Why agribusiness giants won’t save the world from hunger.

Against a backdrop of accelerating food insecurity, will the Salon International de l’Agriculture, to be held in Paris from February 24 to March 3, provide an opportunity to address the transformation of the global food system? This system, already weakened by inequalities and its environmental impact on a planet with limited resources, is facing increased challenges due to food crises exacerbated by the COVID-19 pandemic, the invasion of Ukraine, the energy crisis, and the resulting rise in food prices. 

It is therefore more urgent than ever to implement resilient, equitable, and sustainable solutions to feed populations.

In response to these challenges, numerous multinationals in the sector are multiplying their initiatives to move toward more sustainable and fairer models, such as Danone’s “Regenerative Agriculture” program. Nevertheless, beyond these announcements, the essential question arises as to whether these companies can integrate these initiatives into their business models to effectively contribute to Sustainable Development Goal (SDG) 2: the eradication of hunger in the world.

So, to answer the question, “Are the food giants helping to eradicate world hunger?” impak Analytics has undertaken an in-depth analysis of Mondelez (USA), PepsiCo (USA), Nestlé (Switzerland), Mars (USA), Unilever (UK), and Danone (France): the six major food processors that are supposed to fill our plates.

The first conclusion of our study is clear: all 6 companies are not contributing to the “Zero Hunger” SDG 2. We analyze in detail why their initiatives, while having an apparent positive impact, are limited to mitigating the negative effects of their activities, without being integrated in a truly sustainable way into their operations. 

If the plate is empty, let’s say that the glass is only half-full, as some companies are showing promising signs in their support for SDG 2, like Lindt & Sprüngli. Although they have yet to demonstrate real contributions, these companies are adopting better practices than the 6 companies studied.

Although attention is generally focused on the players at the head of the table, let’s not forget to mention the commodity traders. The 4 behemoths Archer Daniels Midlands, Bunge, Cargill, and Louis Dreyfus alone account for 70% of the global commodities market (raw materials of agricultural origin). It would therefore be legitimate to expect them to contribute to SDG 2. However, we make the same observation, while noting the particular opacity that characterizes these traders.

To achieve the goals set for 2030, the focus must be on SDG 2. The latter is central to the success of all 17 global objectives. Consequently, as long as food security issues persist, progress in the other areas of the SDGs will remain hampered.