Survey demonstrates importance of moving quickly and choosing the right partner to meet consumer needs
ADM (NYSE:ADM), a global leader in sustainable agriculture supply chains, today issued “Farming for the Future: The State of Regenerative Agriculture Program Adoption.”
The comprehensive report, based on survey data from both consumers and consumer product and retail decision-makers obtained via ADM’s proprietary consumer insights platform, Outside VoiceSM, builds on earlier ADM research by assessing the business drivers, opportunities and challenges for companies looking to adopt regenerative agricultural practices. Earlier this year, ADM research showed that sustainability sourcing claims – and particularly sourcing claims regarding regenerative agriculture – positively impacted consumer purchase decisions. Now, ADM’s newest research report reaffirms the promise and potential of regenerative agriculture practices to meet growing consumer demand for sustainably sourced products while building business resilience for the companies that meet those needs. The focus and opportunities are significant: Industry-wide, revenue from regenerative agriculture is expected to grow from $8.70 billion in 2022 to $32.29 billion by 2032.
Among the report’s topline findings:
- Sustainability-minded consumers are driving demand.
- Adopting regenerative agriculture practices could boost consumer perception, bolster trust and increase purchase consideration. Notably, after learning more about regenerative agriculture, 73% of consumers agreed they would be more likely to trust retailers and brands that implement regenerative agriculture programs, and 72% agreed that they would be more likely to purchase from them.
- Retailers and CPG brands understand the opportunity and the urgency around regenerative agriculture; of those that don’t currently have programs in place, 65% say their company plans to adopt a program in the next five years or sooner. And late adopters sense they’re falling behind.
- Decision-makers agree on the importance of finding the right industry partners to advance their regenerative agriculture goals.
“Our new research clearly shows that consumers are more interested in products that come from companies involved in regenerative agriculture – and executives understand the urgency to be one of those companies,” said Conrad Givers, ADM’s vice president of Strategic Differentiation. “From our relationships with hundreds of thousands of farmers around the globe, to our unparalleled R&D and formulation expertise, to our unmatched global footprint, ADM is uniquely positioned to partner with both farmers and downstream customers to meet those growing consumer needs.”
ADM’s principles of regenerative principles are based on Indigenous ways of land managements and are adaptive to local physical conditions and culture. These principles include:
- Minimizing soil disturbance
- Maintaining living roots in soil
- Continuously covering bare soil
- Maximizing diversity with emphasis on crops, soil microbes, and pollinators
- Responsibly managing inputs including nutrients and pesticides
ADM offers unparalleled capabilities to create value for the entire value chain by partnering to implement and scale regenerative agriculture, working with downstream customers like PepsiCo, Nestlé, and Carlsberg; technology partners like Farmers Business Network; and conservation organizations like Practical Farmers of Iowa, Ducks Unlimited, and American Farmland Trust. In addition, ADM participates in industry initiatives and coalitions such as Field to Market, Cool Farm Alliance, and Sustainable Agriculture Initiative, and leverages funding opportunities to bring more value to farmers, such as through the National Fish and Wildlife Foundation as well as participation in USDA’s Partnership for Climate Smart Commodities. ADM’s regenerative agriculture programs feature direct financial support for farmers; easy processes and cutting-edge technologies to ensure low barriers to entry; and a broad range of support and guidance from both internal and third-party experts. In 2022, the company enrolled 1,900 U.S. producers representing more than 1 million acres, resulting in an estimated reduction of 253,000 MT of CO2e and sequestration of 115,500 MT of CO2. ADM has set a target to engage 4 million regenerative agriculture acres globally by 2025.
To read ADM’s full research findings, click here.
ADM unlocks the power of nature to enrich the quality of life. We’re a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We’re blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We’re a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We’re an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we’re a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow. Learn more at www.adm.com.
Source: Corporate Release
ADM Media Relations