karla canavan
DESCRIPTION
Measuring the impact of investments remains a main challenge for sustainable finance professionals and, together with Climate Change, an overarching theme at TBLI. Sixteen related workshops offer debate on ESG and Impact Investing trends, private equity, portfolio strategy, food production, emerging markets, sustainable energy or philanthropy investing.TRANSCRIPT
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«Scaling up sustainable agriculture and optimizing the value chain »
Karla CanavanNovember 2013
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Disclaimer
Today’s presentation includes forward-looking statements that reflect Bunge’s current views with respect to future events, financial performance and industry conditions.
These forward-looking statements are subject to various risks and uncertainties. Bunge has provided additional information in its reports on file with the SEC concerning factors that could cause actual results to differ materially from those contained in this presentation and encourages you to review these factors.
The information contained herein is based on currently available information and sources, which we believe to be reliable, but Bunge does not represent it is accurate or complete. Forward-looking statements contained herein are based on assumptions which Bunge believes to be reliable, but such statements are inherently subject to change and Bunge SA do not represents them to be accurate or complete. The recipient of this presentation must make its own investigation and assessment of the ideas and concepts presented herein. Any responsibility or liability for any such information is expressly disclaimed.
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About Bunge
Founded in 1818 Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane, mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in North and South America.
Our Mission: Enhancing lives by improving the global agribusiness and food production chain
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People and food , some context:
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Population GrowthThe world population, currently 7 billion, is expected to reach 9.3 billion by 2050 and 10.1 billion by 2100
Data from UN-DESA, 2011
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According to the FAO food production needs to increase by70% to meet the population needs.The absolute quantities offood necessary to feed the world in 2050 are substantial.Assuming no change in population growth, food consumptionpatterns and food waste management, the following productionincreases must take place by 2050:
• cereals production must increase by 940 million ton nes to reach 3 billion tonnes;
• meat production must increase by 196 million tonnes to reach 455 million tonnes;
• and oil crops by must increase by 133 million tonnes to reach 282 million tonnes.
and the food challenge…
Tilman et al. 2011
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According to the FAO food production needs to increase by70% to meet the population needs.The absolute quantities offood necessary to feed the world in 2050 are substantial.Assuming no change in population growth, food consumptionpatterns and food waste management :cereals productionmust increase by 940 million tonnes to reach 3 billiontonnes and a similar increases needs to happen to meatand oilseeds;
but
Some studies say that Yield trends in maize , rice andsoybeans are insufficent to reach desired production
and the food challenge…
Tilman et al. 2011Ray, Mueller ,West , Foley 2013
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Better planning : Enough food produced…but no food access?
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Can it be done…
MAGNITUDE OF CHANGE BY 2050 ADDITIONAL QUANTITIES BY 2050
Population increases 28% Tons of food required 1.3 billion mt
Food production increases 70% Served by trade .3 billion mt
Grain and oilseed increases 50% Met by local production 1.0 billion mt
Trade increases 100% Can it be done? Yes
Source: Bunge
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We have a good baseline :
1 out of every 3 calories iswasted
Food quantity does not equate nutrition quality
(Venkat 2011; Gustavsson et al. 2011)
Significant production gapexists between smallholder farmers and theaverage
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How…
The solution is clearly multidimensional but should be sustainablesome key pieces include
Organization
Optimization of all links in the value chain that includeproduction, distribution, consumption and disposal.
Thinking about Resource efficiency and best practices
Innovation
Scaling up the small holder farmer agriculture
And access to finance
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Scaling up small holder agriculture:
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Rural women:• .. are already farmers and involved in food production, just need to be
motivated and trained
- Sizeable engine .- 1.6 billion women depend on agriculture for their livelihoods.
- Over 50 percent of the world’s food is currently produced by women, 70% in Africa
- Studies show that 10 earned and managed by rural women have the impact of 110 into their families in comparison to men . 11X
- Less than 2% of land is owned by women
- Many of them are illiterate
- Have limited mobility
- Live gender inequality
Data from FAO,IFAD,UNESCO
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Small holder sustainable agriculture
Women as the leading role
Resource efficiency and best practices =+
$$ $
$
Magnitude of the results vary considerably on a case by case but they will get benefits and increase their monetary, social and natural capital
$
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Organization is key
Self Help Group
Clusters
Cooperative Production Company
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Resource Efficiency: Water
Water Imbalance
• 70% of earth covered with water
• Less than 1% of water is available as fresh or ground water for people to use
• Not evenly distributed
Food and Water
• Food and agriculture are the greatest users of water
• 70% of water used
• Substantial part is wasted or polluted
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Examples of resource efficiency
The water pond Spacing at sowing
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Seed usage:
25 to 30kg less per hectare
Production:
25 to 30% more
WhenWhenWhenWhen lesslesslessless isisisis moremoremoremore
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Best Practices Package for example
Irrigation and moisture conservation
Ploughing (pre sowing)
Soil tests and fertilizer
Spacing
Mid season weed control
Pest and disease control
And from there learn quality control, product handling, conservation, transportation and commercialization
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Some leverage factors
Livestock.- Having smallanimals at home providesadditional nutrition to thehousehold, and enhancesthe live of the community
Fruit trees.- might provide anatural barrier for cropswhile providing additionalnutrition to the communities
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Sustainable agriculture value chain
Inputs
Planting
Harvesting
Storage
Commercialization
Finance
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The challenge “The transition from a successful project to a successful business”
• Critical mass
• Professional managent
• Profitable business
Which gives it access to finance
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The Happy Farmer?
By 1990, less than 40% of the global population lived in a city, but as of 2010, more than half of all people live in an urban area. By 2030, 6 out of every 10 people will live in a city, and by 2050, this proportion will increase to 7 out of 10 people.
Source: World Health Organisation
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In Summary
To streamline the supply chain , interventions are needed in almost every link of the supply chain. The room for improvement is very significant
Agriculture not only produces food but generates income and supports rural livelihoods
It’s not only about quantity but quality the question forward should be nutrition security
Smart and resilent crops
To achieve this we need farmers and happy ones
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Thank you
Karla Canavan
[email protected] Director, WestBunge Environmental Markets Bunge FSGDistribution and Financial Structures
Office +41225929878Mobile +41794230591 US Mobile +17862086842
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The four goals of agriculture sustainability
According to the National Academies of Science report (2010) are :
• Satisfy human food, feed, and fiber needs, and contribute to biofuel needs;
• Enhance environmental quality and the resources base;
• Sustain economic viability of agriculture; and
• Enhance the quality of life for farmers, farm workers, and society as a whole.
USDA Report: Climate Change and Agriculture
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