The Big Food Redesign Study

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The big

food
redesign
REGENERATING NATURE WITH
THE CIRCULAR ECONOMY
CONTENTS ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 2

Contents
In support of the study 3

About this study 7

Executive summary 15

1. Why now is the time for industry to drive


food system transformation 20

2. To build a nature-positive food system, FMCGs and


retailers need to redesign their food portfolios 24

3. Circular design for food is a framework that can


be used to design for nature 28

4. Businesses, farmers, and nature all benefit


from circular design for food 37

5. How FMCGs and retailers can take action 61

Acknowledgements 72

Endnotes 72
IN SUPPORT OF THE STUDY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 3

In support of the study


“We are all in the race to a net-zero and nature-positive future: the Race to Zero and “A circular and regenerative food system can protect and restore our environment
the Race to Resilience. I am delighted to see and support the work the Ellen MacArthur and enhance biodiversity. We welcome this landmark study highlighting how the
Foundation together with FMCG companies, many of whom are Race to Zero members, circular economy can help achieve a nature-positive future. By providing relevant,
is doing in reimagining the food system for the benefit of the farmer, consumer and the science-based evidence, these studies can play an important role in setting out how
planet. I remain confident that together we can and will achieve a net-zero and nature- FMCG companies can contribute to delivering a food system that helps nature and
positive future with farmers in the centre.” people thrive.”
Nigel Topping, High Level Champion for Climate Action at COP26 Mark Schneider, Chief Executive Officer, Nestlé

“We welcome the call to redesign food portfolio’s from ‘farm to fork’. Accelerating “We all know our food systems are in crisis. As we look to feed a planet of eight
the transition to regenerative food systems is critical to deliver on climate goals and billion people, we can no longer afford to waste, pollute, and deplete. We must
restore biodiversity. Business can and must lead the transition through supporting invest in food systems, built regeneratively, that allow nature to flourish. This is
farmers, leading product and supply chain innovation, and offering consumers more an important step in our transition to a circular economy. This study offers critical
diverse, regeneratively sourced products. Unilever, through its Knorr brand’s ‘Eat for solutions on how fast-moving consumer goods companies and food retailers can
Good’ campaign, is committed to lead the way at scale.” play a critical role in this move towards a food system that works for both people
Hanneke Faber, President, Foods and Refreshment, Unilever and the environment.”
Inger Andersen, Executive Director, United Nations Environment Programme
As someone who has been inspired by the Ellen MacArthur Foundation’s vision of
a circular economy, I could not have been more delighted to hear that they are “This study is a treasure trove. It pinpoints how fast-moving consumer goods
now focusing their attention on industry-led solutions for transforming our broken companies and retailers can drive real transformation in our food systems for the
food systems. We welcome this report and look forward to collaborating with the benefit of people and the planet, making money on the vanguard of change while
Foundation over the coming months and years to make nature-positive food the norm. they’re at it. As nations around the world, triggered by this year’s UN Food Systems
Patrick Holden, Farmer and Chief Executive, Sustainable Food Trust Summit, chart their pathways to sustainable food systems by 2030, this study offers
critical insights as to how food companies can accelerate the urgent shifts that are
“It has become a global consensus that developing a circular economy could be required towards regenerative food production and healthy food consumption.”
a way to respond to global challenges such as climate change and biodiversity Dr Gunhild Stordalen, Founder & Executive Chair, EAT
loss. From the perspective of the circular economy development model, the Ellen
MacArthur Foundation’s study, The big food redesign: regenerating nature with
the circular economy, has outlined, it further explains the huge contribution that a
circular economy can make to global sustainable development.”
Zhao Kai, Vice President, China Association of Circular Economy
IN SUPPORT OF THE STUDY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 4

“We welcome this new paper exploring how the pursuit of a circular economy “Applying circular economy principles can help transform our food systems
can help deliver transformative change for a safer, more equitable, and biodiverse to tackle critical challenges including climate change and biodiversity loss.
future. Our future prosperity and survival depend on a living planet and our Accelerating this shift can boost resilience and unlock sustainable economic
ability to create a nature-positive economy – one that operates within planetary opportunities, like the 5% projected annual growth in the USD 46 billion
boundaries and that helps us reverse nature loss and overcome the climate crisis. upcycled foods market. By strengthening the knowledge base, this important
The study aligns with WWF’s approach to food system transformation, clearly study will contribute to the informed action we urgently need. UNECE will
showing that systemic action across production, consumption, and loss and waste continue to support countries to leverage existing political commitment for
is required to achieve a truly sustainable future. We are part of nature, not separate circular economy in all sectors.”
from it. Investing in what is our most precious asset will make it our greatest ally.” Olga Algayerova, Executive Secretary, United Nations Economic Commission
Marco Lambertini, Director General, WWF International for Europe (UNECE)

“The ambition of this study to support an increased use of products produced using “Applying the findings of this collaborative work, and reflecting on our current
agroecological principles is one that is endorsed by the Soil Association. There is dependency on only a few crops is essential to address our agricultural footprint
increasing recognition of the vital role that our farming, land use, and food systems and create positive outcomes for the climate and nature. We must not forget
play in tackling the interconnected climate, nature, and health crises and we look that biodiversity enabled agriculture, and allowed humanity to thrive around the
forward to working with the Ellen MacArthur Foundation and partners to achieve world: our future continues to depend on it. Let biodiversity be the source of
real transformational change.” innovation and sustainable growth.”
Liz Bowles, Associate Director, Soil Association Florence Jeantet, Managing Director, One Planet Business for Biodiversity
(OP2B)
“We were honored to contribute to this work, which reaffirms our conviction that
food can be a solution to many of the societal challenges we face. The big food “The UK government is committed to ensuring that our entire food system
redesign: Regenerating nature with the circular economy shows how circular economy is sustainable for generations to come – a commitment which we will pursue
principles can help us design and deliver products that fight climate change, protect further through our upcoming Food Strategy White Paper. This study shows
biodiversity and reconnect consumers with their food. The opportunity is one we must that much can be gained by effective collaboration across the entire supply
seize – for our business and for our planet.” chain – from our farmers and food producers, all the way through to our
Henri Bruxelles, Executive Vice President and Chief Operating Officer, Danone hospitality sector and supermarkets – to help build a better food system.”
Victoria Prentis, Food and Drink Minister, Department for Environment,
“We support this study for its innovative and comprehensive proposal for fighting Food and Rural Affairs (DEFRA)
food waste and climate change, which highlights the need for collaboration along
the production chain. This study informs our new initiatives that will contribute
to regenerative agriculture, engage small rural producers, and work towards
completing the cycle of the circular food economy.”
Lucio Vicente, Sustainability Director, Carrefour Brasil Group
IN SUPPORT OF THE STUDY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 5

“To transform global food systems, we must completely rethink how we grow our food “There’s no doubt that food companies have changed the world – unfortunately,
and how we make our food products by applying the principles of a circular economy, often for the worse. But today, fast-growing food companies can no longer ignore
as well as how we inspire consumers to choose sustainably sourced products. As the health of people or the planet. This study shows that businesses have an
part of our Positive Agriculture Ambition, PepsiCo has committed to spreading the incredible opportunity to not only change the way we eat, but restore ecosystems,
adoption of regenerative farming practices and strengthening farming communities. help solve the climate crisis, and improve biodiversity. It should be required
But we cannot stop there. We agree that further action must be taken and thank the reading for all food CEOs and CSOs.”
Ellen MacArthur Foundation for its guidance as we continue this critical journey.” Danielle Nierenberg, President & Founder, Food Tank
Ramon Laguarta, Chief Executive Officer, PepsiCo
“This study highlights the great opportunity food buyers have to redesign menus
“LEAF welcomes this study. It provides excellent insights and guidance to help break and food products in ways that help achieve a nature-positive food system.”
the mould of the current food system and build practical, innovative, and smart Michiel Bakker, VP, Global Workplace Programs, Google
approaches for our economy, using circular principles to transform farming and
food systems. This work supports LEAF’s commitment to the health, diversity, and “We wholeheartedly agree with the recommendations in this study. The fight
enrichment of our farms, people, and planet, and our work to develop and promote against climate change can only be won if everyone in the food system plays a
the adoption of more regenerative, integrated, and nature-based agriculture. We part. When sourcing our food we are mindful of the resources we use and our aim
look forward to working together to deliver nature-positive farming that supports our is to protect vital ecosystems and give nature a chance to thrive. We will continue
biodiversity and precious ecosystems.” to do all we can to offer our customers food that is not just good for them but
Caroline Drummond MBE, Chief Executive, Linking Environment good for the planet too.”
And Farming (LEAF) Marija Rompani, Director of Sustainability & Ethics, John Lewis Partnership

“Food systems are a major driver of environmental issues, particularly climate This study proves we don’t need breakthrough food technologies to solve the food
change, biodiversity loss, and soil degradation, as well as contributing to diet-related system crisis. Instead, we need to break away from foods that stress and degrade
ill-health. Food systems need to be re-engineered to minimise their negative impacts. the environments. The Ellen MacArthur Foundation has been leading the way in
Building supply chains that are more regenerative is a key route towards this aim, and showing how the circular economy can achieve this, and in the process create a new
this study is a concrete contribution to how this can be accelerated by the industry.” cultural economy connected to how good food is actually grown and raised.
Tim Benton, Research Director, Emerging Risks, and Director, Environment and Dan Barber, chef and author of The Third Plate
Society Programme, Chatham House
“As we build momentum towards a nature-positive, low-carbon global economy in
“This study presents an inspiring opportunity for FMCGs and retailers to start designing 2050, businesses, policymakers, and all sectors of society can rely on the circular
the future of our food in a way that is circular and regenerative. This points to the economy principles to go beyond incremental improvements. The insights in
need for new forms of collaboration to demonstrate how regeneratively grown food this study can be used instead to transform the food sector, reduce pressure on
products should become the norm in markets and also to bring clarity to ecosystem biodiversity loss and make us more resilient to the impacts of climate change. The
indicators and outcomes that should guide the transition to regenerative agriculture.” illustrative cases included highlight that this ambition is not only required, it is
Felipe Villela, Founder and CCO, reNature possible and growing.”
Gonzalo Muñoz, Co-founder, Sistema B, and Founder, TriCiclos
IN SUPPORT OF THE STUDY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 6

“This study gives practical actions by which food producers can redesign their “This study is one of the first to explore the options for a smarter use of
product portfolios for regenerative outcomes that not only mitigate climate ingredients through sourcing improvements. This can be a major contribution of
change, but also economically benefit actors across the full food production food companies to increase biodiversity and provide the reliability needed for
ecosystem. The circular design for food approach will be leading our Circular farmers to grow these rare species. The same goes for upcycled food – there are
Food System’s portfolio and inform our regenerative agriculture projects with so many by-products that still end up as feed, despite being nutritious and fit for
farmers. We recommend it to all players in the food system.” human consumption!”
Dr Ir Martine van Veelen, Director, European Institute of Innovation & Stephanie Wunder, Senior Fellow, Coordinator Land Use Policy, Coordinator
Technology (EIT) Food, CLC West (Belgium, Luxembourg, France, Switzerland) Food Systems, Ecologic Institute

“FMCG and retail companies play a pivotal role in shifting to a climate- and “The Ellen MacArthur Foundation has written a must-read primer for anyone
nature-positive food system, and the shift to healthier, sustainable products is a considering the food industry’s role in tackling climate change. As a business
significant business opportunity. This study provides a timely call to action and focused on creating sustainable proteins and fibres that nourish the world
roadmap to help companies go from incremental sourcing improvements to through the power of circular economy, we prove that it’s possible now – that
portfolio redesign.” we can design future-proof food products that taste better than ever and are
J​​eremy Oppenheim, Founder and Senior Partner, SYSTEMIQ nature-positive.”
Gregory Belt, CEO, EverGrain
“How we grow, produce, and eat food makes a difference for the climate and
the future of our planet. We all know this, but too often we don’t know how to “The population of the world has grown from below 2 billion a century ago to
take action. This study creates an entry point for anyone working in food retail nearly 8 billion today. That we can sustain a four-fold increase in humanity is
or fast- moving consumer goods companies to be part of the solution.” incredible – but it is happening at a huge environmental cost. Human ingenuity
Melina Shannon-DiPietro, Executive Director, MAD can create fresh, local, sustainable foods for all, but only through brave and
insightful leadership from government and business. This study lights a path
“Rethinking how we design food is essential to accelerate the move to a to a regenerative, nature-positive food system built on circular principles: I
regenerative food system that is centered on biodiversity. This report marks an recommend it to all leaders in the food industry.”
important step in the Ellen MacArthur Foundation’s work to balance efforts to Richard Pennycook, Chairman, British Retail Consortium
solve today’s ecological and economic challenges through the circular economy.
Notably, it bridges critical tactical gaps for food FMCGs and retailers in search of “Our Group is supporting companies in the food sector to redesign the current
new ways to meet their sustainability goals, showing how the circular economy production approach and enhance new business models within the entire food
framework can be practically – and fruitfully – realised within the food sector.” chain. In fact, responding immediately with a circular approach, both to current
Dr Nabil Nasr, CEO, the REMADE Institute, and Associate Provost for demands and to the needs and aspirations of future generations, will bring not
Academic Affairs & Director, Golisano Institute for Sustainability, only environmental benefits, but also strategic opportunities for growth and
Rochester Institute of Technology competitiveness for all the players involved.”
Maurizio Montagnese, Chairman, Intesa Sanpaolo Innovation Center
ABOUT THIS STUDY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 7

About this study


The circular economy is increasingly recognised as Building on that work, this study now looks at • Analysing the economics of circular design
a solutions framework to address global challenges the role fast-moving consumer goods companies opportunities for a select number of food
like climate change and biodiversity loss. Moving (FMCGs) and food retailers can play to move us types in the EU and the UK, using a replicable
towards a food system that builds natural capital towards a food system with significant positive approach
and that is pro-nature, i.e. one that allows nature impacts for business, people, and the environment. • Laying out what businesses and policymakers
to thrive, is an essential part of the transition to a It explores the ways in which food products can be can do to accelerate progress on this agenda
circular economy. While the current food system designed in closer collaboration with farmers, for
has sustained a growing population and brought nature. It also investigates the crucial enabling role This study was produced in collaboration with
economic development, much of it is essentially of policies and incentives. Material Economics, which provided analytical
‘linear’ and extractive, particularly in more support and expertise, and Alpha Food Labs,
developed markets. It is wasteful, polluting, and This study builds on the Foundation’s papers which worked on the product concepts
depletive, and is the primary driver of biodiversity The nature imperative: how the circular economy of the future featured in the study. Many
loss and accounts for a third of global greenhouse tackles biodiversity loss (2021) and Completing the others have contributed to this work and all
gas emissions. picture (2019), which illustrate the fundamental role contributing organisations are listed at the end
of the circular economy – particularly when applied of this document. We are deeply grateful to all
The Ellen MacArthur Foundation started its to food – as a solutions framework to achieve collaborators and contributors for the time and
exploration of a circular economy for food in 2013, biodiversity and climate goals, respectively. expertise they have dedicated to this project.
as part of the report Towards the circular economy
vol. 2, in which it explored how food waste and the This study aims to add to the existing landscape of
by-products of food processing could be used to food system efforts and studies by: To quote the study, please use the following
help transform food systems. reference: Ellen MacArthur Foundation, The big
• Identifying the significant opportunity for FMCGs food redesign: Regenerating nature with the
In 2019, the report Cities and circular economy and retailers to catalyse a rapid transition towards circular economy (2021)
for food focused on cities as major hubs of food a nature-positive food system
consumption, and identified opportunities for • Exploring how circular design for food can be
businesses, governments, and other organisations fully leveraged as the approach to realise such
in urban settings to create a healthy food system by an outcome
applying circular economy principles.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 8

What if food
could help
tackle climate
change?
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 9

What if food
could build
biodiversity?

What would that look like?


Here are four concept foods
from a nature-positive future...
Text heading

Text

These are now your average potatoes!


Down To Earth is a line of super delicious,
resilient potato varieties grown in a way that reduces
their carbon footprint and biodiversity impact.
Regenerate
your
mornings!
>

Start your day with our classic cold cereal,


Reducing
hot cereal, or on-the-go bar! greenhouse
emissions by
Regenerate’s Climate Crunch is a delicious, nutrient-dense,
protein-packed blend of regeneratively grown wheat and
peas that will keep you full for hours. And with every bite
70/
you are helping to reverse climate change.
FOOD THAT’S GROWN
TOGETHER, TASTES BETTER

H
Silvo makes deliciously indulgent dairy and plant-based cheeses that are D C EE
WORL

SE

good for the planet without compromise. Our award-winning cheeses


0
203
S I LVO
are made with walnuts and cow’s milk grown together symbiotically on
silvopasture farms. All part of our mission to transform the food system
S

AWA R
D

through one of the most delicious foods on the planet. Take a piece of silvopasture with you.
COOKIES YOU LOVE
MADE FROM THINGS YOU’D NEVER EXPECT!

