Tyson Foods Is Looking To Meet Demand Of Eco-Friendly Products
By Isaac Fletcher, contributing writer, Food Online
Sustainability has become a decisive factor for consumers when choosing which foods to buy. Some companies are going through great efforts to develop effective and profitable sustainability strategies to address this demand
As the demand for eco-friendly products continues to grow, food producers find themselves trying to adopt sustainability strategies that will still be profitable. To live up to this challenge, companies must find ways to make measurable reductions of their environmental impact and be able to clearly communicate these reductions to a conscientious consumer base. Additionally, food manufacturers must find methods to achieve sustainability that is as friendly to the bottom line as it is to the environment. Finding profitability in sustainability is a complex, ongoing effort that requires the proper infrastructure, supply chains, and understanding to succeed.
A recent study by the MIT Sloan Management Review and the Boston Consulting Group revealed that although 86 percent of respondents agree that sustainability is a necessary to be competitive, only 62 percent have actually developed sustainability strategies. Furthermore, only 39 percent have permanently placed sustainability on the agenda of top management and only 37 percent have developed a sustainability business case. More troubling still, while 32 percent of companies indicated that sustainability strategies improved profitability and another 32 percent reported breaking even, 25 percent did not know how their sustainability-related actions affected their bottom line.
These numbers indicate that although a strong majority of companies recognize sustainability and remaining competitive go hand in hand, there is a large portion that has yet to implement a sustainability strategy. Of those that have implemented one, nearly 25 percent are unable to recognize the financial impact of its sustainability actions.
Although a gap between recognizing the issue and taking action toward addressing it certainly does exist, there are companies taking a proactive approach toward sustainable business practices. Tyson Foods, for example, has approached sustainability by responding directly to the demands of consumers. Following pressure from the Humane Society and Green Century Capital Management, in early January, Tyson wrote a letter to its pig suppliers insisting that the pigs be housed in larger, less confining environments. In doing so, Tyson Foods demonstrated a commitment to address public concerns, going so far as to ensure that its supply chain adheres to the standards it wishes to set.
Tyson Foods isn’t alone; Whole Foods and Chipotle have also demonstrated a focus on sustainability. In an interview with WBUR, a Boston-based National Public Radio station, pig farmer Bill Heffernan attested to the detail which these companies scrutinize their suppliers. Heffernan says, “First of all, they look around the property for about two hours and then sit down, and you've got this booklet to fill out like as if it's never going to end. And I'm saying, just for 300 pigs, I've got to answer all these questions?”
Suppliers may not enjoy the process, but it is a crucial element in achieving sustainability. Producers like Tyson Foods, Whole Foods, and Chipotle have already taken the steps and more companies are sure to follow as sustainability becomes a defining factor for competitiveness. If suppliers want to stay relevant, they too will need to adapt to the demand for sustainable strategies.
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