More innovation in Agri & Food by collaborating

in a new ecosystem

Nur America

Director Automation in Agri & Food

6 March 2013

What is a business ecosystem?

James F. Moore’s definition • An economic community

• Produces goods and services of value to customers

• Customers are member of the ecosystem

• Includes suppliers, lead producers, competitors, and other stakeholders

• Members coevolve their capabilities and roles, and align themselves with

the directions set by one or more central companies

• Members move toward shared visions to align their investments

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High-Tech Systems – Eco System

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Conception

Simplified innovation process

Development Engineering Production

Marketing Sales Customer

…. Tier 1

…. Tier 2

Value sourcing

High-tech Partners

OEM

High-tech Systems - Eco System

ASML example

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Conception

ASML

Marketing

Sales Customer

Tier 1

…. Tier 2

Wafer stage module

Specification & Integration

Own R&D

Consortium

4

Farmout OEM outsourcing

An ecosystem which supplies and maintains world class technology

High-Tech Systems – Eco System Collaborative Product Innovation Clusters

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Life Sciences

Phenom - Table model electron microscope

Industrial Manufacturing

Lunaris – Digital inner layer printer

Pathology slide scanner Market

An ecosystem which creates products for different industries

High-Tech Systems – Eco System

Collaborative Technology & Product Innovation Clusters

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Solar

Solliance Atomic layer deposition machine

SoLayTec

Market

An ecosystem which becomes globally important for the solar industry

Solar

High-Tech Systems – Eco System New OEMS – New Leaders

7

Market R&D partners

Suppliers

Partners

45% ownership

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Innovate more

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Need for collaboration

Technology Complex Higher integration Specialization

Business model Share responsibility, risks, investments and results

Competition Global competition

Costs Price pressure

Requirements Higher demands Sustainability Innovation down in de value chain Critical mass

Larger scale Special competencies Open innovation Supportive roles

Collaboration / Partnerships

Innovation New products and services New markets

Increasing challenges

Innovation New products and services New markets

Global Agri & Food Industry Trends

• Non cyclic

• High volume

• Global

• Worldwide increasing competition

• Changing market

• Steady growth – In 2050, a population of 9

billion critical consumers

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• Easy Meal Solutions

• Smaller portions & Conv. Packaging

• Retailer power & cost drivers in the value chain

• Fresh distribution

• Food Safety

• Import

• Sustainability

Industrialized Countries Change

• Fast food restaurants

• Modern retailing

• Export

• Frozen distribution

Emerging Markets Growth

Food Producers Excluding beverages

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Global players

Regional players in developed markets

Irvin & Johnson

Produkti Pitania

Mironovsky Hliboproduct

CP Foods

Emerging market food companies

Food Processing and Packaging Equipment

• Market for food processing and packaging equipment is approx € 2-3 B/annually (CAGR of 5-6%)

• 60-70% of the technology suppliers are located in Europe, where of a majority in The Netherlands and Germany

• These (Dutch) companies represent > 70% of the industrial slaughter equipment market

> 60% of the industrial processing equipment market

> 70% of the industrial egg handling equipment

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Food Industry – Processing Line

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Dutch Agri & Food Industry

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• Turnover € 48 billion (10% of Dutch economy) • € 29 billion: primary

production, food processing industry and suppliers

• € 19 billion: distribution, retail, restaurants

• 8 food companies among the top 25 largest Dutch companies

• 4 companies among top 30 food companies (Heineken, Unilever, Friesland Campina, Vion)

