1. Information from the agricultural industry | MARCH 2013
AGRICULTURAL DIALOGUE 18
Editorial
Dear Readers,
Acting sustainably in
agriculture is a prerequisite
for protecting the future
of global food production and farming.
Despite widespread consensus on the need
for more sustainable agriculture, debate
continues on what exactly that entails. BASF
is convinced that it can only be achieved
by considering economic, ecological and
social requirements collectively.
Acting in a way that accurately balances
these requirements is challenging but it
can be achieved with models that enable
an objective comparison of such impacts
and key variables. In 2011, BASF used
Viewing sustainability from all angles its experience in the development of
eco-efficiency analysis tools to launch
AgBalance, a holistic scientific methodology
Sustainability is now a major challenge for farmers as they face up to the to measure agricultural sustainability.
reality of globalization and the need to produce more with less. By its true Based on economic, environmental, and
definition, it can only be evaluated when a range of indicators covering social indicators, AgBalance has been
specifically developed to help all food
economic, social and environmental dimensions are considered collectively
value chain stakeholders test their views on
across the entire food and feed value chains. A holistic assessment is the only sustainable agriculture, have a more fact-
way to provide a scientific basis for informed, fact-based decision making based dialogue and identify the key drivers
on how to improve the sustainability of any given agricultural production for improvement.
system. In this edition of the Agricultural Dialogue
we would like to give you an understanding
Despite consensus on the need for sustainable agriculture, debate continues of our approach to measure sustainability
on what it means. A common understanding, however, is the need to balance in agriculture. We are also delighted that
each of the three pillars - namely environment, society and economy. this issue includes interviews with two
noted sustainability experts, Prof. Dr.
Therefore sustainability becomes a matter of equilibrium between the global,
Lucia A. Reisch, Member of the German
local and micro benefits and impacts of the three categories. Sustainability Council, and Drew Purves,
Head of the Computational Ecology and
Reaching accurate, objective measurement Environmental Science Group at Microsoft
Research Cambridge.
Supporting and improving sustainability in agriculture is a key element of
BASF’s business strategy. As a global provider of agricultural solutions we
have a longstanding tradition of helping farmers achieve their goals.
Markus Heldt
President, Crop Protection Division, BASF SE

2. Agricultural Dialogue 18 2
The company has strived to apply objective, accurate and standardized
tools for assessing sustainability in different sectors; in fact our
methodologies have been successfully applied in over 500 studies in
the past 15 years.
AgBalance, BASF’s new method for measuring and evaluating
sustainability in agriculture, is a lifecycle analysis tool that compares
farm operations while taking all dimensions into account. The method
provides a pragmatic sustainability score and includes the entire
food and feed value chains, namely manufacturers of crop protection
solutions, distributors, farmers and retailers.
How AgBalance works
AgBalance can be applied to any geographical scope or agricultural Did you know?
process. After outlining the core questions of a study, BASF experts
Soil is by far the most biologically
assess if all data are available, and if any further topics need to be
diverse part of Earth. A handful of soil
considered to conduct an accurate assessment. Once the frame and
may contain more than 10 billion micro-
content is agreed, data collection starts for each of the 69 indicators
organisms. The soil environment
BASF uses as the basis for its sustainability evaluation. This information
is home to an even larger share of
is then screened and the units standardised before being fed into the
biodiversity than tropical forests.
calculation system. Each study makes a comparative assessment
of these results against BASF’s database of similarly scoped and According to the European Environment
geographically located assessments, to benchmark the sustainability Agency (EEA), almost 21% of Europe
profile on a scale for comparison. consists of protected areas. This
compares to roughly 13% in the USA,
As AgBalance is a comparative analysis tool, it is important to include
17% in China and more than 26% in
as many readily available factors as possible for consideration. Different
Brazil.
alternatives are defined by the production systems (e.g. fertilizer
regime, pesticide regime), agricultural practices (no-till, conventional till, According to the European Commission
other differences in machinery used), extensive/intensive production, (DG Agriculture), on average, 44% of
irrigation, growing regions (with concurrent differences in environmental, total water abstraction in Europe is
and socio-economic background), and the type of crop and different used for agriculture.
crop rotations. The United Nations estimates that
agriculture is the single largest employer
A BASF contribution to sustainable agriculture
in the world, providing livelihoods for
Having a common framework for assessing sustainability and the 40% of today’s global population.
benefits and impact of different options helps farmers, business and
Europe has 13.7 million farmers and an
authorities make informed decisions. The challenges ahead are pressing.
average farm size of about 12 hectares
To achieve higher yields on existing land using fewer resources, whilst
(by way of comparison, the US has 2
ensuring profitability, protection of the environment and respect for
million farmers and an average size
society, we must start with a level playing field in how we measure
of 180 hectares). Women farmers
sustainability.
represent over 35% of the agricultural
workforce in Europe.
