Yara International ASA, Oslo, and Swedish agricultural cooperative Lantmännen, Stockholm, on Sept. 13 announced plans to partner and launch a pilot project with the ambition to introduce the world’s first certified fossil-free food chain.
The two companies noted that the transformation towards a fossil-free food chain starts in the field. As a result, the collaboration builds on Yara’s announced plans to pilot the production of mineral fertilizer with renewable energy, with the ambition to reduce the carbon footprint of Lantmännen’s end-products. The fertilizers, which Yara aims to bring to market by 2022, will reduce the total CO2-impact of grain farming by 20 percent.
The partners said the use of renewable energy as a feed stock for mineral fertilizer production will increase production costs and have an impact on food prices. By working closely within the whole food chain, the ambition is to minimize the additional cost for the consumer.
“This partnership is a first step towards achieving the transformation of our food system,” said Svein Tore Holsether, Yara Group President & CEO. “The pilot with Lantmännen will bring together the food chain partners in a joint effort to reduce the carbon footprint of food production. We must look at new business models that span the entire food value chain – from field to fork. A fossil-free food chain is only possible with mineral fertilizers produced with renewable energy.”
“Lantmännen has been working systematically for a long time to develop sustainable solutions in many areas, not least when it comes to cultivation methods and concepts,” said Per Olof Nyman, Lantmännen Group President & CEO. “Nordic farmers are leaders in sustainability, with a low climate impact by international standards even today. With this partnership, which is one of our most important initiatives yet, we take further steps towards a fossil-free food chain and even more sustainable farming,”
Lantmännen, with grain as the heart of its operations, is heavily involved with Northern Europe’s agriculture, machinery, bioenergy, and food products industries. Owned by 25,000 Swedish farmers, it has 10,000 employees, operations in over 20 countries, and an annual turnover of approximately €4.3 billion. Some of its best-known food brands are AXA, Bonjour, Kungsörnen, GoGreen, Gooh, FINN CRISP, Schulstad, and Vaasan.
Founded in 1905, Yara has a worldwide presence with about 17,000 employees and operations in over 60 countries. In 2018, Yara reported revenues of US$12.9 billion.