ENTS
PREV
FOODTO
G
GOINSTE
WA

Sweet Up cookies are made from plant-based, nutrient-dense upcycled ingredients.


Baked with upcycled flours made from plant-based milk alternative by-products and
coffee cherry. Sweetened with upcycled sweeteners, made from cacao fruit pulp,
fruit juice pulp, or crop leftovers. They’re insanely delicious, good for the planet,
and help support farming communities.

UPCYCLED, SWEET.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 14

Rather than
bending nature to
produce food, food
can be designed for
nature to thrive.
EXECUTIVE SUMMARY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 15

Executive summary
Fast-moving consumer goods By acting now, FMCGs and retailers can maximise
Top 10 FMCGs and
benefits not only to the environment but also to
companies (FMCGs) and food retailers retailers influence

40%
their businesses, to consumers, and to farmers.
have an enormous opportunity to
mainstream nature-positive food that Transforming the food system will take time and
is good for farmers and business. investment but there are significant benefits to
be reaped by taking bold action now. Businesses
This study provides a new, design-led can tap into growth opportunities by creating
approach to realise the opportunity, offerings that meet growing consumer demand for
and demonstrates it is possible. products that are nutritious and good for nature.
of agricultural land
The scale of these opportunities are illustrated by in the EU and UK
As the primary driver of biodiversity loss and sales of organic food and drink reaching USD 129
accounting for a third of global greenhouse gas billion in 20193 and Unilever’s Sustainable Living
emissions, it is now well-established that food needs Brands growing 69% faster than the rest of its
to be a crucial part of the solution to climate change business.4 Supporting regenerative food production
and biodiversity loss.1 Leading FMCGs and retailers can improve supply-chain resilience, helping
have substantial influence on the food system: in the safeguard ingredient supply from pests, diseases,
EU and UK, for example, 40% of agricultural land use and increasingly frequent extreme weather events.
is influenced by the top 10 FMCGs and retailers.2 Many By taking actions to build a nature-positive food
of these players are currently part of the problem, system, FMCGs and retailers can better support
but given their size and influence they can be, and farmer livelihoods, by not only strengthening
need to be, part of the solution. They have a unique their resilience to shocks but also helping them
opportunity to contribute at scale and speed to to increase total food output, diversify their
creating a nature-positive food system that supports income streams, improve their profitability (after
the livelihoods of current and future farmers. It is a transition phase), and provide health benefits.
critical that actions by large FMCGs and retailers – These actions can also enable businesses to move
on which this report focuses – are complemented ahead of changing government regulations aimed
by additional efforts to create a food system that is at, for example, including environmental impacts in
distributed, diverse, and inclusive. product labels and standards.
EXECUTIVE SUMMARY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 16

To realise this opportunity, businesses will need to For example, ‘developing product portfolios
move beyond incremental sourcing improvements
by redesigning their product portfolios.
to boost cultivated biodiversity’ is one of the
pillars of the business-led One Planet Business
CIRCULAR DESIGN
for Biodiversity initiative.9 But, across the food FOR FOOD
Many leading FMCGs and retailers are already setting industry, food design remains an underexplored
climate and biodiversity targets through efforts such yet significant opportunity to create products
as the Race to Zero,5 the Science-Based Targets that are not only nutritious and tasty, and tap
initiative (SBTi),6 and the Science-Based Targets into new business growth opportunities, but also
(SBTs) for Nature,7 expected in 2022. All businesses help achieve climate and biodiversity goals.
are encouraged to follow in these leaders’ footsteps.
Yet meeting these commitments will not be possible Circular design for food makes possible a
by solely relying on better sourcing of the current future in which food is good for nature, T CONCEP
ODUC TS
PR
ingredient mix. Today, just four crops provide 60% farmers, and business. FO
of the world’s calories,8 and many locally relevant G INGREDIENT R
ingredients that could substitute for higher impact Circular design for food – the combining of IN SELECTION AND N

N
SOURCING

AT
G
ones are hardly used. A nature-positive food system food design with the principles of the circular

SI

UR
requires a more diverse mix of plants and livestock, economy – offers an actionable framework to

DE

E
and a better understanding of local contexts to redesign product portfolios for nature-positive
function effectively. outcomes (see Figure 1). It encompasses DIVERSE
DIVERSE
DIVER
rethinking product concepts, ingredient selection
Major FMCGs and retailers can catalyse this shift in and sourcing, and packaging. This study shows
LOWER
the mix of crops and livestock at scale and pace by that combining four ingredient selection and IMPACT UPCYCLED

creating the demand for diverse ingredients, which sourcing opportunities unlocks substantial
most often means fundamentally redesigning their environmental, economic, and yield benefits.
REGENERATIVELY
food product portfolios. Food design shapes what PRODUCED
is eaten, which ingredients are grown, and how they
are produced.
+
PACKAGING
Some businesses are already recognising the role of ELIMINATION - REUSE -
MATERIAL CIRCULATION
food design in positive food system transformation.

Figure 1
EXECUTIVE SUMMARY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 17

DIVERSE INGREDIENTS UPCYCLED INGREDIENTS


To increase genetic diversity of crops and With a third of food being lost or
livestock, and therefore build food supply wasted, upcycling innovations provide
resilience, businesses can incorporate opportunities not only to avoid sending
a broader range of ingredients in their food and by-products to landfill, but also
product portfolios. For example, the to turn them into high-value ingredients.
culinary property of sweetness can be The USD 46 billion upcycled food market
derived not just from sugar cane, sugar is projected to grow at 5% annually,
beet, or corn, but also from perennial crops enabled by new technologies.10 FMCGs and
such as date palm, carob, and coconut, and DIVERSE retailers can scale these solutions to tap
high-intensity natural sweeteners such as DIVERSE
DIVER into the growing market opportunity. Using
monk fruit and stevia. The same reasoning upcycled ingredients alleviates pressure on
applies to varieties. Planting a range of land and maximises return on invested land,
crop varieties such as population wheat energy, and other inputs used to grow food.
can make wheat production globally more
resilient to shocks.

LOWER
IMPACT UPCYCLED
REGENERATIVELY PRODUCED
LOWER IMPACT INGREDIENTS INGREDIENTS
‘Quick wins’ are available by shifting from In recent years, leading businesses have
conventionally produced animal products recognised the environmental benefits
to lower impact alternatives, as well as from of regenerative production. It can lead to
higher impact crops to lower impact crops. greater yields and compelling increases in
Many businesses are already exploring the farmer profitability. There is no one-size-
potential to switch from conventionally REGENERATIVELY fits-all approach and practices used will
produced animal proteins to plant proteins. PRODUCED need to be reviewed over time. However,
This study shows that the opportunity for all the ingredients modelled, a set of
extends well beyond diversifying protein context-dependent practices have been
sources. For example, within the modelled identified that, on average and after a
geographies, replacing conventional wheat transition period, increase total food
flour with pea flour in a box of breakfast output and provide additional profitability
cereal can reduce farm-level greenhouse for farmers, while generating significant
gas emissions by 40% and farm-level climate and biodiversity benefits.
biodiversity loss by 5%.
EXECUTIVE SUMMARY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 18

across modelled ingredients suggests circular Figure 2


In this study, regenerative production refers to design for food will lead to superior increases CIRCULAR DESIGN FOR FOOD OFFERS
SIGNIFICANTLY GREATER BENEFITS
growing food in ways that generate positive in farmer profitability, total food output, and
THAN BETTER SOURCING ALONE*
outcomes for nature, which include but are not environmental benefits in many other cases as well.
limited to: healthy and stable soils, improved local
biodiversity, improved air and water quality. Farmers A key component here is moving from looking at Better Circular
sourcing design
may draw from many different schools of thought individual ingredients in isolation to understanding only for food
such as regenerative agriculture, agroecology, the wider ecosystems they belong to. This means
agroforestry, and conservation agriculture to apply designing in partnership with farmers to ensure USD
70% 3,100
the best set of practices to drive regenerative that the reality of evolving farm systems is taken
outcomes on their land. into account. Doing so will enable food design
50% 50% 50%
strategies to realise the potential of the diverse
Comprehensively applying circular design for food crops and livestock that are integral components of
results in environmental, economic, and yield regenerative farming systems. This potential, only 20%
benefits significantly greater than those achieved a fraction of which is modelled in this study, is to USD
by better sourcing alone. make the food system truly nature-positive – rather 5% 200
than only reducing its negative impact – while
REDUCTION IN REDUCTION INCREASE IN INCREASE
Analysis of example ingredients – wheat, dairy, and maximising total food output and profitability BIODIVERSITY IN GHG TOTAL FOOD IN FARMER
LOSS EMISSIONS OUTPUT PROFITABILITY
potatoes in the EU and the UK, and sweeteners for farmers. PER HECTARE
(USD)
–shows that taking advantage of all four circular
design for food opportunities together has the Businesses can take five actions to make *On average for three modelled ingredients (per harvest for wheat
potential to generate substantial environmental, nature-positive food mainstream: and potatoes, and per year for dairy) in the UK and EU.

food output, and farmer profitability benefits versus


business-as-usual11 (see Figure 2). The benefits of 1. Create ambitious and well-resourced action plans
these actions, which are first steps on the journey to make nature-positive product portfolios a reality
to a nature-positive food system, are significantly 2. Create a new collaborative dynamic with farmers
more compelling than better sourcing of current 3. Develop iconic products to showcase the
ingredients alone. potential of circular design for food
4. Contribute to and use common on-farm metrics
While the exact benefits are ingredient- and and definitions
geography-specific, the consistency of findings 5. Advocate for policies that support a nature-
positive food system
EXECUTIVE SUMMARY ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 19

A future where nature-positive


food is available at scale is
possible. Circular design for
food offers FMCGs and retailers
a pathway to realise food’s
potential to be good for nature,
farmers, and business.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 20

1. Why now is the


time for industry to
drive food system
transformation
1. WHY NOW IS THE TIME FOR INDUSTRY TO DRIVE FOOD SYSTEM TRANSFORMATION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 21

The food system globally The food system has a vital role outcomes, which include offering support to
is responsible for to play in tackling climate change agroecological farming within city boundaries and
and biodiversity loss interventions that better connect local producers

1/3
with those living in urban areas.20,21
As climate change and biodiversity loss reach the top
of agendas in business and government, it is clear that Industry leaders have also set commitments to
the food system has a vital role to play in tackling both tackle climate change and biodiversity loss, and
challenges. As highlighted in The nature imperative: are implementing programmes to provide support
how the circular economy tackles biodiversity loss,12, at the farm level. Unilever, for example, has set
of greenhouse gas the food system globally is responsible for a third of an ambition to reach net-zero emissions from all
(GHG) emissions greenhouse gas (GHG) emissions13 and half of human- its products by 2039 and has published a set of

1/2
induced pressures on biodiversity.14 regenerative agriculture principles, noting it will
prioritise key crops and will work with farmers to
Recognising this, the policy landscape is moving bring environmental benefits, such as enhanced
to support food system transformation. The EU’s soil health and improved livelihoods.22 Likewise,
Farm to Fork Strategy, for example, supports the PepsiCo’s Positive Agriculture strategy aims to
carbon-neutrality ambitions of the bloc’s Green Deal work with farmers to build soil health, increase
of human-induced and integrates the goals of its Biodiversity Strategy.15 biodiversity, and improve farmer livelihoods across
pressures on biodiversity Similarly, the UK government has recently published a 7 million acres of farmland.23 Some of this work is
National Food Strategy – an independent review of the already underway through PepsiCo’s global network
country’s entire food system – and is developing new of demonstration farms. Meanwhile, Walmart aims to
funding schemes for farmers based on the principle protect, manage, or restore at least 50 million acres
of “public money for public goods”, linking rewards of land and 1 million square miles of ocean by 2030,
directly to the practices adopted.16,17 through initiatives such as driving the adoption of
farming practices for regenerative outcomes.24
The Food and Agriculture Organization (FAO)
of the United Nations is supporting a number of However, while 75% of food and agriculture
governments around the world in the development and businesses have made public commitments,25
implementation of policies to promote agroecology.18 only a handful have set out tangible plans to shift
In Mexico, for example, the government has initiated their entire value chains to a nature-positive food
a consultation process in five regions for the system. As well as an implementation gap, there is
development of a national Agroecological Transition also a lack of ambition. Most commitments focus
Programme.19 Cities such as Milan and São Paulo are on finding single solutions to individual challenges,
also developing policies that promote regenerative such as shifting from conventionally produced animal
1. WHY NOW IS THE TIME FOR INDUSTRY TO DRIVE FOOD SYSTEM TRANSFORMATION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 22

proteins to plant proteins. Indeed, of the 350 food and By acting now, FMCGs and retailers can Top 10 FMCGs and
agriculture businesses currently being assessed by accelerate positive impacts and maximise
retailers influence about

40%
the World Benchmarking Alliance, only 12 are cited as benefits not only for the environment but also
having a holistic understanding of the roles they can for their businesses, consumers, and farmers
play in shifting the food system.26
Transforming the food system to one that is nature-
Commitments and actions need to move beyond positive will take time and require investment, but
incremental improvements and towards accelerating a by acting now FMCGs and retailers can accelerate
fundamental transformation of the food system. positive impacts and reap significant benefits,
including:
of agricultural land
FMCGs and retailers have the power to in the EU and UK
transform agricultural landscapes to tackle Tap into market growth areas
climate change and biodiversity loss The popularity of new food products – such
as those that are protein-rich, plant-based, or
Globally, the sourcing power of FMCGs and retailers in contain superfood ingredients – has been enhanced
the food sector is considerable. In the EU and UK, for by the current global health challenges and the
example, 40% of agricultural land use is influenced by climate crisis. For example, the plant-based food
the top 10 FMCGs and retailers.27 and beverage market in the EU and the UK grew
49% between 2018 and 2020,28 fuelled by businesses
The size and market position of these businesses like Oatly – an oat beverage company that was
are often used to highlight the part they play in the established in 2016 and in 2021 had its IPO valued
current damaging food system. However, it is these at USD 10 billion.29 Businesses that cater to
very factors that also give them a unique opportunity evolving consumer preferences can increase brand
to contribute at scale and speed to creating a nature- reputation, customer loyalty, and presence in new
positive food system that supports the livelihoods of product categories.
current and future farmers.
Progress on climate and biodiversity goals
It is critical that the actions taken by large FMCGs Moving to a nature-positive food system can
and retailers – on which this report focuses – are contribute to FMCGs and retailers achieving their
complemented by additional efforts to create a food goals relating to halting and reversing biodiversity loss
system that is distributed, diverse, and inclusive. and reaching net-zero GHG emissions. Credible plans
and actions for creating such a system could increase
brand equity with consumers, who are clearly looking
1. WHY NOW IS THE TIME FOR INDUSTRY TO DRIVE FOOD SYSTEM TRANSFORMATION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 23

for businesses to be part of the solution. For example,


Unilever’s Sustainable Living Brands are growing 69%
faster than the rest of its business.30

Improve supply-chain resilience


Supply chains and business profitability are
increasingly threatened by physical shocks such as
floods, droughts, and diseases. By designing products
for nature to thrive, businesses will source a wide
variety of ingredients from farms that employ practices
with regenerative outcomes, which strengthens their
resilience to these shocks. This can help establish more
reliable long-term supplies of ingredients.

Support farmer livelihoods


By taking actions to build a nature-positive food
system, FMCGs and retailers can better support farmer
livelihoods, helping them to increase total food output,
improve their profitability (after a transition phase),
diversify their income streams, improve resilience to
environmental shocks, and gain health benefits. For
details, see Section 4.

