rethink sustainability

    Cutting out the middleman: the problem with meat

    When the digestive gases of livestock occupy global headlines you know that something, somewhere, is going badly wrong. At a time when a third of the global population faces food insecurity, the developed world consumes staggering quantities of meat – meat mostly raised on industrialised farms at huge environmental cost. Our lopsided dietary preferences have led us to breed billions of farm animals – meaning we now share the planet with 22 billion chickens, well over a billion each of cows and sheep, hundreds of millions of pigs, and a host of other domesticated creatures.

    The impact of the current food system on global and local ecosystems is ruinous – our demand for meat is one of the primary causes of greenhouse gas emissions, deforestation and biodiversity loss. Animal agriculture now occupies more than 40% of all habitable land on Earth1. It also represents a lost opportunity – millions of hectares of land that could sequester carbon are instead being used for pasture and to grow feed crops. The “carbon opportunity cost” is enormous – by this measure, for instance, one kilogram of beef protein is responsible for 1,250 kilograms of CO2e2, equivalent to the emissions of five return plane journeys from London to Rome3, and 27 times that of one kilogram of protein derived from pulses.

    The impact of the current food system on global and local ecosystems is ruinous – our demand for meat is one of the primary causes of greenhouse gas emissions, deforestation and biodiversity loss

    The inefficiency with which livestock convert plant protein to animal protein is responsible for most of this cost. 77% of agricultural land is used for animal agriculture, though livestock deliver only 18% of global calories and 37% of the protein supply4. 30 calories of feed are needed to produce just a single calorie of beef, while more than a third of crops grown are used to feed livestock instead of people5. Animals are a costly middleman in our global food system – one that we can ill afford if we are to feed a growing population without going beyond our planet’s sustainable boundaries.

    Animals are a costly middleman in our global food system – one that we can ill afford if we are to feed a growing population without going beyond our planet’s sustainable boundaries

     

    Eating plants instead

    When Jane Land and her partner Matthew Glover launched the Veganuary campaign from their kitchen in the UK in January 2014, they had little idea of the phenomenon they were about to unleash. Their campaign – which asks people to “go vegan” for the month of January – has grown from around 10,000 initial sign-ups to more than 600,000 each year (with possibly many more joining unofficially), and seen participation across the globe.

    Veganuary is tapping into a wider trend, with surveys showing increasing interest in reduced meat diets, for their positive impact on both planetary and human health. Research from the University of Oxford has shown that these benefits do, indeed, correlate – the healthiest foods also have the lowest environmental impact6, with plant-based foods scoring better on both measures than meat and dairy products in general, and processed meats in particular.

    If we are to hit the 2015 Paris Agreement climate target, it’s essential that this move to reduce meat intake is not just a passing trend. In 2018, the EAT-Lancet Commission brought together human health and environmental sustainability experts to develop science-based targets for healthy diets7. In the West, they found that consumption of red meat needs to fall by around 75%, to be replaced by a near 100% rise in the consumption of lentils, beans, legumes or nuts.

    A series of international pledges have promised to return 1 billion hectares of agricultural land to nature by 2030 – eating crops directly, rather than cycling them through livestock first, will be an important step towards making this possible.

    Read also: Five reasons why you should consider going plant-based

     

    Lab meat, fish meat, and I can’t believe it’s not meat

    In a global population projected to both grow, and grow more wealthy, demand for meat is expected to rise. Meat consumption is typically correlated with income – in Uganda, for instance, where GDP per capita has stayed flat since 1990, so has meat consumption, with the average Ugandan eating just 10kg of meat per year; while in China, where GDP per capita has grown 10-fold over the same period, meat consumption has tripled to more than 60kg per person per year. (This compares with the more than 120kg of meat the average American consumes each year.) Encouraging a switch to nuts and pulses is, on its own, unlikely to gain sufficient uptake to achieve the cuts in land-use and emissions we need; shifting demand to “alternative” meat and dairy products will be key.

