Consumers aware of regenerative agriculture benefits but concerned about high costs, flags report

Column: industry Tag: Regenerative Agriculture,Organic Foods,EIT Food,Sustainable Foods Published: 2024-08-09 16:29 Source: www.foodingredientsfirst.com Author: Insha Naureen

09 Aug 2024 --- Consumers in Europe prefer regenerative agricultural practices over conventional methods due to their low environmental impact, but often confuse it with organic processes, says EIT Foods’ recent study. It also spotlights a lack of scale and high prices as the sector’s major concerns and reveals consumers’ curiosity to learn more about the method that “maintains or restores” soil health.
 
Consumers aware of regenerative agriculture benefits but concerned about high costs, flags report

“These findings can help food and beverage companies understand the motivations and challenges consumers face when choosing products produced through regenerative agriculture,” Sofia Kuhn, director of Public Engagement at EIT Food, tells Food Ingredients First.

“Additionally, the report can guide companies in understanding the demand and effectively communicating the benefits of regenerative agriculture to consumers.”
 
More than a “buzzword?”
 
Regenerative agriculture has gained increasing awareness among consumers and emerged as a ‘buzzword’ in the last few years, she continues.

“The EIT Food Consumer Observatory study surveyed participants across 17 countries and found that today’s consumers perceive regenerative agriculture products as higher quality and more desirable,” she says, adding that health and taste are key drivers behind this perception.

This belief is rooted in the understanding that regenerative agriculture products are produced without chemicals, pesticides and artificial fertilizers and are more “nutrient-dense” due to healthier soil and longer growing periods, she explains.

The report, titled “Cultivating Resilience: Regenerative Agriculture,” also identifies the criteria consumers deem significant regarding regenerative agriculture certifications, to help the farming practice achieve standardization for legislative purposes and promote its use in the F&B industry.
 
Consumer confusion
 
Consumers aware of regenerative agriculture benefits but concerned about high costs, flags report
 
Consumers are concerned that food prices will be higher if the food system transitions towards regenerative agriculture, says Kuhn.
 
The report found that while most consumers know what regenerative agriculture is, they also confuse it with organic agriculture.

“This study shows that consumers feel positively about regenerative agriculture and would like to understand the differences between this and organic practices. There is a need to provide clarity about ‘chemical-free,’ as this is a concern for consumers,” says Kuhn.

However, she also points to the need to support consumer understanding of the holistic benefits of regenerative practices for healthy soils, a more resilient landscape and for their own health.

“The food industry needs to utilize a range of communications tactics to ensure that clear, engaging information about regenerative agriculture reaches as many consumers as possible.”

She suggests “clearly” labeling products produced through regenerative agriculture and introducing labels such as “chemical free” or “soil friendly” to help consumers distinguish products and support them in making informed decisions.
 
Consumers aware of regenerative agriculture benefits but concerned about high costs, flags report
 
The method is most relevant for fresh produce like fruits and vegetables since consumers believe it makes them healthier than they already are.
 
Examining relevancy
 
As regenerative agriculture adoption in produce like corn and wheat gains ground, the method’s use in fresh produce is the most in demand.

“This is mainly because consumers believe they (should) consume a lot of these foods and that these will become even healthier and tastier by being produced regeneratively,” states the report.

Animal-based products like meat, dairy, and eggs are also relevant categories for regenerative agriculture since consumers associate the method with “positive contributions to animal welfare,” Kuhn notes.

Belief that the quality of these products will be better and that animals reared through the practice will lead healthier, happier lives, contributes to this.

On the flipside, consumers care much less about (ultra-) processed foods being produced through the farming method, since they feel the practice will less likely make a significant difference when the ingredients are “inherently unhealthy,” such as saturated fats.
 
Soaring prices and scalability struggles
 
When European consumers think about regenerative agriculture, they have a “misperception” that it is only relevant for small scale or local farms, leading to doubts over its ability to increase food security, the report flags.

Consumers are further concerned about whether local farms using these methods can compete with larger companies using conventional food production practices.

Another consumer apprehension is that food prices will be “higher if the food system transitions toward regenerative agriculture,” reveals Kuhn. However, they do not expect the prices to be above those for organic products.

“Food producers can invest in scaling regenerative agriculture, making practices more widespread, which will help keep costs down,” Kuhn suggests.

EIT Food is addressing this challenge via the Regenerative Innovation Portfolio, a set of innovation initiatives that aims to remove existing barriers to the adoption of regenerative agriculture by demonstrating pathways to transformation at scale.

“EIT Food is matching partner contributions of €5 million (US$ 5.4 million) a year for three years, to build up a total potential investment of €30 million (US$32.7 million).”
 
Consumers aware of regenerative agriculture benefits but concerned about high costs, flags report
 
Deloitte estimates that when crop farmers implement regenerative agriculture, their yields can outperform those of conventional farming after 6-10 years.

Policymakers’ role

Governments and policymakers have a key role to play in the transition to regenerative agriculture and should implement benchmarks and labeling that help consumers identify products produced through it, underscores Kuhn.

“Actors across the food system — including policymakers, farmers, and food manufacturers — can also collaborate to scale regenerative agriculture and educate consumers on the benefits.”

“One of the study’s key takeaways was that consumers do not see the need to transform current agricultural practices. Therefore, consumers need to be informed and educated on the benefits of regenerative agriculture and how it can offer solutions to the challenges within our food systems,” she asserts.
 
Advocating farmer-consumer connect

The study revealed that there will likely be a demand for regenerative agriculture products in the future.

“Gathering data on where consumers are getting their information on regenerative agriculture can be a relevant and useful next step, as it would help us understand how best to communicate with consumers on this topic,” observes Kuhn.

“There is a need for more human storytelling that connects consumers with farmers and the land, highlighting the more holistic impacts of regenerative agriculture and helping them understand the systemic benefits of this transition,” she concludes.

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