Move ahead of changing regulations


Governments are increasingly considering initiatives
and possible legislation aimed at, for example,
including environmental impacts in product labels and
standards.31 To meet these requirements, FMCGs and
retailers will need to rethink their ingredient selection
and sourcing. By taking bold actions to get ahead of
future changes to regulations now, businesses can
benefit from becoming more attractive to investors
and consumers.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 24

2. To build a
nature-positive
food system,
FMCGs and
retailers need to
redesign their
food portfolios
2. TO BUILD A NATURE-POSITIVE FOOD SYSTEM, FMCGS AND ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 25

RETAILERS NEED TO REDESIGN THEIR FOOD PORTFOLIOS

Improving the sourcing of current This means using cover-, inter-, and rotation-crops as
ingredients is not enough to build ingredients in products, and creating diverse revenue
a nature-positive food system. streams for farmers.
Diversity needs to be designed into it
Building a nature-positive food system will be
A nature-positive food system requires an impossible unless FMCGs and retailers go beyond
understanding of local contexts and a different, incremental improvements in the sourcing of current
more diverse mix of plants and livestock to ingredients, and start selecting ingredients fit for
function effectively. regenerative production. FMCGs and retailers can
catalyse the shift towards a more diverse mix of
The regeneration of ecosystems requires growing crops and livestock, at scale and pace, by creating
diverse plants and livestock that work together the demand for different ingredients through the
symbiotically in farming systems and in harmony redesign of food portfolios.
with surrounding nature. The appropriate combination
of ingredients and production practices is tailored to Food design shapes what is eaten,
the unique local context. What is produced today in and which ingredients are grown
a region might not be what is needed to regenerate
nature there tomorrow. Most of the food that is eaten, from breakfast cereals
to pasta, has been designed. Intentional decisions have
More cultivated biodiversity is also needed to promote been made that determine the food’s flavour, texture,
the resilience of the food system against pests, nutritional content, and appearance. Food design
diseases, and climate variability, thereby enhancing includes shaping a product’s concept, ingredient
food security. This entails going far beyond the handful selection, sourcing, and packaging.
of foods eaten at scale globally today, and requires the
selection of a broader range of ingredients. While the term food design is relatively nascent,
businesses use food design to optimise for consumer
To ensure regenerative production is financially outcomes, such as flavour and nutrition (see boxout
attractive for farmers, all that is produced on their land ‘Food design and dietary shifts’), with teams from
needs to be attributed value. In order to maximise across the organisation contributing.
the profitability for farmers and minimise the time it
takes to break even when transitioning to regenerative
production systems, cash crops need to be leveraged.
2. TO BUILD A NATURE-POSITIVE FOOD SYSTEM, FMCGS AND ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 26

RETAILERS NEED TO REDESIGN THEIR FOOD PORTFOLIOS

PRODUCT CONCEPT
FOOD DESIGN INGREDIENT SELECTION
Team: Marketing Team: R&D

Impact on outcomes: Impact on outcomes:


The product concept captures ideas The decisions made by this team
for the product, communicated
ODUCT CONCEP affect the texture, taste, nutrition,
through the product brief. This PR T and environmental impact of the
includes product category, target end-product. Each ingredient has
customer group(s), and brand various properties and a different
positioning; the decisions that shape INGREDIENT inherent potential impact on climate
the product concept also determine SELECTION change and biodiversity.

+
the parameters within which other
teams can work, identifying pricing,
taste, and nutritional requirements.
INGREDIENT SOURCING
INGREDIENT
SOURCING Team: Procurement

+
PACKAGING
Impact on outcomes:
Team: R&D Procurement decisions define how
direct the relationship with suppliers
Impact on outcomes: PACKAGING
is, how far the ingredient has to
The packaging of a product is key to
travel, and what the requirements are
defining the length of its shelf life,
on the way it was produced or grown
and the material and design choices
which, in turn, have an important
have strong environmental impacts
influence on environmental,
throughout the journey of the product,
economic, and societal outcomes
from production to post-consumption.
for the farmers and suppliers.
2. TO BUILD A NATURE-POSITIVE FOOD SYSTEM, FMCGS AND ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 27

RETAILERS NEED TO REDESIGN THEIR FOOD PORTFOLIOS

Efforts are being made by businesses to follow


FOOD DESIGN AND DIETARY SHIFTS
dietary recommendations and cater to evolving
consumer preferences by reducing the use of
In recent years, reports from organisations like
sugar, salt, and fat, as well as artificial additives
EAT Foundation34 and Chatham House35 have
and preservatives, in their products. For example,
emphasised the need to shift to diets that
Heinz made recipe changes that allowed it to
stay within planetary boundaries and provide
launch a version of Heinz Tomato Ketchup that
people with high-quality nutrition. Food design
contains 50% less sugar and 50% less salt.32
is an important tool for businesses to shape
In 2012, Nestlé Confectionery UK announced
product offerings that meet these nutritional
the removal of artificial colours, flavours, and
requirements. This study focuses on the first
preservatives from its entire confectionery
steps businesses can take to designing food
range – replacing them with ingredients such as
products that allow nature to thrive, but to
concentrates of carrot, hibiscus, radish safflower,
optimise outcomes for the entire system, food
and lemon.33
products also need to be designed for people
to thrive. Circular design for food can contribute
Decisions made at the product design stage
to this: for example, regeneratively produced
radiate throughout the food system, from
ingredients may also be more nutrient-dense
farmers to consumers, impacting economic,
(see boxout ‘Regenerative production and
societal, and environmental outcomes. To
nutrient density of food’ on page 51).
ensure these impacts are positive, at every
stage of the design process there needs to be a
continuous oscillation between zooming in to the
consumer’s needs and zooming out to consider
the environmental and societal impacts.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 28

3. Circular design
for food is a
framework that
can be used to
design for nature
3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 29

To design for positive WHAT IS THE CIRCULAR ECONOMY?

consumer, economic, farmer,


The circular economy provides a framework
to go beyond simply undoing the damage of
the current food system, and move towards

and environmental outcomes,


actively regenerating local ecosystems and
landscapes, and building a nature-positive
food system. It is a solutions framework that

food design can be combined empowers organisations to address global


challenges by fundamentally redesigning
systems around three principles:

with the principles of the • Eliminate waste and pollution


• Circulate products and materials

circular economy. This is • Regenerate nature

circular design for food.


Circular design is a framework that embeds the The health of nature cannot be uncoupled
principles of the circular economy – eliminating from the health of economies.40
waste and pollution, circulating products and
materials, and regenerating nature – and systems For food, this means that positive outcomes
thinking in the creation of products and services. It are maximised by designing with the whole
can be applied across industries. system in mind and applying circular economy
principles across all dimensions of food design,
When applied to food, approaches based on the from product concept, through ingredient
principles of the circular economy work to tackle selection and sourcing, to packaging.
climate change,36 prevent biodiversity loss,37 bring
societal and economic benefits,38 and support
long-term food supply resilience.39
3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 30

DESIGNING PRODUCT
CONCEPTS FOR NATURE
CIRCULAR DESIGN INGREDIENT SELECTION
AND SOURCING
At the heart of circular design for food sits the
FOR FOOD
R&D and procurement teams can tap into
intent to deliver positive outcomes for nature. the power of circular design for food by
Designing product concepts that enable nature taking a collaborative approach when
to thrive and embedding nature-positive targets jointly making ingredient selection and
in the product brief can provide clear incentives sourcing decisions. That means focusing
for product development teams to design for on achieving the best outcomes by taking
regenerative outcomes. into account which ingredients are included
in formulations, how they are produced,
T CONCEP
ODUC TS and importantly, what role they play in
PR FO regenerating the landscapes they are
G INGREDIENT R
IN SELECTION AND N produced in.

N
SOURCING

AT
G
SI Four ingredient selection and sourcing

UR
DE
opportunities can be combined to tap into

E
the power of circular design for food.
PACKAGING DIVERSE
DIVERSE
DIVER

When designing a product, packaging should be


considered in parallel with the product itself, as LOWER
IMPACT UPCYCLED
both have strong implications on each other and
on environmental outcomes. Three strategies can
be used to help businesses achieve their circular REGENERATIVELY
PRODUCED
economy goals for packaging: elimination,
reuse, and material circulation. For more
information, see Upstream innovation: a guide +
PACKAGING
to packaging solutions.41 ELIMINATION - REUSE -
MATERIAL CIRCULATION
3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 31

Rather than bending


nature to produce food...

food can be designed for nature to thrive


3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 32

What could nature-positive


food products look like?

Let’s fast forward to 2030,


when foods that actively tackle
climate change and build
biodiversity are widely available
across Europe and the UK...
3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 33

FUTURE PRODUCT 2030

CLIMATE CRUNCH HEAR ONE FARMER’S JOURNEY

“Before I became a regenerative farmer, my main source of income


Regenerate your morning was wheat because that’s what my family had been growing here
in Poland for generations. To keep my farm going, I was relying
on synthetic fertilisers and pesticides, and I could see the damage
Start your day right with Regenerate’s Climate Crunch – a delicious,
it was doing to the land and the plants and animals around us. So,
nutrient-dense, protein-packed blend of wheat and peas that will in 2021, I decided to intercrop peas with my wheat because it fixes
keep you full for hours. Whether it’s our cold cereal, hot cereal nitrogen in the soil. This enabled me to reduce my reliance on
cup, or cereal bars, with every bite you are part of a movement of synthetic inputs and allowed me to diversify my income, as I was
no longer reliant only on the price of wheat being good. Since then,
consumers who are helping to reverse climate change and support
the health of my soil has improved immeasurably!
local farming communities. Our farmers are our climate champions,
and that’s why they’re featured on our products. The support that I received from Regenerate helped me invest in
some new machinery, which would have taken some years to pay
off without any financial assistance. Now, I can grow almost 50%
REDUCIN more food from each field thanks to intercropping peas and wheat
GREENHO G
US
EMISSIONS E
than if I grew each of them separately. I hadn’t considered growing

70%
BY
peas before as there wasn’t much demand for them, but working
*
with Regenerate ensured that I had someone to sell them to.”

HOW CLIMATE CRUNCH WAS BROUGHT TO LIFE...

Farm
To initiate the transition, Regenerate provided some financial support to farmers with a grant
matching programme, it also set up a training programme with local agronomists to help farmers
learn about intercropping and worked with them to form a cooperative for machinery leasing.

Buying model
Regenerate has collaborated with farmers to agree supportive contract terms. Most opted for
longer term 10-year contracts, supplying all the wheat and pea volumes produced on the farm
to allow the farm system to reach maturity and produce consistent yields.

Product design
The product recipes were designed to use wheat and peas in proportion to their production
volumes from supplying farms to help ensure there is ongoing demand for both crops,
providing farmers with enduring incentives.

* Compared to a box of cereal containing 100% of wheat grown conventionally. Data is for wheat and peas and does not account for other ingredients or GHGs beyond primary production.
3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 34

FUTURE PRODUCT 2030

SILVO HEAR ONE FARMER’S JOURNEY

“In 2018, we began transitioning from conventional grazing on our dairy


Food that’s produced together, tastes better farm to Managed Intensive Grazing within a silvopasture system. Our
farm, in Bretagne, France, has always supported a herd of around 80
cows but we’ve been worried about the climate change impacts of raising
Silvo is on a mission to transform our food system through one of livestock and the pressure to meet net-zero emissions. Now, our fields
the most delicious foods on the planet: cheese. We make deliciously are also lined with walnut trees that are mature and bearing nuts. The
indulgent dairy and plant-based cheeses that are good for the trees help our production to be net carbon neutral, provide us with more
diverse and stable sources of income, and give the cows shelter. Currently
planet without compromise. Our award-winning cheeses are made
our herd spends the harshest part of winter inside, and their feed is
with walnuts and cow’s milk produced together symbiotically on partially supplemented with grains that we buy in. We’d love to be able to
silvopasture farms. feed them only with feed we’ve produced ourselves on the farm, such as
tree hay, but we’re not quite there yet.

The up-front investment in tree saplings, machinery, and other


equipment was quite expensive, and learning to grow and manage tree
crops was totally new for us, so it was a bit of a learning curve at first.
We will still need subsidies for a while as we transition to silvopasture
and to help to sustain a stable revenue, but the positive impact on the
environment is worth it. The 20-year contract we have signed with Silvo
allows us to support the land and our livelihood, and to leave a legacy for
our children, when they one day take over the farm.”

HOW SILVO WAS BROUGHT TO LIFE...

Farm
Silvo partnered with a local farming cooperative to provide training to support farmers in the transition
to silvopasture systems. Dairy farmers who shifted to silvopasture systems received extra government
funding, which helped them purchase the walnut trees.
M
FROBON
R
CA UTRAL Public policies
NE REST A new ecosystem service payment scheme was introduced by the regional government to compensate
FO RMS
FA farmers for their carbon sequestration. Cheeses are stamped with a Protected Designation of Origin
(PDO) linked to their specific region and the silvopasture practices.

Buying model
Silvo committed to buy every output from supplying silvopasture farms with 20-year flexible contracts.

Product design
A multi-pack of cheeses made from ingredients produced together in a silvopasture system, and
packaged and sold together.
3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 35

FUTURE PRODUCT 2030

DOWN TO EARTH HEAR ONE FARMER’S JOURNEY

“I am a farmer in Norfolk, UK, growing potatoes once every six or


Resilient Roots seven years along with mustard, cereals, and carrots. I used to grow
a potato variety that was very popular with English customers.
But people didn’t realise at the time that it’s quite susceptible to
These are now your average potatoes! Down To Earth is a line
diseases, so I had to use a lot of pesticides to prevent losses. I have
of super delicious, resilient potato varieties grown in a way that switched to new disease-resistant varieties and practices that have
reduces their carbon footprint and biodiversity impact. But regenerative outcomes. I began trialling manure application and
while these potatoes have heroic benefits to the environment, growing mustard in rotation, which I plough back into the soil. This
would have been impossible with the old variety I used to grow
they are affordable and cook and taste just like the potatoes
because of their vulnerability to pests. All of these changes
you’ve always known. have reduced my use of synthetic inputs drastically and because the
yields are higher with these potato varieties, my income has already
improved after two rotations.

I have also trialled a few heritage potato varieties. It has taken a


few years to find the right ones that work for me but now I have a
diverse selection that suits my soil and is nutritious for consumers.”

HOW DOWN TO EARTH WAS BROUGHT TO LIFE...

Farm
Farmers who were part of the Down To Earth programme started by experimenting with new varieties and
new practices on part of their land. They were given access to a regional training hub, which was funded
and managed by a coalition between the government, Down To Earth, and several retail chains.

Public policies
Farmers in the UK received dedicated funding to support their transition to regenerative food
production through the Sustainable Farming Incentive, which supplemented financial support provided by
Down To Earth.

POTATOES Buying model


THAT BU Retailers who took part in the Down To Earth programme agreed to a whole-crop purchasing model, in
BIOD ILD
IVERSITY which they bought all outputs of the farm. They also paid a premium for the new varieties of potatoes to
compensate for the loss of volume of other crops due to the added mustard rotation.

Product design
Retailers adapted their specification criteria to allow for all of the edible potatoes to be sold in their stores.
3. CIRCULAR DESIGN FOR FOOD IS A FRAMEWORK THAT CAN BE USED TO DESIGN FOR NATURE ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 36

FUTURE PRODUCT 2030

SWEET UP HEAR ONE FARMER’S JOURNEY

“I am a coffee farmer in Brazil. I used to sell only coffee beans and was
By Full Circle Farms. Upcycled. Sweet. COFFEE CHERRY vulnerable to commodity prices. I had no use for the rest of the coffee
cherry and would often leave it to rot in the field.

The cookies you love, made from the things you’d never expect.
When Full Circle Farms said they would buy my entire coffee crop
Sweet Up is a line of cookies made from plant-based, nutrient-dense – the beans and the rest of the cherry – I was very surprised that
FRUIT JUICE BY-PRODUCT
upcycled ingredients. Each type of cookie in our range is baked with someone wanted to use what I considered waste at the time. However,
different blends of upcycled flours made from plant-based milk by- they offered training and support to help the cooperative that I am
a member of establish a new supply chain. The coffee cherry has a
products and coffee cherry. They are sweetened with different low-
lower density than beans, which makes the bags light enough for the
glycaemic upcycled sweeteners, made from cacao fruit pulp, fruit CACAO FRUIT PULP women to carry, creating more jobs in the community.
juice pulp, or crop leftovers. The coffee flour’s deep fruity flavour
truly makes our cookies stand out. They are insanely delicious, good This extra income has also allowed me to reinvest in my farm and
implement agroforestry practices in my coffee plantation, which, in
for the planet, and help to support farming communities. Have your turn, have improved the quality of my coffee beans and cherries.”
CROP RESIDUES
cookie and eat it, too!

HOW SWEET UP WAS BROUGHT TO LIFE...

Sourcing
Full Circle Farms used by-products from their own plant-based milk production, including soy and
oat milk, and regeneratively produced ingredients to create flour for the cookies. They worked
with farmers in Brazil to build and ensure the supply chain of coffee and cacao by-products, and
collaborated with a third-party company to transform these by-products into ingredients.

