The global food sector is grappling with its significant contribution to climate change, responsible for over one-third of worldwide greenhouse gas emissions. As the public’s focus sharpens on environmental sustainability, major food corporations are setting ambitious carbon-neutral goals.
However, this corporate-led drive towards a greener future is creating a set of unique challenges for farmers, especially those running smaller operations.
Corporate-Led Decarbonisation Efforts
Major players in the food retail industry, such as McDonald’s, have publicised their commitment to achieving net-zero emissions by 2040. In the market landscape, Walmart dominates a quarter of the U.S. grocery sector, while Tesco holds a 27% share in the UK.
This concentration of market power means that these large corporations are the primary architects of decarbonisation strategies.
However, the initiatives often prove to be impractical and financially burdensome for smaller farms, resulting in a disconnect with the farming community.
The Shift from Carbon Offsetting to Direct Action
Initially, the trend among these corporations was to purchase carbon credits to offset their emissions. However, the credibility of such offsetting programmes has been increasingly questioned, leading to allegations of “greenwashing” and the risk of legal repercussions.
Consequently, the focus has shifted towards direct emission reduction throughout the supply chain, placing additional compliance burdens on farmers.
Financial Implications for Farmers
To illustrate, a cattle farm in Brazil that supplies an international retailer would now be required to adhere to the retailer’s new emission-reduction guidelines. These could range from altering grazing patterns to installing expensive digesters for organic waste management.
In 2021 alone, failure to meet such sustainability standards led UK retailers to cancel contracts worth over £7 billion with various suppliers, as per Barclays’ research.
Missed Opportunities in Emission Reduction
The corporate stranglehold on sustainability initiatives also prevents farmers from adopting potentially effective emission-reducing practices.
For instance, selective cattle breeding for improved feed efficiency could reduce beef-related greenhouse gas emissions by up to 27% over two decades, according to a UK government report.
The Imperative for Farmer Involvement
A balanced approach to achieving net-zero emissions necessitates the active participation of farmers. Armed with in-depth knowledge of their land and livestock, farmers are well-positioned to help set realistic and achievable sustainability targets.
While the UK’s National Farmers Union and the Dairy Farmers of Canada have set net-zero goals for 2040 and 2050, these need to be supported by concrete actions and enhanced farmer training.
The Need for Standardisation and Incentives
The absence of standardised measurement tools for farm-level carbon emissions—currently, as many as 64 different accounting tools are in use—complicates the credibility of decarbonisation efforts. Financial incentives can play a pivotal role here.
For example, Arla Foods incentivises farmers with financial rewards for engaging in sustainability activities and for submitting accurate emissions data.
The journey towards a carbon-neutral food system is a collective endeavour that calls for the collaboration of corporations, farmers, policymakers, and environmental advocates.
While large corporations have the resources to spearhead this transition, the challenges and financial implications for farmers must not be sidelined. A more inclusive strategy is crucial for achieving a truly sustainable agricultural landscape.
