Deep Dive into Regenerative Agriculture – Strategic Intelligence

Deep Dive into Regenerative Agriculture Strategic Report Overview

Regenerative agriculture is an approach to farming that focuses on restoring soils that the industrial agricultural system has degraded. Its methods promote healthier ecosystems by rebuilding soil organic matter through holistic farming and grazing techniques. It involves consistent crop cover, no use of agrochemicals and heavy machinery, and crop diversification. Transitioning from traditional methods of farming to regenerative agriculture could reduce atmospheric carbon.

The deep dive into regenerative agriculture strategic report looks at how regenerative agriculture can help companies achieve emissions targets. It covers the five principles of regenerative agriculture and explains how it reduces emissions and stores carbon. It also includes an analysis of regenerative agriculture’s growing importance in the agriculture, apparel, and consumer goods sectors.

Regenerative Agriculture in the Agriculture Sector

Transitioning from traditional farming to regenerative agriculture practices can incur significant initial costs. In the long run, farms that change to regenerative processes can expect to see an increase in profits. Diversified income streams, increased food security and product quality, and lower fertilizer spending will all lead to increased farm profitability after three to five years. However, the initial cost and loss of a crop year can put off farmers. Agriculture companies can offer support to farmers in the initial transition. They are well-equipped to support farmers through financial support and education.

Syngenta specializes in agricultural inputs like seeds and crop protection. The company has collaborated with the Nature Conservancy, an environmental non-profit, since 2009 to promote regenerative agriculture. In 2024, Syngenta announced that the partnership would aim to regenerate one million hectares of degraded land in Brazil by providing incentives to farmers, on top of further investment in projects in China and the US. A partnership between the Louis Dreyfus Company (LDC) and The Nature Conservancy was announced in January 2024. The partnership aims to promote regenerative agriculture and curb deforestation.

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Regenerative Agriculture in the Apparel Sector

Regenerative agriculture is already being adopted by fashion companies everywhere, from luxury runway couture to high-street retailers. Investing in regenerative agriculture projects and supporting farmers with the transition has multiple benefits for fashion companies. Firstly, regenerative agriculture can reduce emissions and increase the amount of carbon stored in soil. Furthermore, sustainable materials like cotton, wool, and cashmere can all be produced via these projects. This improves the public image and also helps the fashion industry become increasingly sustainable, and future-proofs companies against further potential environmental regulation.

Many luxury brands are also investing in regenerative clothing. Stella McCartney, a part of the Kering fashion house, has long been a proponent of sustainable design practices. The brand has partnered with NGO Canopy since 2014 to ensure all viscose and cellulose fabrics are sustainably certified. It is also part of Cradle to Cradle, a fashion program aiming to improve the development of sustainable materials. Since 2019, a partnership with SÖKTAŞ has the brand supporting Turkish cotton farmers with the transition to regenerative cotton farms. The materials from the SÖKTAŞ project are found in ready-to-wear garments and denim. A Summer 2023 runway show featured the first-ever regenerative cotton garments in the luxury fashion space, using cotton sourced from SÖKTAŞ farms.

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Regenerative Agriculture in the Consumer Goods Sector

Regenerative agriculture is an important strategy for food and consumer goods (FCG) companies to reduce the Scope 3 emissions from the farming section of their value chains. The regenerative nature of these farming practices often means carbon is naturally captured and stored in the soil and crops. Many FCG companies are incorporating regenerative agriculture into their net zero strategies to secure approval from SBTi. For instance, Danone has released an environmental handbook to teach its suppliers the benefits of regenerative farming. It has also created a regenerative agriculture scorecard to help gauge farmers’ progress in adopting these practices. Marks & Spencer has also established several “indicator and innovation” farms that run trials on ecosystem monitoring technologies.

Many prominent companies in the consumer sector are also hiring in regenerative agriculture. McCain Foods has posted the most jobs related to regenerative agriculture in the past 12 months. In a job posted in August 2024, the company advertised for a digital lead for its Farm of the Future initiative. The role will be responsible for implementing automation and precision agriculture to drive regenerative agriculture practices.

Top Consumer Sector Hirers in Regenerative Agriculture

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Scope

This report looks at how regenerative agriculture can help companies achieve emissions targets. It covers the five principles of regenerative agriculture and explains how regenerative agriculture reduces emissions and stores carbon. It includes analysis of regenerative agriculture’s growing importance in the agriculture, apparel, and consumer goods sectors.

Key Highlights

• Syngenta, Archer Daniels Midland, and Louis Dreyfus Company are investing in regenerative agriculture programs to support farmers. These companies are also diversifying their product ranges and offerings to aid regenerative agriculture practices. Partnerships with companies like PepsiCo help expand regenerative agriculture into the food and consumer goods (FCG) space.
• Farms using regenerative agriculture techniques can diversify further by growing crops like cotton, amongst other cash crops, or making grazing wool sheep a part of operations. Sustainable and carbon-negative materials can be produced, reducing the fashion industry’s supply chain emissions. The Stella McCartney brand debuted the first fully regenerative cotton t-shirt in 2023.

Reasons to Buy

Regenerative agriculture is a series of farming practices that improve long-term soil health, boosting yields. It also benefits pollinators, increases biodiversity, helps keep carbon locked up in soils, and limits nitrogen released by fertilizers. This report will tell you everything you need to know about this emerging theme.