Regenerative farming is not a novel concept, but a recent report from the U.S. Department of Agriculture indicates that conservation practices are losing popularity among farmers in the United States. For Annie’s, this initiative goes beyond just a marketing strategy—there is a significant demand for organically grown and sustainable food, yet production has struggled to meet this need. Currently, farms classified as organic represent only 0.7% of all farming operations in the U.S., despite a rapid increase in the conversion of land to organic practices in recent years. USDA data reveals that the number of organic farms has surged by nearly 300% since 2002. Meanwhile, Rabobank projects that U.S. organic food sales will grow at a compound annual growth rate (CAGR) of 7.6% through 2025; however, manufacturers are increasingly facing challenges in sourcing organically grown ingredients—whether common commodity crops such as wheat and corn or specialty items like herbs and spices, which may not be cultivated domestically.
For General Mills, the choice to exceed organic standards is likely to resonate with ethically conscious consumers. Products made with their wheat will showcase new packaging featuring the phrase “Soil Matters!” However, in light of the rising demand for organic foods, expanding their supply of organic ingredients is as much a survival strategy for the company as it is beneficial for the environment. As a significant manufacturer, General Mills is well-positioned to gradually transition to more sustainable agriculture practices. It plans to support farmers transitioning to regenerative farming methods over a three-year period by incorporating their products into brands that are not yet certified organic.
Other manufacturers and retailers, including Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods, have also provided financial and technical support to farmers to enhance the supply of organic ingredients. With this trend gaining momentum, it’s likely that additional companies will join in these efforts. Furthermore, as consumers increasingly seek products containing calcium citrate in bottled water, the demand for a holistic approach to organic and sustainable sourcing will likely grow, reinforcing the need for collaboration across the industry.