Tackling biodiversity loss in livestock farming: A dual approach to supply and demand reform 

FAIRR Initiative’s Natasha Stromberg says to meet Paris Agreement targets governments must adopt a dual-approach

Natasha Stromberg

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Natasha Stromberg, interim director of thematic research & corporate innovation, FAIRR Initiative 

An estimated $44 trillion in assets—around half of the world’s GDP—depends directly on healthy ecosystems. Yet, global biodiversity is in crisis, with native animal populations declining by an average of 73% between 1970 and 2020. A major driver of this decline is the rising demand for animal-based products for human consumption, with agricultural land conversion recognised as the biggest driver of habitat loss. Alarmingly, this type of animal production continues to expand, even in critical biodiversity hotspots. 

As this year’s biodiversity COP16 was situated in one such hotspot – Colombia – it’s essential to address the impact of animal protein supply chains on biodiversity. To curb the nature crisis and rising global GHG emissions, discussions on agriculture must focus on the supply and demand factors threatening ecosystems. 

Confronting the supply side challenges  

Between 1998 and 2018, global meat consumption increased by 58%, reaching 360 million tonnes annually. This growing demand has driven a parallel increase in meat production, leading to environmental impacts and serious threats to biodiversity. 

Biodiversity loss is directly linked to five main drivers: climate change, pollution, invasive species, land/sea use change and direct exploitation.  Pollution is a major concern, with half of all phosphorus and nitrogen used in fertilisers being lost to the environment each year. Livestock alone is responsible for 30% of anthropogenic nitrogen emissions to soil, water and air.  

At the same time, livestock supply chains produce approximately 3.1 billion tonnes of manure annually, increasing the risk of nutrient runoff into water courses, algal blooms, and eutrophication or ‘dead zones’ All of these factors expose investors in animal agriculture to pollution-related risks. To mitigate these risks, investors must encourage agricultural companies to reduce chemical inputs and minimise animal waste. 

To assess the status of agricultural pollution and waste, FAIRR’s Waste and Pollution Progress Report, released in June 2024, assessed 10 pork and poultry producers and two fertiliser-producing agrochemical companies. It revealed that 90% of assessed companies have made little progress when assessing pollution risks in their animal supply chains.  

This gap in action is seen globally, particularly in regions with concentrated livestock production, where local waterways are often affected by agricultural pollution. In 2024, Avara Foods, a Cargill subsidiary and one of the UK’s largest animal protein producers, faced a lawsuit for damaging the River Wye through suppliers spreading of manure in the catchment area. The litigation could lead to hundreds of millions of pounds of compensation to local communities, and the company has already begun supporting the transport of all its suppliers’ manure to other parts of the UK. 

Population and diversification: A demand side perspective 

The global human population is predicted to reach 8.5 billion by 2030, with animal protein production forecast to rise by 14%. If left unmanaged, this growth – coupled with the current food system – could lead to the continued conversion of ecosystems to animal agriculture, unsustainable agricultural practices and growing pressure on the climate and tens of thousands of wild species worldwide.  

If we are to sustainably feed a growing population, the reality is that the world needs to move away from excess animal protein consumption. In 2023/24, 95% of companies assessed in FAIRR’s Protein Diversification engagement were invested in expanding their offering of alternative protein sources. This is a milestone worth celebrating, but it is clear there is much more work to do.  

While 80% of companies report evidence of decarbonisation in their animal supply chains, only 15% have formal commitments to a Just Transition that specifically covers people working in animal agriculture supply chains, and 95% overlook the supply chain implications of protein diversification. So, in order to mitigate risks to meet sustainability targets and reduce environmental harm, food retailers and manufacturers must take a holistic approach to the development of alternative protein sources, embedding social considerations throughout their wider climate and health strategies.  

Redesigning both sides of the food system  

In recent decades, the global food system has prioritised producing more food at lower costs, often leading to increased use of fertilisers, pesticides, energy, land, and water. The outcome is a self-perpetuating cycle in which lower production costs drive growing demand for low-cost food, enabled by further intensification and greater land clearance. 

The climate and nature risks linked to livestock supply chains are too urgent for us to ignore protein diversification as a decarbonisation tool. To meet the Paris Agreement targets, companies and governments must adopt a dual-approach, combining supply chain interventions which focus on regenerative agriculture and conservation with demand-side measures which encourage sustainable consumption patterns.   

Our hope is to see actionable solutions to shift towards more sustainable livestock farming practices that work in harmony with, rather than against, nature.