The model of intensive agriculture has shown its limits and consequences on land degradation as well as biodiversity loss. Today, there is a generally accepted consensus that farming practices need to adapt to a growing requirement of enhanced resilience toward climate change and nature preservation. The pathway from current farming practices and business models to more resilient practices is raising some challenges along the food value chain.
We are seeing a high level of heterogeneous practices among the value chain and specifically at farms and cooperatives levels. The food industry, which has developed a multi-geographies sourcing origin, needs to create the right dynamic within its sourcing model to not only incentivize the most mature partners but engaged all its suppliers in an environment performance-based approach.
In today's environment, where companies’ climate commitments are no longer an option, addressing farming practices will become critical for all FMCG to achieve their climate ambition. There is a need to reinvent the way FMCG companies buy agricultural products, to address the environmental challenges we are facing.
The industry is moving fast already, and we are seeing multi stakeholders' approaches creating new standards, NGOs, and companies working together to develop new business models.