the regional & global trends shaping agribusiness

5/24/2018 The Regional & Global Trends Shaping Agribusiness

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Value Chain Development in Nigeria

Unlocking the potential ofHorticulture Industry

through

10thDecember 2013


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Crop Demand

Increasing per capita income will enable a growing population to purchase more

and better food, fuelling the organic growth of agri-business.

Population growth: The U.N assumes 1.1% population growth over the next 30

years (a slowdown), expecting world population to exceed 9 billion by 2050.

Calorie intake per capita: Fastest growth in calorie consumption occurs when

income is less than $5,000/ year. 83% of the worlds population currently earns

less than $5,000/ year.

Quality of diet: Exponential growth in grain production necessary to meet

increasing meat demand. Compositional change in demand as people switch fromstarch-based to protein-rich diets. Demand for vegetable oils will continue to grow.

Bio fuels: Policies promoting bio fuels across the world and in particular in the US,

are adding to incremental demand.


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Crop Supply

Enhanced productivity will be the significant source of incremental crop

production.

Most recently net growth has been negligible with declines in the EU and US

roughly offsetting growth in Latin America and Asia.

Negative factors such as land degradation, industrialization, urbanization, water

restrictions, regulation and importantly climate change may be increasing.

Productivity/ yield gains have accounted for virtually all crop production growthover the last 10 to 15 years however some data suggests that yields may be slowing

on a global basis.

Water erosion vulnerability is a significant issue and new productivity gains will

have to be achieved with less water.

Currently farmers use 70% of global water supplies but are increasingly competing

with rapid urbanization for water supplies.

China and India in particular will be forced to divert water from agricultural uses to

urban populations, meaning they will become larger importers of grain than they

might have been had water not been a constraining factor.


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Foreign Investment Development in Infrastructure Technology Development

& Supply Chain

Market Development Governmental Support & Assistance
http://images.google.co.in/imgres?imgurl=http://www.endofthetrail-arica.cl/photos/1TAgro.jpg&imgrefurl=http://www.endofthetrail-arica.cl/places.shtml&h=375&w=500&sz=84&hl=en&start=5&um=1&usg=__wEIzgh_wpnW7VAMM_sGyiCWRvwY=&tbnid=g6z6idWk8hBfkM:&tbnh=98&tbnw=130&prev=/images?q=agro+market&um=1&hl=en&sa=N


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New Technology

Drip Irrigation

Fertigation

Use of hybrids

Canopy Management

Balance use of water

Precision Farming

Protected Cultivation


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Irrigation Technology

It is a widespread belief that most of the work done by the donor agencies and

NGOs in Africa focused on symptoms and not on the cause to remove poverty

from the continent.

In the short run, the technology should pave the way for increased consumption,

asset accumulation, and reduced persistent poverty among users.

Over the longer run, it should lead to institutional feedbacks that support

sustained economic development and nutritional improvements.

Access, distribution, and useand the ways in which the design of the technology

itself can bridge institutional gaps.


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Drip irrigation system components and pathways

of impact

Access Distribution Use

Increased

Return to

Labor

Direct Cost

Savings

Increased

Return to

Land

Increased

Investments

and Returns

-----------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------

Abandonment

Marginal Change

Substantial Impact

++Initialadoption

Realization

of

efficiencies

Re-investment

and

growth


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Factors to be considered when selecting an irrigation

technology

1) Crop2) Field size and shape

3) Climate

4) Initial investment

5) Life expectancy of equipment

6) Yearly maintenance cost

7) Labor cost to operate

8) Flexibility of crop changes

9) Height of mature crop

10) Ease of management

11) Ability to move equipment to another field

12) Ability to remediate marginal soil conditions

13) Ability to leverage other operations such as the application of fertilizers and

chemicals


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Drip Irrigation Layout


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Irrigation Canal in Tanzania


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Irrigation Canal in Libya


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Harvesting

Summer heat contained in products

Chillingsanitizing salad vegetables in the field

Optimal but not practical in most areas

Field heat removal quickly after harvest


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Harvesting Technology

Reapers with efficient outputs

Vertical conveyor reapers

GRH-1.2 reaper operates with vertical upper delivery device

These reapers are widely adopted in south asian countries.


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Effective Sorting & Grading Technologies

Electronic Sorting Technology uses laser machines to sort based on

Colour

Structure

Size

Shape differences

FLUO Technology

Microwave Sensing grading Technology

NIR - Near Infra Red Sorting Technology


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Food Coatings

Use of Morpholine in Apple Coatings:

Morpholine is a substance which is added to some waxes used to coat apples

It is normally added to the wax as morpholine dissolves and spreads the wax

The wax is dried by a hot air treatment

Any residual morpholine evaporates

This is not practiced in India, even though the scope of apple exports, and

processing is increasing

Safety issues associated with this practice needs yet more research


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Improvement of Storage Life of Food Products

Use of titanium dioxide as Food Safety tool.

