Economic aspects will be included in life cycle analyses
Life cycle analyses of bio-based products need to be more connected with farm economics. AGRO will expand its competence in this area.
In SYSTEM we have many national and international activities regarding life cycle analyses of food and other bio-based products. One of the things life cycle analysis is used for is identification of where in the product chain it would be most efficient to intervene in order to reduce the environmental impact. On the farm level, this would apply to identifying which activities on the farm need to be focused on to get the most efficient reduction in environmental impact in relation to farm size.
Arla is one of the Danish food companies that has worked extensively with life cycle analysis. Danish Crown has also started to focus on the issue. Within the area of crops rapeseed production for biodiesel is particularly interesting because the prices and market possibilities depend on which greenhouse gas emissions can be documented in a life cycle perspective.
On the political level, the Danish Ministry of Energy, Utilities and Climate is investigating if the concept of life cycle analysis can be combined with national targets for reducing the climate footprint of Danish agriculture.
AGRO has good possibilities for contributing to the above-mentioned areas. However, the possibilities for improving the environmental profile of a bio-based product depend on how cost efficient it can be done and in this area we have a harder time contributing.
This is the background for SYSTEM’s intent to ensure improved competences so that we can include economic aspects directly in our work involving life cycle analyses. Concepts such as ’life cycle costing’ and ’eco-efficiency’ involve methods that integrate life cycle analysis with financial aspects and these are the methods we intend to follow.
Over and above improving our skills in the area, we expect it will strengthen our collaboration with those who are more specialised in agricultural economics and environmental economics. It is our understanding that the targeted regulation of agricultural production that is currently being implemented in Denmark will place greater demands on methods that include environmental as well as farm economics aspects on the operational level. AGRO plays an important role in this regard.