Dive Brief:
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The owner of East Coast grocery chains Food Lion, Giant Food and Stop & Shop is investing alongside General Mills to expand regenerative agriculture for key ingredients such as wheat and oats in an effort to reduce emissions across their shared value chain.
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Ahold Delhaize USA and the Minneapolis-based maker of Cheerios and Betty Crocker products plan to co-invest in farms adopting regenerative agriculture practices, such as cover cropping and nutrient management techniques. No financial specifics were disclosed.
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The collaboration is focused on geographic growing regions where key ingredients like wheat and oats are sourced. The partnership is set to advance regenerative practices on more than 70,000 acres of farmland in Kansas and Canada’s Saskatchewan province by the end of 2025.
Dive Insight:
This is Ahold Delhaize USA’s second foray into regenerative agriculture this year, following a pilot with Kellanova over the summer that supported the adoption of sustainable practices on North Carolina farms that grow wheat used to make Cheez-It crackers. It’s also another example of how some of the biggest players in the food supply chain are working in tandem to address climate issues.
“This relationship emphasizes how strategic collaboration is essential for addressing climate impacts and creating positive environmental outcomes,” Marc Stolzman, chief sustainability officer at Ahold Delhaize USA, said in a statement. “Ahold Delhaize USA looks forward to the learnings from this supply shed collaboration and using the findings to drive progress across the supply chain.”
Unlike the Kellanova partnership, which worked directly with stakeholders involved with the production of Cheez-It crackers, the General Mills collaboration will focus its investments on supply sheds, or entire regions where ingredients are commonly sourced.
The Ecosystem Services Market Consortium, a nonprofit that pays farmers and ranchers who improve the environment through their agricultural practices, will facilitate the joint effort between Ahold Delhaize and General Mills, according to a release. ESMC will oversee impact measurement and coordinate third-party verification of greenhouse gas reductions and soil carbon sequestration.
Since 2020, General Mills has invested millions of dollars to help Kansas wheat growers adopt regenerative agriculture practices across 10,000 acres through its partnership with ESMC. The collaboration with Ahold Delhaize continues these efforts.
“By creating opportunities for co-investing in regenerative agricultural solutions, producers win, corporations win, and consumers win,” Debbie Reed, ESMC’s executive director, said in a statement.