«Scaling up sustainable agriculture and
optimizing the value chain»
Karla Canavan
Bogota September 2014
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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.
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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
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People and food, some context:
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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
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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
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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)
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Better planning : Enough food produced…
but no food access?
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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
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Scaling up small holder agriculture:
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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
$
$
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$
$
Organization is key
Cooperative
Production Company
Clusters
Self Help Group
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Examples of resource efficiency
The water pond
Spacing at sowing
𝑠𝑝𝑎𝑐𝑖𝑛𝑔 𝑓𝑟𝑜𝑚 9 𝑡𝑜 14 𝑖𝑛𝑐ℎ𝑒𝑠
Seed usage:
25 to 30kg less per hectare
Production:
25 to 30% more
When less is more
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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
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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
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Some leverage factors
Livestock.- Having small
animals at home provides
additional nutrition to the
household, and enhances
the live of the community
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Fruit trees.- might provide a
natural barrier for crops
while providing additional
nutrition to the communities
Sustainable agriculture value chain
Inputs
Harvesting
Planting
Commercialization
Storage
Finance
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The challenge
“The transition from a successful project to a
successful business”
• Critical mass
• Professional managent
• Profitable business
Which gives it access to finance
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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
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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
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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
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