Synthesis Agri-Food Insights
December 21, 2009 Volume 1, Issue 8
Helping you understand agriculture's challenges and
opportunities by analyzing the issues and sharing their insights - the Synthesis consulting team Rob Hannam, Mary Lou McCutcheon, Julien DenTandt, Peter Hannam and Heidi
Dancho.
|
Making sense of the sustainability buzz
It's a word that is commonly heard in the media, used in
conversation and applied liberally to many aspects of our society. But what
does "sustainability" actually mean? Is it a longer-term trend or a short-lived
fad? And more importantly, what does it mean to agriculture and how will it
affect us in the future?
The World Commission on Environment and Development
established the most broadly accepted definition of sustainability in 1987: "Sustainable development is development that
meets the needs of the present without compromising the ability of future
generations to meet their own needs."
According to Rob Hannam, President of Guelph-based Synthesis
Agri-Food Consulting, true sustainability is a real trend that will have
a profound impact on the way the agri-food industry does business.
"Sustainability is a hot buzz word but it's not just a fad.
It's a trend and it's important," he says. "What we're dealing with here is
everything we take out or put into the environment and that's something that impacts
everything we do."
Sustainability touches everything from agronomic practices to
how manure or waste water is recycled, from labour practices to printing emails
or choosing to read your newspaper online instead of having it delivered, says
Hannam.
Adam Werbach, a sustainability consultant and former
president of the Sierra Club, says there has been a real shift in consumer
attitudes with regards to sustainability. He spoke at the recent Grow Canada
conference in Calgary, and talked about the differences between traditional
"green" consumers and new "blue" consumers.
"Green consumers have long been focused on the environment
but sustainability is bigger than that," says Werbach. "Blue consumers are primarily concerned with
sustainability - social, economic, environmental and cultural sustainability."
For retailers and those in the food or bio-products business,
this means changes in the way they operate and in the way they procure
products. And these changes will trickle down to the farm and agri-business
level, meaning everyone will need to be more aware of their procedures and
processes.
Walmart, for example, has developed a sustainability scorecard for
each of their suppliers to determine the social and environmental impact of
every item on its shelves. Loblaw
Company, Canada's largest grocer, has committed to sourcing all of its
seafood from sustainable sources by 2013. And this is just the beginning.
Fair trade coffee is one such product that has really taken
off. Five years ago, it was only available in small, independent or fringe
shops but today, fair trade coffee is on menus everywhere and even large coffee
industry leaders like Starbucks have a sustainable coffee policy.
Consumer
demand, which helped drive this change, can be a powerful force. This was
illustrated by a comment made by Loblaws
head Galen Weston at the 2009 annual meeting of the Agricultural Adaptation
Council earlier this month where he stated that as a grocer, he doesn't care
what he sells as long as he sells lots of it - and that what really matters is
giving his customers what they want.
People are increasingly aware of the need for sustainability,
but Hannam adds that people don't change their behaviour unless they need to do
so or have an alternative that works for them. Loblaws introduced a $0.05
charge for plastic grocery bags last April, which has led to a 75 percent
decrease in plastic bag use to date.
Proctor & Gamble has been enormously successful with its Coldwater Tide
product - a laundry detergent that saves consumers money on electricity by
working effectively in cold water.
Actions like these will mean changes to primary food
producers but Hannam says they can also be looked at as a business opportunity
- as long as you actually do what you say you are doing.
"We all know sustainability is the right thing to do, but it
can also present opportunities," he says. "As businesses, we are continually
looking for new opportunities to make changes and improvements. But they need
to be true improvements, not just lip-service."
Insights - So does this mean?
Everyone can do their
part: Big or small, you can take action to be more sustainable. Turn lights
off, read newspapers online, be selective when printing electronic documents, recycle
wherever possible - these are all small things anyone can do to become more
environmentally friendly. From a business perspective, review your labour
practices and procurement policies, look at options for recycling water or how
to best use or dispose of waste materials.
Honesty and
transparency matter: If you are making sustainability claims, you need to
be able to back up what you say with proof. Show examples of your sustainable
activities and start measuring their effectiveness. The Internet and the rise
of social media have really changed the speed at which information can flow -
and have made it much easier for untrue statements and claims to be revealed.
This can do immeasurable damage to a business or brand; in the long run, it can
be better to identify a problem yourself and lead the charge to fix it than
have someone else point it out for you.
Don't underestimate
the power of consumers: Consumer demand and opinion is a great driver of
business activity. Galen Weston's comments are evidence of that, as is the
growing shift in business attitudes towards environmental responsibility and
sustainability. From agriculture's perspective, this means you might as well be
part of the change or even leading the change instead of having the change
forced upon you by your processing or retail customers. Be aware of what's
going on in the world around you and don't stick your head in the sand.
|
|
|
Sincerely,
Rob, Mary Lou, Peter, Julien and Heidi
Synthesis Agri-Food Consulting
"Our Passion is Problem Solving"
|
|
|
|
