Farming and food groups warned of ‘burping cow’ risks

The food sector is heading for a stomach-churning shake-up, with worries about excessive meat eating and greenhouse gas emissions from livestock presenting the industry with many fresh challenges, experts are warning.

On one hand, the food supply chain, from cattle farmers and grains processors to fast-food chains and retailers, could experience a carbon or a meat tax similar to the sugar tax imposed on soft drinks manufacturers, analysts at Barclays have predicted. 

“Burping cows are more damaging to the climate than all the cars on this planet,” Barclays said in its report examining how more attention is being paid to the contribution of the farming and food sectors to carbon emissions.

“We believe that the biggest risk for companies and farmers along the value chain would be some sort of aggressive regulatory change,” it said. “Government action could come in the form of interventions such as a methane tax.” 

Such a move would lead to certain foods becoming more expensive for consumers and result in weaker levels of profitability for companies, they added.

On the other hand, entrepreneurs and start-ups behind new plant-based or lab-grown alternative meat companies face potential labelling restrictions amid protests from livestock farmers, butchers and politicians, according to a report from Chatham House, the London based think-tank. 

They claim using conventional terms such as “steak” and “sausage” for plant-based meats “risks confusing or misleading consumers”, leading to restrictions. 

The use of meat-like names for plant-based products already in place in France and Germany indicate the future decisions by the EU “are likely to be highly politicised”, according to Laura Wellesley, research fellow at Chatham House.

The way alternative meats are labelled will have a material impact on demand, with terms such as “clean” and “slaughter free” shown to increase the acceptability of lab-grown meat, said Chatham House. 

Both reports come as the negative environmental impact of eating meat has come under the spotlight over the past few months. “There’s a recognition of the true costs of meat consumption and the need to rebalance the livestock industry,” said Ms Wellesley.

Food and agricultural production accounts for about a quarter of all global emissions, according to data from the UN Food and Agriculture Organization. The sector’s main source of emissions comes from the digestive process of cows, the so-called enteric fermentation, which produces methane as a byproduct.

The EAT-Lancet Commission in January set out the world’s first scientific targets for healthy eating and sustainable agriculture. The report was the latest highlighting the climate-changing greenhouse gases from livestock, and called for a reduction in meat consumption.

Consumers are turning to plant-based proteins partly as a result of the environmental consequences of eating meat. Plant-based meat and milks are showing double-digit growth in the US and Europe, with Beyond Meat, a California-based agritech start-up preparing to float in the US.

Nestlé, the international food group, is also set to launch a plant-based burger in Germany next month, while last week it announced a strategic review for Herta, the business known for its pre-cooked frankfurters.

Apart from governments, pressure on food and agricultural businesses to change their behaviour has also started to come from institutional investors. Farm Animal Investment Risk and Return (FAIRR), an investor network that advocates sustainable animal farming backed by the world’s leading fund managers has been analysing practices of companies in the food supply chain.

Most recently, together with sustainability organisation Ceres, FAIRR sent letters to leading fast-food chain owners asking them to explain by March how they plan to enact meaningful policies and targets to de-risk their meat and dairy supply chains.

Letter in response to this article:

A herd mentality mars sensible debate over meat / From Paul Crocker, Bride, Isle of Man