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Karla Canavan

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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 …

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.

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  • 1. «Scaling up sustainable agriculture and optimizing the value chain» Karla Canavan November 2013 1 2013 TBLI CONFERENCE ZURICH
  • 2. 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. 2 2013 TBLI CONFERENCE ZURICH
  • 3. 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 3 2013 TBLI CONFERENCE ZURICH
  • 4. People and food, some context: 4 2013 TBLI CONFERENCE ZURICH
  • 5. 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 5 2013 TBLI CONFERENCE ZURICH
  • 6. and the food challenge… According to the FAO food production needs to increase by 70% to meet the population needs.The absolute quantities of food necessary to feed the world in 2050 are substantial. Assuming no change in population growth, food consumption patterns and food waste management, the following production increases must take place by 2050: • cereals production must increase by 940 million tonnes 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. Tilman et al. 2011 6 2013 TBLI CONFERENCE ZURICH
  • 7. and the food challenge… According to the FAO food production needs to increase by 70% to meet the population needs.The absolute quantities of food necessary to feed the world in 2050 are substantial. Assuming no change in population growth, food consumption patterns and food waste management :cereals production must increase by 940 million tonnes to reach 3 billion tonnes and a similar increases needs to happen to meat and oilseeds; but Some studies say that Yield trends in maize , rice and soybeans are insufficent to reach desired production Tilman et al. 2011 Ray, Mueller ,West , Foley 2013 7 2013 TBLI CONFERENCE ZURICH
  • 8. Better planning : Enough food produced… but no food access? 8 2013 TBLI CONFERENCE ZURICH
  • 9. 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 9 2013 TBLI CONFERENCE ZURICH
  • 10. We have a good baseline : 1 out of every 3 calories is wasted Significant production gap exists between small holder farmers and the average Food quantity does not equate nutrition quality (Venkat 2011; Gustavsson et al. 2011) 10 2013 TBLI CONFERENCE ZURICH
  • 11. 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 11 2013 TBLI CONFERENCE ZURICH
  • 12. Scaling up small holder agriculture: 12 2013 TBLI CONFERENCE ZURICH
  • 13. 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 13 2013 TBLI CONFERENCE ZURICH
  • 14. Small holder sustainable agriculture Women as the leading + Resource efficiency and best practices = role $ Magnitude of the results vary considerably on a case by case but they will get benefits and increase their monetary, social and natural capital $ $ 14 2013 TBLI CONFERENCE ZURICH $ $
  • 15. Organization is key Cooperative Production Company Clusters Self Help Group 15 2013 TBLI CONFERENCE ZURICH
  • 16. 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 16 2013 TBLI CONFERENCE ZURICH
  • 17. Examples of resource efficiency The water pond Spacing at sowing 9 14 Seed usage: 25 to 30kg less per hectare Production: 25 to 30% more When less is more 17 2013 TBLI CONFERENCE ZURICH
  • 18. 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 18 2013 TBLI CONFERENCE ZURICH
  • 19. Some leverage factors Livestock.- Having small animals at home provides additional nutrition to the household, and enhances the live of the community 19 2013 TBLI CONFERENCE ZURICH Fruit trees.- might provide a natural barrier for crops while providing additional nutrition to the communities
  • 20. Sustainable agriculture value chain Inputs Harvesting Planting Commercialization Storage Finance 20 2013 TBLI CONFERENCE ZURICH
  • 21. The challenge “The transition from a successful project to a successful business” • Critical mass • Professional managent • Profitable business Which gives it access to finance 21 2013 TBLI CONFERENCE ZURICH
  • 22. 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 22 2013 TBLI CONFERENCE ZURICH
  • 23. 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 23 2013 TBLI CONFERENCE ZURICH
  • 24. Thank you Karla Canavan karla.canavan@bunge.com Commercial Director, West Bunge Environmental Markets Bunge FSG Distribution and Financial Structures Office +41225929878 Mobile +41794230591 US Mobile +17862086842 24 2013 TBLI CONFERENCE ZURICH
  • 25. 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 25 2013 TBLI CONFERENCE ZURICH
  • 26. 26 2013 TBLI CONFERENCE ZURICH

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