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Climate Change and the value chain


Karla Canavan
2014
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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'
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A(out $un"e
,ounded in 1.1. $un"e (uys& sells& stores and transports
oilseeds and "rains to ser%e customers worldwide/ processes
oilseeds to ma!e protein meal for animal feed and edi(le oil
products for commercial customers and consumers/ produces
su"ar and et#anol from su"arcane& mills w#eat& corn and rice to
ma!e in"redients used (y food companies/ and sells fertili0er in
1ort# and Sout# America'
Our Mission: Enhancing lives by improving the global
agribusiness and food production chain
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The food challenge:
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2opulation Growt#
T#e world population& currently 3 (illion& is e-pected to reac# 4'3 (illion (y 2050 and
10'1 (illion (y 2100
Data from U1D*SA& 2011
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+an it (e done5
MAGNITUDE OF CHANGE BY 2050 ADDITIONAL QUANTITIES BY 2050
Population increases 28% Tons of food required 1.3 billion mt
Food production increases 70% Served by trade .3 billion mt
rain and oilseed increases !0% "et by local production 1.0 billion mt
Trade increases 100% #an it be done$ %es
Source& 'un(e
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6*DD 7 & Landscape approac#& +limate
smart a"riculture
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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
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>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
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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
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Scaling up small holder agriculture:
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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
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?r"ani0ation is !ey
Self >elp Group
+lusters
+ooperati%e
2roduction +ompany
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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
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*-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
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$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
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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
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Sustaina(le a"riculture %alue c#ain
!nputs
#lanting
$arvesting
Storage
Commerciali%ation
"inance
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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
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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
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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

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