3rd World Summit on Agricultural Equipment An International Success 2 sessions of conferences 4 roundtables 29 speakers 261 participants from 38 countries The response of the Agricultural Machinery Industry to the challenges facing global Agriculture Organized by Under the patronage of Partners
AGRIEVOLUTION 2011 • Exchange of viewsThis 3rd World Summit on Agricultural Machinery, organised by AXEMA under the aegis of CEMA (European AgriculturalMachinery Committee), gathered over 250 international decision-makers from farming organisations and machinery ma-nufacturers as well as representatives of farming policies and international medias. A Summit of particular importancein a context of uncertainty in the agricultural markets, of volatility and price rises. An eagerly awaited meeting whereeach of the partners present was able to share their expertise and strategic vision to meet the sector’s challenges. Sunday 20th February : Farming in the World Roundtable 1 Gabriel Csicsai, State Secretary of the Slovak Republic, as an introduction, demonstrated the importance of implementing poli- cies for developing the farming sector as in the considerable deve- lopment that has come about in Europe with the implementation of the common agricultural policy. Marion Guillou, CEO and President of INRA, delivered the conclusions on the AGRIMONDE foresight exercise, led by INRA and CIRAD. She underlined that the agricultural productivity has more than doubled worldwide on average during the se- cond half of the 20th century. In the future, facing the in-Luc Guyau, Chairman of the FAO raised several vital questions: Can the World feed crease of population, she considers that the evolution of eatingthe world? Do we have the technical, economic and political means? He then insisted habits will have major impacts on the demand of farm pro-on the FAOs role which has no power in itself, but has a real role of influence. The ducts. This means an evolution of agricultural and livestockmost conclusive example of this? The ability to establish a consensus among 191 practices towards productive and ecological systems. Further-countries. These same countries of which some explained at Vancouver that they had more, the world exchange of goods will be necessary as thediverging interests and which due to the FAOs strong network are now around the agricultural production areas are not necessarily located wheresame table and are discussing and sharing the same ambition: combating populations are growing specially in Africa and Asia.hunger in the world. One universal criterion which brings all countries Finally, according to Marion Guillou, it is important to definetogether. He ended his contribution by emphasising the importance of the worldwide some rules regarding food security in the context ofpermanent nature of farming and food policies, even more so when we significant global environmental changes, such as urgencyare dealing with issues of volatility and fluctuation. stocks or market regulations to prevent extreme volatility of commodity prices. David Hughes, Chairman of Argen Trigo (Wheat Producers Organisation of Argentina) first described the farming situation in Argentina and the legitimate desire of Argentine farmers to increase their income while wishing for more technology and competitiveness. In this context, he also described the concerns raised by other agricultural regions of the world about the goal of using less energy and plant protec- tion products. In summary, he spoke clearly of farmers concerns to develop more environmentally-friendly and socially aware modes of pro- duction.Alida Fleury Bellandi, Member of the National Council for Machines and Equipment ABIMAQ-CONIMAQ and head of a farm machinery manufactu-ring company (Guarany Brazil) stressed as core message the intimate relation among three factors: growth of world population, climate changes andfood security; and mechanization as a solution to increase productivity per area in a sustainable way, considering soil preservation and operator’s safe-ty. She highlighted the increase in frequency and intensity of natural disasters as one of the consequences of climate changes, and howthis affects agricultural production; also the importance of the 3 tripods: The triple bottom line, the agriculture responsibility for produ-cing food/fibers/biofuels and the agricultural sustainability (land and water responsible use, machinery/other inputs, and farmers). Shequoted as successful Brazilian examples the no till practice and ethanol production, besides the importance to meet international stan-dards as well as to certify machinery and equipment.Finally, reminding that “problems are global and require global solutions” she stressed the importance of private and public partnerships,with technological innovation and research applied to the industry, aiming at producing enough quality food in a sustainable way. Roundtable 2The purpose of the second round table was to envisage thedirections in which world farming might develop.Mohammad Asif Rahimi, Minister of Agriculture, Irrigation and Stock farming in Afghanistan, provided an analy- sis of the situation in his country, complex in several ways. A country undergoing reconstruction and chan- ging quickly and which was able to give farming its proper place. A sector which employs 80% of the countrys work force and which has