Our global conventional food production system is recognised as a key accelerator of biodiversity loss through habitat destruction and degradation
A move to industrial–scale agricultural systems has provided cheaper food globally, but this intensification has resulted in an increased use of chemical pesticides and herbicides, fertilisers, energy, land and water.
It is estimated that up to 52% of global agricultural lands are now moderately to severely degraded, leading to millions of hectares of land being abandoned and rates of deforestation increasing as new areas for production are sought. A report by the Food and Agriculture Organization of the United Nations found that agriculture is considered to be responsible for around 80% of native habitat loss, with agricultural irrigation significantly impacting water scarcity issues.
Without changing our approach to food production systems, our ability to meet human food needs will be eroded by biodiversity loss due to the destruction of ecosystems and habitats. Benton et al.(2021) suggest that reform to the food system will require three drivers: firstly, a change to global dietary patterns and a reduction in food waste; secondly, setting aside more land for nature to protect biodiversity and ecosystem services; and, thirdly, carrying out farming in a more nature-friendly manner, supporting biodiversity by reducing inputs and replacing monoculture with polyculture farming practices.
To mitigate some of the nature impacts in agricultural and food production supply chains, there is now a range of legislation that applies to this sector. This article focuses on the key legislation related to deforestation.
Forests cover around 30% of the Earth’s land surface, and they provide a wide range of vital services, including carbon storage; purification of air and water; habitat for a staggering array of biodiversity; and homes and livelihoods for millions of people. The total value of the world’s forests has been estimated at around $150 trillion, nearly double the value of global stock markets, with forest carbon storage capacity accounting for as much as 90% of this value.
Agricultural expansion drives almost 90% of global deforestation: 50% due to crop production and the remaining 40% due to clearance for livestock grazing. The Food and Agriculture Organization of the United Nations states that in the 30-year period between 1990 and 2020, 420 million hectares of forest, about 10% of the world’s remaining forests and an area larger than the European Union, was lost to deforestation.
Forest 500 is a global ranking of the most influential companies and financial institutions linked to tropical deforestation and human rights abuses. In the 2023 rankings, 40% of those companies with most influence on tropical deforestation were yet to set any policies related to deforestation. Of all 500 companies and institutions, 24% were in the agricultural products, agricommodities or animal feed sectors as producers, manufacturers, traders, processors or retailers and 15% were in the food staples and retailing, food retail and food distribution sectors as producers, manufacturers, traders, processors or retailers.
Regulation on deforestation-free products
Owing to growing recognition of the significant impacts of forest loss on indigenous communities, water scarcity, biodiversity and ecosystem services, the EU regulation on deforestation-free products (EUDR) was implemented in 2023. The directive aims to ensure that ‘relevant commodities and products’ are deforestation free, produced in accordance with the laws of the country of production and covered by a due diligence statement if they are to be sold in or exported from the EU’s common market. Deforestation is defined as the conversion of forest to agricultural use, whether human induced or not.
The ‘relevant commodities’ covered by the directive are cattle, cocoa, coffee, palm oil, soya and wood. In addition, ‘relevant products’ are included in the directive, and these cover any goods that contain, have been fed with or have been made using relevant commodities. For instance, chocolate and other food preparations containing cocoa are products from the commodity cocoa; therefore, deforestation in the cocoa supply chain would need to be considered.
In terms of forest classification, the directive relates to forest covering at least 0.5 hectares, with trees taller than five metres and a canopy cover of at least 10%. Agricultural plantations and land that is mostly under agricultural or urban land use are excluded from this classification. To ensure a smooth transition for the directive and to minimise supply chain disruptions, the directive has a cut-off date of 31 December 2020, with no goods in the scope of the regulation entering or exiting the EU if they were produced on land subject to deforestation after this date. The European Commission states that this regulation will help to save at least 71,920 hectares of forest and 32 million tonnes of CO₂ annually.
UK Forest Risk Commodities
In the UK, the Forest Risk Commodities (FRC) regulations are set to be mandated in 2024 and will be introduced under the UK’s Environment Act 2021. The list of relevant products related to the FRC regulations is less comprehensive than that of the EUDR and covers non-dairy cattle products (beef and leather), cocoa, palm and soy (and any products derived from them). Notable commodities missing from the FRC regulations include timber and timber products (these will be covered by the UK Timber Regulations) and commodities including rubber and coffee.
The FRC regulations will be relevant to any organisation with a global turnover of over £50 million that uses any of the listed commodities in UK supply chains. These companies will be required to carry out an annual due diligence process on their supply chain to ensure that no products produced on land linked to illegal deforestation reach the UK market. Any company that uses less than 500 tonnes annually of one of the regulated commodities will be able to apply for an exemption.
Despite these regulations being less stringent than the EUDR, the UK government anticipates that regulating these four commodities will tackle over half of the UK’s estimated deforestation footprint.
The future of agriculture
There has justifiably been a lot of focus on the negative impacts of agriculture and food production systems on the natural environment and ecosystem services. However, there are numerous opportunities for this sector to protect and restore the natural environment and to help reverse the loss of biodiversity.
Alongside the new directives, which will help mitigate forest loss, there is a growing shift in the agricultural landscape with greater focus on regenerative practices and conservation agriculture. Many of the key multinational food producers are now using a variety of nature-based solutions in farming practices to help mitigate their impacts on the environment and meet their carbon and biodiversity targets. As the benefits of these solutions become better understood, it is hoped they will be adopted with greater frequency and we will see a wide range of benefits to the natural world and food security.
The world’s ever-growing population means that future-proofing the global food production system is vital. The future of this sector is dependent on resilient natural ecosystems with healthy soils, abundant fresh water and rich biodiversity. We simply cannot farm without nature. The use of vast amounts of land for food production provides huge scope for agriculture to address the growing threats to biodiversity and to produce food in a way that secures a better future for people and nature.
If you would like advice on the EUDR or the UK FRC regulations, or how to incorporate effective nature-based solutions into your supply chain, contact us today or visit our services page.
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