The recent Future Food Systems Conference in London saw experts from around the globe come together to discuss the complex challenges and opportunities of emerging food systems. Sustainability consultancy, Salterbaxter, shares its five key takeaways from the conference with Food & Drink Business readers.
From nutrition and health to climate and nature, systemic change is vital for Australia’s food system to address complex challenges and continue to sustain our population well into the future.
The Future Food Systems Conference saw experts gather in London from across the globe to discuss what’s on the emerging horizon for food systems.
The Salterbaxter team attended and identified five key trends and opportunities Australian food businesses should be across. These insights are supported by our own learnings from working closely with food and beverage businesses to drive systemic change.
- The conversation on nature is quickly catching up with carbon
The food system is unambiguously a driver of the climate and nature crises. A recent Global Policy Report on The Economics of the Food System Transformation estimated its environmental costs at US$3 trillion a year.
While the food system’s impacts on climate change have been well documented (and now more than 230 large food businesses have set Science-based Targets for climate) commitment and action on nature started much later and is playing catch-up. The World Benchmark Alliance’s 2023 assessment of food and agriculture companies found that only two per cent of them understand their impact on nature, despite their reliance on it to grow crops.
While impending mandatory climate disclosures are front of mind in Australia, incoming voluntary reporting frameworks such as the Taskforce on Nature-related Financial Disclosures and SBTs for nature will help put nature in the spotlight – both within the food industry and beyond. The Australian agriculture sector will also start to look for opportunities that may arise from the Nature Repair Bill, the nature market recently announced by the Australian government.
- Too many regenerative ambitions lack implementation plans
Regenerative agriculture is now at the forefront of discussions as food businesses look to take a more holistic approach in addressing environmental and social impacts at source. But a 2023 review (undertaken by the FAIRR Initiative, collaborative investor network that applies ESG in the global food sector) of the regenerative agriculture commitments being set by global food and retail giants casts doubt on the food industry’s ambition on regenerative agriculture.
Fifty of the 79 companies assessed referenced regenerative agriculture, yet the majority of these references (64 per cent) were generic statements with only 36 per cent of the companies having quantifiable targets. Only 16 per cent of the companies disclosed data and metrics to track the impact of regenerative agriculture while only 8 per cent disclosed targets to financially support farmers.
Regenerative agriculture is expected to rise in importance in Australia, but also continue to evolve. Recently, Australia’s first carbon neutral farm, Jigsaw Farms, announced that its regenerative approach over a period of time meant that it was now reaching carbon sequestration saturation. This means that the meat from that farm is no longer carbon netural, but the livestock does live on particularly healthy land. What this means is that the agriculture industry will need to constantly refine and update its approach, continuing to look for innovations once the ‘low-hanging fruit’ has been gathered.
- The protein debate is nuanced and needs a balanced view
The narrative on protein is shifting as the food industry grapples with the environmental and health impacts associated with animal-based proteins.
The protein mix in a sustainable food system is likely to encompass ‘alternative’ proteins such as cultivated meat options, alongside an industry commitment towards ‘better’ animal-based proteins (by increasing the sustainability of meat and dairy) and a consumer trend towards ‘less’ animal-based proteins (by increasing consumption of plant protein).
The world must move away from a binary debate between plant-based vs animal-based proteins, and this will be particularly important in Australia. Australian families have moved away from the meat and three veg diet of previous generations. Food businesses can consider how to harness the continuing shifts in our community to find a balance. An either, or approach may isolate or leave customers behind but continuing cultural shifts will occur naturally and meet with less resistance. The Australian food industry may wish to consider how to use these levers to become both financially and environmentally sustainable.
- Consumers need trusted sources to support their healthy living ambitions
A 2023 European study by Deloitte found that health and sustainability are both increasingly important considerations for consumers, with health as the higher priority. The study found that 60 per cent of respondents would choose health over affordability but only 30 per cent of respondents would choose sustainability over affordability. Yet conscious consumers and next-gen customers are recognising the links between health and environmental benefits which presents growth opportunities.
The study also found that 64 per cent of consumers have become more interested in learning about the influence of food on their health over the last 12 months. While 17 per cent cited grocery stores as a current source of healthy living information, it was surprising that only 4 per cent perceived grocers as the most trustworthy source for this information.
A healthy, outdoors lifestyle and the natural beauty of the land are both deeply ingrained into the Australian psyche, despite indications that society is beginning to overlook both. How can the food industry play a role in celebrating both, to the benefit of the land and the people who live on it.
- Personalised nutrition a growing opportunity for food businesses
A personalised nutrition market is emerging, driven by an increase in health awareness amongst consumers as well as an increase in noncommunicable diseases (NCDs) such as diabetes. This market is catered to consumers who want to tailor their nutritional intake to their own physiology and disease predispositions.
To date the commercialisation of personalised nutrition has been slow with only a small number of active companies in this space. ZOE is one example of these companies which offers a personalised dietary plan for users based on at-home gut health, blood sugar and blood fat tests. With healthy diets unsurprisingly captured as one of five key priorities within the Economics of the Food System Transformation’s recent report there is an obvious opportunity for food businesses wanting to take a leading role in healthy diets to lean into personalised nutrition.
