Dive Brief:
- Multinational food company Kellanova announced a regenerative agriculture deal Wednesday with Varaha, Asia’s largest carbon project developer, aimed at reducing the food manufacturer’s supply chain emissions.
- The deal between Kellanova — formerly known as Kellogg’s, prior to the multinational food company’s split in 2023 — and Varaha will help 12,500 acres of corn farms in India adopt sustainable practices and “sequester and reduce nearly 100,000 tons” of carbon dioxide emission from its supply chain, according to a release sent to ESG Dive Wednesday.
- The companies branded the deal as unique, as it will focus on transitioning smallholder corn farms within the food brand’s supply chain, rather than using the project as an offsetting mechanism, a practice called “insetting.”
Dive Insight:
Kellanova has a Science-Based Targets initiative verified goal to reach net-zero greenhouse gas emissions by 2050, which includes a short-term target to “advance the wellbeing of 250,000 people in [its] food value chain” by 2030.
The five-year deal will help transition 5,000 smallholder farmers — who have plots on less than 10 hectares, or nearly 25 acres — in Maharashtra, India, to regenerative agriculture methods, including improved residue management and nitrogen use efficiency, raised-bed planting and cover cropping, the release said. The new practices are intended to improve soil health, reduce fertilizer use and improve crop yields.
“Our program with Varaha proves that climate action and farmer prosperity can go hand in hand,” Kellanova’s VP of Asia Pacific, Middle East and Asia Supply Chain Shaughan Kennedy said in the release. “Consumers today expect the food they eat to be responsibly sourced, and this program sets a model that others in the industry can follow.”
The deal comes after Kellanova joined a partnership with Indigo Ag and Walmart last month that will invest in transitioning Arkansas rice farmers who supply Walmart’s Great Value Brand to regenerative agriculture practices. The co-investment by Kellanova and Walmart came after Indigo Ag and Walmart had already partnered on the initiative for four years, according to the Nov. 24 release.
For Varaha, the deal comes a few weeks after sustainable investing firm Mirova invested $30 million for the company to expand its regenerative agriculture practices. Varaha CEO Madhur Jain said in the release that the Kellanova project will combine “strong science, cutting-edge digital tools, and deep farmer engagement to deliver measurable climate and livelihood impact.”
Jain previously told ESG Dive that he expects India to emerge as a major hub for carbon removals over the next few years, and the multinational food manufacturer said in the release that the project “marks India as a key geography for Kellanova’s global sustainability agenda.”
