rethink sustainability
The agriculture of tomorrow: how can we feed a growing population while preserving the planet?
Article published on rethinkeverything.ilsole24ore.com in partnership with Il Sole 24 Ore
Agriculture has fed humanity for around 10,000 years, primarily thanks to grain cultivation and livestock farming. Following a tripling of the world’s population since the “green revolution” of the 1950s, farming has also had to rely on genetic innovations and industrial systems. Around 40% of the planet’s habitable land surface is now used for agricultural purposes, according to various estimates. However, much of what is produced is not directly consumed by humans; it serves as feed and forage for farm animals, which in turn produce meat, milk and other products. Some 70% of cultivated land in the European Union is used to feed livestock, according to a Greenpeace report based on Eurostat data. And at a global level, only 55% of food grown in fields is consumed directly by humans, states Britain’s National Food Strategy.
Are we eating too much meat?
It is becoming essential to use agricultural land in a more rational and sustainable way. This includes using plant-based foods to feed many more people. Between 700 million and 800 million people are suffering from hunger, predominantly in Asia and Africa, according to 2021 UN Food and Agriculture Organization (FAO) data. A total of 2.3 billion people are victims of food insecurity. Paradoxically, there are also almost 2 billion overweight adults, of which 650 million are obese, according to the World Health Organization. Their health is at risk due to overeating or poor diet, and this has increasing implications for healthcare costs.
Agricultural production will have to grow by around 60% by 20501 compared with 2005-2007 to support the expanding world population, the FAO estimates based on current eating habits.
On a global scale, meat provides 15% of the protein and 8% of the calories in the world’s diet, according to an OECD study on protein alternatives to meat2. However, the FAO notes major differences between countries and socio-economic groups, ranging from 9% in Africa to 37% in North America. In some parts of the world – particularly North America, Europe and East Asia – the time has come to make use of more sustainable protein sources, for the sake of both the planet and people’s health.
Discover our video on IRRITEC, a company specialising in precision irrigation:
The rise of plant-based proteins
The fundamental role of animal proteins is being increasingly challenged by alternative plant-based proteins. These are healthier and more sustainable3, and are on the way to replacing animal proteins, at least in part.
The scientific community’s interest in proteins of plant origin is also growing. This is due to the benefits these foods offer for the climate, and because of the reduced risk of animal-based disease transmission and antimicrobial resistance in food production4.
Read also: How regenerative farming is unleashing the power of the ladybird
Reduced consumption of meat and animal products has a direct effect on the climate, as it results in a drop in greenhouse gas emissions. Intensive rearing of animals, especially cattle, is responsible for about 14% of climate-changing gas emissions, according to the FAO. This alone accounts for about two-thirds of emissions from agriculture, forestry and other land use, according to an Our World in Data report from 2020.
Agriculture also consumes about 70% of fresh water supplies, and as much as 95% in some developing countries, according to the World Bank. Livestock farming is a particularly significant drain on water resources, with an average of 15,400 litres of water needed to produce 1 kg of beef, according to data from the Water Footprint Network. Compare this to the 1,250-1,500 litres required for 1 kg of lentils – a foodstuff almost equivalent to beef in terms of protein content.
Reduce and regenerate
Our food production system is facing some serious challenges. How can it increase production while reducing its impact on the climate? How can it feed those who are going hungry while cutting consumption of fundamental and finite resources such as water?
The answer lies in adopting precision farming methods. This is an increasingly sustainable type of agriculture that uses fewer resources and protects biodiversity. It decouples economic growth from social and environmental impacts.
Read also: Welcome to the future of agricultural technology
Precision farming systems are already spreading. Technologies such as GPS, drones, sensors and drip irrigation allow crops to be controlled by meticulously measured inputs tailored to their specific requirements. This type of agriculture reduces the need for water, as well as for fertilisers, which can pollute the environment and aquifers.
Precision farming is an important component of regenerative agriculture. As its name suggests, it aims to regenerate land by adopting practices that increase its fertility and limit soil erosion. It also makes use of innovative scientific techniques and puts a high value on local landscapes and culture, helping expand crop variety and local biodiversity.
This type of agriculture can reduce levels of degraded land. The 15th session of the Conference of the Parties of the United Nations Convention to Combat Desertification made a commitment in 2022 to accelerating the restoration of 1 billion hectares of degraded land by 2030. It estimated that every dollar invested in this way can generate USD 7-30 in economic benefits.
Read also: Meet FarmED – the farm putting soil first
Agriculture, food and land use need to be rethought. The transition to a new food system is underway. For companies that aim to innovate and are sensitive to the needs and new demands of consumers, the opportunities to invest in sustainable food production are growing. The focus should be on companies that offer solutions along the whole value chain in sectors such as agriculture and food production equipment, food packaging and logistics.
We at Lombard Odier firmly believe that sustainability is profoundly changing the risk-reward profile of investments in financial markets. We believe that the global economy is moving towards a model that is circular, lean, inclusive and clean: the CLIC® economy. It will be a significant change affecting energy, the materials sector, agriculture, food and land use.
Carbon emissions markets can play a key role in incentivising the transition in these sectors. Including the price of climate-changing emissions in business costs encourages companies to adopt low-emission technologies. At the same time, this shows consumers that prices are shifting in favour of an economic model that reuses and recycles more and emits and discards less. Markets of this kind, particularly in the EU and the US, have led to emissions reductions in recent years that have not compromised economic growth.
1June 2012, No. 1 & 2 Vol. XLIX, The Future We Want?, by José Graziano Da Silva, Director-General of the FAO of the United Nations. Feeding the World Sustainably | United Nations
2 6. Viande | Perspectives agricoles de l’OCDE et de la FAO 2022-2031 | OECD iLibrary (oecd-ilibrary.org)
3 Plus de protéines végétales, chiche ? | INRAE
4 Our World in Data (2020 report)
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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