Food and biodiversity: a challenge of our time
Luc Olivier, Fund Manager for Echiquier Climate & Biodiversity Impact Europe, La Financière de l’Echiquier
How can we feed 7 billion people – or 9 billion in 10 years’ time – without affecting biodiversity? A paradox that represents a major challenge for our planet… Accelerating the agricultural transition could help resolve this paradox and ensure that there is enough food to go round.
The food/ecology debate is wide-ranging and complex, as current events remind us. In authorising the cultivation of fallow land to offset the impact of the war in Ukraine and ensure Europe’s food security, the European Union has just adopted a solution for the short term but one that will exert additional pressure on the soil going forward.
The situation is clear. While the industrial practices of intensive agriculture have increased yields, providing more food, they have also considerably depleted the soil of its nutrients. Globally, 52% of the land used for agriculture is now severely affected by soil degradation. This loss of biodiversity is accompanied by CO2 emissions, owing to practices such as ploughing, which release massive amounts of carbon dioxide. And the environmental footprint of agriculture is also huge, with the sector accounting for 24% of global greenhouse gas emissions[1].
Nature’s response to the imbalances created is to unleash a violent reaction. The United States experienced this in the 1930s Dust Bowl – the first agriculture and biodiversity catastrophe in history. Massive dust storms enveloped the Great Plains of the Midwest, resulting in severe soil degradation and driving thousands from their homes. The New Deal’s resource conservation strategy aimed at replacing intensive agriculture helped repair the damage. And while we may have forgotten the lessons of history since then, solutions are available. Thanks to innovative business owners who are developing the agriculture of the future, there are a number of ways in which we can combat ecosystem degradation.
One of these is regenerative agriculture, which optimises agricultural yields while capturing CO2 and improving oil nutrients. This requires support for farmers and a drop in yields from land in the process of conversion; for example, as Nestlé is doing by financing the transition of its suppliers to regenerative agriculture to the tune of EUR 1.1 billion over five years. The group’s objective is for “50% of key commodities to come from regenerative agriculture by 2030”.
Stopping the use of agricultural machinery and ploughing is another avenue to be explored. While Echiquier Climate & Biodiversity Impact Europe[2] does not invest in agricultural machinery manufacturers due to their negative impact on biodiversity, the fund is interested in the transition to precision agriculture using artificial intelligence solutions that are integrated within the machinery. US manufacturer JOHN DEERE[3], a global leader in machine-integrated solutions, and CNH, which recently acquired RAVEN, a specialist in measuring tools for precision agriculture, are paving the way for new approaches.
Another solution is soil and seed protection. Innovation in seed production seeks to reduce fertiliser use and water consumption, without genetically modifying the seeds, by inoculating living organisms directly into the seeds before they are planted. Our strategy, which formally excludes GMOs and pesticides, is to invest in firms such as CRODA, a UK specialist in additives and adjuvants for a number of sectors that has developed a new technology that improves seed yields while reducing the environmental impact of harvests.
Lastly, tackling food waste would make a significant difference. Almost a third of global food production is lost or wasted[4]. Reductions in food waste could therefore make up to 30% more food available. To help limit food waste, Netherlands company CORBION is using preservatives of vegetable origin – lactic acid.
As Roosevelt said to the US Congress in 1935: “Men and nature must work hand in hand. The throwing out of balance of the resources of Nature throws out of balance also the lives of men”. The search for new ways to restore balances in agriculture is a task for humanity and requires fresh ideas, as virtuous companies are showing us.