Reducing Post-harvest Loss Reducing Post-harvest Loss to Advance Food Securityto Advance Food Security

Steve Sonka, DirectorSteve Sonka, Director

June 6, 2012June 6, 2012

AGENDAAGENDA

• Future food security challenges

• Several “views” of post-harvest loss

• Post-harvest loss from an economic decision lens

• The ADM Institute and its contributions

Global Food Demand Is Predicted to Increase Global Food Demand Is Predicted to Increase 70% by 2050 70% by 2050 (FAO; 2009)

Dietary changes in developing countriesPer capita food consumption

2030 Food Demands Require 2030 Food Demands Require About 200 Million More Hectares About 200 Million More Hectares (McKinsey; 2011)

McKinsey Global Institute’s Resource RevolutionCommodity Price Changes Commodity Price Changes Tell Interesting Story Tell Interesting Story (McKinsey; 2011)

AGENDAAGENDA

• Future food security challenges

• Several “views” of post-harvest loss

• Post-harvest loss from an economic decision lens

• The ADM Institute and its contributions

X

PHL Varies by Region PHL Varies by Region (FAO; 2011)

Kgper year

Per capita food waste and food loss (Kg/year)

DATA!

PHL Varies by Commodity PHL Varies by Commodity (FAO; 2011)

PHL Varies Across Growing ConditionsPHL Varies Across Growing Conditions(IBRD/WB; 2011)

PHL Varies Between Countries:PHL Varies Between Countries:For Same Crop For Same Crop (FAO; 2002)

PHL Varies Between States PHL Varies Between States Within One Country Within One Country (ADM Institute; 2012)

A More Specific Perspective:A More Specific Perspective:Rice in SE Asia Rice in SE Asia (IRRI; 2011)

ConsumptionCrop

In SE Asia, physical losses range from 15-25%.

Quality losses range from 10-30% (loss in value)

Reducing PHL and Increasing YieldsReducing PHL and Increasing YieldsHave High Potential Have High Potential (McKinsey; 2011)

Little Attention Is Devoted Little Attention Is Devoted to PHL and Yields to PHL and Yields (McKinsey; 2011)

Why Reduce Post-harvest Loss?Why Reduce Post-harvest Loss?Some HypothesesSome Hypotheses

• Estimates suggest 1/3 of agricultural production is “wasted” and doesn’t reach food consumer

• Investment required to reduce PHL could be modest

• Technology advances should make reduction more feasible and less expensive

• Arable land, water, energy are in limited supply – reducing PHL can lessen pressure on scarce resources

AGENDAAGENDA

• Future food security challenges

• Several “views” of post-harvest loss

• Post-harvest loss from an economic decision lens

• The ADM Institute and its contributions

X

X

ReducedLoss (%)

Value$s

100 % Reduction

50 % Reduction

CurrentSetting

Benefits of Reduction(Quantity & Quality)D

SCost of Reduction

D1

S1

Investable FrameworkInvestable Frameworkfor Reduction of Post-harvest Lossfor Reduction of Post-harvest Loss

IMPLEMENTATION

IMPLEMENTATION

AGENDAAGENDA

• Future food security challenges

• Several “views” of post-harvest loss

• Post-harvest loss from an economic decision lens

• The ADM Institute and its contributions

X

X

X

Fall, 2010 Initial conversationsJan 19, 2011 Official announcement & celebration

$10 Million gift India/Brazil emphasis Staple crops

Feb, 2011 Seed research efforts initiated $0.4 million in funding allocated

Mar /Jul, 2011 Visioning processesFall, 2011 RFP issued

$2.1 million in funding allocatedThroughout 2011 – Prospecting for collaborating entities

Timeline of the ADM InstituteTimeline of the ADM Institute

Vision StatementVision Statement

Key elements include:

• To be an international information and technology hub

• To encompass technologies, practices and systems

• To focus on staple crops in key agricultural domains

The ADM Institute for the Prevention of The ADM Institute for the Prevention of Postharvest LossPostharvest Loss

Research ThemesResearch Themes

Our Aspirational ContributionsOur Aspirational Contributions

Investable implementation

framework

Measurement of loss

Quantum jump technology

Challenge

ssonka@illinois.edussonka@illinois.edu

http://postharvestinstitute.illinois.edu/http://postharvestinstitute.illinois.edu/