    Encouraging a switch to nuts and pulses is, on its own, unlikely to gain sufficient uptake to achieve the cuts in land-use and emissions we need; shifting demand to “alternative” meat and dairy products will be key

    In 2016, Danone, under then CEO Emmanuel Faber, purchased WhiteWave, a developer of plant-based dairy alternatives which included the Silk and Alpro brands. The move represented an important entry point into the growing dairy alternatives market, and was part of Faber’s drive to position Danone at the forefront of sustainability in the food sector. It proved to be a far-sighted decision. In 2020 Danone announced that it had achieved 15% annual sales growth in its plant-based products division – alternative dairy products now comprise 20% of sales in its dairy division. Last year the company acquired Earth Brands, the maker of vegan yoghurts and condiments, in a further sign of confidence in the sector.

    Read also: The CLIC® Chronicles: Meet Ÿnsect, the French start-up raising beetles to tackle growing food demand

    Imitation meats, too, are making inroads into supermarket aisles and attracting major industry names. Rivalling headline-grabbing start-ups Beyond Meat and Impossible Foods, Kellogg’s-owned MorningStar Farms, which has been creating vegetarian products for nearly 50 years, recently launched a new range of meat imitation products called IncogmeatoTM, which includes plant-based burgers, sausages and chicken designed to be indistinguishable from animal meat. In 2021 Kellogg’s invested USD 43 million in MorningStar Farms, to expand their reach into a market projected to be worth at least USD 290 billion by 20358.

    Cultured meat – real meat grown in lab conditions rather than via traditional farming methods – is another threat to the established meat market. In the UK, start-up Ivy Farms grows pork or beef in just three weeks, cutting the environmental impact of traditional meat production, while avoiding the risks of antibacterial resistance and animal-to-human disease transmission that accompany factory farming. US start-up WildType is using similar technology to grow seafood – their first product is “sushi-grade” salmon grown at a micro-brewery style pilot plant in San Francisco. Food equipment manufacturer GEA Group is anticipating strong growth in this sub-sector, and is aiming to triple sales of both cell-based and plant-based manufacturing equipment in the next four years. By 2035 it is estimated that 10% of meat, eggs and dairy produce will come from non-traditional sources9.

    Farmed fish could also play an important role in replacing meat. Since 1990, aquaculture, which promises greater sustainability than traditional fishing, has seen industry growth of 500%. Most aquaculture takes place out of doors, in lakes or near-shore enclosures. In Norway, Frederikstad Seafoods is pioneering indoor aquaculture, cultivating salmon from infancy to harvest in enormous tanks in warehouses near Oslo10. By locating production facilities near to markets, indoor aquaculture can achieve a lower net CO2 footprint than outdoor aquaculture, with both forms of production markedly better for the environment than rearing cattle or sheep11.

    The adoption of innovation in farming can be a gradual process, and governments and industry have been slow to introduce policy incentives – but this could now be changing

     

    Smaller, leaner, cleaner: reducing emissions by reducing “emissions”

    The agricultural sector is responsible for 45% of all anthropogenic methane emissions, a potent greenhouse gas, and it is widely recognised that livestock, and ruminants such as cattle in particular, bear much of the blame. (Where it was previously thought that cows were prodigiously flatulent, it is now understood that they are, in fact, champion burpers – if cows could blush, our keen interest in their digestive habits would surely give them cause.)

    Around 20% of methane emissions from ruminants are thought to be dictated by genetics12, thus, selective breeding could create a new generation of low-emissions livestock. Feed additives also have promise – increasing unsaturated fat content has been shown to inhibit methane-producing bacteria in the digestive system13, while one study found that adding seaweed to cattle feed led to an 82% drop in methane emissions14.

    Read also: Satellite imagery – how the eye in the sky can track methane leaks

    Amsterdam-based start-up Connecterra is turning to artificial intelligence to improve efficiency and productivity. By attaching connected devices to individual animals – Connecterra CEO Yasir Khokar describes their device as “a fitbit for cows” – farmers can keep track of fertility, calving, injury and other indicators of threats to health, allowing early intervention. Improved animal health increases productivity, allowing herd numbers to be kept to a minimum. Connecterra also help farmers cut emissions by preventing unnecessary inputs – a recent test of their AI-based Farm Emission Optimisation Model helped a Dutch dairy farm reduce its annual CO2e output by 42 tonnes, the equivalent of burning 81 barrels of oil. 

    The adoption of innovation in farming can be a gradual process, and governments and industry have been slow to introduce policy incentives – but this could now be changing. In New Zealand, for instance, a country where agriculture is responsible for almost half the country’s total GHG emissions, a new law proposed for 2025 will tax emissions from farm-reared animals. While some demand for traditionally-raised meat is likely to remain, over the next several decades, policy and innovations in animal husbandry should combine to create a leaner meat and dairy industry, with improved animal welfare and a smaller environmental footprint.