Public policies
Government-funded universities and research centres investigated the potential of different
upcycled sweeteners. Meanwhile, all the ingredients used in the cookies became part of a list of
novel foods approved for consumer use by the European Commission.

Buying model
Full Circle Farms works with other FMCGs to establish a collaborative buying model in which each
buys a different part of the ingredient. In the case of coffee, Full Circle Farms purchase the coffee
cherry while the other FMCGs purchase the beans.
ENTS
PREV
FOODTO
G
GOINSTE Product design
WA
The line was designed to expand as new by-products are transformed into ingredients in different
geographies, and new upcycled ingredients are added to the list of novel foods approved for
consumer use. For example, making flour from solid by-products of different plant-based milks,
depending on the context.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 37

4. Businesses,
farmers, and
nature all benefit
from circular
design for food
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 38

Products like Climate Crunch, Silvo, Down To


Earth, and Sweet Up could all be commonplace
Four circular
on retail shelves by 2030 if businesses apply design
circular design for food at scale to ingredient
selection and sourcing. opportunities
To get there, businesses can set product
for ingredient
portfolio strategies underpinned by a mindset selection and
of designing for nature, and use ingredients
that are: diverse, lower impact, upcycled,
sourcing DIVERSE
regeneratively produced. DIVERSE
DIVER
Rather than viewing ingredients in isolation,
designing for nature to thrive requires
an understanding of the ecosystems that
ingredients are produced in and the value
chains surrounding them. When embarking LOWER
on the journey towards this ideal state, it is IMPACT UPCYCLED
important to understand the environmental
and economic benefits that each of the four
design opportunities can offer individually and
in combination.

The full benefits of a nature-positive food


system can only be achieved by combining all REGENERATIVELY
of these opportunities at the same time across PRODUCED
product portfolios.
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 39

ANALYSING THE BENEFITS OF DESIGN OPPORTUNITIES

For this study, an analytical framework was • Total food output • Significant ingredients in most FMCG and
developed to quantify the environmental, food Total volume of food produced per hectare, retailer product portfolios. All of the ingredients
output, and farmer profitability benefits of in tonnes. are typically among the top 10 ingredients sourced
applying circular design for food.* by volume, by major FMCGs and retailers.47
• Farmer profitability
Metrics assessed in this framework42 are:* The implications of applying selected practices • Represent a broad set of ingredient
that support regenerative outcomes for farmer types, farming systems, and associated
Assessed metrics profitability were modelled, presented in USD environmental challenges.
per hectare.45
• Climate change Design opportunities for wheat, dairy, and potatoes
Farm-level GHG emissions, including all emissions All metrics are assessed when applying the design were analysed in the UK and EU, while sweeteners
generated during the production phase, emissions opportunities versus business-as-usual, which were analysed at a global scale to explore
generated from the production of agricultural denotes conventional production methods. upcycling opportunities.
inputs plus net carbon sequestration through land
use, were measured using the GWP100 metric.43 Ingredients modelled This analysis aims to quantify the benefits of
circular design for food – a combination of four
• Biodiversity To do this, the benefits of design opportunities related but distinct opportunities – by assessing
On-farm, above-ground biodiversity footprint were modelled for four ingredients – wheat, dairy, a small set of ingredients. By analysing the
– measured in ‘biodiversity weighted hectares’. potatoes, and sweeteners. These ingredients were environmental impacts, food output, and farm
This is a product of: land-use area, proportion of selected based on three key criteria: profitability, insights are gained as to how the
biodiversity lost due to agricultural intensity, and opportunities can be best applied across a range
relative global importance of the biodiversity of • Represent substantial agricultural footprint in of food types, geographies, and contexts. The
that geographic location. This is calculated using EU/UK. Wheat, dairy, and potatoes collectively consistency of many of the findings suggests
the Biodiversity Impact Metric (BIM) developed make up about 30% of Utilised Agricultural Area this is indeed the case. For more detail about
by the Cambridge Institute for Sustainability (UAA) in the EU and 22% of UAA in the UK.46 the methodology and analytical framework,
Leadership (CISL).44 including assumptions made, please refer to the
‘Technical Appendix’.

*The set of practices and combination of crops and livestock to support regenerative outcomes, as well as lower impact alternative ingredients, selected for each ingredient are illustrative and are not intended to be a one-size-fits-all solution. The
agricultural practices and crop/livestock combinations most appropriate for regenerating nature will vary significantly depending on context-specific factors such as climate and soil types and should be tailored to the needs of the specific location. A
subset of economically attractive practices that support regenerative outcomes have been selected and analysed, however they represent just the first few steps on the journey towards a fully regenerative production system, and more ambitious sets
of practices would be expected to achieve even greater environmental outcomes. Still, the modelled examples illustrate the potential environmental benefits that can be achieved profitably by applying a set of well-studied practices for the ingredients
analysed. The quantified outcomes are expected to vary according to a farmer’s given context, or might be achieved through application of a different set of practices.
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 40

OVER
DIVER
DIVERSE
Figure 3
Cultivated biodiversity
within species:

Diverse ingredients
What are diverse ingredients?
Diverse ingredients are those that come from a
broad range of plant and animal species, as well
as varieties within those species. For example,
Just a small selection of potatoes
are consumed, yet...
4,500
DIVERSE VARIETIES
today, just a small selection of potato varieties EXIST GLOBALLY
are consumed, yet over 4,500 diverse varieties
exist globally (Figure 3). The same is true for the
Figure 4
production of other ingredients, such as sweeteners.
Cultivated biodiversity between
Rather than using just three crops – sugar beet, species of sweetener crops:
sugar cane, and corn – to produce the majority of
sweeteners, a greater diversity of crops can be used The property of sweetness is DIVERSE CROP SPECIES
currently provided mostly by
to fulfil the same properties (Figure 4).
three crops – sugar beet, sugar
COULD BE USED FOR
cane, and corn... SWEETNESS

SUGAR BEET AGAVE CACAO LACUNA MAPLE

MONK FRUIT FRUIT SUGAR COCONUT YACON


SUGAR CANE ALCOHOLS

JERUSALEM STEVIA DATE PALM CAROB


CORN ARTICHOKE
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Why shift to diverse ingredients? the 1950s.51 Research shows that climate change food traditions and cultural food heritage.62 The
As the diversity of foods produced decreases, so could cause global potato yields to decline by up ongoing ‘Millet Revolution’ in India is an example
does the resilience of the food system to threats to a third by 2060, unless diverse climate-resilient of how rediscovering and using forgotten varieties
such as pests, diseases, and extreme weather shocks varieties are widely adopted.52 Diversifying livestock of staple crops, such as small millets, can preserve
exacerbated by climate change. By using inter-, breeds may also bring benefits as certain breeds agrobiodiversity, ensure food sovereignty, and
cover-, and rotational-crops, diverse food types thrive in different climates and topographies,53 for empower women through training and new
can be incorporated as essential components of example Pineywoods cattle, a breed more tolerant business opportunities.63
regenerative farming systems. to hot climates,54 and North Devon Cattle that
require little supplementary feed and may be more
Today, just four crops – wheat, rice, corn, and resistant to parasites and disease.55 Today, just four crops –
potatoes – provide almost 60% of the calories
wheat, rice, corn, and
consumed globally.48 Only a few varieties of each Designing food products to use more diverse
potatoes – provide almost

60%
of these staple crops are cultivated at scale and, ingredients can also provide people with access
overall, varieties and breeds of domesticated plants to a wider range of food flavours and expand the
and animals are increasingly being lost as the food nutritional profile of diets. Many conventional crop
system becomes more homogenised.49 varieties are selected for efficiency and yield, often at
the expense of flavour or nutritional density,56 which
Designing products to use more diverse ingredients are properties that food designers and consumers
can enable a shift towards regenerative production seek out. However, more diverse farm ecosystems
systems that integrate a variety of food types can produce more nutritionally dense food.57 of the calories
which benefit one another when grown together. consumed globally
Using more diverse ingredients not only increases Initiatives to stimulate diversity are already underway
cultivated biodiversity within and between species, such as Knorr and WWF’s ‘Future 50 Foods’,58 the
but also promotes biodiversity more broadly. This Lexicon’s ‘Reawakened 25’,59 and Slow Food’s ‘Ark of
approach can also enhance the resilience of the food Taste’ 60 – all of which highlight diverse underutilised
system against threats such as pests, disease, and crops, such as teff, yacon, and moringa, that can be
environmental shocks, and, as a result, enhance food used to create flavourful and nutritious food products.
security. Overreliance on a single variety can lead
to entire crops failing, which was the case during Culinary traditions are often built around diverse
the Great Famine in nineteenth-century Ireland local varieties of ingredients, and many traditional
when a potato variety was devastated by disease,50 farming practices based on indigenous knowledge
and more recently as Panama disease threatens support biodiversity.61 Designing food products
the dominant banana variety, the Cavendish, much for diversity and building demand for these
like it did with the dominant Gros Michel variety in ingredients, can support livelihoods and preserve
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 42

DIVERSE livestock, when managed for regenerative outcomes, Figure 5


can play an important role in a nature-positive food TOTAL FOOD OUTPUT AND GHG
EMISSIONS OF CONVENTIONALLY
system (see boxout ‘The role of livestock in a nature-
PRODUCED COW’S MILK AND DIFFERENT
Lower impact positive food system’ on page 43), plant-based PLANT-BASED MILK ALTERNATIVES*67
ingredients can provide lower environmental impacts
ingredients than conventionally produced animal products. TOTAL FOOD OUTPUT
TONNES PER HECTARE

What are lower impact ingredients? CONVENTIONAL 7


Today, businesses are exploring opportunities to DAIRY
Lower impact in this context means ingredients shift from conventionally produced animal products OAT 37
that are conventionally produced but that have to lower impact alternatives. Over a hundred
significantly reduced environmental impacts. SOY 17
businesses are producing milk alternatives from
(See ‘Regeneratively produced ingredients’ section more than 30 different plant-based ingredients, PEA 18
for other details.) including diverse grains, pulses, and nuts.64 As
ALMOND 13
shown in Figure 5, many of these milk alternatives
Why shift to lower impact ingredients? have lower GHG emissions, land footprints, and WALNUT 14

Businesses can explore alternative conventionally biodiversity impacts than conventionally produced HAZELNUT 15
produced ingredient types and varieties that dairy milk alternatives.65
are available at scale today, and provide desired
GHG EMISSIONS
properties but have fewer negative climate and However, this is not to say that all animal milk should KG CO2E FROM 1 TONNE PRODUCT
biodiversity impacts. These ‘quick wins’ can be be replaced by plant-based alternatives. Plant-based CONVENTIONAL 1,190
realised by shifting from higher impact crops DAIRY
milk alternatives have a range of nutritional profiles,
to lower impact crops, as well as from and can be appropriate substitutes for animal products,
OAT 9

conventionally produced animal products to particularly for adults in developed countries who eat SOY 137
lower impact alternatives. a diverse and healthy diet. However, plant-based milk
PEA 87
alternatives may not always be as nutritionally dense as
From conventionally produced animal animal milk, especially without fortification, and animal ALMOND 21
products to plant-based ingredients milk may be more appropriate for young children and WALNUT 71
The conversation on the role of livestock continues, the elderly.66
encompassing environmental impacts, nutritional HAZELNUT 14

benefits, and by-product management. While


* Impacts are on average, for the EU and UK.
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THE ROLE OF LIVESTOCK IN A NATURE-POSITIVE FOOD SYSTEM

Historically, animals have played a key role as In contexts where animals cannot be kept
nutrient cyclers within healthy agroecosystems. on pasture year-round and/or require
By integrating animals into regenerative mixed supplementary feed, agricultural and food
farming systems, their manure – along with by-products offer a viable alternative
soil amendments made from other organic to conventional feeds, which represent
by-products – can be directly applied to enrich a significant share of the land use and
soils for crop production and reduce the need corresponding biodiversity impacts related
for synthetic fertilisers (see the ‘Regeneratively to livestock production.69
produced ingredients’ section on page 48).
Integrating livestock into regenerative mixed
Around 60% of grassland used for agriculture farming systems is a way to produce a range of
is marginal land unsuitable for growing food products with diverse nutritional profiles
crops due to topographic, soil, and climatic to satisfy different dietary requirements, as well
conditions.68 Therefore, the only way to as non-food products. Using animal products
produce food for people from this land may be from livestock raised in regenerative systems is
through grazing livestock, which also provides a complementary strategy that can be applied
valuable ecosystem services such as carbon in parallel to using plant-based ingredients.
sequestration within soils and habitat provision
for biodiversity. This should be balanced with
restoration of ecosystems such as forests to
maximise benefits to biodiversity.
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From higher impact crops to lower impact crops Within grains, perennial varieties offer benefits. Figure 6
The lower-impact ingredient opportunity extends For example, perennial wheat (also known as INCREASES IN BENEFITS OF USING PEAS RATHER
THAN WHEAT IN A PRODUCT*
well beyond diversifying protein sources. Shifting Kernza or intermediate wheatgrass) is a variety,
from a higher impact crop to a lower impact crop developed by The Land Institute in the US, that
40%
offers significant opportunities. For example, builds soil health as it doesn’t need to be tilled and
designing a wheat-based product such as pasta re-sown after each harvest, unlike conventional
to use peas instead of wheat could reduce GHG annual wheat. Perennial wheat mimics native
5% 5%
emissions by 40% and biodiversity impacts by prairie grasses, with deep roots that absorb more
5%, while increasing yields by 5% in the modelled nutrients and water from soils. It can sequester REDUCTION IN REDUCTION INCREASE IN
BIODIVERSITY IN GHG TOTAL FOOD
geographies.70 Leguminous crops, such as beans around 1 tonne of CO2e per hectare per year,72 LOSS EMISSIONS OUTPUT
and peas, can reduce the need for synthetic inputs which is about 10 times more than conventional
by fixing nitrogen into the soil at much higher rates wheat varieties.73 As yields improve over time,
than many other cereal crops, at the same time as Kernza and other perennial grains and legumes
building soil health. could become viable substitutes for cereals in food Figure 7
INCREASES IN BENEFITS OF USING DISEASE-RESILIENT
products, with positive impacts on agroecosystem
POTATO VARIETIES IN A PRODUCT RATHER THAN
There are also opportunities to make changes health and resilience. CONVENTIONAL VARIETIES*
within a single crop species by designing
with a lower impact variety. For crops such as
potatoes that are particularly vulnerable to pests 60%
and diseases, shifting to more resilient varieties
can provide significant benefits. For example, 35%
by replacing the common Maris Piper variety of
20%
potato with higher yielding potato varieties that are
resistant to pests and diseases, such as potato cyst
nematodes, synthetic fertiliser use could be reduced
REDUCTION IN REDUCTION INCREASE IN
and land-use efficiency improved, leading to a 20% BIODIVERSITY IN GHG TOTAL FOOD
LOSS EMISSIONS OUTPUT
reduction in GHG emissions and 35% reduction in
biodiversity loss, while increasing total food output * Impacts are on average, per harvest, for the EU and UK
by 60% in the modelled geographies.71
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ASSESSING LOWER IMPACT INGREDIENTS OVER TIME HIGH-POTENTIAL INGREDIENTS TO EXPLORE

