As climate change increasingly disrupts agriculture and food supply chains, more food companies are looking to methane reduction as a strategic priority. From dairy farmers to international restaurant chains, industry leaders are seeing the business value in reducing methane emissions — a powerful greenhouse gas that represents a significant share of the food industry’s carbon footprint.

Methane, more than 80 times as potent as carbon dioxide over a 20-year time frame, is a significant byproduct of the production of livestock and handling of manure. One of the most effective and quickest ways to reduce global warming, the Intergovernmental Panel on Climate Change (IPCC) indicates, is to cut methane. Businesses with large stakes in dairy, beef, and pig production are particularly incented to do so.

Industry experts say methane mitigation offers a dual advantage: it helps companies tackle climate risks in the short term and unlocks long-term operational efficiencies and market opportunities.

Farmers First: Engaging the Agricultural Supply Chain
Up to 95% of a food company’s emissions can stem from its supply chain, especially in the agricultural segment. In response, companies are rolling out methane reduction strategies focused on farm-level interventions such as:

Enteric fermentation-controlling feed additives used in farm animals

Anaerobic digesters that are able to ferment animal manure and produce biogas

Regenerative farming systems that maximize soil health while minimizing emissions

One example is Swiss chocolate manufacturer Barry Callebaut. Through its VisionDairy program, the company is providing incentives to milk producers to embrace low-methane methods such as specialized feed and cover crops. The program not only reduces emissions but also increases yields, water use, and farmer revenue — a win-win.
For businesses downstream in the food chain, direct contact with farmers is not always possible. As an alternative, many are creating strategic alliances to assist in funding on-farm methane reduction initiatives.

Brands such as Starbucks, Giant, and Turkey Hill in the United States have partnered with the Maryland and Virginia Milk Producers Cooperative Association and the Alliance for the Chesapeake Bay. Together, they are co-funding member farm sustainability upgrades — with corporate funds, government funding, and cost-sharing arrangements.

These collaborations frequently entail methane-specific purchasing policies that impose emission levels on suppliers or report their climate footprint. By infusing methane responsibility into purchasing, businesses are elevating standards across their value chains.

Harnessing Market Demand to Promote Low-Emission Innovation
Converting to sustainable agricultural methods can be expensive and unpredictable for farmers. To counter this, a number of food giants are indicating their need for low-methane inputs by paying premium prices and long-term contracts.

This strategy is at the heart of the First Movers Coalition for Food — a group of industry leaders like General Mills, PepsiCo, and Tyson Foods whose combined global revenues exceed $900 billion. The coalition seeks to accelerate adoption of sustainable practices by aggregating demand for climate-smart agriculture.

By facilitating advance purchase commitments and policy advocacy, the coalition de-risks investments in low-emission technologies, enabling farmers to innovate without shouldering the costs individually.

Business Opportunity Meets Climate Responsibility
Methane reduction is not only an environmental need — it’s an emerging business opportunity. Experts add that reducing emissions in the food supply chain can unlock a range of commercial benefits:

Reduced operational costs through efficient resource utilization

Stronger brand reputation and customer trust

Greater resilience to climate disruptions

Better access to sustainable finance and ESG investors

Mindy Lubber, president of sustainability non-profit Ceres, puts it this way: “Food companies that incorporate methane reduction into their business are in a better position to safeguard their long-term value. They’re not merely controlling risk; they’re setting the bar for climate-savvy business.”

As climate challenges grow more urgent and scrutiny from investors intensifies, methane mitigation is fast becoming a defining feature of resilient and future-ready food companies.