     

    A new nutrition reality

    Today’s food systems are a threat not only to the planet, but to people as well. In 2020, according to the Food and Agriculture Organisation of the United Nations, around 800 million people were affected by hunger. Perversely, at the same time, obesity affected 650 million people. More of the global population now lives in countries where people die from obesity-related illnesses, such as diabetes and heart disease, than from under-nutrition.

    In the West, obesity is strongly linked to poverty – in the UK, for instance, a 2013 report found that children from deprived areas were almost twice as likely to be obese compared to those from more affluent areas. Obesity is no longer just a Western problem, however. A 2019 study from University College London found that low and middle-income nations are now facing the double-burden of malnutrition and obesity15, as cheap, high-calorie, low-nutrition processed foods become more widely available.

    Dr Francesco Branca, lead author of the report, said, “We are facing a new nutrition reality. We can no longer characterise countries as low-income and undernourished, or high-income and only concerned with obesity. All forms of malnutrition have a common denominator – food systems that fail to provide all people with healthy, safe, affordable and sustainable diets.”

    Changing diets will be central to the transition, as we reduce our meat intake in favour of foods with smaller land and water footprints and lower associated emissions

     

    “Changing this,” Dr Branca continued, “will require action across food systems – from production and processing, through trade and distribution, to consumption and waste.”

    This shift is underway. Innovations in food packaging, such as Apeel’s “protective extra peel”, will cut waste, as will an array of tech solutions – through ordering and storage optimisation, algorithm-based pricing, and apps for distributing near-to-expiry food, French start-up Phenix connects those who have too much with those who don’t have enough, and has already helped more than 100 supermarkets become completely food waste free. In many parts of the world the Covid-19 pandemic accelerated the move to home grocery deliveries, altering the traditional dynamic of food’s “last mile”, and reducing both food-related emissions and food waste.

    Read also: Tactics to reduce food waste: meet 5 game-changing start-ups

    Changing diets will be central to the transition, as we reduce our meat intake in favour of foods with smaller land and water footprints and lower associated emissions. Established meat and dairy production will lose market share to increased consumption of traditional plant-based proteins, and to innovations in lab-grown meat and plant-based “imitation meat”.

    Cutting out the livestock middleman will be one step in a fundamental reordering of our food systems that we believe will create an investment opportunity worth USD 1.5 trillion each year by 2030, and will enable us to feed a growing population while restoring land to nature and our planet to health.

     

     

    1 Poore et Nemecek, 2018; https://www.futureoffood.ox.ac.uk/article/half-of-the-worlds-habitable-land-is-used-for-agriculture
    2 nature.com "Assessing the efficiency of changes in land use for mitigating climat change" 
    3 https://www.theguardian.com/environment/ng-interactive/2019/jul/19/carbon-calculator-how-taking-one-flight-emits-as-much-as-many-people-do-in-a-year
    4 https://ourworldindata.org/environmental-impacts-of-food
    5 https://iopscience.iop.org/article/10.1088/1748-9326/8/3/034015/meta
    6 https://www.pnas.org/doi/full/10.1073/pnas.2120584119
    7 https://eatforum.org/lancet-commission/eatinghealthyandsustainable/
    8 https://www.bcg.com/press/23march2021-alternative-protein-market-reach-290-billion-by-2035
    9 https://web-assets.bcg.com/a0/28/4295860343c6a2a5b9f4e3436114/bcg-food-for-thought-the-protein-transformation-mar-2021.pdf
    10 https://www.ft.com/content/4c2bf8ef-03bd-4fbc-b27b-3efab4a49bac
    11 https://www.nature.com/articles/s41598-020-68231-8
    12 https://qgg.au.dk/en/qgg-news/artikel/new-project-will-reduce-methane-emissions-from-cattle-by-20-until-2050
    13 https://hub.bovine-eu.net/reduce-enteric-emission/how-do-fats-reduce-enteric-methane-emissions
    14 https://www.theguardian.com/environment/2021/mar/18/cows-seaweed-methane-emissions-scientists
    15 https://www.ucl.ac.uk/news/2019/dec/poorest-countries-facing-double-burden-obesity-and-malnutrition

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    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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