As climate change increasingly threatens agricultural supply chain stability, regenerative agriculture offers a solution, boosting profitability within 3–5 years while safeguarding natural resources. However, upfront costs (€2000–5000/ha) and funding gaps remain key obstacles.
Our current agricultural supply chains are at risk with climate change and intensive agricultural practices leading to more volatile and decreasing agricultural yields globally. This will not only affect the agricultural sector but will also impact economic systems and governments. Implementing regenerative agriculture practices is part of the solution as it contributes to more resource efficient agricultural production that can protect and restore soil, biodiversity, water and reduce carbon.
Members of One Planet Business for Biodiversity (OP2B), including Unilever and PepsiCo, have put forward ambitious targets to implement regenerative agriculture principles and practices across Europe and beyond. Deloitte has supported various agricultural players in implementing regenerative agriculture strategies. They have identified the lack of a viable economic model for the adoption of regenerative agriculture practices, and more specifically the gap in incentives available, as a major bottleneck to scaling the implementation of regenerative agriculture practices in Europe.