While some ingredients inherently bring There are a number of promising emerging Insects
environmental benefits regardless of production ingredients which, although not widely used Even though they are a common ingredient in
methods, their benefits can be further enhanced today, hold great potential to be an integral part traditional cooking in many parts of the world,
when they are regeneratively produced. When it of designing food products for nature-positive insects have yet to become mainstream in Western
comes to transitioning to a nature-positive system, outcomes in the future. food cultures, largely due to negative perceptions.77
one business’ journey might look quite different Insects are a highly nutritious and healthy food
to another’s due to its current ingredient mix. For Algae source with high fat, protein, vitamin, fibre,
example, a business could begin right away by Algae can be divided into microalgae and and mineral content.78 They provide significant
swapping high-impact ingredients for lower impact seaweed. Both of them are a promising protein environmental benefits compared to other animal
ones – that are currently available at sufficient source. According to a report from the European sources of protein. Insects are reported to emit
volumes, and then work with suppliers to shift to Commission, algae could account for 18% of fewer greenhouse gases and less ammonia than
regenerative production. protein sources by 2054.74 cattle or pigs, and they require significantly less
land and water than cattle rearing.
There are some ingredients that are inherently lower SuSeWi75 has developed technology to grow
impact because they might be less water intensive or marine microalgae and transform it into In May 2021 for the first time, the European
they fix nitrogen in the soil, for example, but choosing ingredients that provide a natural, abundant, and Commission79 approved an insect as ‘novel food’
the ‘best’ lower impact ingredient may depend on regenerative source of protein, Omega 3, and in the EU: the dried yellow mealworms, of the
the local context. Plant-based milk alternatives, for many other ingredients. Tenebrio molitor species. It can be used as a whole
example, do not guarantee lower impacts than dairy dried insect in the form of snacks or as a food
milk, particularly when comparing a conventionally Spirulina is an algae and one of the richest ingredient, in a number of food products.
produced plant-based milk, which may degrade the protein sources available. Protein-rich food
local ecosystem, with a regeneratively produced dairy sources such as spirulina play an important role in Ÿnsect80 transforms insects into premium, high-
milk, which may support regenerative outcomes. providing alternatives to animal proteins. value ingredients. They raised USD 224 million in
2020 to build out the world’s largest insect farm.
The use of lower impact ingredients (which might Spireaux76 has developed a compact bioreactor
initially be conventionally produced) can be an with which fresh spirulina can be grown much Through their Protifarm branch, they have created
integral intermediary step on a business’ journey to more efficiently and sustainably. AdalbaPro,81 the world’s first food ingredient
continuously improve its product portfolio in regard line made from insects with products such as
to nature-positive outcomes, with the aim being that concentrates and powders.
these ingredients will be regeneratively produced in
the future.
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DIVERSE
Upcycled ingredients could help to meet the Additionally, upcycling can allow new revenue
global population’s growing nutritional needs streams, jobs, and innovator ecosystems to emerge,
without increasing pressure to convert ecosystems as demonstrated by the more than 150 members
Upcycled ingredients to agricultural land, which is one of the primary of the Upcycled Food Association.90 Through
drivers of biodiversity loss. For example, in addition upcycling innovations, food businesses can tap into
What are upcycled ingredients? to producing oat milk, by upcycling the solid by- the growing global upcycled food market, valued at
Upcycled ingredients are ingredients made from food product of oat milk production into flour (e.g. as USD 46.5 billion in 2019.91
by-products “that otherwise would not have gone to demonstrated by Renewal Mill85), and by upcycling
human consumption, are procured and produced using post-harvest agricultural residues from growing oats
UPCYCLING OPPORTUNITIES IN LOCAL CONTEXTS
verifiable supply chains, and have a positive impact on into sweeteners (e.g. as Comet Bio86 does), more food
the environment.”82 for people could be produced from this same area
Upcycling offers a great solution for turning
of cropland. These by-products are typically used as
what otherwise would have been perceived
Upcycling is enabled by innovations in processing animal feed or bedding, or agricultural inputs, but
as waste into something valuable. Where
technology and supply chain management that could be kept at their highest value to produce food
appropriate, by-products can be used as
transform what was once considered ‘waste’ into for human consumption (see box out ‘Upcycling
ingredients. However, in other contexts, by-
nutritious ingredients to make new food products with. opportunities in local contexts’).
products can also be transformed into high-
value non-food products such as biomaterials
Upcycled ingredients can be used as substitutes for Many upcycled ingredients have a lower environmental
and agricultural inputs like fertilisers, as well
conventional food crops. Figure 8 illustrates options impact than the conventionally produced ingredient
as animal feed. Factors such as available
for replacing conventional sugar or sweeteners with they substitute. For example, EverGrain makes flour
infrastructure, consumer preferences, and local
ingredients made from upcycled by-products that fulfil from Brewers Spent Grain, resulting in a 60% reduction
demand determine which is the best option.
the same property of sweetness. in GHG emissions compared with conventional flour.87

To explore this further, see Ellen MacArthur


Why shift to upcycled ingredients? Upcycling can also generate economic opportunities
Foundation, High value products from
Currently, 28% of agricultural land is used to produce for farmers and food businesses alike. Selling on-farm
organic waste.
food that is never eaten, including huge volumes of by-products can help diversify income for farmers.
inedible by-products.83 At the farm level alone 1.2 billion Coffee and cacao farmers could increase their annual
tonnes of food is wasted each year, with a value of USD income by 20%88 and 30%,89 respectively, by selling
370 billion.84 Upcycling (in addition to preventing food the whole fruit, which can be upcycled into sweeteners
waste and loss) is a way to get the most value from the and other products, rather than just selling the coffee
land, water, and agricultural inputs and effort that went or cacao beans (good examples of this in practice are
into growing the food in the first place, and ensures Coffee Cherry Company and Koa).
that nutrients are kept in use at their highest value.
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2.8
Figure 8

What if by-products
were upcycled as
sweeteners? 1.4%
Upcycling just
Four high-volume food by-products – fruit juice by-products, of crop residues could
crop residues, cacao fruit pulp, and coffee cherries – BILLION TONNES meet global demand for
glucose syrup, which is
present significant opportunities for transformation into CROP RESIDUES used in confectionery,
upcycled sweeteners. These examples show the scale of the baked goods, and other
food products.
opportunity by volume per by-product

5.2
MILLION TONNES
CACAO FRUIT PULP
Using coffee cherry as an
ingredient, rather than leaving
APPLE AND PEAR

6.7
it to decompose on farms (as JUICE BY-PRODUCTS
it typically is today), could AND ‘UGLY FRUIT’
prevent 16.6 million tonnes
of CO2e from being produced.

20.5
This is equal to about
730,000 return flights
from London to
MILLION TONNES
New York. UPCYCLED FRUIT
Upcycled cacao fruit
MILLION TONNES pulp could be used
to sweeten 1.4 billion
COFFEE CHERRY If upcycled fruit was used to
dark chocolate bars.

replace sugar, an area of land


roughly equal to the size of
Luxembourg that would
otherwise be used to grow sugar
cane or beets could be spared,
and restored for biodiversity.
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DIVERSE

For example, modelling conducted for this study


on better sourcing of current ingredients – wheat,
dairy, and potatoes – shows that shifting from
Regeneratively conventionally produced ingredients to those
produced ingredients produced with a bundle of practices supporting
regenerative outcomes can reduce GHG emissions by
What are regeneratively produced ingredients? 50% and biodiversity loss by 20%, while increasing
Regeneratively produced ingredients are those total food output by 5% and providing farmers with
produced in ways that have positive outcomes an additional USD 200 per hectare per year in the
for nature. These outcomes include, but are not modelled geographies.92
limited to, healthy and stable soils, improved local Note: one possible set of practices for producing ingredients
regeneratively (better sourcing) was modelled for each ingredient.
biodiversity, and improved air and water quality. The results presented here should not be considered as reflective of
These outcomes can be realised by adopting a variety all possible outcomes for the modelled ingredients, which could differ
depending on a number of factors, including: the specific practices
of context-dependent practices. There are several implemented, the context or, for example, the density of cattle and
different schools of thought farmers may draw from trees in a silvopasture system.

to apply the best set of practices to drive regenerative Figure 9


outcomes on their land, including: regenerative INCREASE IN THE BENEFITS OF USING
agriculture, agroecology, organic, permaculture, REGENERATIVELY PRODUCED INGREDIENTS IN
agroforestry, and conservation agriculture. A PRODUCT RATHER THAN CONVENTIONALLY
PRODUCED INGREDIENTS*
Why shift to regeneratively produced ingredients?
50%
Shifting to practices that work in greater harmony
with nature offers the potential to significantly
contribute to both tackling climate change and
20%
building biodiversity. By ensuring the health of USD
natural ecosystems, in addition to human health and 5% 200
economic benefits, the risks and costs associated with
REDUCTION IN REDUCTION INCREASE IN INCREASE
climate and environmental changes can be mitigated, BIODIVERSITY IN GHG TOTAL FOOD IN FARMER
more resilient supply networks can be created, and LOSS EMISSIONS OUTPUT PROFITABILITY
PER HECTARE
sustained supply of ingredients can be secured for the (USD)

long-term. Contrary to common perception, the findings


* Better sourcing of current ingredients can lead to reductions in both
of this study indicate that following a transition period,
GHG emissions and biodiversity loss, and increased yields and profitability
regenerative production can also lead to higher total for farmers in the modelled geographies, compared with business-as-
usual. Based on average data for the three modelled ingredients (per
food output and increased farmer profitability.
harvest for wheat and potatoes, and per year for dairy) in the UK and EU.
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Figure 10 Sourcing wheat produced with a bundle of


INCREASE IN THE BENEFITS OF USING practices (minimum-tillage, intercropping, and
REGENERATIVELY PRODUCED WHEAT cover cropping) can lead to a 50% reduction
RATHER THAN CONVENTIONALLY in GHG emissions and a 25% reduction in
PRODUCED WHEAT IN A PRODUCT* biodiversity loss in the modelled geographies.
The farm may see a reduction in yield and cash
50% flow in the first year, but can break even in one
to two years and achieve payback in year four.
25% These timescales could be shortened further if
opportunities such as equipment sharing, pooling
5% USD
125 seeding purchases, environmental subsidies,
and a changing buyer-farmer dynamic can be
REDUCTION IN REDUCTION INCREASE IN INCREASE
BIODIVERSITY IN GHG TOTAL FOOD IN FARMER leveraged. After a ramp-up time of approximately
LOSS EMISSIONS OUTPUT PROFITABILITY
PER HECTARE 10 years, the farmer may be able to make an
(USD) additional USD 125 per harvest per hectare per
hectare, and as a result of improved soil health
* Applying wheat production practices to support regenerative
outcomes can lead to reductions in GHG emissions and and effective application of new practices, the
biodiversity loss, and to increased yields and profitability for farm may see a 5% increase in yields.93
farmers in the modelled geographies. On average, per harvest,
in the EU and UK.
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 50

Figure 11 Sourcing dairy produced regeneratively with


INCREASE IN THE BENEFITS OF USING managed intensive grazing (MIG) in a low-density
REGENERATIVELY PRODUCED DAIRY walnut silvopasture system can reduce GHG
RATHER THAN CONVENTIONALLY emissions by 50% and biodiversity loss by 20%
PRODUCED DAIRY IN A PRODUCT* in the modelled geographies, with unchanged
dairy yields (although research also indicates that
50% grazing a greater diversity of plant species can
increase milk production).94 This system supports
long-term farmer livelihoods with additional
20%
USD earnings of USD 240 per hectare per year.95
240 In MIG systems, well-managed livestock play a
key role in nutrient cycling and building healthy
REDUCTION IN REDUCTION ANNUAL
BIODIVERSITY IN GHG INCREASE soils capable of sequestering increased CO2
LOSS EMISSIONS IN FARMER levels (see boxout ‘The role of livestock in a
PROFITABILITY
PER HECTARE nature-positive food system’ on page 43). Diverse
(USD)
grasses and crops can be planted on pasture to
* Applying MIG and low-density silvopasture in the
production of dairy can lead to reductions in both optimise forage, and, mimicking migratory herds,
GHG emissions and biodiversity loss, on average, in livestock are grouped on areas of the pasture
the EU and UK.
where they benefit from a diverse diet, trample-in
plant matter and nutrients from their dung and
urine, and are moved on frequently, enabling the
pasture to regenerate.96

While transition timescales are long, through


enablers – such as transition finance mechanisms,
supportive policy and carbon payment schemes,
and strategic relationships with businesses
– livelihoods for dairy farmers today can be
supported and secured for generations to come.
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 51

Figure 12 or more. Through this combination of savings


INCREASE IN THE BENEFITS OF USING and increased yields, the economic outlook
REGENERATIVELY PRODUCED POTATOES is promising: a potato farmer may make an
RATHER THAN CONVENTIONALLY additional USD 240 per hectare on average, per
PRODUCED POTATOES IN A PRODUCT* potato harvest.98

55%
The above are examples of applying
regenerative production to existing ingredients,
but these principles can also be applied across
diverse, lower impact, and upcycled ingredients
15% USD
240 – increasing the benefits to nature.
5%

REDUCTION IN REDUCTION INCREASE IN INCREASE IN


BIODIVERSITY IN GHG TOTAL FOOD FARMER REGENERATIVE PRODUCTION AND
LOSS EMISSIONS OUTPUT PROFITABILITY NUTRIENT DENSITY OF FOOD
PER HARVEST
PER HECTARE
(USD)
Efforts are underway to understand the
* Applying regenerative production to potatoes can lead to
connection between the way food is produced
reductions in both GHG emissions and biodiversity loss, and
improved profitability and yields for farmers, on average per and its nutrient density. An emerging body of
potato harvest, in the EU and UK. evidence suggests that regeneratively produced
Sourcing regeneratively produced potatoes from food has greater nutrient density, which is linked
a six-year rotation – which uses a combination of to improved soil health and greater diversity of
reduced tillage, a mustard rotation (as a green soil microorganisms.99,100 Increasing accessibility
manure), leguminous cover crops, and animal to nutrient-dense food has been shown to
manure (as an organic amendment) – can achieve have positive health outcomes for people.101,102
a 55% reduction in GHG emissions and a 15% FMCGs and retailers may offer consumers these
reduction in biodiversity loss in the geographies benefits by designing food products that use
modelled.97 Such an approach can cut farm costs regeneratively produced ingredients. Mass
by reducing the need for fertiliser and pesticides, spectrometry and other technologies may provide
as well as for machinery and fuel due to a shift to a cost-effective way to measure the nutrient
minimum-tillage. As soil health improves and pests density of individual food items and thereby
are reduced by using mustard in the crop rotation, provide greater transparency to consumers.103,104
total food output on the farm can increase by 5%
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The full potential of the Benefits can be further amplified by keeping


the wider ecosystem in mind when sourcing and
Figure 13
CIRCULAR DESIGN FOR FOOD OFFERS
four design opportunities selecting ingredients. Aggregated results across SIGNIFICANT BENEFITS VERSUS BETTER
SOURCING OF CURRENT INGREDIENTS ALONE*
is realised when they three example ingredients – wheat, dairy, and
potatoes – in the modelled geographies show that
are combined when the four design opportunities are appropriately
Better Circular
sourcing design
combined, GHG emissions can be reduced by only for food

70% and biodiversity loss can be reduced by 50%,


compared with conventional production.105 Total food USD
70% 3,100
output of the same land area could increase by 50%,
while cash flow could increase by USD 3,100 per
50% 50% 50%
hectare on average, following a transition period.106
DIVERSE These combined outcomes are significantly greater
DIVERSE
DIVER than simply better sourcing of current ingredients 20%
(where a set of practices supporting regenerative USD
outcomes is applied), as illustrated in figure 13. 5% 200

REDUCTION IN REDUCTION INCREASE IN INCREASE


The opportunities can be combined both within a BIODIVERSITY IN GHG TOTAL FOOD IN FARMER
LOWER LOSS EMISSIONS OUTPUT PROFITABILITY
IMPACT UPCYCLED single product and across entire product portfolios. PER HECTARE
(USD)
Exactly how they are combined is determined by
the needs of the ecosystems from which ingredients * On average for three modelled ingredients (per harvest for wheat
and potatoes, and per year for dairy) in the UK and EU.
are sourced. Analysis shows significantly better
economic and environmental outcomes when
applying circular design for food for all modelled
REGENERATIVELY ingredients compared with better sourcing of
PRODUCED
current ingredients alone.
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 53

Businesses can use circular to produce food in ways that have regenerative thinking at a landscape level rather than focusing on
outcomes, farmers currently face a system in which optimising a single ingredient or plot.
design for food to accelerate the economics work against them.
the transition to a nature- To create a nature-positive food system, close
A nature-positive food system requires diverse collaboration with farmers is vital to understand
positive food system species, varieties, and breeds. Shifting to what specific landscapes need to thrive and
regenerative farms that integrate more diverse therefore the types of ingredients that should be
Transitioning to a nature-positive food system crops and livestock in a given farm area means the produced and the production practices that are
means the crops, livestock, and practices that are volumes of a single ingredient will likely be lower most appropriate to apply. Once this is understood,
most suitable to improve agroecosystem health than producing them in conventional monocultures it will be crucial to establish support mechanisms
and resilience might not be the same ones that on the same area of land. Farmers will likely have that enable the transition to more diverse
are produced or used in each farm location today. equal or higher total food outputs, but these will be landscapes, build ecosystem health, and assess the
Today’s crops, livestock, and practices are often spread across more ingredient types. Food products time horizons involved. After this, food products
legacies of an industrial farming system, focused and ingredient sourcing models will therefore need and portfolios can be redesigned to use the diverse
on monocultures and commodity crops, that is to be designed around this evolving range of farm range of ingredients that are or will be available.
detached from nature. Even with the best intentions outputs, and FMCGs and retailers will benefit from

CONVENTIONAL
FOOD SYSTEM
TRANSITIONING TO
A NATURE-POSITIVE
FOOD SYSTEM

Businesses can use


circular design for food
to create products with
the landscape in mind.
Pages xyz describe three
illustrative examples of
future food products
designed for nature,
and detail the estimated
environmental,
economic, and food
output benefits.
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 54

Applying circular design regenerative silvopasture system, as modelled for Figure 14


this study, takes longer to become profitable (10–15 WHEAT – AVERAGE INCREASE IN FARMER
for food can increase years) and 61–68 years to completely pay off the PROFITABILITY PER HECTARE, CUMULATIVE (USD)
farmers’ profitability higher initial investment. To shorten the payback Better sourcing only Circular design for food
period, farmers would benefit from financial support USD
By using product design to realise the potential of mechanisms to help them establish walnut trees and 20,000
cover-, inter-, and rotational-crops as ingredients, minimise costs until the trees reach maturity and
these integral components of regenerative farming begin producing nuts. While the investment costs
systems become revenue streams for farmers. Through are higher, designing milk and alternative products to 10,000
circular design for food, businesses can create a use ingredients from integrated silvopasture systems
market for all outputs of the farm system. For example, can create significantly more positive environmental
intercropping wheat with other crops is a practice outcomes – potentially achieving net-zero emissions 0
that can be used to build soil healthand achieve other – than better sourcing of dairy alone (see Figure 15),
regenerative outcomes. However, many of these in addition to supporting the livelihoods of future -5,000
2 4 6 8 10
intercrops are commonly inedible. By diversifying generations of farmers.* YEAR
Circular design for food results in a greater increase in farmer profitability than
ingredients in products, FMCGs and retailers can offer
better sourcing for wheat alone, on average, in the EU and UK.107
the economic incentive farmers need to intercrop To mitigate financial risks for farmers facing longer
with edible crops. For example, intercropping payback periods when transitioning to regenerative
Figure 15
wheat with peas builds soil health because peas fix production, FMCGs and retailers can implement
DAIRY – AVERAGE INCREASE IN FARMER
nitrogen in the soil, and the peas can also be sold as support mechanisms to help ensure their income
PROFITABILITY PER HECTARE, CUMULATIVE (USD)
ingredients. Growing wheat and peas together using security. Ways in which FMCGs and retailers could
work with farmers to accelerate this transition are USD
a set of practices that support regenerative outcomes
can be profitable after just one year without any described in more detail in Part 5. 30,000

subsidies, whereas intercropping wheat with beneficial


The following pages 55–57 describe three illustrative 20,000
but inedible crops might take four years to reach
profitability (See Figure 14). examples of future food products designed for nature,
and detail the estimated environmental, economic, 10,000

In other cases, however, additional support and food output benefits.


