Karla Canavan 2014 2 LIMA AUGUST 2014 Disclaimer Todays presentation includes forwardloo!in" statements t#at reflect $un"es current %iews wit# respect to future e%ents& financial performance and industry conditions' T#ese forwardloo!in" statements are su()ect to %arious ris!s and uncertainties' $un"e #as pro%ided additional information in its reports on file wit# t#e S*+ concernin" factors t#at could cause actual results to differ materially from t#ose contained in t#is presentation and encoura"es you to re%iew t#ese factors' T#e information contained #erein is (ased on currently a%aila(le information and sources& w#ic# we (elie%e to (e relia(le& (ut $un"e does not represent it is accurate or complete' ,orwardloo!in" statements contained #erein are (ased on assumptions w#ic# $un"e (elie%es to (e relia(le& (ut suc# statements are in#erently su()ect to c#an"e and $un"e SA do not represents t#em to (e accurate or complete' T#e recipient of t#is presentation must ma!e its own in%esti"ation and assessment of t#e ideas and concepts presented #erein' Any responsi(ility or lia(ility for any suc# information is e-pressly disclaimed' 3 LIMA AUGUST 2014 A(out $un"e ,ounded in 1.1. $un"e (uys& sells& stores and transports oilseeds and "rains to ser%e customers worldwide/ processes oilseeds to ma!e protein meal for animal feed and edi(le oil products for commercial customers and consumers/ produces su"ar and et#anol from su"arcane& mills w#eat& corn and rice to ma!e in"redients used (y food companies/ and sells fertili0er in 1ort# and Sout# America' Our Mission: Enhancing lives by improving the global agribusiness and food production chain 4 LIMA AUGUST 2014 The food challenge: 5 LIMA AUGUST 2014 2opulation Growt# T#e world population& currently 3 (illion& is e-pected to reac# 4'3 (illion (y 2050 and 10'1 (illion (y 2100 Data from U1D*SA& 2011 6 LIMA AUGUST 2014 +an it (e done5 MAGNITUDE OF CHANGE BY 2050 ADDITIONAL QUANTITIES BY 2050 Population increases 28% Tons of food required 1.3 billion mt Food production increases 70% Served by trade .3 billion mt rain and oilseed increases !0% "et by local production 1.0 billion mt Trade increases 100% #an it be done$ %es Source& 'un(e 3 LIMA AUGUST 2014 6*DD 7 & Landscape approac#& +limate smart a"riculture . LIMA AUGUST 2014 8e #a%e a "ood (aseline 9 1 out of e%ery 3 calories is wasted ,ood :uantity does not e:uate nutrition :uality ;<en!at 2011/ Gusta%sson et al' 2011= Si"nificant production "ap e-ists (etween small #older farmers and t#e a%era"e 4 LIMA AUGUST 2014 >ow5 T#e solution is clearly multidimensional (ut s#ould (e sustaina(le some !ey pieces include ?r"ani0ation ?ptimi0ation of all lin!s in t#e %alue c#ain t#at include production& distri(ution& consumption and disposal' T#in!in" a(out 6esource efficiency and (est practices Inno%ation Scalin" up t#e small #older farmer a"riculture And access to finance 10 LIMA AUGUST 2014 The challenge The transition from a successful project to a successful business @ +ritical mass @ 2rofessional mana"ent @ 2rofita(le (usiness 8#ic# "i%es it access to finance 11 LIMA AUGUST 2014 Scaling up small holder agriculture: 12 LIMA AUGUST 2014 Small #older sustaina(le a"riculture Womenas t#e leadin" role 6esource efficiency and (est practices A 7 B B B B Magnitude of t#e results %ary considera(ly on a case (y case (ut t#ey will "et (enefits and increase t#eir monetary& social and natural capital B 13 LIMA AUGUST 2014 ?r"ani0ation is !ey Self >elp Group +lusters +ooperati%e 2roduction +ompany 14 LIMA AUGUST 2014 6esource *fficiency9 8ater Water !mbalance @ 30C of eart# co%ered wit# water @ Less t#an 1C of water is a%aila(le as fres# or "round water for people to use @ 1ot e%enly distri(uted "ood and Water @ ,ood and a"riculture are t#e "reatest users of water @ 30C of water used @ Su(stantial part is wasted or polluted 15 LIMA AUGUST 2014 *-amples of resource efficiency T#e water pond Spacin" at sowin" spoc i ro m 9 to 14 incb c Seed usage: 25 to 30!" less per #ectare #roduction: 25 to 30C more When less is moie 16 LIMA AUGUST 2014 $est 2ractices 2ac!a"e for e-ample Irri"ation and moisture conser%ation 2lou"#in" ;pre sowin"= Soil tests and fertili0er Spacin" Mid season weed control 2est and disease control And from t#ere learn :uality control& product #andlin"& conser%ation& transportation and commerciali0ation 13 LIMA AUGUST 2014 Some le%era"e factors Li%estoc!' >a%in" small animals at #ome pro%ides additional nutrition to t#e #ouse#old& and en#ances t#e li%e of t#e community ,ruit trees' mi"#t pro%ide a natural (arrier for crops w#ile pro%idin" additional nutrition to t#e communities 1. LIMA AUGUST 2014 Sustaina(le a"riculture %alue c#ain !nputs #lanting $arvesting Storage Commerciali%ation "inance 14 LIMA AUGUST 2014 T#e >appy ,armerD $y 1440& less t#an 40C of t#e "lo(al population li%ed in a city& (ut as of 2010& more t#an #alf of all people li%e in an ur(an area' $y 2030& 6 out of e%ery 10 people will li%e in a city& and (y 2050& t#is proportion will increase to 3 out of 10 people' Source& )orld *ealt+ ,r(anisation 20 LIMA AUGUST 2014 In Summary To streamline t#e supply c#ain & inter%entions are needed in almost e%ery lin! of t#e supply c#ain' T#e room for impro%ement is %ery si"nificant A"riculture not only produces food (ut "enerates income and supports rural li%eli#oods Its not only a(out :uantity (ut :uality t#e :uestion forward s#ould (e nutrition security Smart and resilient crops Inte"rated farmin" To ac#ie%e t#is we need farmers and #appy ones 21 LIMA AUGUST 2014 T#an! you Karla Canavan &arla'canavan(bunge'com Commercial )irector* West +unge ,nvironmental Mar&ets +unge "SG )istribution and "inancial Structures Office -4122./2/010 Mobile -411/4220./1 3S Mobile -11042004042