now reached a level of self-sufficiency. Tzvetan Dimitriov, Deputy Minister of Agriculture in Bulgaria explai- ned the beneficial effects of the CAP (Common Agricultural Policy) with its accompanying rules and financial support mechanisms. One sentenceGeoffrey C. Mrema, Director of the Rural Infrastructure and particularly marked his contribution: "an agricultural policy is not a cowAgro-Industries Division at the FAO, gave an overview to be milked but a commitment by farmers to produce both quantity andof the evolution of the food situation in the world as of course quality".well as an overview of the evolution of utilization andmarkets for agricultural machinery and implementsbefore talking about the opportunities offered by the Michel Portier, Founder and General Manager of Agritel a management compa-10 fastest growing economies in the world. ny in the international markets wondered whether the volatility of agricultural com- modities was cyclical or structural. He opted clearly for a structural trend. He also emphasised the non-elastic nature of the demand for agricultural pro- ducts according to him and an increasingly unstable supply. ReflectingFinally, a discussion was held to close this second round table Marion Guillous contribution, he, too, emphasised the importance ofon the particular features of mechanising small farms in cer- international trade whether physical or financial but including communi-tain regions of the world, but especially about the volatility of cation and information as well. He also noted the importance of thethe prices of agricultural commodities with one question: Must agricultural policies, increasingly abandoned according to him but whichwe combat or live with them? in the past allowed this farming sector to develop. Alain Savary, Axemas General Director, closed this first day by setting alongside one another concerns that are coming together and becoming general and global. "In 2008, at Rome, the analyses revealed differences according to the regions whereas today that seems to be less true. Certainly, the factors for agricultural production remain extremely different according to the worlds regions whether in terms of productivity, climate or land ownership for example, but faced with that we can see a convergence in farmers ambitions and goals: producing more and better with less. More agricultural products, in quantity and quality and safety, with less energy and fewer plant pro- tection products, i.e. respecting the environment better" .
Monday 21st February : The agricultural machinery industry in the world Roundtable 1 Gilles Dryancour, President of CEMA and John Deeres Director of Public Affairs for Europe, Africa and the Middle East wished to tackle the issue of the future of Agricultural Machinery in Europe over the next two years. "For 2011, the market is positioning itself on a continuation of the two-speed world recovery where the emerging economies will have to cope with periods of "overheating" with the possible input of outside capital. A reasonable level of austerity will continue to be the order ofthe day in the euro zone. In 2012 the emerging economies should stimulate the growth of other slower economies".Gary L Collar, Senior Vice President and General Manager of Europe, Africa, Middle East, Australia and New Zealand of AGCO Corporation,considers that increasing agricultural production is a major challenge. Indeed, the world’s population will reach 7 billion in 2011 and 9 billionin 2050. Africas population will double by 2050. To be able to cope with this, he indicated that world agricultural production must increaseby 20% every ten years for the next 40 years. Technology is therefore an obvious response provided it is closely linked to respect for theenvironment. Innovation has an essential place in this future vision even though it is an everyday feature thanks to close collaborations withuniversities and precision farming organisations which together are responding to this major challenge. Celso Luis Casale, President of the Brazilian Chamber of Agricultural Machinery and Equipment and President of Casale Equipamentos, offered an insight into the situation in Brazil: the Brazilian sector represents 405 agricultural machinery manufacturers, mainly family firms and around 50,000 direct jobs. Celso Casale gave a quantified analysis of the sales of agricultural equipment, both for the domestic and export markets. Figures which show growing production and momentum in the sector, especially in the domestic market. Between 2004 and 2010, tractors sales nearly doubled from 28,699 to 55,857 units.Konstantin Babkin, President of Rosagromash (the organisation bringing together farming machinery manufacturers in Russia) andChairman of the Board of the Novoe Sodrujestvo (Rostselmash, Empils) Holding, painted a picture of the current characteristics and pros-pects of the sector in Russia. It is an active market that however has been impacted by the crisis. Before this time, the annual growth ratewas 45%. It has now fallen but is tending to stabilise. He showed up strong differences in the level of income among Russians, Americansand Europeans. Konstantin Babkin moreover stated that cereal production in Russia in 2020 could be multiplied by 2 or 3 and even 4 compa-red to now. Goals which supplemented Gary L Collars talk since according to the FAO and the