Guarani Case Study
Guarani, the third largest group in the Brazilian sugar-energy sector
(producing 900,000 m³ of ethanol each year), commissioned an AgBalance
study in 2011. The goals were to identify the real sustainability challenges
in the sugar-energy production chain, while noting good practices and
areas for improvement among Guarani’s business units.
The results pointed out specific operational processes at the farm that
could be improved by applying simple management measures. The
AgBalance study identified higher mechanization at harvest, together with
higher use of sugar cane by-products as fertilizers, as the key areas for
improvement. The study also noted that use of sugar cane by-products
could reduce the impact of farming on the environment, as this leads to
less energy consumption and a decrease in greenhouse gas emissions.

3. INFORMATION FROM THE AGRICULTURAL INDUSTRY | MARCH 2013 3
About Prof. Dr. Lucia A. Reisch
Prof. Dr. Lucia A. Reisch studied
Economic Sciences at the
University Hohenheim and Business
Administration at the UC Los
Angeles, USA. She has been a
professor for intercultural research in
consumption and consumer policy
at the Copenhagen Business School
since 2006.
Having written more than 300
The Science of Measurement publications, she also participates
in several EU research projects on
Prof. Dr. Lucia A. Reisch, Member of the German sustainable consumption, health
Council for Sustainable Development (RNE), and behavior of children as well as youth,
professor at Copenhagen Business School and
consumer and nutrition policy.
Zeppelin University, Friedrichshafen (Germany)
discusses the current trends in sustainability. From 2001 to 2011, she chaired
As a specialist in consumer behavior, what the scientific advisory board for
trends are you witnessing in terms of consumer consumption and nutrition policy
demand for sustainable food production? of the Ministry for Food, Agriculture
Present trends include regionalization and the and Consumer Protection (BMELV)
demand for organic products – despite the crisis. Fair Trade is another in Berlin. She has been chairperson
growth area, but only in a few sectors. In addition to neutral carbon of the German consumer committee
dioxide production, which is used in Scandinavia as a special indicator of the state of Baden-Württemberg
of sustainability, the issue of multiple applications is another trend that since 2006 and a member of the
is increasing in importance. In this area there are already numerous German Council for Sustainable
marketing campaigns with the underlying message “Better for you, Development (RNE) since June 2010.
better for your pocket, better for the environment”.
In addition, home growing has acquired greater importance. This Prof. Dr. Lucia A. Reisch is,
movement has a strong social dimension. Home growing has a strong among others, a member of the
community effect and also involves a return to neighborliness. conference for Sustainability Baden-
Labeling should not be forgotten. It is a central theme. I notice that Württemberg, a member of the
many traders are very focused on it. Competition has been created management board of Stiftung
and it is putting pressure on politics. It is to be encouraged, I think. Warentest Berlin, and a member of
From your point of view – how important is the science of the council of the Utopia foundation
measurement for achieving goals towards sustainable production? Munich.
“Only what you can measure can be compared” - I support this idea.
I therefore consider that measurement and data assessment are
extremely important. Even when the measurement processes are so
complicated that they cannot be easily communicated to consumers,
this approach is very important for the food chain and all actors within
it. We can only define clear goals, check them and communicate them
if we have data. Consequently, it would be hard to exaggerate the
importance of good systems of measurement.
RNE has granted BASF’s AgBalance an ideas award. What aspects
of the method particularly stood out?
The issue of sustainability in agriculture is complex and, indeed, there
is a lot of factual information available about it. The RNE welcomes
the fact that a big company like BASF is nevertheless - or maybe for
this very reason - concerned with this issue. BASF is a large chemical
company and thus has a great responsibility. The company has now
said - yes, we have a network and we have the means and are now
beginning to analyze the systematic measurement of sustainability -
which is an attitude worth supporting. Also, to our knowledge, attempts
to represent all aspects of sustainability (as we see in AgBalance) are
not yet happening on a consistent basis.

