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Practical solutions to

Sustainable Food Value

Chains

Ian Roberts

Monte Verità

22 June 2015

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Bühler at a glance. Global market leader with strong roots in local markets.

Group turnover (sales) 2014: CHF 2,332 million.

Around 10,600 employees.

Present in nearly 140 countries.

Today, 80 service stations globally.

Commitment to education 600 apprentices in training globally.

Latest milling school opened in Nairobi Q1 2015.

Production sites in all regions.

Up to 5% of turnover invested in research & development.

Consistently high quality standard worldwide.

100% family-owned.

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

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New business models

Agriculture Logistics Processing Manufacturing Distribution Retail Consumption

65%

of global wheat

production is covered

by Bühler milling

solutions. 4.5 billion

people live on wheat.

30%

of global rice

production is covered

by Bühler solutions.

Rice is the staple food

for 3 billion people.

60%

of all chocolate is

produced on Bühler

plants. 4 million tons

of cocoa beans are

harvested every year.

40%

of industrially made

pasta is produced

using Bühler

technology.

50%

of industrially

processed maize.

20%

of industrially

processed animal

feed.

Bühler provides processing solutions from post

harvest storage to manufactured consumer goods

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

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Seed/plants

Pesticide

Fertilizer

Water

Tools

Farmer practices

Yield/hectare

We have made extraordinary progress on a field level

Tonnes of crop

Access to market

Scale and leverage

Stabilization & preservation

Local value addition

Job creation

Fair prices/transparency

Waste

Market Pull

But, sustainable value chains require system thinking and entrepreneurial players

along the value chain. Success will be business driven.

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

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Enabling entrepreneurs in Mozambique

• In rural areas child malnutrition rates are above

50%.

• Local farmers have little access to finance or the

market.

• They have low yield and no access to yield

enhancing technologies.

• No scale to sell beyond roadside trading.

• Local supermarkets have imported products and

products produced with imported ingredients.

• Domestic value chains are not developed.

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

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AgDevCo invests in commercially viable local businesses that partner with local farmers ECA- Empressa De Comercializacão Agricola

Objective is to build a business sourcing from 50’000 farmers

5’000

farmers

maize

ground nuts

soya Guaranteed

offtake

SABMiller

Supply to

WFP

Access to

open market

Investment from

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

Guarenteed sale

Transparent pricing

Immediate payment

$$$

Technology & training

Seeds & tools

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Access to right-sized, industrial quality processing supports value chain development

Understand the local market.

Down scale

Localise technology.

Maintain quality and low ops. costs

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

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What are the results?

• Farmers are investing in growth.

• Farmers are behaving as entrepreneurs.

• Increasing farm size.

• Investing in the future: education for kids.

• The ECA business is growing.

• $1.4 million TO in 5th year.

• There is market pull.

www.agdevco.com

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

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©2015 PARTNERS IN FOOD SOLUTIONS 10

Sharing knowledge to create sustainable value chains

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Stella Kimemia, Owner and Managing Director Located in Nairobi, Kenya Products: Classic Fresh Milk (pasteurized & homogenized

milk),

Strawberry Yoghurt, Vanilla Yoghurt, Classic Lala,

Classic Sweetened Lala, Capital Flour, Capital

Mineral Water, Cape Fruit Juice, Capital Honey,

Capital Tomato Sauce & animal feed.

©2015 PARTNERS IN FOOD SOLUTIONS 11

Classic Foods

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Classic Foods turned to Partners in Food Solutions

(PFS) to further expand its business and support

farmers.

- optimizing their feed formulation,

- increasing the shelf life of their milk products, and

- starting a complementary porridge line that will

make the best use of the grains used in the animal

feed line.

©2015 PARTNERS IN FOOD SOLUTIONS 12

Business facts & PFS projects

©2015 PARTNERS IN FOOD SOLUTIONS 13

CLASSIC FOODS’ BUSINESS IMPACT

Classic Foods 35 employees

25’000 dairy farmers

36’000 maize farmers

5’000 fruit farmers

Retail

Animal Feed

Only building the total value chain provides income to 66’000 farmers.

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Practical Solutions to Sustainable Food Value Chains/CTO/June22.

34 Members – ETHZ and Eawag Partnership Council

Collaboration between disciplines, public-private and

value chain players is a pre-requisite

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Agriculture Logistics Processing Manufacturing Distribution Retail Consumption

Climate pattern

Field location

Crop type/maturity/homogeneity

Contamination/damage

Harvest support

Drier network & load

Energy monitoring

Storage monitoring

Energy & crop trade prices

Traceability

Load & productivity

Energy monitoring

Job planning/sharing

Preventive maintenance

Load & productivity

Energy monitoring

Job & Maintenance planning

Consumer market trends

Logistic management

Consumer market trends

Energy monitoring

Loss prevention

Logistic management

Consumer market trends

Energy monitoring

Sustainability indicators

Consumer trends

Local habits

Product traceability

Demand creation

Collaboration and IoT can enable sustainable value chains

Multiple opportunities will be unlocked if data and knowledge can be shared,

analysed and utilised to optimise value chains

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

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Agriculture Logistics Processing Manufacturing Distribution Retail Consumption

We need to bring new thinking and new approaches to

sustainably solve old problems

Leapfrog technologies - IoT, Big Data Data, MOOCs

Automated processes: low cost sensors

Knowledge and education at your fingertips

Transparency across the value chain

Unlock the entrepreneurial talent

Access to finance, tools, technology and advice.

Think systems, collaboration and wealth creation.

Practical Solutions to Sustainable Food Value Chains/CTO/June22.

Look for market pull to drive impact..

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www.buhlergroup.com