Sustainability: implications of global trends for U.S. production agriculture

Toward Sustainable Agricultural Systems in the 21st Century

Mike Johnson, Syngenta Crop Protection

September 16, 2010

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Syngenta at a glance

● A uniquely broad product portfolio

- A leader in Crop Protection

- Third in high-value commercial seeds

● World-class science

- $1 billion Research and Development (R&D) investments

- 4,000 people in R&D around the world

● Global reach and experience

- Over 24,000 employees in more than 90 countries

● Commitment to working with customers

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Demand is driven by population growth and land scarcity

19602 people

2005>4 people

People fed per hectare(2.47 acres = 1 hectare)

2030>5 people

19502.5 billion

20056.5 billion

2030

>8 billion

World population

Source: FAO, World Bank statistics, Syngenta

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● Huge rise in demand

● Demand drivers: population, economic, biofuels

● Limited farmland

● Decreasing water supplies

Only sustainable approach is to unlock the potential of plants

through innovation

We must grow more

from less

Challenges for global agriculture

Basket: corn, soybean, wheat, rice1, %

1960 2008

World population growth2, bn

0

2

4

6

8

10

1950 2030201019901970 2050

100

150

200

250 Yield

Acreage

2 Source: Based on US Census Bureau International Data Base, July 20071 Source: USDA

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● Transparent, outcome-based sustainability metrics

● Productivity & efficiency at the core

● A systems approach and understanding the diversity of agricultural systems

● Innovative integrated solutions of our CP, seeds, traits & services

● Continuous improvement over time

Syngenta sustainability insights --- what it will take

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A major challenge is the complex & confusing area of specifications for the sustainability of agriculture

Selected Examples

There is an urgent need for transparency & consistency in measuring progress towards sustainable outcomes

Outcome-based Metrics

Value-based Indices

Standard Methods for Analyses

Practice-based Standards: Sustainability Index

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Outcome-based MetricsPractice-based Standards

● Prescribe specific practices & technologies

● Uncoupled from productivity & other desired outcomes

● Limited incentive for continuous improvement

● Narrowly applicable (in or out)

● Trademark license terms can create disincentive to adoption

● No bias for/against specific practices or technologies

● Reward efficiency (expressed on a per unit of output basis)

● Incentivize continuous improvement toward outcomes

● Broadly applicable, transparent & science-based

● Alignment with emerging ecosystem service markets

How sustainability is ultimately defined & measured is critically important

Our ability to feed 9 billion people requires an urgent transition to outcome-based metrics

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Field to Market is one of the most important sustainability initiatives in the United States

● A collaborative stakeholder group of producers, agribusinesses, food and retail companies, and conservation organizations

● Working together to develop a supply-chain system for agricultural sustainability

● Developing outcomes-based metrics (practice/technology neutral, transparent & credible science, measures on-farm production outcomes within grower’s control)

● Measuring the environmental, health, and socioeconomic impacts of agriculture first in the United States

Field to Market

Convened and is facilitated by The Keystone Center, a neutral, non-profit organization founded in 1975.

Will provide useful measurement tools & resources for growers and the supply chain that track & achieve

continuous improvement against key outcomes

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Steering Committee Members & Participants

• American Farm Bureau Federation• American Farmland Trust• American Soybean Association• Bayer CropScience• Bunge• Cargill• Conservation International• Conservation Technology Information Center• Cotton Incorporated• CropLife America• CropLife International• Dairy Management Inc.• Darden Restaurants• DuPont• Environmental Defense Fund• Fleishman-Hillard • General Mills• Grocery Manufacturers of America • John Deere• Kellogg Company

• Land O’Lakes• Manomet Center for Conservation Science• Mars, Incorporated• Monsanto Company• National Association of Conservation Districts• National Association of Wheat Growers• National Corn Growers Association• National Cotton Council of America• National Potato Council• Syngenta• The Fertilizer Institute• The Irrigation Association• The Nature Conservancy• United Soybean Board• Univ. of Arkansas Division of Agriculture• Univ. of Wisconsin-Madison College of

Agricultural and Life Sciences • USA Rice Federation• World Resources Institute• World Wildlife Fund

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Example: Summary of results for maize

(Values are expressed in 5-year averages)

Maize (Corn) Efficiency Indicators(Per Unit of Output, Index 2000 = 1)

Field to Market

The smaller the spidergram the less the impact

Progress has been made since 1987. More is needed

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Using the Fieldprint calculatorField to Market

Intuitive

Doable

Confidential

Interactive

Fieldtomarket.org

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But how to create innovative solutions ?

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Corn, soybean: nitrogen use efficiency, drought tolerance traits

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Crop Protection: technologies promoting efficiencies over just pest control

UntreatedUntreated

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● 5-10% yield increase

● Stronger, healthier plants

● 10% less water

● 25% yield increase

Endurance and vigor boosters Water uptake facilitators

Seed Treatment

Fungicide

Plant Growth Regulator

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Testing drip-irrigation on a global scale

CITRUS

COFFEE

RICE

CORN

CANE

VEGETABLES

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Sustainability and Syngenta’s Role

● Collaborate in the development of outcome-based metrics and measurement approaches (performance-based versus input/practice-based).

● Provide tools that enable growing more from less land, water, energy

- Continued investment in R&D

- Integrated technology solutions aligned with

understanding of agronomic systems

- Build on IPM tools

● Help growers measure, record & verify progress

- Field to Market Tools

- Farm record keeping programs

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www.growmorefromless.com

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