.
Carrefour’s Regenerative Agriculture Initiatives
Carrefour has launched several initiatives to promote regenerative agriculture within its supply chain. The company supports farmers transitioning to organic and regenerative practices through financial incentives, technical assistance, and partnerships with local agricultural organizations. Carrefour aims to achieve a 30% reduction in greenhouse gas emissions from store operations by 2030. However, ensuring consistent adoption of these practices across diverse suppliers remains a significant challenge.
Leclerc’s Sustainable Farming Practices
Leclerc is actively promoting sustainable farming practices among its suppliers. The company provides training and financial support to farmers adopting regenerative methods, focusing on improving soil health and reducing carbon emissions. Leclerc collaborates with various stakeholders, including local governments and non-profit organizations, to enhance the sustainability of its supply chain and ensure the long-term viability of farming communities. The main challenge is to ensure that these practices are adopted uniformly and sustained over time.
Coca-Cola’s Sustainable Agriculture Initiatives
Coca-Cola has enrolled over 1 million acres of its U.S. corn supply in the Field to Market’s Continuous Improvement Accelerator. This program supports farmers through locally-led environmental conservation projects and utilizes the Fieldprint® Platform to measure the environmental impacts of crop production. Coca-Cola’s efforts aim to create systemic change in their agricultural supply chain by promoting sustainable agricultural practices and building supplier capabilities. Despite these efforts, ensuring consistent engagement from all stakeholders and achieving widespread adoption of sustainable practices remains challenging.
Mars’ Sustainable in a Generation Plan
Mars, Inc. has committed to advancing sustainable agriculture through its “Sustainable in a Generation” plan. This initiative focuses on improving soil health, water management, and crop resilience by working directly with farmers and suppliers. Mars provides training, technical assistance, and financial incentives to help farmers adopt sustainable practices and reduce their environmental impact. The company aims to achieve a deforestation-free supply chain and promote sustainable farming methods across all of its agricultural supply chains. However, maintaining consistent engagement and ensuring the long-term adoption of these practices across diverse regions remain significant challenges.
5. The Risks and Strategies for Companies Relying on Stock Market-Sourced Supplies
Many companies currently base their supply chains on stock market-sourced commodities, which involves working with large farm operations that manage hundreds of hectares each. While this approach ensures a steady supply, it poses significant risks, particularly in transitioning to regenerative agriculture.
Challenges with Large-Scale Farm Operations
Large-scale farms face considerable challenges in switching to regenerative practices for several reasons:
- Financial Barriers: Large farms often have substantial existing investments in conventional farming equipment and methods, making the switch to regenerative practices financially daunting.
- Knowledge Gaps: Transitioning to regenerative agriculture requires a deep understanding of new techniques and practices. Large
