Unilever advances regenerative agriculture projects, but barriers to mainstream adoption remain

26 Sep 2023 --- Unilever has revealed the 2022 results of its four regenerative agriculture projects, which are part of its Net Zero pathway and its Regenerative Agriculture Principles. A company executive speaks to us about the projects covering crops such as soy, rice, tomatoes, onion, garlic and dairy and how they are making progress in restoring and protecting soil health, water quality, biodiversity and climate resilience. Yet, despite the vast potential of regenerative agriculture, Unilever says the entire industry is experiencing an array of challenges.

According to Unilever, the initiative is helping to ensure food security and supply chain resilience by working with farmers, suppliers and partners to apply agricultural practices that can regenerate and protect natural resources.

There are nine regenerative agriculture projects underway, covering 48,000 hectares across North America, Europe and South Asia. 

“By the end of this year, we aim to have around 300,000 hectares contracted. By 2030, our ambition is to have more than 100 regenerative agriculture programs live in the field. This work will contribute to Unilever’s commitment to restore and regenerate 1.5 million hectares of land, oceans and forests by 2030,” Lucas Urbano, head of regenerative agriculture at Unilever, tells Food Ingredients First.

Industry-wide challenges
According to Urbano, while regenerative agriculture shows unfulfilled potential, the entire industry is experiencing an array of challenges. 

Unilever is helping Spanish farmers in the Badajoz to protect their crops from the effects of decreased rainfall.“On the whole, regenerative agriculture is not scaling fast enough. As an industry, we must come together to promote the principles of regenerative agriculture to a wider audience of farmers and suppliers. We should aim to align our approaches and, as much as possible, mitigate the risks associated with this transition.”

“It’s important to highlight that the primary obstacles today are the shortage of knowledge and education, the absence of technical support, as well as the extra expenses and risks linked to adopting these practices,” he underscores. 

According to Unilever, investing in these projects is a no-brainer as they are already yielding results despite the long-term nature of agricultural change. They have reduced greenhouse gas emissions, boosted biodiversity, enhanced water efficiency and quality and improved soil health, according to the data collected from the projects.

The company called for global government support to help farmers transition to regenerative agriculture, saying: “We also need governments globally to support the transition to regenerative agriculture whether through helping to fund changes to help de-risk the transition; developing policies or incentives for farmers to move to regenerative practices; or providing technical assistance to farmers.” 

Successful key studies
While Unilever notes that “it is still early days,” the company also says that the case studies show there is “ground for optimism.”

In Spain, Unilever brand Knorr partnered with Spanish tomato supplier Agraz to help farmers in the Badajoz region cope with the effects of climate change, such as decreased rainfall and depleted underground water reserves. 

The project uses cutting-edge sensors and soil probes that inform farmers about the exact amount of water needed for irrigation, resulting in significant financial savings and a more resilient production system.

The initiative has seen a 37% decrease in greenhouse gas emissions, an increase in soil organic matter and fertility (from 1% in 2020 to 1.27% in 2022) and a 173% increase in pollinators and 27% increase in wildflower diversity.

“Through these projects, we are seeing a reduction of costs, a reduction of water used, a reduction in the use of fertilizers and pesticides, which is a great benefit for the soil,” says Antonio Tienza Villalobos, farm manager at Aldea del Conde. Lucas Urbano, head of regenerative agriculture at Unilever.

Minimizing methane emissions
In the US, Knorr partnered with rice supplier Riviana and the University of Arkansas to find ways to grow rice while preserving water reserves and decreasing methane emissions.

The project introduced a suite of new practices, such as furrow irrigation and wetting and drying, which reduced the time the land stayed underwater. This decreased the methane released from the flooded rice fields; the project also saved water and improved crop quality. 

The project achieved a 76% reduction in methane emissions and a 48% reduction in greenhouse gas emissions per kg of rice compared to the previous methods.

Meanwhile, in Italy, Knorr partnered with Parboriz to find ways to reduce water pollution and greenhouse gas emissions from rice farming while also increasing biodiversity. The project was based on four demonstration farms covering 900 hectares, where new practices were tested and evaluated.

The practices on the demonstration farms successfully decreased the amount of chemical residue found in water, including a 78% reduction in pesticide residue, a 62% reduction in herbicide residue and a 78% reduction in fungicide residue. The project also reduced greenhouse gas emissions and enhanced biodiversity.

Being responsible pays out?
Food Ingredients First asked how Unilever balances its environmental commitments with financial performance and shareholder value.

Unilever is working in Arkansas, US, to find ways to reduce the large amount of methane released when rice fields are flooded.“Our vision is to make sustainable living commonplace. We know that being a responsible, sustainable business makes us a stronger, better business - it delivers growth, it generates cost savings, reduces risk in our supply chain, and helps us attract and retain the best talent,” Urbano says.

“We’re convinced that by putting sustainability at the heart of our business model, what we call the ‘Unilever Compass’, we deliver superior financial performance,” he underscores.

 Unilever’s goal is to reach net zero emissions across its value chain by 2039.

Ensuring suppliers’ good practices
As Unilever and its partners demonstrate the benefits of regenerative agriculture for the environment and the economy, it is also important that its suppliers follow similar ideas on climate to reduce the company's Scope 3 emissions. 

Unilever uses its Responsible Partner Policy to set out fundamental principles for all of its suppliers. 

“This policy is designed to build more resilient businesses by moving beyond a compliance model to a continuous improvement process. This approach recognizes the evolving nature of our third parties and value chains,” Urbano explains.

“We prioritize working with suppliers that share the same sustainable ambitions as us,” he concludes.

By Marc Cervera