1.3 How demand signals can help unlock scale A powerful way to expand the adoption of sustainably produced agri-commodities is to bridge technical solutions and commercial systems, connecting buyers, financiers and producers. A demand signal is a clear expression of intent from a buyer to purchase a certain type of product at scale. In full respect of all competition and antitrust laws and regulations, demand signals can take several forms, for example: –Procurement statement of intent: Signal of desire to source resilient, low-emission agri-commodities, working with suppliers and partners to develop solutions. –Offtake guarantees: Guaranteed purchase volumes for food producers supplying resilient, low-emission agri-commodities. Guarantees can create tangible value for suppliers, such as better working capital and risk management, so price premiums are not needed. –Investments in supply chain transition: Support for producers with transition costs, using cost-sharing mechanisms between value chain players and other beneficiaries to manage affordability where appropriate.Demand signals – definition BOX 2 Clear demand signals unlock commercial viability, by giving farmers the confidence to make the long- term investments needed to evolve production to more resilient and sustainable practices, and by enabling financial institutions to provide appropriate capital to support them. They also communicate what downstream buyers require on specifications, quality and price, ensuring that supply-side programmes are aligned with market expectations and designed for real commercial uptake. Companies may often assume they must pay a “green premium” to secure sustainable products – which rarely works in thin-margin, highly competitive commodity markets – or that sustainability goals can be met simply by adding new requirements to supplier contracts without providing support. Clear demand signals such as long-term offtake guarantees or co-investment models help overcome both challenges. They may reduce or eliminate the need for premiums, making resilient, sustainable sourcing more affordable at scale, and they motivate value chain partners to engage in solutions rather than leaving suppliers to absorb costs alone. This may significantly increase the likelihood of widespread adoption. Putting demand signals into practice This white paper introduces a vision and possible approaches for resilient, sustainable procurement in the food system. At its core lie two strategic sourcing models – “spec-anchored sourcing” and “decoupled sourcing” – which provide practical ways for companies to turn demand signals into action. These models can translate commitments into clear commercial structures, enabling procurement teams to drive resilience, sustainable supply-sheds and long-term value by expanding their focus beyond cost and efficiency. First Movers Coalition for Food: CEO Lessons for the Future of Food Procurement 8

First Movers Coalition for Food 2026