RATIN

Cargill drives sustainable agricultural supply chain growth

Posted on September, 27, 2023 at 09:55 am


Committing to support of global agricultural businesses, Cargill is the joining forces for supply chain sustainability—with comments from Ashley McKeon

The agricultural sector is a staple industry for both environmental and social purposes. The food supply chain starts from the ground in which crops are planted and requires particular attention to ensure that food abundance is enabled and products achieve the coveted net-zero status. 

But, there is much more to say here from a sustainability perspective as organisations must adhere to a number of environmental factors—carbon emissions, water consumption, and mitigating the use of harmful chemicals to provide for an overwhelming population.

The global food corporation from Minnesota, US, Cargill was founded in 1865 and has since been committed to unifying farmers and growers with other industries to ensure both prosperity for their businesses and successful supply of sustainable, responsibly-produced goods to consumers’ dinner tables. 

Cargill offers support to the industry across a number of facets, including: 

  • Food and beverages - roughly 24,000 employees globally to serve food and drink manufacturers and retailers with ingredients sourced from the agricultural sector, as well as non-food applications
  • Animal nutrition - Leveraging 120 years of expertise across 40 countries to empower livestock, aquaculture farmers, and feed producers of all scales with leading research, innovative solutions, and digital tools 
  • Global salt provision - Cargill salt serves food, agriculture, water softening, and deicing with operations across the Americas, Europe, and Asia
  • Connecting suppliers - Linking global grain and oilseed producers with users by handling origination, trading, processing, and distribution
  • Metals - Cargill provides its clients with supply and risk management in global ferrous markets, including iron ore and steel

Details from Cargill’s 2023 annual report—a focus on DE&I

This year (2023) marks the 158th years of working with producers' agricultural businesses as the critical link in the supply chain. 

Sustainability being a core component of the business, Cargill shares its focus on the people of the organisation as the collective engine driving positive impact globally. The company’s commitment to people also extends beyond the organisation with a core aim of delivering equitable conditions in the agricultural sector. 

The company’s Black Farmer Equity Initiative is inspired by the historic barriers placed on black farmers that make up only 2% of the 3.4 million across the US. This initiative is a testament to diversity, equity and inclusion (DE&I) but also creates environmental opportunities as well—educating black farmers as the sustainability ambassadors of the industry and allowing them to access new buyers and increase profitability alongside. 

Further success stories can be seen across Asia and Africa. India-based participants in its prosperity programme with Hatching Hope have seen their average net household income triple and In Kenya, this increased by 21%. These projects were developed alongside Heifer International. 

Sustainable growth opportunities for farmers globally 

Cargill’s mission is truly global. As one of the key stakeholders in McDonald’s vision among many other food businesses worldwide—such as Garudafood and the Hershey Company, it has a critical role to play in them sourcing sustainably and providing means of disposal of production waste. 

A great example of this can be found in its work with The Hershey Company as it repurposed the byproducts of Reese’s and Kit Kat production, using sugar, fat and protein for animal feed.

Supporting one of the world’s largest global fast-food chains, McDonald’s, Cargill worked with the team to deliver the McCrispy, which is now a staple on its menu and much-loved by customers around the world. 

In September 2023, the company also released great triumphs of more sustainable practices that will likely influence the industry for the better. Regenerative agriculture is a key strategy for Cargill as it promotes more strategic use of Earth’s resources. Partnering with the Soil Health Institute (SHI), the company will support the organisation—and vice versa—to deliver the three-years US$3m project that will deliver new tools for drought resilience, improved soil and more sustainable management of water in crop production. 

“Climate change-induced extreme weather events, including drought, heavy precipitation, and elevated temperatures, have dramatically intensified operational risks for farmers and the broader food, fibre, fuel, and beverage sector,” says Wayne Honeycutt, President and CEO of SHI. 

“Through this partnership, we’re expediting adoption of regenerative systems by offering stakeholders practical insights to assess improvements in water storage and availability resulting from changes in on-farm practices.”

Ashley McKeon, Director of Regenerative Agriculture at Cargill, says something that really sums up the mission of the partnership.

“We strongly believe that regenerative agricultural practices can play a pivotal role in mitigating the impacts of climate change and water stress on our agricultural systems, which is why we are committed to advancing regenerative agriculture across 10 million acres of agricultural land in North America by 2030,” says McKeon. 

“Building on more than five years of partnering with the Soil Health Institute, we are empowering farmers and stakeholders across the agricultural value chain with the tools they need to make informed decisions that contribute to a more sustainable and resilient future."

Source: Sustainability