0
mechanisms can accelerate the otherwise long
*Note: one possible set of practices for producing the same ingredient
period to profitability. For example, producing
to support regenerative outcomes (better sourcing) and one ‘circular
dairy milk with MIG and low-density silvopasture is design for food’ scenario was modelled for each ingredient. The results
-10,000
10 20 30 40 50 60 80
profitable after a transition period of eight years, presented here should not be considered as reflective of all possible YEAR
outcomes for the modelled ingredients, which could differ depending
while the full investment is paid off after 16–20 years. Despite providing better environmental benefits, circular design for food applied to
on a number of factors, including: the specific practices implemented; dairy has a much longer payback period than better sourcing only, on average, in
Producing both dairy milk and plant-based alternative the context or, for example, the density of cattle and trees in a the EU and UK.108
milks from the same farm in a densely planted silvopasture system.
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 55

90%
Better sourcing only
Circular design for food

Circular design The walnuts and cow’s milk grown


together symbiotically on silvopasture
60%
Circular design
for food offers

for food applied farms are fermented to result in a 40%


USD
1,600
significantly greater
benefits than better
range of cheeses: roquefort made from
to a line of walnuts, comté made from dairy milk,
20%
25%
USD
sourcing of current
ingredients alone

cheese products and a ‘caseum’ made from a blend of


dairy milk and walnuts.
240

REDUCTION IN REDUCTION INCREASE IN ANNUAL INCREASE


BIODIVERSITY IN GHG TOTAL FOOD IN FARMER
LOSS EMISSIONS OUTPUT PROFITABILITY PER
HECTARE (USD)

CIRCULAR DESIGN FOR FOOD ACCELERATES NATURE-POSITIVE LANDSCAPE TRANSFORMATION

CONVENTIONAL BETTER SOURCING OF CURRENT INGREDIENT REGENERATIVE SILVOPASTURE


PASTURE SYSTEM REGENERATIVE MANAGED INTENSIVE GRAZING PRODUCING DAIRY AND WALNUTS
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 56

Circular design Intercropped wheat and peas, grown


with minimum-tillage and cover 70%
Better sourcing only
Circular design for food
Circular design
for food offers
for food applied crops, are blended to make three
50% 50% 50%
USD significantly greater
2,200 benefits than better
cereal products: a classic cold cereal,
to a line of hot cereal, and on-the-go bar. By
sourcing of current
ingredients alone
25%
cereal products using both wheat and peas in relative
proportion to their output volume, 5%
USD
125
farmers have a market for both crops
REDUCTION IN REDUCTION INCREASE IN INCREASE
produced per harvest per hectare. BIODIVERSITY IN GHG TOTAL FOOD IN FARMER
LOSS EMISSIONS OUTPUT PROFITABILITY
PER HARVEST PER
HECTARE (USD)
CIRCULAR DESIGN FOR FOOD ACCELERATES NATURE-POSITIVE LANDSCAPE TRANSFORMATION

CONVENTIONAL BETTER SOURCING OF CURRENT INGREDIENT REGENERATIVELY PRODUCED


WHEAT PRODUCTION REGENERATIVELY PRODUCED WHEAT, WHEAT AND EDIBLE PEAS
INTERCROPPED WITH CLOVER
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 57

USD
5,600

Circular A range of diverse potatoes, including


more pest-resistant varieties, grown
Better sourcing only
Circular design for food
Circular design
for food offers
design for with minimum-tillage, cover crops,
65%
significantly greater
benefits than better
and manure as organic amendment
food applied in six-year crop rotations – together 45%
55% 55% sourcing of current
ingredients alone.
to potatoes with barley, carrots, rapeseed, wheat,
and mustard - ensure resilient and *Results are for high-yielding
disease resilient variety only,
delicious potatoes and multiple sources 15% USD and do not apply to diverse
5% 240 heritage varieties in the
of revenue for farmers. Down To Earth range.

REDUCTION IN REDUCTION INCREASE IN INCREASE


BIODIVERSITY IN GHG TOTAL FOOD IN FARMER
LOSS EMISSIONS OUTPUT PROFITABILITY PER
CIRCULAR DESIGN FOR FOOD ACCELERATES NATURE-POSITIVE LANDSCAPE TRANSFORMATION POTATO HARVEST
PER HECTARE (USD)

CONVENTIONAL BETTER SOURCING OF CURRENT INGREDIENT REGENERATIVELY PRODUCED


POTATO PRODUCTION REGENERATIVELY PRODUCED CONVENTIONAL POTATO VARIETY DIVERSE POTATO VARIETIES
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 58

Public policies and shift to regenerative production. It can, for example,


shorten the time it takes a farmer to reach profitability,
food production are presenting themselves. The
new Common Agricultural Policy (CAP) and the
funding: key enablers while providing a financial security net during the development of the post-Brexit set-up in the UK are

to bring circular design transition years. examples of how such opportunities may arise. Indeed,
in the EU and UK, around EUR 65 billion is devoted
for food to scale In addition to public subsidies, policies can be devised to direct payments to farmers annually.111 Currently,
to incentivise public and private investment in the these payments are largely determined by the size of
A conducive policy environment will be instrumental sector by, for example, establishing sustainable finance land holdings, while those set aside to reward climate
in rapidly scaling the uptake of circular design for frameworks such as the EU Taxonomy currently and environmental action (30% of direct payments)
food as well as enhancing the effectiveness of existing under development, and creating fiscal incentives have been considered ineffective both in scope and
initiatives. For example, an increased use of upcycled for businesses choosing to review and improve their impact.112,113,114
ingredients can help the successful delivery of food portfolio and sourcing practices.109
waste reduction targets, while an increased use of In the UK, the different nation states are now
low-impact and diverse ingredients, combined with Long-term commitment to public subsidies and establishing their specific post-CAP set-ups. England,
regenerative production, can directly contribute to the public and private investments will be particularly for example, has planned a complete phase-out
climate resilience of the local geography. important for food design decisions that can lead to of direct subsidies and has started to roll out the
the most ambitious environmental benefits, but are Environmental Land Management schemes (ELMs).
A range of policy measures focused on different less profitable for farmers in the short-term. A case in These ELMs represent a new system which, by 2028,
aspects of the food system can contribute to making point is the modelled example of silvopasture dairy aims to see farms providing environmental and
circular design opportunities become the norm over systems, which could deliver net-zero emissions, but climate benefits, while sustaining profitability without
time. For example: in the absence of public or private financial support public support.115 Farmers have been involved in the
would face a transition period of nearly 60 years development of the new schemes through test and
Redirecting subsidies and sustainable finance before reaching profitability. trial activities on an initial pool of eight standards,
incentives will help make the economics work for which can be applied at varying levels of ambition.116
farmers transitioning to regenerative production This redirection in subsidies and investments could
be inspired by experiences from other sectors, such In the EU, Member States are developing Strategic
As indicated in the ingredient analysis for the EU as renewable energy, where public subsidies played National Plans outlining priorities and instruments for
and the UK conducted for this study, regenerative a pivotal role in supporting early movers when the the implementation of the CAP for the period 2023–27.
production can lead to higher yields and/or total farm sector was still not profitable until the market became As part of the new ‘green architecture’, in addition to
outputs, environmental benefits, and improved farmer more established.110 rural development programmes, Member States will
income after a transition period. A focused redirection be able to allocate 25% of the direct income support
and increase of public subsidies, with a medium- to While current subsidies are still geared towards to the implementation of eco-schemes, with direct
long-term commitment, can provide the economic supporting conventional food production, payments rewarding farmers for environment and
support farmers need to confidently embrace the opportunities to kick-start a shift towards regenerative climate change actions that go beyond compliance
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 59

with the CAP’s minimum standards.117 However, the agriculture, that currently tend to emphasise inputs the average farmer aged 51 and 59, respectively.122,123
eco-schemes remain voluntary for farmers to join and production techniques. Rural development policies aimed at strengthening the
and are subject to a two-year trial. If unused, part of provision of services and opportunities in rural areas can
the funds will be open for reallocation to other parts Farmers are central actors in the transition. play an important role in incentivising young farmers
of CAP implementation, which do not necessarily Technical assistance and training will be essential to start a new business, or take on and transform the
contribute to environmental and climate goals. to engage and incentivise farmers to switch to, or family farm. Meanwhile, for older generations, greater
enhance their use of, context-appropriate practices access to services and infrastructure can lead to better
An ambitious application of these schemes in the EU for regenerative outcomes quality of life and enhanced economic opportunities.
and the UK between 2023 and 2027 will therefore
be key to kick-starting a significant transition. These Measures that can support farmers and incentivise Research and innovation (R&I) policies will be
schemes could meaningfully influence subsidy them to adopt regenerative practices include providing important to increase knowledge and uptake of
provision approaches and help shape future policies expertise through access to free farmer advisory circular design for food across industry and in
and mechanisms, so that regenerative food production services and agronomists, facilitating peer-to-peer policymaking
becomes the default option supported by subsidies, exchange and knowledge-sharing opportunities,
rather than the exception. Political will and, in the case harnessing the potential of new digital tools, and R&I policies and funding can target all aspects of
of the EU, Member States’ adherence to the principles promoting knowledge exchange with researchers. circular design for food, from ingredient innovation to
of the Green Deal, will be critical in harnessing the full For example, the European Innovation Partnership farm-level regenerative production, and from testing
potential of these policy measures and developing for Agricultural Productivity and Sustainability (EIP- solutions and increasing knowledge to uncovering new
them further. AGRI) has promoted farmer-led interactive innovation market opportunities for businesses. Programmes that
projects since 2012, with a number of peer-to-peer link food design research with business opportunities
In the long-term, for subsidies and financial incentives exchanges and the development of a one-stop-shop supporting promising start-ups in the upcycling
to support regenerative outcomes, a shift from website for agricultural innovation where users share space, or initiatives that fund farm research and pilots
practice-based assessments to outcome-based information, tips, and research findings.118 By helping can bring innovative ideas to life and accelerate the
approaches will be required. Establishing monitoring farmers to play an active and leading role in innovation, adoption of circular design for food.124,125
mechanisms with harmonised metrics recognised the EIP-AGRI mechanism is expected to be further
by public authorities, farmers, and businesses alike strengthened as part of the Farm to Fork Strategy Aligning R&I policies and funding with broader policy
will enable impacts to be measured while enhancing implementation.119 objectives and/or a ‘mission-led’ strategy, alongside
knowledge of production practices that lead to creating the enabling environment for businesses, can
regenerative outcomes in a specific context. The regenerative transition also has the potential ensure that R&I policies support and are complemented
to generate new employment opportunities in by broader efforts that can include research projects,
By emphasising outcomes, a shift to regenerative rural areas across the globe.120,121 This is particularly field level pilots, private-public initiatives, and relevant
food production also holds the potential to enhance relevant for regions such as the EU and UK, where the policy or legislative measures.126,127
the impact of well-developed farming methods with number of farms and people involved in agriculture is
established standards, such as certified organic declining and the share of young farmers is low, with
4. BUSINESSES, FARMERS, AND NATURE ALL BENEFIT FROM CIRCULAR DESIGN FOR FOOD ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 60

International engagement that matches the scale is now clear that although these approaches have
of global food value chains is needed for a nature- enabled considerable population growth by increasing
positive food system productivity, they have put significant strain on
nature – fuelling all five key drivers of biodiversity loss,
Trade policies and agreements, and international including climate change.132
cooperation funding can be significant instruments to
stimulate and incentivise circular design for food, while A shift away from funding conventional approaches
strengthening partnerships and commitments among would enable better support to partner countries and,
like-minded countries. at the same time, increase internal policy coherence.
For example, it could result in clearer alignment with
The EU, for example, as the largest international trader the principles of the EU’s Farm to Fork Strategy (as
of agricultural products, intends to include a chapter on laid out in chapter IV on international cooperation), or
sustainable food systems in all future trade agreements with the FAO’s Common Vision for Sustainable Food
and strengthen cooperation in this area with countries and Agriculture.133 In practice, international cooperation
where they already have an agreement in place, such funds could be allocated to a range of transition
as Japan.128,129,130 opportunities. These opportunities for partner
countries could include: capacity building within agri-
The presence of a specific chapter on sustainable food authorities on regenerative production; training of
food systems and the integration of circular design for extension service advisors and farmers on context-
food principles in other relevant sector chapters (e.g. specific practices that can support regenerative
agriculture) could strongly enhance the cross-border outcomes; the provision of financial support to small
trade of regeneratively produced goods, supporting and medium businesses producing food products
the development of harmonised definitions and with diverse or upcycled ingredients; and fostering
common standards. cooperation between international research teams on
circular food system change.
The potential of governments and international
institutions to transform the food system and These example measures chime with a range of the
promote circular design for food through international policy measures identified in the Universal circular
cooperation remains largely untapped.131 Key public economy policy goals developed by the Ellen
investors – such as the EU, the FAO, the International MacArthur Foundation.134 They serve to highlight the
Fund for Agricultural Development (IFAD), and the importance of aligning behind a common vision in
World Food Programme (WFP) – still fund primarily order to adopt an integrated, cross-government policy
conventional production approaches. However, it approach that can establish an agreed direction of
travel in the food system.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 61

5. How FMCGs
and retailers
can take action
5. HOW FMCGS AND RETAILERS CAN TAKE ACTION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 62

FMCGs and retailers can


take action in five areas
to make nature-positive
food mainstream:

