Limited functionality available
Is genetically modified food a bad thing? What if modifications make a crop resistant to drought or mould, and in doing so, avoid food going to waste? Lab-grown meat and synthetic milk might not sound immediately appealing, but what if the planet won’t be able to sustain the cows needed to nourish growing populations? Should we all become vegan, given the impact animal farming has on climate and precious soil and water resources? But what about the vital nutritional value that meat, fish and dairy provide?
Humankind today is presented with what could be the most impactful paradox of all: how to feed the world nutritiously, without destroying the environment upon which it depends?
The answer is far from simple, and will involve a range of interventions. Some are in the hands of consumers, and others require farmers, technology and food companies, retailers and governments to act. One thing is clear, the world will need to embrace and stimulate innovative solutions and alternatives to further increase farm productivity and reduce environmental impacts before we run out of time.
Below, we lay out the challenge and urge all parties to accelerate their actions, as time is of the essence.
The tension between humanity’s success as a dominant species and the already emerging threats presented by climate change can’t have escaped too many people’s attentions.
Food production and the food system as a whole – from paddock to plate – is recognised as one of the largest influences on climate change, biodiversity loss, and water use . The UN Food and Agricultural Organisation (FAO) estimates the world will surpass 9.1 billion by 2050 (some say this could be as early as 2030), at which point agricultural systems will not be able to supply enough food. New technological advancements in food and agriculture are presenting themselves at a rapid pace, however these often face regulatory barriers or have insufficient market access required to scale.
Much progress has been made over past decades. Agricultural efforts have doubled crop yields and optimised meat production, and technology innovations in agriculture continue to sprout.
We see FMCG, retailers, chefs, and food service providers already taking some responsibility to make a positive impact on the ‘great food transformation’ by exploring credible alternatives to eating habits, such as plant-based alternatives, lab-grown meat and synthetic milk, often indistinguishable from the ‘real’ thing [2 ].
Awareness of our food’s environmental footprint is on the rise among consumers , and there is constant debate on which alternative diet is best. Recent research revealed that livestock provide just 18% of our global calories, while taking up 83% of farmland, producing 60% of agriculture’s greenhouse gases  and, perhaps not surprisingly fuelling the vegan and flexitarian movements.
At the same time, commercial opportunities are accelerating new formulas in sustainability and minimising food miles and organic food and health trends. In Australia, for example, Coles Local in Melbourne sources all its vegetables from Australian growers, while Woolworth’s Kitchen in Sydney focuses on organic convenience. [5,6].
To increase food supply, technological advancements enable greenhouse farming in arid climates  and GMOs have the ability to reduce famine by preventing crop infection and addressing climate change through minimising the use of fungicides [8-11]. Incredibly, a single gene from a wild relative of commonly farmed potatoes could reduce annual CO2 emissions by the equivalent of 14,000 cars.
Clearly, the world is making significant technological progress in the face of the multiple challenges presented by global warming. However, to drive the required step change towards a sustainable food system that fits within the UN Sustainable Development Goals and the Paris Agreement, we need to pick up the pace.
There is no silver bullet when it comes to solving this paradox. Rather, success will be driven by a large portfolio of solutions and players. And although the global conversation around climate change has a long way to go before the food system is recognised as the challenge and opportunity that it is, key voices are increasingly bringing dietary choices to the fore.
The need to add plant-based food and clean meat as evolving instruments to humanity’s toolbox has certainly never been more critical. We don’t all have to become vegans, but there is a place for a more considered (food tech enabled) diet that benefits both the health of our people and our planet.
And this new world is opening endless opportunities for our farmers, food companies and retailers who are willing to embrace and stimulate this change.
This article forms part of Deloitte's Future of Food series, which explores key consumer trends, environmental issues and technological advancements that provide both commercial opportunities for food businesses as well as a chance to deliver a positive societal impact.
 Food in the Anthropocene: the EAT–Lancet Commission on healthy diets from sustainable food systems (January 2019)
 Poore, J. and Nemecek, T., 2018. Reducing food’s environmental impacts through producers and consumers. Science
 SCIRO Science and Solutions for Australia: Water, 2011
 Kawashima, C.G. et al., 2016. A pigeonpea gene confers resistance to Asian soybean rust in soybean. Nature Biotechnology
 Witek, K., et al., 2016. Accelerated cloning of a potato late blight-resistance gene using RenSeq and SMRT sequencing. Nature Biotechnology
 Steuernagel, B., et al., 2106. Rapid cloning of disease-resistance genes in plants using mutagenesis and sequence capture. Nature Biotechnology
Vanessa is a strategy partner at Monitor Deloitte and leads Deloitte Australia’s Consumer Products sector group. With more than 20 years' experience advising clients in the consumer products, Agri, FMCG and retail sector, Vanessa has a deep understanding of the industry dynamics, consumer and market trends and related growth opportunities. She combines her skills in corporate and commercial strategy, turnaround programs as well as the design and management of large transformations with her passion for food to drive positive commercial results with progressive societal outcomes.
Dr Daniel Terrill is Lead Partner for Deloitte’s Agribusiness client service group and leader of the agricultural and environmental economics teams of Deloitte Access Economics. He is an economist with a unique blend of professional and lived experience in agriculture and environmental management. He comes from a livestock and broad acre cropping background from a family farm in Victoria. Dr Terrill received his PhD from The University of Melbourne, where he researched policy solutions to improved collective environmental outcomes from farming land. He has over 15 years of experience as a microeconomist, where much of his work is at the intersection of agriculture and the environment, particularly addressing the challenge of feeding growing populations more sustainably.
This edition of the Agribusiness Bulletin explores the underlying reasons behind the decline in production among Australia’s dairy farmers, but also consider the longer-term prospects of a resilient sector.