Food and beverage companies crack down on supply chains linked to deforestation and saddled with high emissions

Coffee companies turn away from small African farmers over new laws: EU coffee importers are cutting back on purchases from small African farmers in preparation for the EU Deforestation Regulation (EUDR), which comes into effect late next year, Reuters reports. The law bans the sale of goods — including coffee, cocoa, soy, and palm — linked to deforested lands, and requires companies to digitally map their supply chains to prove their products did not originate from deforested land.

Turning to Brazil: Some firms are shifting their sourcing to large Brazilian farmers while others are considering segregating their supply chains and redirecting non-compliant goods to non-EU markets. Other traders like Sucafina and Louis Dreyfus Company already agreed on future sales contracts that include an EUDR premium, the report adds.

ALSO- Food companies crack down on fertilizer emissions: PepsiCo, Heineken, and Nestlé are among the companies focusing on reducing their carbon footprint by addressing fertilizer emissions, one of the highest emission sources in their value chain, the Financial Times writes. Nitrogen-based fertilizer and farm manure make up 5% of global greenhouse gas emissions, producing 2.6 bn tons of CO2 a year, more than global aviation and shipping combined.

Going green: Food and drinks companies are turning to green fertilizer start-ups like Atlas Agro which aim to reduce emissions from crop nutrients and are increasing efforts to produce lower carbon ammonia and practices that improve nitrogen use efficiency. Nestlé and Cargill have partnered with CCM Technologies, a startup that mixes CO2 captured from industrial activities with organic materials to produce lower-carbon fertilizer used on 120 arable farms in Nestle's supply chain.