1. Create ambitious 2. Create a new 3. Develop 4. Contribute to 5. Advocate for


and well-resourced collaborative iconic products and use common policies that support
action plans to make dynamic with to showcase the on-farm metrics a nature-positive
nature-positive farmers potential of circular and definitions food system
product portfolios design for food
a reality
5. HOW FMCGS AND RETAILERS CAN TAKE ACTION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 63

the latest – and an expanded set of Science-Based Map ingredient supply channels
Targets for nature136 (biodiversity, climate, freshwater, Once a baseline has been established for current
land, and ocean) expected in 2022. Initiatives like ingredients, identify whether these are sourced
these provide frameworks and measurement tools directly or indirectly. Knowing this will allow
for business leaders and operational managers to businesses to determine which ingredients can be
reorient priorities and activities in order to achieve directly addressed with farmers and which require
nature-positive outcomes. involvement from others in the current supply chain.
1. Create ambitious and
Time-bound goals to evolve Development of new mechanisms that
well-resourced action ingredient portfolios empower teams to design food products
plans to make nature- Establish a comprehensive set of goals for in line with ingredient portfolio goals
using more diverse, lower impact, upcycled, and
positive product regeneratively produced ingredients within a specific Renovation and innovation roadmaps
portfolios a reality timeframe. These goals, although focused on Establish pathways for achieving ingredient
ingredients, will also help to achieve business-wide portfolio goals at the product level through a
goals in a mutually supportive way. combination of renovating existing products and
By putting in place product development strategies innovating new ones.
that combine the four circular design opportunities Assessment of current environmental
(diverse, lower impact, upcycled, and regeneratively and economic impacts at the farm-level Training, criteria, tools, and processes
produced ingredients) outlined in this report, to empower food designers
businesses can transform their ingredient portfolios. Establish a baseline of current Empower and equip those involved in food design
Credible plans should include: ingredients and their impacts to ensure that circular design for food becomes the
Assess which ingredients are currently used to create norm by providing the necessary training, decision-
Clear goals to tackle climate product portfolios, in which volumes, and their making criteria, tools, and processes.
change and biodiversity loss impacts. To assess impacts, processes will need to
be put in place to collect new data at the farm-level.
Science-based, business-wide goals This will require utilising consistent metrics that are
Evidence-based goals that are bought into by aligned with business goals (e.g. on GHG emissions,
the entire business provide critical direction for biodiversity, water, farm economics) – see page 67
all other actions. Businesses can already align ‘Contribute to and use common on-farm metrics and
with established industry commitments, such as definitions’ for further guidance.
Race to Zero135 – through which businesses aim
to achieve net-zero carbon emissions by 2050 at
5. HOW FMCGS AND RETAILERS CAN TAKE ACTION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 64

co-create nature-positive farm systems. By working another the by-products of that crop. Given the need
closely with farmers, FMCGs and retailers can gain to coordinate supply across multiple buyers, digital
insight into how the mix and volumes of ingredients tools that aggregate data about ingredient location,
from the farms will evolve over time as they volume, availability, and on-farm impact would
transition to regenerative production. Businesses can further enable these new buying models.
use this information to develop product portfolio
strategies in line with circular design for food. For example, Guima Café produces coffee in Brazil
2. Create a new and is collaborating with Nespresso and reNature137
Make the economics work to transition to regenerative production, and to
collaborative dynamic As farmers shift from focusing on single crops to produce a greater diversity of ingredients. Guima
with farmers multi-crop regenerative farm systems, FMCGs and Café is now extending its range of farm outputs
retailers can support them by establishing new to include avocados, honey, rubber, and coffee,
buying models and contract terms. Doing so will collaborating with new partners to diversify farm
help to create the necessary demand and supply revenue streams by ensuring all these outputs
Forming strategic partnerships and strong working coordination. Cost-sharing initiatives can also are sold.
relationships with farmers is at the heart of circular increase access to training, equipment, and inputs.
design for food. Because regenerative farm systems New contract terms
are established according to their context, there New buying models Based on the example ingredients analysed, the
is no universal pathway for every farmer to follow. This requires making the transition from sourcing an transition period can take as little as three years
By designing with farmers, FMCGs and retailers can ingredient from a single plot to sourcing from a farm or up to 20 years before regenerative farms reach
embed evolving farm system realities in food design system. Regenerative farms produce a much more a profitable mature state. Farmers will therefore
strategies over time. diverse range of ingredients, each at lower volumes, need income security to make the transition. FMCGs
than farms that produce few ingredients grown and retailers can build supplier relationships with a
FMCGs and retailers can: conventionally on the same area of land. As a result, long-term view in mind. One way in which they can
businesses will likely need to source more diverse reflect this commitment is in contracts that provide
Reshape relationships across ingredients from a single farm, and/or source a single greater security for farmers as they adopt new crops
the value chain ingredient from more farms. and practices that may lead to a short-term decline
The path to creating a new collaborative dynamic in output, and could otherwise be perceived as
with farmers varies according to the nature of a New buying models can be set up by a single too risky. At the same time, contracts should have
business’ supply network, and may require making business or by multiple businesses, either in the food enough flexibility to allow both the farmer and the
closer and more meaningful links with farmers. sector or not. New buying models can be applied to FMCG or retailer to evolve their production and
Whether through cooperatives, third-party suppliers, upcycled ingredients, for example, with one business sourcing as the farm and product markets change
or directly with individual farmers, value chains buying by-products from another’s manufacturing over time.
will need to become more collaborative in order to facilities, or one business purchasing a crop and
5. HOW FMCGS AND RETAILERS CAN TAKE ACTION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 65

For example, Danone has established long-term For example, General Mills has set a goal to shift 1 For example, reNature works alongside farmers
contracts with dairy farmers, helping alleviate million acres of agricultural land to regenerative food and businesses to develop Model School Farms
short-term market volatility, thereby allowing them production by 2030, activating pilots across regions that show what regenerative agroforestry looks
to adopt practices that can support regenerative with partners such as Understanding Ag and the like for a target ingredient and provide valuable
outcomes.138 Soil Health Academy to address priority ingredients. education to local farmers.142
Through these pilots, farmers acquire practical tools
Cost-sharing initiatives to adopt regenerative production including one-on- While such models can be established by a
Adopting practices that can drive regenerative one coaching and technical assistance for single business or clusters of businesses and
outcomes often requires equipment, new inputs three years.140 local partners, they can also be brought to life by
(e.g. seeds, organic fertilisers, compost), and private-public or third-sector partnerships.
training that farmers may not have access For example, Grupo Carrefour Brasil launched the
to. FMCGs and retailers can lower the capital Small Farmers’ Shipping Platform in 2020 and is For example, Leckford Estate143 in England is a
investments needed for farmers to make the running community projects with regional producers 1,100-hectare mixed farm owned by UK retailer
transition through cost-sharing initiatives, such that include the provision of training and access Waitrose. Through its work with innovative
as equipment pooling and input provision to markets.141 farmers144 and Linking Environment and Farming
programmes. (LEAF)145 membership, Leckford Estate employs
Facilitate knowledge-sharing farming techniques that help build biodiversity
For example, PepsiCo is partnering with CCm between farmers while growing ingredients and products that are
Technologies to turn potato peel from their crisp FMCGs and retailers are also encouraged to highlight mostly supplied to Waitrose. Learnings from the
factories in the UK into fertilisers that farmers can leading farming efforts to elevate pioneering farm are then shared across the demonstration
use to grow more potatoes.139 farmers and/or landowners, facilitate knowledge- farms and other farmers in the LEAF network.
exchange, and inspire other farmers to adopt
FMCGs and retailers can also provide technical practices for regenerative outcomes. Through in-
assistance, such as training programmes, to help person networking and digital platforms, farmers in
farmers gain new knowledge and technical support regions surrounding ‘spotlight farms’ can exchange
around which practices are suited to their farms knowledge and support one another as they
and will maximise regenerative outcomes for transition to regenerative production.
local ecosystems. The most successful technical
assistance programmes often involve a range of
relevant partners.
5. HOW FMCGS AND RETAILERS CAN TAKE ACTION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 66

these products should provide new and accessible


food experiences. They should inspire other FMCGs
and retailers to use circular design for food to rethink
their own product portfolios.

By leveraging marketing and in-store positioning to


share the positive impact stories of these products
3. Develop iconic products with consumers, brands can build market share and
capture consumer attention with products that are
to showcase the potential part of a nature-positive system. This new wave of
of circular design for food product innovations can set the benchmark for the
industry in different food product categories.

By bringing iconic products to market, the business


Redesigning portfolios and renovating core
case for embedding circular design for food into
products at scale to capture the clear long-term
product creation across the industry can be made
economic and environmental opportunity will
more clearly to internal business stakeholders as
take time. To get started and build momentum,
well as external stakeholders, such as investors
FMCGs and retailers can show what is possible
and policymakers. This can then trigger further
through new products that bring circular design
momentum within the company to accelerate
for food to life. This can allow businesses to create
circular design for food throughout their portfolios.
space for designers to experiment and learn, test
Through the development of iconic products,
new concepts with consumers, gain frontrunner
businesses can also create space for designers to
advantage, and build a compelling business case.
experiment and innovate, while gaining a deeper
understanding of what additional resources and
Iconic products designed for nature should set
tools are needed.
a new level of ambition for food to help tackle
climate change and build biodiversity. As well as
being nutritious, tasty, and widely recognisable,
5. HOW FMCGS AND RETAILERS CAN TAKE ACTION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 67

Businesses can advocate for widespread adoption of


common on-farm metrics by governments, industry,
and farmers to measure ingredient production
impacts across geographies. This could further
benefit businesses by:

• Ensuring governments can appropriately allocate

4. Contribute to and subsidies to incentivise regenerative production,


develop trade agreements that favour products
use common on-farm designed using these ingredients, and award
metrics and definitions ecosystem service payments
• Enabling investors to use common criteria to
guide decision-making that provides preferential
access to finance for farmers undertaking
To design products that allow nature to thrive, new regenerative production
metrics and definitions are needed to determine
what qualifies as regenerative production, measure
AN EXAMPLE OF COMMON METRIC DEVELOPMENT
farm-level impacts of product design decisions,
track progress towards company targets, and
The Global Farm Metric (GFM) builds on five years of Each of these categories has a set of three
provide stakeholders and customers with accurate
work by farmers and the Sustainable Food Trust to indicators assigned to it.
information on product benefits. Businesses can play develop a harmonised metric for farm system impacts.
a key role in developing and applying such metrics The GFM is a whole-farm metric that measures Rather than seeking to become a certification
and definitions, while considering local contexts, by societal, environmental, and economic impacts, programme, the GFM aims to establish a common
assessed across 11 categories: framework to measure impacts globally and
aligning with initiatives like the Global Farm Metric
• Soil provide a self-assessment tool that farmers
(see box on this page for more information).146 • Water and land managers can use to calculate a score
• Air and climate indicating impacts across categories. This can
By monitoring common metrics on all supplying • Productivity then be used by buyers purchasing ingredients,
farms and putting systems in place to enable • Human capital policymakers allocating subsidies, and investors.
• Social capital The GFM is currently in development with
information from farms to be shared with FMCGs
• Biodiversity involvement from diverse organisations and
and retailers purchasing from them, businesses • Plant and crop health stakeholders, ranging from farming groups and
can measure the environmental impacts of their • Animal husbandry governments to NGOs and major industry players.
portfolios across metrics such as GHG, biodiversity, • Nutrient management
and water. This will enable the accurate reporting of • Energy and resource use

progress against business-wide goals.


5. HOW FMCGS AND RETAILERS CAN TAKE ACTION ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 68

for example, advocates for policy changes that


incentivise the uptake of practices that have
regenerative outcomes, reduce chemical inputs,
and support farmers in the transition.148

Joint industry initiatives and collaborations can


further strengthen and accelerate industry-

5. Advocate for policies led actions and help bring them to scale. In
the plastics sector, for example, more than 100
that support a nature- businesses committed to engage constructively
positive food system with government and other stakeholders for the
establishment and improvement of Extended
Producer Responsibility policies to create a level
As governments progressively recognise the playing field and accelerate the transition to a
critical role food system transformation can play circular economy.149
in tackling climate change and biodiversity loss –
thereby achieving a number of the United Nations’ Examples of policy measures that governments
Sustainable Development Goals – businesses can can implement and businesses can actively
accelerate policy development by advocating for support include:
measures that support circular design for food • Shifting incentives away from conventional food
and a nature-positive food system. production towards regenerative outcomes and
providing support to farmers in the transition
In the framework of the Farm to Fork Strategy, the • Funding research to increase knowledge
Code of Conduct147 is an example of a voluntary and application of circular design for food
initiative aimed at creating a common system and opportunities at farm- and business-level
methodology to track and monitor sustainability • Using trade and international cooperation
throughout the food value chain, based on principles instruments to ensure a level playing field
shared by a broad range of stakeholders.
Drawing on the Universal circular economy policy
By advocating for the right policy landscape, goals and the vision of a nature-positive food future
businesses can support the shaping of measures that based on circular design, a broad set of measures
are in line with their climate and biodiversity goals can scale the sector’s transition.150
and will support their achievement. Danone,
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 69

Redesigning
food for a
nature-positive
future is possible.
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 70

What role
will you play
to make it
happen?
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 71

Core project team Further contributors

Ellen MacArthur Foundation Ellen MacArthur Foundation


Andrew Morlet – Chief Executive Tansy Robertson-Fall – Senior Editor
Rob Opsomer – Executive Lead, Systemic initiatives Ian Banks – Editorial Lead
Emma Chow – Lead, Food initiative Dale Walker – Freelance Editor
Nagisa Tavares – Project Manager, Food initiative Lauren Ward – Team Assistant, Food initiative
Gaëlle Le Gélard – Project Manager, Circular Design, Food Jocelyn Blériot – Executive Lead, International
Eliot Beeby – Senior Research Analyst, Food initiative Institutions & Governments
Henrietta Goddard – Research Analyst, Food initiative Joe Iles – Lead, Circular Design Programme
Maria Chiara Femiano – Senior Policy Officer Nicola Evans – Lead, Marketing and Communications
Soukeyna Gueye – Project Manager, Insights & Analysis
Jarkko Havas – Lead, Insights & Analysis

Material Economics Graham Pritchard – Graphic designer


Moa Strand – Project Manager Elisa Gilbert – Graphic designer
Kasper Thim – Senior Consultant Dragan Kordic – Illustrator
Per-Anders Enkvist – Founder and CEO Joanna de Vries – Freelance Consultant Editor
Per Klevnäs – Partner Mike Lee – Co-Founder and Co-Ceo, Alpha Food Labs
Danielle Gould – Co-Founder and Co-Ceo, Alpha Food Labs
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 72

Acknowledgements
We, at the Ellen MacArthur Foundation, are very Food initiative Advisory Board Nestlé
grateful for the support we have received in Franck Saint-Martin, Global Public Affairs Policy
producing this study. Calouste Gulbenkian Foundation & Compliance Manager
Rosário Palha, Gulbenkian Sustainable Nestlé S.A. Margaux Delalex,
The Food initiative’s Advisory Board has supported Development Programme Climate Delivery Specialist
the Foundation’s work since 2019, helping to
conceive and launch the Cities and circular economy Danone Novamont
for food report and to build on it with this study. Merijn Dols, Global Director of Open Giulia Gregori, Strategic Planning and
Innovation & Circular Economy for Food Corporate Communication Manager
This study was also partially funded by the SUN Christian Garaffa, Marketing Manager,
Institute and we are very grateful for this ongoing DOEN Foundation Source Separation & Recycling
support of the Foundation’s work. Freija Vermeer, Programme Manager Sustainable
Food Systems & Circular Entrepreneurship Porticus
Thanks also go to all organisations and individuals Maarten Derksen, Programme Manager, Camila Daminello, Programme Manager
across policy, industry, and academia, as well as Sustainable Food Systems & Sustainable Energy Mirela Sandrini, Regional Director
those from think tanks, who contributed to this
study with insights and constructive input, through Google Veolia
interviews and online workshops. Chavanne Hanson, Food Choice Architecture Sandrine Dubuc, Food Chain Solutions Director,
and Nutrition Manager Strategy & Innovation
Special thanks in particular to the farmers we spoke Michiel Bakker, VP Global Workplace Programs Mathieu Tolian, Sustainable Development
with who generously shared their knowledge and Deputy Director
perspectives on sensitive issues that encompass Mizkan
factors beyond producing food, and which touch on Hironobu Asai, Director & Board Member YARA
families, friendships, and lifestyles. For this reason we Jitsuo Tajima, Global Communications Gauthier Boels, Director Circular Economy
have not named them here, but we hope this study General Manager Silvia Tonti, VP Circular Economy
will bring positive outcomes for all involved, and for Kojiro Kazui, Sustainability Initiative Office
future generations. General Manager
George Fleminger, Sustainability Initiative
Office Analyst
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 73

Contributor organisations Ahold Delhaize John Lewis Partnership


The Ellen MacArthur Foundation would like to Alpha Food Labs Linking Environment And Farming (LEAF)
thank the organisations who contributed to the Alpro Mars, Incorporated
study for all their constructive input. Please note California State University, Chico, Center for Mattson
that contribution to the study, or any part of it, Regenerative Agriculture and Resilient Systems McCain
or any reference to a third-party organisation Carrefour Brasil Moss & Mollusk Consulting
within the study, does not indicate any kind of CEPS Mondeléz International
partnership or agency between the contributors Climate Champions Nature Friendly Farming Network
and the Foundation, nor an endorsement by Co-op Nestlé
that contributor or third party of the study’s Danone New Foundation Farms Ltd
conclusions or recommendations. Dawn Meats One Planet Business for Biodiversity (OP2B)
Delicious Planet Consultancy PepsiCo
Department of Environment, Food and Rural Affairs, ReLondon
UK Government reNature
Ecologic Sainsbury’s
EIT-Food Soil Association
European Carbon Farmers Sustainable Food Trust
EverGrain Tesco Stores Limited
FarmED The Coca-Cola Company
Farming & Wildlife Advisory Group The Finnish Innovation Fund Sitra
(FWAG Southwest) The Kellogg Company
Food, Farming and Countryside Commission (FFCC) The Land Institute
General Mills Unilever
Google Upcycled Food Association
Griffith Foods Waitrose & Partners
Groupe Bel Walmart
HowGood Wm Morrison Supermarkets plc
IFOAM Organics Europe WWF-UK
International Union for Conservation of Nature (IUCN)
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 74

About the Ellen


MacArthur Foundation
The Ellen MacArthur Foundation, a UK-based
charity, develops and promotes the idea of a circular
economy in order to tackle some of the biggest
challenges of our time, such as plastic pollution,
climate change, and the loss of biodiversity. In
a circular economy, business models, products,
and materials are designed to increase use and
reuse, creating an economic system in which
nothing becomes waste and everything has
value. Increasingly built on renewable energy and
materials, a circular economy is distributed, diverse,
and inclusive. The Ellen MacArthur Foundation
collaborates with and inspires, businesses,
organisations, and other key actors to accelerate the
transition to a circular economy.

