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1 BOGOTA SEPTEMBER 2014 «Scaling up sustainable agriculture and optimizing the value chain» Karla Canavan Bogota September 2014.

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Presentation on theme: "1 BOGOTA SEPTEMBER 2014 «Scaling up sustainable agriculture and optimizing the value chain» Karla Canavan Bogota September 2014."— Presentation transcript:

1 1 BOGOTA SEPTEMBER 2014 «Scaling up sustainable agriculture and optimizing the value chain» Karla Canavan Bogota September 2014

2 2 BOGOTA SEPTEMBER 2014 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.

3 3 BOGOTA SEPTEMBER 2014 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

4 4 BOGOTA SEPTEMBER 2014 People and food, some context:

5 5 BOGOTA SEPTEMBER 2014 Population Growth The 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

6 6 BOGOTA SEPTEMBER 2014 Can it be done… MAGNITUDE OF CHANGE BY 2050 ADDITIONAL QUANTITIES BY 2050 Population increases 28% Tons of food required1.3 billion mt Food production increases70% Served by trade.3 billion mt Grain and oilseed increases50% Met by local production1.0 billion mt Trade increases 100% Can it be done?Yes Source: Bunge

7 7 BOGOTA SEPTEMBER 2014 We have a good baseline : 1 out of every 3 calories is wasted Food quantity does not equate nutrition quality (Venkat 2011; Gustavsson et al. 2011) Significant production gap exists between small holder farmers and the average

8 8 BOGOTA SEPTEMBER 2014 Better planning : Enough food produced… but no food access?

9 9 BOGOTA SEPTEMBER 2014 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

10 10 BOGOTA SEPTEMBER 2014 Scaling up small holder agriculture:

11 11 BOGOTA SEPTEMBER 2014 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 $

12 12 BOGOTA SEPTEMBER 2014 Organization is key Self Help Group Clusters Cooperative Production Company

13 13 BOGOTA SEPTEMBER 2014 Examples of resource efficiency The water pond Spacing at sowing

14 14 BOGOTA SEPTEMBER 2014 How… The solution is clearly multidimensional but should be sustainable some key pieces include Organization Optimization of all links in the value chain that include production, distribution, consumption and disposal. Thinking about Resource efficiency and best practices Innovation Scaling up the small holder farmer agriculture And access to finance

15 15 BOGOTA SEPTEMBER 2014 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

16 16 BOGOTA SEPTEMBER 2014 Some leverage factors Livestock.- Having small animals at home provides additional nutrition to the household, and enhances the live of the community Fruit trees.- might provide a natural barrier for crops while providing additional nutrition to the communities

17 17 BOGOTA SEPTEMBER 2014 Sustainable agriculture value chain Finance

18 18 BOGOTA SEPTEMBER 2014 The challenge “The transition from a successful project to a successful business” Critical mass Professional managent Profitable business Which gives it access to finance

19 19 BOGOTA SEPTEMBER 2014 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

20 20 BOGOTA SEPTEMBER 2014 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 resilient crops To achieve this we need farmers and happy ones

21 21 BOGOTA SEPTEMBER 2014 Thank you Karla Canavan Commercial Director, West Bunge Environmental Markets Bunge FSG Distribution and Financial Structures Office +41225929878 Mobile +41794230591 US Mobile +17862086842


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