Friday, January 31, 2025

Supply Lines: Sustainable food push

Beer with sugar kelp, canned plant-based ready meals or bread made using flour from regenerative wheat farms. These were some of the "nature
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Beer with sugar kelp, canned plant-based ready meals or bread made using flour from regenerative wheat farms. These were some of the "nature-minded" products being showcased at one of London's upscale Fortnum & Mason stores this week.

They're part of the Big Food Redesign Challenge, an initiative by the Ellen MacArthur Foundation, which invited entrants to design foodstuffs in line with nature and the desire to eliminate waste. UK retailer Waitrose is set to sell a bulk of them at 22 sites from next month.

Rethinking how food is produced is important, both in terms of feeding a growing population and doing so sustainably. From farm to fork, food systems make up about a third of global greenhouse gas emissions and are a substantial drag on biodiversity, land and water resources — with livestock a major driver. At the same time, huge amounts of food end up in landfill or get wasted even before reaching stores, while bad diets also contribute to ill health.

Most customers haven't heard of regenerative farming — a set of climate-friendly growing practices. Yet "they will be interested in rivers they can swim in and the bees and birds, and the health of their family and the health of themselves, and being part of the climate solution rather than part of the climate problem," said Andy Cato, the co-founder of Wildfarmed and half of DJ duo Groove Armada.

"These are all the things that we can offer today to people through their food choices," Cato said at the event at Fortnum & Mason on Thursday. (You can read about Cato in this profile by Bloomberg News' Charlotte Hughes-Morgan.) 

Supermarkets have a role to play when influencing consumer behavior and driving change. They can also cut their indirect emissions and save money, according to a recent report from Madre Brava, which studied German retailers.

Beyond the UK, European retailers are stepping up sales of plant-based goods in an effort to curb emissions from livestock products. Dutch retailer Ahold Delhaize, which owns supermarket chain Albert Heijn, this week said it's targeting 50% plant-based food sales in Europe by 2030. Lidl also aims to boost sales of plant-based foods this decade.

The cost of groceries remains a key determinant for consumers who are still struggling with the impact of food inflation of recent years. But it's becoming evident to more people that cheap food has come at an unacceptable cost to health and the planet, according to James Bailey, executive director of Waitrose. 

"We have to convince our customers that it is worth valuing the food they're eating," Bailey said at the event. "Understanding that customers have to pull more expensive, more valued food through is a really important part of this process."

Agnieszka de Sousa in London

Charted Territory

The other AI | Artificial insemination is underway across Africa to breed a new generation of cows that can withstand the African climate and produce more milk. Heat-resistant and more productive cows are key to efforts by governments, companies and aid organizations to increase the supply of animal protein to a continent where the population is growing at the fastest rate and where hunger is the most prevalent. In Nigeria, dairy producer FrieslandCampina has been shipping semen from the hardy Brazilian Girolando breed and distributing it across its network of farmers. (Read the full story here.) 

Today's Must Reads

  • Avocado toast is about to get more expensive for Americans.
  • Coffee's dizzying rally, which saw prices surge more than 90% in the past year, has already hurt demand in most major markets. Now, consumption is even starting to waver in the places where it was making a last stand. 
  • JBS, the world's biggest meat producer, has made its first foray into the egg sector at a time when concern over the global spread of bird flu is buoying prices.
  • Starbucks is introducing new procedures to enhance the customer experience, including offering ceramic mugs for in-store customers, perfecting macchiato designs and providing unlimited free refills.
  • President Donald Trump's obsession with California's water comes from an often overlooked source — Golden State farmers.
  • The EU proposed imposing tariffs on the remaining agricultural products coming from Russia and Belarus that aren't already facing duties, as well as some nitrogen-based fertilizers. Poland is targeting companies importing Russian fertilizers, in a bid to prevent the EU from developing another dependency on Moscow for a key resource.
  • Companies can continue to sell "vegetarian steaks" and "vegan sausages" in France after the country's top administrative court overruled government attempts to ban the use of  meat labels for plant-based foods.

On the Bloomberg Terminal

  • Salmon producer Mowi will raise its stake in closely held Nova Sea to 95% in a $655 million deal as it expands in what it calls one of the world's best areas for producing the pink-fleshed fishBloomberg News reports.
  • The largest US farm lobbying group is pushing Congress to overhaul migrant labor policies at the same time President Donald Trump is rolling out an immigration crackdown, according to Bloomberg Government.
  • Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
  • Use the AHOY function to track global commodities trade flows.
  • See DSET CHOKE for a dataset to monitor shipping chokepoints. 
  • For freight dashboards, see BI RAIL, BI TRCK and BI SHIP and BI 3PLS
  • Click HERE for automated stories about supply chains.
  • On the Bloomberg Terminal, type NH FWV for FreightWaves content.
  • See BNEF for BloombergNEF's analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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