Further information:
www.ellenmacarthurfoundation.org
@circulareconomy
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 75

Disclaimer
This report has been produced by the Ellen MacArthur Foundation
(Foundation). Material Economics provided analytical support.

Whilst care and attention has been exercised in the preparation


of the report and its analyses, relying on data and information
believed to be reliable, the Foundation makes no representations
and provides no warranties in relation to any aspect of the report
(including as to its accuracy, completeness or the suitability of any
of its content for any purpose). Products and services referred
to in the report are provided by way of example only and are not
endorsed by the Foundation. The Foundation is not responsible for
any third-party content referred to in the report nor any link to any
third-party website, which is accessed at the reader’s own risk.

Neither the Foundation nor any of its related people and entities
and their employees or appointees shall be liable for any claims or
losses of any nature arising in connection with this report or any
information contained in it, including, but not limited to, lost profits
or punitive or consequential damages.

The Ellen MacArthur Foundation Strategic partners: BlackRock, Danone,


DS Smith, Google, Groupe Renault, H&M Group, IKEA, Intesa Sanpaolo,
Philips, SCJohnson, Solvay, Unilever and the following:
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 76

Endnotes
1 Chatham House, Food system impacts on biodiversity loss (2021) 23 PepsiCo, PepsiCo unveils ambitions new agriculture goals 43 GWP* was investigated as a possible alternative to GWP100, but was
2 Technical Appendix, p.20 (4th April 2021) not used. See technical appendix p.7 for more detail

3 FAO, The world of organic agriculture (2021) 24 Walmart, Walmart sets goal to become a regenerative company 44 CISL, Measuring business impacts on nature (2020)
(21st September 2020) 45 Modelling of farmer profitability is high level and indicative. See
4 Unilever, Unilever’s purpose-led brands outperform (11th June 2019)
25 World Benchmarking Alliance, Assessing the world’s 350 most technical appendix p.8 for more details.
5 Race to Zero
influential food and agriculture companies on their commitment 46 Technical Appendix, p.6
6 Science-Based Targets initiative (SBTi) (December 2020)
47 Technical Appendix, p.20
7 Science-Based Targets (SBTs) for nature 26 World Benchmarking Alliance, Assessing the world’s 350 most
48 FAO, What is agrobiodiversity? (2004); Crop Trust, Crop Trust
8 FAO, What is agrobiodiversity? (2004); Crop Trust, Crop Trust influential food and agriculture companies on their commitments
Magazine (2019)
Magazine (2019) (December 2020)
49 IPBES, Summary for policymakers of the global assessment report on
9 One Planet Business for Biodiversity Initiative (OP2B) 27 Technical Appendix, p.20
biodiversity and ecosystem services (2019)
10 Future market insights, Products from food waste market – key 28 Smart Protein, Plant-based foods in Europe (September 2020)
50 The Future Market, The future of the potato
findings (2019) 29 CNBC, Oatly IOP: OATLY starts trading on Nasdaq (May 2021)
51 Ristaino, et al., The persistent threat of emerging plant disease
11 Overall averages across ingredients analysed (wheat, dairy, potatoes) 30 Unilever, Unilever’s purpose-led brands outperform (11 June 2019) pandemics to global food security, Proceedings of the National
in the EU/UK following transition period, when combining design
31 European Commission, Farm to Fork Strategy – Sustainable Food Academy of Sciences, ISSN: 2250-1762, 118 (23) (2021)
opportunities as appropriate. The % changes are compared with
business-as-usual for 2030. Profitability is for ‘steady state’, which is Consumption (2021) 52 CIP International Potato Center, Case for investment: climate change
defined as the year in which the farm system reaches maturity: when 32 Heinz, Tomato ketchup: 50% less sugar and salt adaptation
yields and annual economic returns stabilise. This is different for each 33 Nestlé UK, Nestlé Confectionery UK removes all artificial colours, 53 Hoffman, I., Climate change and the characterization, breeding and
ingredient. See technical appendix for further details. flavours and preservatives from its products (1st March 2012) conservation of animal genetic resources (May 2010)
12 Ellen MacArthur Foundation, The nature imperative: how the circular 34 Willett, W., et al., Food in the Anthropocene: the EAT–Lancet 54 The Livestock Conservancy, Pineywoods Cattle (no date)
economy tackles biodiversity loss (2021) Commission on healthy diets from sustainable food systems, The 55 The Cattle Site, Cattle Breeds – Devon (no date)
13 Crippa, M., Solazzo, E., Guizzardi, D., et al., Food systems are Lancet, 393(10170) (2019), pp.447–492
56 Gruber, K., Agrobiodiversity: the living library, Nature (27th April
responsible for a third of global anthropogenic GHG emissions, Nat 35 Chatham House, Food system impacts on biodiversity loss (2021) 2017)
Food 2, 198–209 (2021)
36 Ellen MacArthur Foundation, Completing the picture: how the circular 57 Herrero, et al., Farming and the geography of nutrient production for
14 Boston Consulting Group, The biodiversity crisis is a business crisis
economy tackles climate change (2019) human use: a transdisciplinary analysis, The Lancet Planetary Health,
(2021)
37 Ellen MacArthur Foundation, The Nature Imperative: How the circular 1 (2017), e33–e42
15 European Commission, A Farm to Fork Strategy for a fair, healthy and
economy can tackle biodiversity loss (2021) 58 Knorr, Eat for good with Knorr’s Future 50 Foods cookbook
environmentally-friendly food system (2020)
38 Ellen MacArthur Foundation, Cities and circular economy for food 59 Reawakened, What (and who) does agrobiodiversity look like?
16 National Food Strategy, Independent Review, The plan (2021)
(2019)
60 Slow Food, Ark of taste
17 Department for Environment, Food & Rural Affairs, Environmental
39 Ellen MacArthur Foundation, Food: two circular investment
Land Management and Public Money for Public Goods (2021) 61 FAO, The 10 elements of agroecology (2018)
opportunities for a low-carbon and prosperous recovery (2020)
18 FAO, Update on the scaling up of Agroecology Initiative (2020) 62 IIED, The spice of life: the fundamental role of diversity on the farm
40 Dasgupta, P., The economics of biodiversity: the Dasgupta review,
19 FAO, Update on the scaling up of Agroecology Initiative (2020)
and on the plate (2018)
London: HM Treasury (2021)
63 Reawakened 25, Small millet case study (2021)
20 Ellen MacArthur Foundation, The Milan food policy – collaborating to 41 Ellen MacArthur Foundation, Upstream innovation: a guide to
change local food systems (2019) packaging solutions (2020) 64 New Dairy, The plant-based dairy map (2021)
21 Ellen MacArthur Foundation, Circular economy for food in São Paulo 42 Soil health, water, and agroecosystem health and resilience are other 65 Technical Appendix, p.30–31
(2021) relevant metrics that, if measured, could give a more comprehensive 66 Verduci, et al., Cow’s milk substitutes for children: nutritional aspects
22 Unilever, How we will grow our ingredients in harmony with nature? measure of regenerative outcomes, but were not included for of milk from different mammalian species, special formula and plant-
(22nd April 2021) analysis in this study. based beverages (2019)
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 77

67 Data shown here for each plant-based milk is the total output of milk 92 In ‘steady state’, which is defined as the year in which the farm 111 Laborde, D., Mumun, A., Martin, W., Piñeiro, V., and Vos, R., Modeling
(e.g. oat milk) per hectare based on typical composition, not the system reaches maturity: when yields and annual economic returns the impacts of agricultural support policies on emissions from
yield of the base ingredient (e.g. oats) whereas GHG emissions are stabilise. Aggregated average across the three ingredients. See agriculture, International Food Policy Research Institute (2020)
based on the raw ingredient (e.g. oats). Protein adjusted numbers are technical appendix for further details 112 European Commission, Sustainable land use (greening) (2021)
shown in the technical appendix, p.29–30
93 In ‘steady state’, which is defined as the year in which the farm 113 European Court of Auditors, Special Report 21/2017: greening: a
68 Mottet, et al., Livestock: On our plates or eating at our table? A new
system reaches maturity: when yields and annual economic returns more complex income support scheme, not yet environmentally
analysis of the feed/food debate (2017)
stabilise. Aggregated average across the three ingredients. See effective (2017)
69 Poore, J., and Nemecek, T., Reducing food’s environmental impacts technical appendix for further details 114 European Court of Auditors, Special report 16/2021: Common
through producers and consumers, Science (2018)
94 Roca-Fernández, A., et al., Pasture intake and milk production of Agricultural Policy and climate: half of EU climate spending but farm
70 Technical Appendix, p.22–24 emissions are not decreasing (2021)
dairy cows rotationally grazing on multi-species swards (2016)
71 In ‘steady state’, which is defined as the year in which the farm
95 In ‘steady state’, which is defined as the year in which the farm 115 DEFRA, Environmental Land Management Schemes (2021)
system reaches maturity: when yields and annual economic returns
system reaches maturity: when yields and annual economic returns 116 DEFRA, Guidance on the Sustainable Farming Incentive pilot (2021)
stabilise. This is different for each ingredient. For potatoes, all figures
stabilise. Aggregated average across the three ingredients. See
are for the potato year within a six-year rotation. See technical 117 European Commission, Future of the Common Agricultural Policy
appendix p.38–41 for further details. technical appendix for further details
(2021)
72 0.33–1.8 tCO2e/ha from Crews, T. E., Carton, W., and Olsson, L., Is 96 Savory Institute, Managing the complexities of land and livestock
118 Agricultural Knowledge and Information Systems, Stimulating
the future of agriculture perennial? Imperatives and opportunities 97 Technical Appendix, p.37–40 creativity and learning (2018)
to reinvent agriculture by shifting from annual monocultures to
98 Technical Appendix, p.41–43 119 European Commission, Evaluation study of the implementation of
perennial polycultures, Global Sustainability 1 (2018), e11, 1–18.1
99 California State University (CSU), Chico – Center for Regenerative the European Innovation Partnership for Agricultural Productivity and
73 From data provided by How Good Sustainability (2016)
Agriculture and Resilient Systems, Could regenerative agriculture
74 Business Innovation Observatory, Sustainable, safe and nutritious
increase the nutritional quality of our food? 120 SYSTEMIQ, Club of Rome, A system change compass – implementing
food (2015)
the European Green Deal in a time of recovery (2020)
100 Jones, C., Soil Restoration: 5 core principles (2017)
75 SuSeWi
121 Herren, H., Bassi, A., Tan, Z., Binn, W., Green jobs for a revitalized
101 Troesch, B., et al., Increased intake of foods with high nutrient density
76 Spireaux food and agricultural sector, Natural Resources Management and
can help to break the intergenerational cycle of malnutrition and
77 Halloran, et al., Edible insects in sustainable food systems (2018) Environment Department Food and Agriculture Organization of the
obesity (2015)
United Nations (2012)
78 FAO, Edible insects, future prospects for food and feed security
102 FAO, Nutrition and food systems: a report by the high-level panel of
(2013) 122 European Commission, Young farmers in the EU – structural and
experts on Food Security and Nutrition (2017)
79 European Commission, Food safety: approval of first insect as Novel economic characteristics, EU Agricultural and Farm Economic Briefs,
103 Bionutrient Food Association no.15 (2017)
Food (2021)
80 Ynsect 104 Periodic Table of Food Initiative 123 Henriques, M., The ageing crisis threatening farming, BBC – Follow
105 Technical Appendix, p.10–17 the Food
81 Protifarm, Our AdalbaPro products
124 European Institute for Innovation and Technology, Global Food
82 Upcycled Food Definition Taskforce, Defining upcycled foods (2020) 106 In ‘steady state’, which is defined as the year in which the farm
system reaches maturity: when yields and annual economic returns Venture Programme (2021)
83 FAO, Food wastage footprint: impact on natural resources, summary
stabilise. Aggregated average across the three ingredients. See 125 European Institute for Innovation and Technology, Food Circle Lab: a
report (2013)
technical appendix for further details hub to scale up circular food startups in Flanders (2021)
84 WWF-UK, Driven to waste: The Global Impact of Food Loss and
107 In ‘steady state’, which is defined as the year in which the farm 126 UK Research and Innovation, Transforming food production challenge
Waste on Farms (2021)
system reaches maturity: when yields and annual economic returns (2021)
85 Renewal Mill
stabilise. See technical appendix p10–12 for further details. 127 European Commission, Mission area: soil health and food (2021)
86 Comet Bio
108 In ‘steady state’, which is defined as the year in which the farm 128 European Commission, Trade Policy Review: an open, sustainable and
87 Interview with EverGrain (conducted 24th February 2021)
system reaches maturity: when yields and annual economic returns assertive trade policy (2021)
88 Coffee Cherry Co., Sustainability stabilise. See technical appendix p13-15 for further details. 129 Council of the European Union, Draft Council Conclusions on the EU’s
89 Koa, Impact 109 European Commission, EU taxonomy for sustainable activities (2021) priorities for the 2021 United Nations Food Systems Summit (2021)
90 Member Directory, Upcycled Food Association 130 European Commission, Agreement between the European Union and
110 Nicolini, M., and Tavoni, M., Are renewable energy subsidies effective?
91 Future Market Insights, Products from food waste (2019) Evidence from Europe, Renewable and Sustainable Energy Reviews Japan for an economic partnership (2019)
(July 2017), pp.412–423
ELLEN MACARTHUR FOUNDATION | THE BIG FOOD REDESIGN | 78

131 CIDSE, Finance for agroecology: more than just a dream? An 141 Grupo Carrefour Brasil, 2020 annual sustainability report (2020)
assessment of European and international institutions’ contributions 142 reNature, Model farms
to food system transformation (2020)
143 Leckford Estate, The Waitrose & Partners Farm
132 Ellen MacArthur Foundation, The nature imperative: how the circular
economy tackles biodiversity loss (2021) 144 Innovative Farmers, About Innovative Farmers

133 FAO, Building a Common Vision for Sustainable Food and Agriculture 145 Linking Environment And Farming (LEAF), What we do
(2017) 146 Sustainable Food Trust, Global Farm Metric (2021)
134 Ellen MacArthur Foundation, Universal circular economy policy goals: 147 European Commission, EU Code of Conduct on Responsible Food
enabling the transition to scale (2021) Business and Marketing Practices (2021)
135 Race to Zero 148 Danone, Call to action for a common food policy 2020–2024 (2020)
136 Science Based Targets for nature 149 Ellen MacArthur Foundation, Extended Producer Responsibility – a
137 reNature, Guima Brazil: where it all started necessary part of the solution to packaging waste and pollution (2021)
138 Danone, For a regenerative future (2021) 150 Ellen MacArthur Foundation, Universal circular economy policy goals:
enabling the transition to scale, (2021)
139 PepsiCo UK, We’re cutting carbon emissions by bringing potatoes full
circle (2020)
140 General Mills, We will advance regenerative agriculture on 1 million
acres of farmland by 2030

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