😶‍🌫️ Climate, food and agriculture, why are we stuck?

COP27 ended on a bittersweet note, with some achievements but mainly with growing frustration. For once, food and agriculture were given a more central place in the discussions. That’s good news, as only 3% of public finance directed to climate change goes to food. However, this creates intense debates that I feel will only get stronger in the years to come.

First, let’s rewind a bit to have a broad overview of why acting on agriculture and food is critical if we want to achieve our goal of limiting climate change.

As you can see from the graphs below, food is responsible for 26% of global emissions (estimates vary up to a third). Animal products are responsible for a large share of it, directly and indirectly (land pasture). However, many other components of our diet also have a significant impact. Coffee and chocolate have a considerable impact, balanced by the small amounts we eat (Americans eat 100kg of meat yearly and “only” 5kg of chocolate).

It should be noted that there are many controversies around this data, notably on the impact of animal land use. It is hard to estimate the impact of a global food system made up of very different components (how cattle is raised in countries such as the UK and Brazil varies widely).

Then, what should we do about it? If assessing the situation is complicated, acting on agriculture and food is an even more delicate subject as people have very different thoughts about it. We could say that there are three “schools” or ways to look at the problem:

1 – Team “technology will save the day”. 
This is where most solutions developed by FoodTech startups can be found:

  • Replacing animal proteins with equivalents, either plant-based or coming from bioreactors (through precision fermentation or cellular agriculture). These are moving fast, with new pilot facilities announced almost every week. Alternatives to essential animal products are on the verge of reaching a wider distribution (even if scaling remains challenging).
  • Replacing other “problematic” products, such as cooking oils, coffee and chocolate, with alternatives
  • reducing food waste by digitizing the value chain
  • replacing plastic with new synthetic polymers
  • reducing the impact of farming by using new crops and sensors and developing more energy and input-efficient (indoor) farms.

With these technologies, we can imagine a drastically different future with far less of our land devoted to food (up to 40% less), no animals used for our food, and lots of indoor farms. If public money is slowly moving there (more and more projects are being supported by the EU, the US and some other countries), entrepreneurs are heavily funded (more than $5B went to alternative proteins last year) by private investors, which sees there a way to disrupt food as we know it.

2 – Team “regenerative & adaptation”. 
This is where you will find many people whom the technologies mentioned above and radical changes imply are unpalatable. They defend the idea that by adapting our agricultural practices, we could significantly impact the food system’s impact on climate.

Beyond, a (large) subgroup could be called “team tradition” and is made of people who see the development of new food technologies as an attempt to change their way of life without their consent. The talk about lab-grown meat has often been frightening, and the activist behaviour of some startups may radicalize people against them (for example, should a startup do this?).

3 – Team “business”, which doesn’t focus on climate change’s negative impact but looks at the opportunities it is creating. They know they shouldn’t talk about it, but the options and their consequences are huge. It’s not just about avocados (a tropical fruit) being grown in Sicily. Just look at the map below and consider the geopolitical and economic impact of the yield variations related to climate change.

Coming back to this report which shows that only 3% of the climate-related public funding is going to agriculture and food, we understand how funding change in agriculture and food can be complicated. Even beyond choosing a path, it is extremely sensitive to have a public policy about what people should eat (when it is not for their health but for the environment). However, this should be something other than a debate of experts but something much more discussed openly. No comprehensive solution will come from a single voice, or we will keep discussing missed targets.

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What we did:

  • Mapping of the AgTech ecosystem: startups, research regulators, and other leading companies.
  • Discussion to select areas to focus on.
  • Analysis of the information to reveal the trends and a model to analyse eventual partners.
  • A workshop to validate the opportunities based on our recommendations.
  • Scouting of relevant partners followed by introductions.

Results:

  • Mapping the different categories of innovations in AgTech that should be considered now to create long-term benefits for the business.
  • Identification of key partners (an incubator and a couple of startups).

Use case: project for a CPG company on the healthy ageing ecosystem

What we did:

  • Education of the board through a couple of workshops to define the perimeter
  • Identification of key opportunities and threats created by long-term evolutions (technologies, business models, behavioural changes).
  • Deep dives on each of the priority categories.
  • Co-construction of a vision on how the company should address these challenges.
  • Identification of partners (startups, incubators, funds) to move forward.

Results:

  • Creating a consensus on which categories to prioritise and how to address them.
  • Implementation of an open innovation strategy through the development of partnerships.

Use case: project for a global CPG company to develop a strategy on the healthy ageing ecosystem

What we do (ongoing mission on a subscription model):

  • Kick-off where we present an overview of the AgriFoodTech ecosystem to select with the client the categories to cover and for each, the level of information required.
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  • Workshops: twice a year with the client’s innovation team and other “innovation curious” team members, we present an overview of the evolutions, key trends and a dashboard of the topics followed by the watch.

Results:

  • A clear, regular and evolutive tool to follow what is happening in terms of innovation on key topics.
  • A forum (through the workshops) to discuss innovation trends and new opportunities.

Use case: opportunity screening for an ingredient company

What we did:

  • Kick-off to define the perimeter of the ecosystem studied.
  • Mapping of the different trends shaping the innovation ecosystem of the client.
  • Analysis of the trends on DigitalFoodLab’s trend curve and other relevant frameworks.
  • Workshop to discuss DigitalFoodLab’s recommendations on key trends to prioritise

Results:

  • Shared view of the innovation ecosystem for the client with a view of the trends to prioritize.
  • Clear document (personalised trend curve) that can be easily shared internaly to explain the company’s innovation choices and which can be then updated each year.

Use case: scouting for an agriculture coop

What we did:

  • Kick-off to define the perimeter of the client, the goals of the scouting (partnerships) and the criteria on which startups should be evaluated.
  • Set-up scouting: we selected the first batch of 20+ key startups following the criteria of the client.
  • On-going scouting: then we set up a quarterly scouting of about ten startups.
  • For each scouted startup, we created an ID card with key information such as the business and technological maturity, funding, and corporate partnerships. We also added an explanation of why we selected this startup.

Results:

  • An ongoing and evolutive scouting are matching the client's criteria and its capabilities in terms of deal flow.

Use case: working on an acquisition process for a CPG company

What we did:

  • Kick-off to define what the client is seeking, notably in terms of maturity.
  • Workshop with the client based on a mapping of the different innovation ecosystems adjacent to its activities to select some priorities and discuss inspiring examples of startup acquisition stories.
  • Identification of 20+ targets.
  • Workshop to select the most relevant to engage with.
  • DigitalFoodLab worked as a sparing partner during the acquisition process, notably to help design how the acquired startup could be integrated into the overall company’s strategy.

Results:

  • Different results from traditional M&A processes with a focus on the client’s innovation strategy.
  • Identification of a good match for an acquisition.

Use case: market due diligence on sugar alternatives

What we did:

  • Kick-off with the client to discuss its interest on this category, its expectations and existing level of information (notably on the target company).
  • Mapping of the ecosystem to analyse the different existing alternatives and technologies to compare them.
  • Interview (calls) with relevant startups made by our internal biotechnology expert.
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Results:

  • Clear view of the ecosystem and of the reasons to believe (or not) in each sub-category.
  • Enforceable recommendations based on facts and expertise.