4. Agricultural Dialogue 18 INFORMATION FROM THE AGRICULTURAL INDUSTRY | MARCH 2013 4
Similarly, there is transparency about AgBalance: information is given
on the method, weighting and sources. Sensitive issues such as genetic Drew Purves is the
engineering are not left out, but are instead set out for discussion. Head of the Compu-
Of course, the RNE was also asked why a chemical company like BASF tational Ecology and
was recognized in this year’s ideas contest – but for us the approach of Environmental Science
AgBalance was central. In our view, this is a good approach. And I am Group (CEES), a part
of the Computational
also convinced that the method will be of interest to other industries.
Science Lab at
What do you expect from BASF, as the owner of such a method, in Microsoft Research
order to make progress in sustainable agriculture? Cambridge. CEES does
BASF has a special responsibility but also the means and the ecological research and
opportunities to develop a method such as AgBalance. Consequently, predictive modelling of global-scale
environmental phenomena. Recent projects
we would welcome it if they made this method available to others who
include the world’s first fully data-constrained
are interested in it but who might lack the necessary means. This would model of terrestrial carbon, the world’s
favor progress in sustainable production and improved processes. first ‘general ecosystem model’ GEM,
BASF has agreed to this as well. FetchClimate and tool for helping the IUCN
In many people’s minds sustainability is more closely linked with with their red-listing process.
environmentalism than economic or societal requirements. How How can models help in achieving
does the Sustainability Council work to redress this balance? environmental sustainability’?
This link is strongly culturally dependent. In Scandinavia the idea When engineers design cars, bridges and
of sustainability derives from a strong social dimension – that of planes, they use computer models. The
Corporate Social Responsibility (CSR). In Germany it began with the models allow them to quickly test complex
environmental movement and the church movement for Fair Trade. In ideas in the computer and to foresee
the UK, animal rights were the driving force for many years. So we must problems before they occur. For the same
distinguish here. reasons, we need predictive models of
environmental systems, like forests, fisheries,
The Council for Sustainable Development in Germany has a very broad food production, and biodiversity. With such
approach in order to contribute to different needs. Firstly, we deal models we can try out different policy options
with the question of the culture of sustainability: what are the cultural in the computer, in order to find the best way
prerequisites for sowing the seeds of sustainable activities on fertile to manage our natural resources – rather
soil? Secondly, we provide a shopping guide with the «Sustainable than do it by trial and error in the real world.
Shopping Basket» project that gives equal consideration to the Why ‘predictive’?
environmental and social dimensions. The German Sustainability Code
Because ultimately, sustainability is about
of course includes all dimensions of sustainability.
the future. The models can predict important
Making sustainable choices is a highly complex task, as AgBalance things about ecosystems (say, sustainable
also demonstrates. What advice do you have for politicians, industry timber yield) that have not yet been observed,
and farmers? for places we have never been to, for the
First of all: information is important. The measurement of data and future (a time we have never been to!) and
most importantly of all, under policy and
information about this is essential. Data must be independently monitored
management options that we have never
and taken very seriously. The same holds true for consumer labels. tried before.
In addition, however, we know from behavioral research on consumer
What do you mean by a ‘joined up’
decisions that a sustainable choice must be the obvious choice, as approach to environmental sustainability,
highlighted in the motto «Make the sustainable choice the easy choice». and why can models help with this?
If the offer is attainable, consumers will take it into account. Therefore a
critical role is increasingly being played by public services – canteens, You can’t solve any environmental problem
in isolation. Take food production. We need
for example. Here there is a lot of leverage to pick up consumers.
to reduce inputs like energy and fertilizer in
From my perspective, the sustainability discourse at the retail level Europe. But if this reduces yields, then food
is often overloaded with information and unemotional. This approach prices will rise, which encourages tropical
certainly reaches the experts and stakeholders in the value chain. For farmers to clear more forest for agriculture,
end customers, we need to have done our job already and offer them which releases the carbon that was stored in
a serious, simple, obvious choice that includes sustainable production. the trees as CO2, which increases pressure to
reduce emissions further, which encourages
biofuels, which takes land from farming,
Imprint which pushes up food prices, and all the time
BASF SE Rainer von Mielecki the climate is changing … In short, we need
to assess all aspects of the environment,
Agricultural Center Limburgerhof AP/K – Public/Government Affairs
society and economy together, and find the
AP/K - LI555 Phone: +49 (0) 621 / 60-27 511 best joint solution that we can. Models are
crucial here, because they allow us to move
67117 Limburgerhof Fax: +49 (0) 621 / 60-27 512
away from these endless verbal arguments,
Germany rainer.mielecki@basf.com and instead put actual numbers on these
kinds of linkages in the system.
www.agro.basf.com Editor: Tassilo Galitz