September 16, 2019

By Lynda Kiernan

Sweden-based Lantmännen and Norway-based Yara are partnering to transform the food supply chain, with a pilot project targeting the launch of the world’s first certified fossil-free food chain. 

Lantmännen is one of the leading agricultural cooperatives in Northern Europe. Owned by 25,000 of Sweden’s farmers, operations in more than 20 countries, and annual turnover totaling EUR 4.3 billion (US$4.73 billion), the group, which has a concentration in grain production, is a leader in agricultural production, bioenergy, machinery, and food products.

“Lantmännen has been working systematically for a long time to develop sustainable solutions in many areas, not least when it comes to cultivation methods and concepts,” said Per Olof Nyman, group president and CEO, Lantmännen.

A fossil-free food chain begins in the field, and the partners understand that crop nutrition that can produce high yields and quality crops will represent a key factor in climate-friendly agricultural production. 

As such, this project will build its foundation upon Yara’s plans to pilot production of mineral fertilizer using renewable energy, which can then be used to reduce the carbon footprint of  Lantmännen’s products. 

Founded in 1905 with a mission to ease the emerging famine in Europe, Yara has stepped into a leading role developing digital farming tools for precision farming, and by working with partners along the entire food value chain to foster the use of more climate-friendly crop nutrition solutions. To meet its mission “to responsibly feed the world and protect the planet, to fulfill our vision of a collaborative society, a world without hunger and a planet respected”, the company, which now has operations in more than 60 countries and yearly revenue of US$12.9 billion, is focused on sustainable mineral fertilizer. 

The fertilizer which Yara is planning to bring to market by 2022 is expected to lower the total CO2 impact of grain production by 20 percent, however, the use of renewable energy in the production of the fertilizer is expected to increase production costs, and therefore food prices. But, by working together, and within a whole food chain, the partners are aiming to minimize costs for consumers. 

“This partnership is a first step towards achieving the transformation of our food system,” said Svein Tore Holsether, group president and CEO, Yara. 

“The pilot with Lantmännen will bring together the food chain partners in a joint effort to reduce the carbon footprint of food production. We must look at new business models that span the entire food value chain – from field to fork. A fossil free food chain is only possible with mineral fertilizers produced with renewable energy.”

“Nordic farmers are leaders in sustainability, with a low climate impact by international standards even today,” said Per Olof Nyman. “With this partnership, which is one of our most important initiatives yet, we take further steps towards a fossil free food chain and even more sustainable farming.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.