ADM's Regenerative Agriculture Procurement Strategy
ADM uses the scale of their global operation by working with their procurement partners and suppliers to further the cause of climate-smart agriculture. The company has extended their strategy to incentivise and support growers to take steps to reduce their carbon footprint and adopt regenerative agriculture practices.
The Chicago based company has extended their strategy into areas of Europe, as part of their programme to support regenerative farming practices across 4 million acres globally by 2025. The organisation initially started its regenerative agriculture efforts in the North America region, and after successfully involving more than 1 million acres in 2022, extended the programme with a target of covering 2 million acres in 2023.
ADM has a significant global footprint, connecting crops to markets across six continents, and reported net sales in 2020 of $64bn.
How do ADM work with suppliers to support regenerative agriculture?
ADM are working with partners to leverage remote data collection and satellite technology to give their supply chain growers insights into the carbon footprints and sustainability performance of their produce and operations.
Candy Siekmann, Director of Climate Smart Ag Origination at ADM, said, "With a value chain that stretches from hundreds of thousands of producers to downstream customers, ADM is well placed to scale regenerative agriculture practices around the globe. Farmers are at the centre of our business. They're the leaders of this effort, and our success will be built on their advancement of regenerative agriculture practices that will benefit their businesses and their legacies for their families. The roll-out of our program to Europe is another way in which ADM is partnering with farmers and building the resilient supply chains of the future by reducing food and agriculture's impact on the environment and lowering carbon emissions across the crops we source."
Procurement partners rewarded for implementing best practice
The ADM sourcing programme rewards growers in the UK for implementing regenerative agricultural practices across their milling wheat and oilseed rapeseed. Producers who become part of the strategy receive incentive payments, and the company is seeking to scale the programme using a scorecard to widen the produce that is tracked and validated
Martin Lines, a farmer from Cambridgeshire, England, said, "I really welcome ADM's new incentive package for growers for regenerative agricultural practices. Seeing the company incentivize farmers for positive actions across the farmed landscape that can deliver climate, biodiversity, and productivity improvements -- on top of a market price for the goods we produce -- is a really positive step. I look forward to further opportunities to market crops through ADM and being supported in delivering best practice actions across our farm."
Jonathan Lane, Managing Director at ADM Agriculture said, "At ADM, we have many years of experience of partnering with farmers, and we have the opportunity to help create value for them and for participants across the value chains in which we operate. We look forward to rolling out the project to even more farmers and customers in the UK to help drive regenerative agriculture practices at scale."
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