• Number 6 in EU in turnover

Employees # turnover

0-20 3395 (81%) 6%

20-50 425 (10%) 9%

50-250 315 (7%) 34%

>250 75 (2% 51%

Food companies

Agri &Food Industry – Eco System Value chain

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Wholesale

Retail

Food Service

Consumption Primary production

Unprocessed Fresh packed

Processed

Agri &Food Industry – Eco System Value chain and suppliers

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Supplier of machine

Wholesale Retail

Food Service

Consumption Primary production

…

…

Supplier of technology

Supplier of machine

Supplier of technology

Unprocessed Fresh packed

Processed

Own R&D

Own R&D

Global players

Suppliers within the Food Industry

SME’s with R&D •Machine development •Packaging •Ingredients •Analytical support

Local players

Focus areas

Intelligent kitchen appliances for meal preparation

Agri &Food industry – Eco System Equipment suppliers

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Conception

Simplified innovation process

Marketing Sales

…. Tier 1

…. Tier 2

Suppliers

OEM

Specification & Integration

Own R&D

Engineering/ Supply chain mgt

Agri & Food Industry Innovation Drivers

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Wholesale Processing

Retail

Food Service

Consumption Primary production

Customer needs Tasty, convenience, variety, healthy, safe, quality, affordable, sustainable

Healthy population Fighting food related illnesses Functional foods Personalized food Healthy products

Sustainability Biodegradable packaging Biorefinery

Increased productivity/lower costs Efficient production processes Process automation Lower energy consumption Reducing waste

Import & Export Cheaper transportation Tracking systems

Raw materials Scarcity Alternatives Increased yield Pre-processing

Alternative sales channels (digital, marketing innovations)

Product and process innovation

Consolidation and cooperation

Information technology, life sciences, nanotechnology

High-tech in Agro & Food Examples (1)

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Plastic analog-to-digital converter (ADC) in food packaging to decrease food waste (TU/e)

• Plastic sensor to test whether the food is still safe to eat. • The plastic semiconductor can even be printed on flexible surfaces. • Costing less than one euro cent within reach. • Four components: the sensor, an amplifier, an ADC to digitize the signal and a radio transmitter that sends the signal to a base station.

High-tech in Agro & Food Examples (2)

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PlantEye tool for evaluating and control of plant growth (Phenospex)

• PlantEye automatically scans complete fields and displays the daily change of plant height, leaf area and leaf coverage. • Scanning with a resolution of 1mm using a laser scanning technology. All information is synchronized automatically with the Terminal and HortControl via Wi-Fi.

High-tech in Agro & Food Examples (3)

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Fruit packaging machine (Acro / Visiomatics)

• Automates packaging process of apples, based on vision and sensor controlled robotics • Ensures that

- apples of the same quality in the packaging come - apples with the bloom facing up and the stems in the same direction

High-tech in Agro & Food Examples (4)

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3D Food Printing : starting with basic ingredients, using printing or deposition technologies

e. Edible shapes formed from insect powders, firming agents and flavoring

a. Toffee structure formed by heat-sintering consecutive layers of sugar crystals

b. Heat-sintered Nesquik shapes, TNO

c. Chocolate form produced by single head extrusion

d. Cake shapes of 25 mm width with embedded graphics, formed by twin head extrusion and post-deposition cooking

Source: Trends in Food Science & Technology Volume 27, Issue 2 2012 66 - 72

Collaboration within Agri & Food

Collaboration

12% Horizontal

24% Vertical

36% Horizontal & vertical

17% Specification situation

11% None

Defining strategy with partners

34% None, within company

48% Partially, most important decisions within company

15% Partially, alignment with partners sought

04% Fully

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Source: Berenschot AgroFood Strategy Trends 2012

SMEs focus in Agri-Food

• 73.8 %: Innovations in the market and value chain

• 72.9 %: Improving efficiency – saving energy – more efficient use of land, raw materials and

water

• 70 %: Developing healthy food

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Source: Food en Nutrition Delta questionnaire

About Newness • Stimulates the growth and the competitiveness of

enterprises by providing them with expertise

• Supports innovations for – new products

– new markets

– new business models

– new eco systems

• Markets – high-tech industry

– agri & food industry

– energy industry

• Supports cross-industry innovations

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Newness brings • Hands on industry experience on

– market positioning – business strategies – new business development – starting partnerships – cross-market innovations

• Knowledge on High-tech, Food industry and Energy

– value chains – product creation – trends – eco systems – technology domains – business processes

• Knowledge and experience with state of the art methods and tools

– business model innovation – new business development

• Network

– specialists – contacts in the industry (international)

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Thank you Newness

Zandgolf 30 5658 AJ Eindhoven

The Netherlands

Contact us: www.newness.nl info@newness.nl

+31 650643341

Follow us: @Newness_nl