OECD, cereal consumption should increase by299 million tonnes by 2019. Chakib Jenane, Head of the Agro-Industrial Technology Unit and Vice-Director of the Agro-business Development Branch of UNIDO (United Nations Industrial Development Organization), started with an explanation of the trends and development of the sector in develo- ping countries. He analysed the change to current policies in favour of farming that may lead to investment in mechanisation and therefore to an everincreasing demand for agricultural machinery. He continued his contribution by analysing the situation in Africa and the important challenges that countries will have to face in 2050: the number of undernourished people will reach 240 million and Africa will have to face an explosion in food prices and energy costs, growing urbanisation as well as new environmental requirements. It is therefore an essential time for Africa, one with strong economic potential. As indicated the previous day by Geoffrey C Mrema, the potential for me-chanisation in Africa is very high and offers particularly valuable prospects.Baskar Reddy, Joint-Director and Director of the Agriculture Division of the FICCI (Federation of Indian Chambers of Commerce andIndustry) recounted the complexities of the Indian market but also highlighted its quite exceptional dynamism. He explained the sectorsvarious areas of intervention and the needs that they bring with them whether through agricultural cooperation, training and skills deve-lopment as well as through services to businessmen or through loan guarantee funds for the purchase of agricultural machinery... Manyopportunities for partners who must however adapt to the specific characteristics of the local area and the real demand. Roundtable 2 Luc Boyeldieu, CEO of Bourgoin company in France and the manufacturer of corn and vegetable harvesting machines showed how it was becoming extremely important to link the downstream agro-food sectors with agricultural production. Indeed, he showed us how the just-in-time harvesting ma- chines analysed the characteristics of these crops and com- municated them to the food processing workshops in real time making the agro-machinery in the fields a real anti- chamber for the agro-food processes. Peter Schulze Lammers, Chairman of EurAgEng(European Society of Agricultural Engineers) whose purpose is to promote the agricultural engineering profession and bio-systems. Accordingto him, the European market requirements are mainly based on issues linked to competitiveness. However, he indicated that 70% of farms cover less than 5ha. European manufactures must therefore adapt by proposing smaller tools while making machines using cut- ting-edge technology to be able to compete with other producing regions. Mario Bogliani, Director of INTA (National Institute of Agricultural Technology) in Argentina, tackled the issue of Argentinian farm machi- nery in order to review the current situation and reveal the main trends. The area of agricultural production extends over 180.000.000 ha and offers a strong yield potential thanks to cutting-edge technology leaving a large place to the respect of the environment and energy sa- vings. A leader in Latin America of Precision farming and 3rd world producer of bio-fuels, Argentina is an example to the world.Rohtash Mal, President of the Indian tractor manufacturers association and CEO of the Escort group, an Agricultural Machinery manufac-turer, shared with us an initial quantified analysis of the farm machinery market in India, pointing out that annual production is of around500,000 tractors but at the same time, and although 50% of the Indian population are farmers, only 30% own a tractor. He also remindedus of the importance of the respect of cultures and customs as well as that of prevalence of small farms. By using examples of business failu-res in the Indian market, he also showed how, through relevant examples, well-chosen and adapted technologies could meet the considera-ble needs of the machinery market. Su Weike, Vice-President of YTO Group in China, highlighted the goals for his country: going increasingly far in searching innovation, offe- ring increasingly better performing machinery through a greater promotion of joint development, speeding up the processes of internationali- sation of the businesses and encouraging a revision of product quality. Su Weike also showed us how the potential for the development of the market was on the same scale as that of the country, explaining that a group such as Yto, planned to invest in a new production plant producing 75,000 tractors per year. He insisted on the ambition of producing according to international quality standards and norms without excluding his wish to set up a distribution network in the major regions of the world.Hermann Garbers, Member of the Governing Board of the Claas Group and Executive Vice-President of the Group, Technology andQuality department, expressed 3 major challenges for the future. The first will consist of guaranteeing the quality of food supply at afforda-ble prices to an ever-increasing population. The second, using energy from renewable resources, and finally, reducing the carbon footprintwhile preserving the production base. To be able to meet these challenges, he recommends three wide fields of action: productivity, sustai-nability and risk management.