Role of Ozone in fresh food Sterilization.

Stabilization for shelf life extension.

Analysis of high pressure treatment as an alternative to pasteurization.

Calcium treatment to extend the shelf life of melons.

Control hormone levels of tomatoes to optimize their life expectancy.

Ultra-low blanching to increase the firmness; hence shelf life of canned vegetables.


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Supply Chain and Logistics Infrastructure

Pre-cooling System

Zero Energy Cool Chambers

Cold Storage

Controlled Atmosphere

Curing Chambers

Packing Centre

Distribution Centre

Cold Chain


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Cont

Africa offers great opportunity for manufacturing sector because of beingpreferred source of supply, low cost of land and labor and proximity to Europe and

American markets.

New ports like Lamu in Kenya are being developed and old ports like Mombasa are

being modernized.

There is a scope to integrate logistics infrastructure with SEZs, township

development and agricultural infrastructure to focus on short, medium and long

term development, thereby ensuring viability, sustainability and financial liquidity

of the project. The same project may include hospitality and healthcare tourism

within the township.

There are few large sized investible companies in this space, therefore they need

an umbrella organization to grow under, a PE Fund can assume that responsibility.


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Modern Loading Dock


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Mechanised Handeling


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Silo Technology- Shipping

Wagon Loading System Special Food grain Carrying Wagons

2 Discharges at Bottom

Top Hatch for Grain

Feeding


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Components of Cold Chain

It is basically a logistics system, which provides and maintains a series of facilities for

ensuring ideal storage conditions for perishables from point of harvest to the point

of sale.

This necessitates providing pre-cooling facilities, packaging, ripening, cold storage

facilities, reefer transportation etc. on an end-to-end basis.

Farm

(Point of

Harvest)

Pre-

cooling

Storage(Cold

Storage/

CA)

Processing

/

Packaging

Storage/

Distributio

n Centre

Retail

(Point of

Sale)

Transportation TransportationInbound

Logistics


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Critical Success Factors

COLD CHAINPlant

Equipment &Packaging

Different

PrivatePlayers

Finance &Insurance

Cold Logistics& IT

Solutions

R&D

Institutions

Govt. Policies& Support


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Key Challenges in Cold Storage Industry

Integration of the Cold Chain

Technology

Lack of Modernization

High Project Cost and High Working Capital Requirement

High Cost of Power


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Case Study - Cold Store Logistics Park, Hong Kong

Packing & Ripening

Centre

Fresh Produce Cold Centre

for storageTemperature-Controlled Dock

Trading Arenaeasy access & well

planned layout

Discharge &

Parking Zone

Business Complexprovide exhibitions services for

local & international clients


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A Case Study - Pan India Rail Dedicated Freight

Corridor

Connecting the modern FTWZs

Strategic Rail Terminal Network

across India


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Case Study - Wholesale Market Evolution in India

TWMTRADITIONAL WHOLESALE MARKET

Price discovery

Aggregation

Physical exchangeServing 1.1 bn population

MTMMODERN TERMINAL MARKET

Hub & Spoke Model

Transparent & efficient

price discoveryStronger farm linkages

Market information

Storage facilities

Integrated trade for fresh

MFPMEGA FOOD PARK

Synergistic cluster based

approach

Value addition facilitiesCommon infrastructure

Scale of economy

Integrated trade of fresh

as well as processed

Wholesale Market Evolution in India

Enablers: Government support, modern trade, increased awareness


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Case study USA - Solar Powered Refrigerated

Warehouses


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View of a Wholesale Market on Weekend


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Mega Food Park - ConceptCluster Based Approach


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Integrated Model for Africa

Irrigation development and enabling infrastructure for modernizing agriculture

Deployment of self sufficient renewable energy (solar and bio-gas) systems to reduce

reliance on conventional non-renewable energy sources for irrigation and other uses

Capacity building and institution building for sustainability of initiatives

Market linkages and off take of agricultural produce and creation of storage,

handling, supply chain and procurement infrastructure

Processing and value addition infrastructure

Reverse logistics and distribution of farm inputs to the project area including high

yielding tissue culture planting material

Establishment of tissue culture laboratory

Credit support, assured farming and guaranteed price discovery

Investment in research and development for commercializing technologies and their

suitability to the local conditions

Replication of the project learning, demonstrations and scaling up


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Biggest Value Opportunities

Seeds

Water

Fertilizer

Machinery

Land Capital

Farmer

Feed

Dairy

the regional & global trends shaping agribusiness

Documents

regional global trends

global water supplies

global basis

population growth

fastest growth

exponential growth

organic growth of

net growth