SOMA Newsletter

Welcome to the SOMA MATER weekly newsletter.

At SOMA MATER, we specialize in delivering comprehensive research and advisory services with a focus on Food & Water Security and Net Zero Transition in the MENA Region. In order to support our subscribing clients in navigating these topics and understanding the regional narrative, we produce monthly Food and Water Security and Net Zero Transition Intelligence Reports, along with our in-depth analysis and insights.

This weekly newsletter highlights the top 3 stories from the past week in Food and Water Security and Net Zero transition, along with SOMA MATER's analysis and perspective.

How are major food manufacturers performing in their implementation of regenerative agriculture programs, and what approaches are being developed to support sustainable farming in desert environments?⁠

How did global hunger change worldwide in 2024, and what key challenges remain?

How is Saudi Arabia balancing its oil-dependent economy with renewable energy goals?

Sustainably yours,

The SOMA team

To the Root of It: McCain and PepsiCo Lead in Regenerative Ag

#FoodandWaterSecurity

A report benchmarked 20 major food manufacturers on their regenerative agriculture programs, revealing gaps in implementation. The scorecard evaluated companies across 15 key performance indicators and found most earned a D grade (13/45 points). The majority lack specific measurable goals and aren't collecting crucial field-level data from suppliers—creating a critical blind spot in tracking outcomes. Companies are also falling short in providing farmers with necessary technical, educational, and financial support.

McCain Foods, Lamb Weston, and PepsiCo topped the list. These companies publicly define regenerative agriculture with clear criteria, actively track progress, and collaborate extensively with stakeholders. McCain Foods is the only company specifying concrete soil health targets. PepsiCo leads in partnerships and innovation, investing $216 million to transform U.S. farmland while collaborating with various organizations.

In parallel, research from the American University of Sharjah is revealing that microbial communities in arid soils could revolutionize sustainable agriculture in desert environments. The study demonstrates how the biological interactions between plant roots and surrounding microbes can enhance soil fertility and crop resilience in extreme conditions. AUS is conducting field trials on wheat and date palms using microbial treatments, supported by the Sharjah Sustainable Agriculture Research Group. Researchers emphasize the importance of viewing soil as a living system essential for food security and climate resilience.

SOMA’s Perspective:

It's encouraging to see formal assessments of regenerative agriculture programs. We strongly encourage greater regional emphasis on this practice in the MENA area.

Sources:

Byte by Byte: Digesting the Latest Global Hunger Statistics

#FoodandWaterSecurity

Global hunger showed promising signs of reduction in 2024, with an estimated 8.2% of the global population facing hunger, down from 8.5% in 2023 and 8.7% in 2022. The improvements are mainly driven by positive trends in South-eastern Asia, Southern Asia, and South America, though hunger continues to rise in most African subregions and Western Asia. Yet, between 638 and 720 million people still experienced hunger in 2024 (about 8% of the global population). The regional distribution shows 307 million affected in Africa (20.2% of population), 323 million in Asia (6.7%), and 34 million in Latin America and the Caribbean (5.1%).

Rising food prices also affected global food security, with the average cost of a healthy diet rising to 4.46 purchasing power parity (PPP) dollars per person per day in 2024, up from 4.01 in 2022. Low-income countries are disproportionately affected, experiencing inflation peaks at 30% in May 2023. Research indicates that a 10% increase in food prices correlates with a 3.5% rise in moderate to severe food insecurity.

Despite gradual improvement since 2021, challenges persist. The world remains significantly behind on achieving Sustainable Development Goal 2, and projections indicate that 512 million people will still face hunger by 2030. Ongoing geopolitical tensions aggravate the situation, with 320,000 children under five in Gaza currently at risk of acute malnutrition. The report highlights that while short-term price interventions like price controls or subsidies offer immediate relief, they often create market distortions. Governments should instead focus on long-term strategies through stronger food reserves, improved market transparency, and enhanced trade infrastructure to effectively manage food prices.

SOMA’s Perspective:

While the report recommends against price controls as short-term solutions, this overlooks the reality faced by import-dependent countries in the MENA region. Our local food systems struggle to compete against subsidized foreign products and dumping practices that artificially lower import prices. For countries building resilient food systems, targeted price controls may be necessary to create parity for local producers who face higher resource costs (particularly water) and lack agricultural subsidies. A one-size-fits-all economic approach fails to account for the individual circumstances and needs of different countries in developing sustainable food security.

Sources:

 

Petrodollars to Photovoltaics: Saudi’s Bright Balancing Act

#NetZeroTransition

In July, $8.3 billion were signed in deals to develop 7 solar and wind projects across Saudi Arabia. These projects will add 15 gigawatts of renewable capacity to Saudi Arabia's energy mix, another advancement in its clean energy portfolio. While oil remains the backbone of the Saudi economy—accounting for more than 15% of global crude exports last year and funding its $940 billion Public Investment Fund—the kingdom is strategically preparing for a future where global oil demand is projected to peak around 2030 and decline.

This push addresses Saudi Arabia's growing domestic electricity demand, driven by economic expansion, population growth, and rising living standards. Households consume nearly 50% of total electricity, with air-conditioning being the primary contributor, alongside increasing energy requirements for desalination, heavy industry and digital infrastructure. By transitioning to solar and wind power for domestic needs, Saudi Arabia aims to free up more oil for export, boosting revenues while reducing its scope 2 emissions.

Saudi Arabia's renewable ambitions outpace regional competitors in scale, with plans to build 130 gigawatts of renewable energy by 2030—nearly 10 times the UAE's 14-gigawatt target. Though the UAE leads in green bond issuance ($7.4 billion compared to Saudi Arabia's $5.6 billion in 2024), Saudi Arabia is rapidly scaling up implementation.

SOMA’s Perspective:

We at SOMA have been tracking the renewable energy projects in Saudi Arabia. In solar energy projects alone, our SOMA research has identified approximately 20 projects currently underway or scheduled to be operational by 2026, with publicly-announced investment costs reaching approximately $10.2 billion for just 12 of these projects.

Sources:

SOMA Research

SOMA MATER is writing Intelligence Reports on the topics of Food and Water Security and Net Zero Transition. If you’d like to know more, contact us through the link below:

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