Conclusion Massimo Goldoni, Vice-President of CEMA, concluding, underscored two key points at this 3rd Agrievolution Summit which emerged from the discussions of these two days: Firstly, food security and the farming sectors new health security requirements. Preventing hunger is a priority and this must be organised by using an approach that develops volumes and protects the environment. Next, innovation as well as exchanges of expertise and cooperation between countries will result in promising answers for a sector which is itself just as promising. As strong as it is fragile and subject to many factors whose causes it does not always control: population changes, climate, the specific charac- teristics of regions and crops require that the sector should constantly evolve. Let us not forget one figure: 10% of the worlds farmers own a tractor: the challenge is therefore great.... For global problems, global solutions.Jean-Pierre Bernheim, President of Axema, winding up the discussions hoped that no-one would forget that each time they spoke ofhunger in the world, of farmers or industrialists, we spoke about peoples existence, living and working. Then he wished us to listen to avideo recorded by Bruno Le Maire, French Minister of Agriculture who gave the audience a message of the hope he had for the far-ming sector and Agro-Machinery industrialists that the challenge of increasing farming production while even more respecting the environ-ment would be achieved.Mr Bernheim finally closed the 3rd Summit by thanking all participants and contributors and announced that a 4th Summit would be held.A working group made up of the 3 initial organising countries (Italy, USA, France) would meet to set out the broad outlines of the nextedition. Russia & India have already put themselves forward as candidates. 2013 should therefore be noted by all for the 4th edition of Agrievolution. Participating Countries Feedbacks A word of my greatest appreciation to you and all the people involved with Agrievolution Summit 2011 (South Africa) Thanks for all your workputting Agrievolution together. It was certainly a success. (USA) Your summit was a real success, I found that the subjects where handled with a lotof competence...You did a great job.... (Ukraine) On behalf of the Slovak delegation, thank you and your colleagues for an excellent organization ofsummit. I am looking forward to our further communication and hopefully, cooperation, too. (Slovakia) It was organized very well. Participation of258 representatives from 40 countries reinforces the success of the conference. (India) The Angolese delegation has well appreciated the quality ofthe organization, the conctacts...Everything went very well, the subjects, the contacts... (Angola) It was very interesting and instructive (Ukraine) Thank you very much for all your hard work in arranging a very successful Agrievolution. I found the whole event most interesting and it was a won-derful opportunity to network amongst colleagues. (UK) Thank you, I did appreciate the summit (Israel) Thank you for this very interesting summit !(New Zealand) Congratulation for the organisation and the quality of the participants (Senegal) Congratulations for the conference...The ex-changes between participants were very rich… (France) Thank you for the opportunity to participate in the Agrievolution 2011 and for the hospitalityduring our stay in Paris. For me it was a great pleasure to attend the event which was very organized and goal for which I want to congratulate all ofyou.(Brazil) Thank you so much for your kindness to invite me to the Agrievolution 3rd World Summit. It was a very impressive summit, and I had alot to learn from it. (Japan) Congratulations for the summit. (Germany) I would like to thank you for all the introductions, arrangements andindeed your interest for my visit to SIMA in Paris. The enthusiasm that you displayed is indeed commendable and will go a long way in ensuring vibrantdialogues not only between India and France, but also between various collaborators. Thanks and compliments. (India) We appreciated the confe-rence. Congratulations for the organization and welcome (France / Japan) Congratulations once again on a well organized conference. (Italy)Back in Brussels I would once again like to congratulate you for the organization of Agrievolution. It was really very well organized! (Cema) It was agreat stay at the seminar and the SIMA spectacular exhibition (Chile) We would like to thank you for the excellent organization of the third WorldSummit on Agricultural Machinery, AGRIEVOLUTION 2011, in Paris. It was a great pleasure to attend this event and we would be more then happy toparticipate in your following events. (Ukraine) Congratulations for your organization skills which where fully used (France) I would like to expressmy sincere congratulations for your excellent work aimed to the Agrievolution 2011 success. I did find the roundtables very interesting and it was a greatopportunity to learn about the agricultural machinery in developping countries and emerging economies. On the other hand I want to thank you for yourkind assistance. (Spain) I learned a lot and enjoyed meeting many old friends and new friends (India) I don’t know how to thank you for this won-derful day, your very interesting program and the lovely cruise (China) Such a qualified audience of international level ! (Argentina) We likedvery much what we heard during these two days of conference and what we saw on the exhibition (Angola) I would simply like to thank you… for thewelcoming, the perfect organization and your kind assistance. The delegation has taken good advantages of the rich exchanges and hope to have contri-buted with efficiency to the summit. (Slovakia) My participation and inclusion in the Agrievolution Summit 2011 at SIMA was a bonus to and yet an-other opportunity to expand my contacts and database even more… Congratulations to Agnes, AXEMA, SIMA, CEMA, and UBIFrance for this opportunityand the excellent hosting of such an event. Good luck with Agrievolution 2013 (South Africa) Well done! (UK) 3rd Agrievolution Summit 2011Paris: I really appreciated it (Afghanistan) Thank you (Russia) Thank you for all the work you have done (Slovenia) To conclude onAgrievolution [and the planning of a 4th edition], most certainly, agriculture and our industry will remain high on the global agenda for the next comingyears (CEMA / Europe) www.agrievolution2011.org Agrievolution 2011 Contact : AXEMA— Agnès Cécile HOTTIN 33.(0).18.104.22.168.90 firstname.lastname@example.org