Recent years have seen the launch of numerous sustainability standards and initiatives across various agricultural commodities. Ben Cooper assesses the significance of the new standard for sustainable rice, launched by the Sustainable Rice Platform and Mars Inc.
Such is the attention being paid by food companies to agricultural supply chains, it is tempting to regard the Sustainable Rice Platform’s (SRP) new standard for sustainable rice, given a high-profile launch last month, as one more initiative, another crop ticked by a major food company and covered by a multi-stakeholder sustainable sourcing programme.
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But it is arguably far more significant than that.
There are a host of reasons why this first step to standardise – and notably equalise upwards – environmental and social standards under which rice is cultivated and sourced globally is a landmark event.
Rice supports the livelihoods of around 150m farmers globally and is the staple food source for more than 2bn people. Moreover, unlike some other commodities that have become subject to multi-stakeholder sustainability initiatives, rice is predominantly consumed as a staple food crop in the developing countries.
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In addition to historically huge consumption in Asian countries, rice is also becoming an increasingly important staple food in Africa and is also a key food commodity in the Middle East. The proportion of production destined to be processed, packed and marketed in developed markets is dwarfed by local consumption and it is also a crop almost exclusively consumed by humans unlike other commodities, such as maize, which are also used for animal feed.
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By GlobalDataCultivation is also estimated to use 30 to 45% of the world’s irrigated water and accounts for as much as 10% of greenhouse gas emissions.
Therefore, with regard to potential impact on issues such as food security, water scarcity, climate change and rural poverty, it is hard to overstate the importance of the new standard, which comprises 46 criteria divided into eight categories, including productivity, food safety, worker health, labour rights, and biodiversity.
If we’re talking about box-ticking, but not in the loaded sense, this initiative addresses many critical issues related to global agriculture and food security. “It’s extremely important to have taken this step,” says Professor Achim Dobermann, director of Rothamsted Research, the UK-based agricultural research institute.
Having worked previously for the International Rice Research Institute (IRRI), one of the SRP partners, Prof. Dobermann was involved in early discussions about the standard. He sees the inclusion of multiple criteria as positive, but stresses that, in such standards, farmer productivity and profitability have to be the pre-eminent concerns. “If you compromise that in favour of any of the other things you essentially will not have an economically viable rice production system either. So for me that’s the number one priority but I believe also very firmly it is possible to have multiple [criteria] including the ecosystem-related ones or even the social ones.”
Prof. Dobermann also praises Mars for the leadership role it has taken in developing the standard. “They have been one of the key interested players from the beginning from the initial discussions. I would have loved to have seen more companies actually being that active,” he tells just-food. “So I would say they have been very proactive. I can only encourage more companies to follow that example.”
Mars, which has also pledged to source 100% of its rice sustainably by 2020, is committed to continuing in that leadership role by urging other parties to support the standard.
“In our view it’s so critically important not only to create this standard, which comes with a lot of work, but in addition to creating it getting a wide array of companies, groups and governments to endorse and support it so that it’s not only a standard but it’s one that is put into practice,” says Craig Annis, global vice president of corporate affairs at the US giant’s Mars Food unit
Annis says Mars’ commitment to the SRP standard was borne out of its commitment to “mutuality”, one of the company’s five guiding principles. Those that take a sceptical view of sustainability pronouncements from global corporations may roll their eyes at what they perceive to be corporate PR but Mars’ pride and readiness to publicise this first step towards a sustainable rice sector is actually significant in itself.
History has shown companies are influenced by the behaviour of leaders. Whether shamed or encouraged to follow suit, good practice begets good practice, so the louder and more proudly Mars trumpets its commitment to the new standard arguably the better it will be for the millions of rice farmers it has been created to benefit.
And the same is true of consumer behaviour as the growth in many ethical consumer markets bears out. Furthermore, while it may be true the proportion of rice destined for export is dwarfed by that which is consumed, unbranded and unpackaged, in the countries where it is grown, Mars undoubtedly boasts the world’s most recognised rice brand.
There are many massive food brands in the world but it is probably fair to say that there is an elite group that enjoy a cultural profile which goes beyond market share and volume, and are truly deserving of the term “iconic”. It’s a subjective judgement of course but many people would likely place Uncle Ben’s in that select group.
Annis says it “is too early to tell” what impact the new standard will have on consumer behaviour, adding the possibility of a consumer-facing element in the initiative would be for the “the next round of conversations that the SRP will have to have”.
However, the move does speak to how companies are reacting to changing consumer sensibilities around agricultural commodities. “More and more of our consumers have indicated that they care where their food comes from, that’s not only in rice but across a multitude of raw materials,” says Annis. “They want to know how it’s made, they want to know where it’s sourced and they obviously want to know the impact it has on the environment. “Rice doesn’t rise to the top of concerns in the same way as cocoa or tea or coffee or other raw materials do today but that may change in the future and obviously the intensity of the level of concern varies by market.”
For Mars, Annis continues, the primary priorities related to ensuring a high-quality supply, working with farmers to improve productivity and profitability and underpinning a sustainable and mutually beneficial relationship with its agricultural suppliers. “In terms of what it means to consumers, I think it’s too early to tell. We obviously want to demonstrate our commitment. We’ll see over time consumer interest in rice rise as they become more and more aware of some of these issues just as they have with other supply chains.”
It is arguably not only consumer sentiment in developed markets which should be considered, given that rice is predominantly consumed in the countries where it is grown. “In major consumption markets in Asia, consumers at least in the upper-income classes are becoming increasingly conscious about the quality of the rice and how it is being produced,” Prof. Dobermann says.
Annis also sees rising consumer demand for higher quality rice in emerging markets as a significant factor influencing on the rice sector moving forward. “We certainly believe there’s a potential for that. How consumers in emerging markets are buying rice has shifted. I think it will continue to shift.”
