Hurricanes and Carbon Rocks

Welcome back Food Junglers. As hurricanes in the US take the spotlight again, their devastation will be this week’s focus. Elsewhere, the global community is striving to preserve biodiversity. Let’s dig in.

This week:

🍊 Hurricane Milton is putting pressure on Florida’s citrus fruits.

🌴 Brazil finds a way to fund biodiversity.

🍔 McDonald’s sues America’s biggest meat producers.

🚜 UK farmers try to find another way to make money.

🪨 A company in California is using rocks to sequester carbon…

CLIMATE
HURRICANE WOES IN FLORIDA

Only weeks after Hurricane Helene devastated the east coast of the US, Hurricane Milton is expected to bring catastrophic damage to Florida and, in particular, the nation’s Citrus Belt.

The storm is likely to affect sugarcane, strawberries, plant nurseries in Central Florida and orange groves, according to the state’s Agriculture Department, which will ultimately result in serious production losses.

On top of that, the storm will have widespread implications for the state’s fertiliser industry, as around 40% of America’s ammonium phosphate production – an important ingredient in fertiliser – occurs in the Tampa Bay area.

ZOOMING OUT: Many citrus farmers, in particular, are still just recovering from 2022’s Hurricane Ian, which sent citrus production plummeting at a time when farms were already struggling with disease challenges.

Ultimately, we’ll have to wait until the storm passes to fully assess all the damages.

POLICY
BRAZIL’S BIODIVERSITY PLAN

After months negotiations, the Brazilian government has now approved a new investment fund – the Tropical Forests Forever Facility (“TFFF”) – that will pay developing countries a fee for every hectare of forest they maintain.

The TFFF aims to reinvest $125 billion worth of donations into a diversified portfolio that could generate enough returns to pay back investors. The excess returns would be used to pay roughly 70 developing countries based on how much tropical forest they still have standing.

This is potentially the world’s biggest pot of money to help countries combat the growth of cocoa crops in Ghana, the expansion of ranches in Colombia, or other moneymaking drivers of environmental destruction.

ZOOMING OUT: The idea for what is essentially a bank to fund environmental protection comes at an opportune moment, as the world has been losing almost 9 million acres of tropical forest a year over the past two decades. Let’s see where this fund takes us.

BUSINESS
MCDONALD’S SUES EVERYONE

McDonald’s is suing four of the world’s largest meat producers, including Tyson, JBS, Cargill, and National Beef Packing, for allegedly conspiring to inflate the price of beef.

The lawsuit alleges that these meat producers violated US antitrust law by coordinating lower prices for slaughter-ready cattle and slowing plant production, which artificially raised prices for McDonald’s and other buyers.

McDonald’s, the world’s largest buyer of beef and pork, is seeking an undisclosed amount in monetary restitution.

ZOOMING OUT: Interestingly enough, this isn’t the first time McDonald’s has sued its suppliers for collusion and price fixing. Last year, a Minnesota court dismissed a similar challenge, saying the case lacked legal standing.

We shall see whether things will be any different this time around, however.

SUPPLY CHAIN
UK FARMERS PIVOT

British farmers are scaling back food production in favour of rewilding or growing crops for biofuels in order to keep their businesses viable, as major cuts to subsidies and poor harvests are forcing some farmers to take fewer risks.

Many farmers in the UK are trying to comply with the Environmental Land and Management Scheme (“ELMS”), a post-Brexit agricultural policy that rewards farmers for reducing emissions, while maintaining overall food production.

And in the face of England’s second-worst harvest since modern records began, farmers are looking to produce crops that will help them benefit from the ELMS.

ZOOMING OUT: The aftermath of Brexit is still being felt by many across British farms. Especially as farmers face a 50% cut to their subsidies and declining yields of wheat, barley, and rapeseed, some will have no choice but to resort to options that will pay the bills. 

THE BRIGHT SIDE
CARBON SUCKING DUST

As I’ve repeatedly stated in this newsletter, agriculture is responsible for more than 10% of global carbon emissions. So, I’m always ready to champion those who have solutions to solve this not-so-little dilemma.

A California-based company – Eion – has an idea to use ROCKS to absorb carbon dioxide from the air.

The company grinds up volcanic rock, called olivine, into dust, which can then be spread across farmland. And, when it rains, the olivine goes through a chemical process that causes it to absorb carbon dioxide from the air permanently.

The process is known as “enhanced rock weathering” and will allow farmers to balance soil acidity, improve structure and increase the nutrients available for crops.

So far, Eion has raised $20 million and aims to remove the carbon equivalent of 2 million cars by 2030. I’m excited to see whether this really can be a practical game changer. Food Jungle approved ✅ 

BEFORE YOU GO…

• Food prices saw their fastest increase in 18 months in September, the FAO of the United Nations said.

• Two dairy workers in California have been infected with bird flu, the 15th and 16th human cases detected this year.

• Marlow Foods, the owner of meat-free brands Quorn and Cauldron, has published declining sales in their latest earnings report.

• Panera Bread settled with the family of a student who died after drinking the chain’s highly caffeinated Charged Lemonade drink.

• McDonald’s is rolling out a Chicken Big Mac at U.S. restaurants, one of its biggest riffs on the decades-old burger.

• Supermarket giant - Aldi - plans to invest over £30 million in dairy farmers over the next three and a half years.

TAKE A BREAK

If you’re interested in some quality ORIGINAL journalism on what’s been going on in the food industry, look no further than Green Queen.

Founded in 2011, by Sonalie Figueiras, the team looks to analyse and discuss the latest news in food, from cultivated meat to food waste. Thoroughly recommend! 🤩