Manufacturers and co-operatives need to go beyond paying farmers premiums for climate-smart commodities if they want to drive meaningful change in sustainable farming practices, according to a senior executive at Mars Snacking, a division of Mars, Inc.
The whole supply chain must play a role in sustainable transformation instead of overrelying on a single node, Greg Hocking, Mars Snacking’s global VP of R&D, told us.
He discussed the company’s start-up accelerator Unreasonable Food, which this year enlisted 14 ag and foodtech ventures specializing in methane mitigation, alternative protein and natural ingredient solutions.
But even if solutions such as feed additives or precision fermentation-derived proteins hold great promise for sustainability, Hocking was clear there was no silver bullet to industry-wide challenges. And at farming level, strategies such as paying producers premiums for sustainably-produced milk may need to be bolstered.
“We really do want to think deeply about the role that these solutions play in the lives of farmers,” he told us. “That can be the burden of running a farm day in day out, but also the economics around how there needs to be a financial incentive for these farmers to adopt these solutions.
“We need to do more than just pay a premium from milk that comes from cows that emit fewer emissions – we need to look at other incentives to drive the adoption at scale.”
Relying on the consumer to foot the bill of sustainable innovation is also unlikely to work – though there is appetite for sustainable products from shoppers, he acknowledged.
“Many of our retail partners have made commitments that strongly drive sustainability and create demand for more eco-friendly products –covering ingredients, packaging, and more.
“Consumers will benefit from these efforts, but we don’t expect them to pay extra for sustainability. That’s why our goal is to continue offering delicious snacks that are also more sustainable.”
Earlier this year, Mars partnered with incubator firm Unreasonable Group to launch Unreasonable Food, an accelerator program designed to support growth-stage ventures who specialize in sustainable ingredient production and dairy emissions reduction.
Among the 14-strong cohort were four start-ups who focus on methane mitigation:
- Alga Biosciences, who develops an affordable feed additive that cuts cow methane emissions by up to 90% while improving feed efficiency and farm economics;
- ArkeaBio, whose vaccine alters the rumen microbiome to reduces methane from cattle;
- Hoofprint Biome, who uses enzymes and probiotics to reshape the rumen microbiome and lower methane, and
- Zelp, whose wearable devices for cattle capture and neutralize methane as it is exhaled.
The quartet spent a week with mentors from Mars Snacking’s three largest dairy suppliers.
“We started with a big funnel looking at over 300 companies which we narrowed down to the 14 included in the cohort,” Hocking told us. “And while we had one venture focused on reducing methane emissions last year (which was Sea Forest, the maker of a seaweed-based additive), because of the magnitude of this problem, we decided to put four ventures focused on this effort into this year’s cohort. And we invited mentors from three of our biggest dairy suppliers to be a part of that program as well.”
Mars Snacking’s top three dairy suppliers globally are Fonterra, FrieslandCampina and Land O’Lakes.
Mars’ approach to methane mitigation
So what does the global snacking major look for when it weighs up methane-busting products for its dairy supply?
“We believe there’s no single solution that will be required to achieve the kinds of reductions we need in our global dairy supply chain,” Hocking said. “We’ll most likely find the best solution by combining disruptive technologies from growth-stage ventures and start-ups with the scale of our suppliers, our value-chain partners, and an ecosystem of other supporters.
“In some cases, we introduce these technology companies to our suppliers; other times, we look for technologies that already have traction with key partners – or we discover them together and make the connection.
“This approach, which we call ‘collaborative advantage,’ is critical. Without it, relying only on a supplier or a single start-up partnership would limit our success.”
The snacking and confectionery giant uses commercially-available solutions but remains on the look-out for emerging tech that has serious promise.
“While efficacy may vary by individual technology or company, the way we’ve approached this is by using commercially-available solutions today, those that have a certain amount of proven emissions reductions associated with them,” Hocking explained.
“We also generally look for next-generation technology solutions that have either current data to support a greater than 50% methane emissions reduction, or where we believe there is a line of sight to achieving a greater than 50% methane emissions reduction over time.
“And of course, the earlier the stage and the lower the validation, the more uncertain the actual reduction will be until the technology is approved.
“None of these solutions achieve 100%, but we aim for options that go beyond small incremental gains – seeking real stepwise improvements over what’s available today. Ideally, these solutions also bring a different mechanism of action compared to existing approaches.”
Bovaer: A lesson learned?
Arla Foods’ trial of Bovaer in the UK sparked international outcry last year over the potential impact of the synthetic feed additive’s impact on milk – despite ample evidence in the solution’s safety.
Mars continues to use Bovaer in its dairy supply today, but has the media and consumer storm swayed the CPG major’s view of this type of product?
“I think we’ve all learned from the Bovaer situation,” Hocking said. “It keeps us laser-focused on next-generation solutions that can avoid some of the negative press or experiences associated with Bovaer.
“From our perspective, this means looking carefully at every stage –starting with animal welfare, the burden on farmers, and the cost impact, and then how that translates to our dairy suppliers, where we measure Scope 3 emissions. Finally, we consider the ingredient in our products, which must meet the highest standards of safety, quality, and taste.
“It’s about thinking through the entire value chain for any solution, because success depends on understanding its full impact. That’s the key lesson from Bovaer: any future solution must be evaluated comprehensively.”
The future of methane mitigation: From wearables to vaccines
Mars, Inc. wants to cut emissions by 50% by 2030 and achieve net-zero by 2050. Achieving this involves a host of strategies, from embracing alternative protein innovation to slashing methane from cattle.
Fonterra is already working with one of last year’s Unreasonable Food start-ups, Sea Forest, whose seaweed-based additive can cut emissions by up to 90% with just 0.5% of product.
As for this year’s quartet of solutions providers, Hocking said: “We have big ambitions and a strong commitment to building an ecosystem that helps these companies thrive and meet our targets.”
“These technologies target different aspects: some capture methane from the rumen using wearables, others alter the microbiome, and some involve feed additives administered daily or on another schedule.
“Many of these solutions won’t completely eliminate methane, so multiple approaches may be needed,” he warned. “The potential to combine these mechanisms of action is exciting. However, we currently lack sufficient data to support some of these hypotheses, and most technologies must first be approved individually.
“Once regulatory approvals begin, it will be exciting to run trials that combine these technologies to achieve the greatest possible effectiveness in methane reduction.
Hocking concluded: “I am proud of this collaborative effort, which brought together four different ventures and three of our top four dairy suppliers. It’s a partnership where, despite sometimes being competitors, we unite for initiatives like this – because they’re better for the planet and better for our farmers."
