1 BOGOTA SEPTEMBER 2014 «Scaling up sustainable agriculture and optimizing the value chain» Karla Canavan Bogota September 2014

1 BOGOTA SEPTEMBER 2014

«Scaling up sustainable agriculture and optimizing the value chain»

Karla Canavan

Bogota September 2014


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.


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


People and food, some context:


Population GrowthThe 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


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


We have a good baseline :

1 out of every 3 calories is wasted

Food quantity does not equate nutrition quality

(Venkat 2011; Gustavsson et al. 2011)

Significant production gap exists between small holder farmers and the average


Better planning : Enough food produced…but no food access?


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


Scaling up small holder agriculture:


Small holder sustainable agriculture

Women as the leading role Resource efficiency and best practices =+

$ $ $

$

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

Self Help Group

Clusters

Cooperative Production Company


Examples of resource efficiency

The water pond Spacing at sowing

Seed usage:

25 to 30kg less per hectare

Production:

25 to 30% more

When less is more


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


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


Some leverage factors

Livestock.- Having small animals at home provides additional nutrition to the household, and enhances the live of the community

Fruit trees.- might provide a natural barrier for crops while providing additional nutrition to the communities


Sustainable agriculture value chain

Inputs Harvesting Commercialization

Finance


The challenge “The transition from a successful project to a successful business”

• Critical mass

• Professional managent

• Profitable business

Which gives it access to finance


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


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


Thank you

Karla Canavan

[email protected] Director, WestBunge Environmental Markets Bunge FSGDistribution and Financial Structures

Office +41225929878Mobile +41794230591 US Mobile +17862086842


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1 BOGOTA SEPTEMBER 2014 «Scaling up sustainable agriculture and optimizing the value chain» Karla Canavan Bogota September 2014