How do food processors generate a return on sustainability investments? Deloitte and NYU Stern Center for Sustainable Business (CSB) collaborated to find out. Our findings for the entire food value chain were published in October 2024, and here we’re digging deeper into the findings for processors.
To better understand the financial drivers for investing in sustainability strategies across the food and agriculture value chain, Deloitte worked with CSB to leverage its Return on Sustainability Investment (ROSI™) methodology and framework.
The joint study focused on 12 ROSI™ strategies and included a 25-question survey completed by 350 global executives from five segments across the food value chain: processing, manufacturing, food service, restaurants, and retail. We supplemented the research by interviewing leaders in the food and agriculture sector.
Our research findings demonstrate a business case for investing in sustainability strategies across the food and agriculture value chain, especially considering the holistic value impact.
Here we highlight key findings for processors.
Their unique position in the value chain allows food processors to act as a bridge between producers, such as farmers and ranchers, and manufacturers. They connect supply and demand, partnering with producers to confirm the availability of sustainable products while also meeting consumer demand for new ingredients and products.
Processors comprise the largest portion of companies (22%) experiencing more than 5% revenue growth, compared to other value chain segments analyzed. Their role as the conduit from farm to manufacturing (or further downstream) allows them to implement sustainability strategies across the value chain, potentially leading to revenue growth.
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What follows are strategies that led to revenue increases for processes:
What follows are strategies that led to revenue increases for processes:
Processors have an opportunity to advance sustainability efforts both in their own organizations and throughout their value chain. They can help accelerate the transition to sustainable food systems by collaborating with partners to create better incentive programs that scale the adoption of regenerative agriculture practices and generate financial value across the value chain.
*All charts are based on data taken from the NYU Stern Center for Sustainable Business (CSB) report published in October 2024