Transforming The Food Industry Through A Sustainable Approach

Robert Erhard is the head of dairy and corporate sustainable agricultural development at Nestle. He is a leader in developing dairy operations, innovation, and sustainability strategies. His career has been focused on the dairy sector, comprising various roles. He has significantly contributed to Nestle's agricultural services in Greater China and the Dairy Farming Institute in China using his extensive experience in dairy, food safety, procurement, and cross-functional leadership. Robert has expertise in strategy, analysis, and climate initiatives.

What is your current role in the organization, and how do your day-to-day activities go?

I currently hold the position of Global Technical Lead in the dairy division. In this role, I monitor Nestle's global fresh milk sourcing operations across 27 countries. My responsibilities include providing technical expertise and support for developing sustainable supply chains with our farm suppliers. It involves working closely with teams worldwide, ensuring direct farm procurement functions smoothly.

Along with managing the operational aspects, I coordinate tasks related to environmental, social, and governance (ESG) initiatives aligned with Nestle's commitment to climate action and regenerative agriculture. This consists of collaborating with our research department and the Nestle Institute of Agricultural Sciences, which conducts pioneering research in dairy and coffee.

My current global role has expanded to encompass operational oversight, pricing strategies, and the transformation of supply chains for the betterment of all stakeholders. Beyond my role at Nestle, I hold two significant external positions where I serve as a direct advisor to the Ministry of Agriculture in Switzerland within the Swiss National Committee of the Food and Agriculture Organization (FAO), an officially approved role by the FAO.

"We employ a structured approach, delineating the interconnected aspects of sustainability. This includes climate action, regenerative agriculture, and the integration of nature, encompassing water, biodiversity, and soil conservation"

I also hold the position of President at the Sustainable Agriculture Initiative Platform, a Geneva-based non-profit organization that unites food and beverage companies to drive sustainability in their supply chains. As the President, I work closely with these companies to develop industry[1]specific solutions and provide guidance on sustainability practices. Our approach acknowledges the magnitude of our challenges and emphasizes collaboration among multiple stakeholders, with strong representation from farmers through the corporate sector.

What are the prevailing challenges in the food industry, and how are you addressing them?

The food industry is currently facing a period of profound uncertainty and rapid change. It is evolving into a more multifaceted and integrated entity, containing various aspects, including social structures, the perception of food, its affordability, and sustainability. This transformation reflects our collective acknowledgement that humanity possesses the power to influence the world and is responsible for enacting positive change. This reframing journey is unfolding at an accelerated pace, driven by the belief that we can achieve substantial improvements. Factors such as the consequences of detrimental practices, the dwindling interest of young generations in farming, and the challenges posed by a growing population have led to a situation where traditional yield increases are no longer sustainable.

To address these issues, we have refocused our efforts on critical areas. We recognize that the capital needed for driving change lies within the realm of climate action. Our commitment extends to regenerative agriculture, cultivating a harmonious relationship between agricultural practices and nature.

Furthermore, we have evolved from the ambiguity of the past, where the term "sustainability" yielded numerous interpretations. Today, we employ a more structured approach, portraying the interconnected aspects of sustainability. This includes climate action, regenerative agriculture, and the integration of nature, comprising water, biodiversity, and soil conservation.

Expanding outward, we address broader societal concerns, including human rights and social aspects, which ultimately impact the food system's fairness, nutrition, and the question of artificial food production.

How do you anticipate the imminent changes occurring in the food industry?

Nestle is fully committed to a transformative journey in the food industry, with our CEO, Mark Schneider, leading the charge. Mr. Schneider has made promises and backed them up with significant investments. Nestle has allotted $3.2 billion for this food system transformation by 2025, a substantial commitment that sets us apart in the industry.

Through a well-targeted and highly focused approach, we have mapped out a comprehensive roadmap for our direct supply chain, which includes dairy, constituting nearly half of our volume. Each country has developed its roadmap, aligning with key sustainability objectives such as climate action, human rights, and livelihoods.

For instance, we are intensively engaged in fostering entrepreneurship among farmers. This helps enhance professionalism by determining minimum size requirements, efficiency standards, necessary structures, and methods to transform agricultural pursuits.

We recognize that a low carbon footprint is necessary, marking the second pillar of our sustainability efforts. The primary objective is to reduce milk's emission factor and overall emissions per litre. The third pillar revolves around regenerating agricultural systems and harmonizing our practices with nature. This pragmatic approach involves creating business models, shaping the future of farming, and establishing net-zero pilot farms.

What is your advice to the young leaders starting their careers in the food industry?

One significant challenge we have identified pertains to talent acquisition. Individuals emerging from universities with specialized degrees may find that proficiency in more than one area, such as farm economics or agronomy, is essential. In today's dynamic landscape, integrating various disciplines is crucial for developing effective business plans and fostering collaboration.

As a result, desired candidates must possess an all[1]rounded skill set or excel in teamwork and collaboration, as it is impractical to be an expert in every field. The capacity to work effectively within a team is crucial because, ultimately, it is the people who make the difference in achieving our goals.