My book, Future Harvests, is expected to be published before mid-August.
Here is a preview to give you a flavor of the content.
For a full view, please click on the thumbnails.
Here is a sample containing the table of contents and the preface of the book:
For the video trailers, please visit my YouTube channel.
Leave a Comment » | 
Agriculture, Aquaculture, Fisheries, Food Security, Meat, Politics & Policies | Tagged: Agriculture, Water, Aquaculture, Investments, Value Chains, Pork, Industry Future, Poultry, Grains, Politics & Policies, Land, Biofuels, Innovation, Consumer Market, Sustainability, Soil, Environment, Fisheries, Seafood, Meat, Genetics | 
Permalink
Posted by Christophe Pelletier
The editing of my book “Future Harvests – The next agricultural revolution” is about completed. All that is left to do is developing the cover and start the publishing.
I have already received orders, even before the book is out. That is quite a good sign. And a great surprise for me.
If you wish to be updated automatically when the book is published, just subscribe in the sidebar window on the right.
To describe the topics addressed, I have posted three short promotional videos on YouTube. In previous articles (The fun of writing this book and The next agricultural revolution), I had already given an idea about the content of the book.
Video #1: The Fundamentals (duration 2:37) – Introduction to the background and fundamental principles mentioned in the book “Future Harvests – The next agricultural revolution” to achieve food security for 9 billion people in 2050. Topics such as demographics, the shift in economic power, the control of food and food security strategies are reviewed. Sustainability, innovation, efficient market driven food production and strong leadership are required.
or click here if video does not appear
Video #2: The Actions (duration 2:12) – A short review of some of the actions mentioned in the book to achieve the objectives. Solving the water challenge, finding new land for production, urban farming, hydroponics, farming the desert, rebuilding fisheries and developing aquaculture further are all possibilities.
or click here if video does not appear
Video #3: The Questions (duration 3:08) – A sample of some of the questions raised in the book. They cover technology, land deals in Africa, improving yields, restoring soil fertility, change in consumer needs, organic farming, risks of conflicts, biofuels or meat are some of the topics presented.
or click here if video does not appear
If you know someone who could be interested by the topics on this page, please pass it on!
Comments Off | Agriculture, Aquaculture, Beef, Consumer Market, Economy, Fisheries, Grains, Meat, Oceans, Politics & Policies, Pork, Poultry, Retail, Sustainability, Value Chains, Water | Tagged: Agriculture, Animal Feed, Aquaculture, Beef, Biofuels, boo, Commodities, Consumer, Consumer Market, Economy, Ecosystem, Energy, Environment, Environmentalists, Fish, Fisheries, Genetics, Grains, Industry Future, Innovation, Investments, Land, Meat, Organic, Politics & Policies, Pork, Poultry, Production Systems, Retail, Seafood, Soil, Sustainability, Value Chains, Waste, Water | Permalink
Posted by Christophe Pelletier
Dutch researchers have extracted cells from a live pig and put them in a broth derived from the blood of animal fetuses. After the cell have multiplied, the researchers have obtained a mass of muscle tissue.
The texture is obviously not what they are looking for, but they are optimistic about the possibilities. They have not tasted it, but I think they should have, just to show that they believe in the quality of the meat. Nonetheless, they expect that such meat could be on the market within 5 years.
This project is backed by the Dutch government and by Stegeman, a Dutch subsidiary of Sara Lee that produces sausages and deli products.
After all, if such meat goes into processing, grinding and soaking, the physical properties of the meat do not have to match “true” meat, and it could be a good alternative to meat from a slaughtered pig. A cost analysis will be necessary to see if this indeed has a future. Moreover, it is quite interesting to see this project backed by the government of a country that produces and exports a lot of agricultural products.
Comments Off | Meat | Tagged: Consumer Market, Innovation, Meat, Pork | Permalink
Posted by Christophe Pelletier
The Ministry of Agriculture from Israel organized an architectural competition for the design of a new generation of layer hen houses for the North of the country.
It is interesting to see how much architecture is involved in the design of future systems, as it is the case of vertical farming that I mentioned in my article “The vertical farm”
The design had to integrate all aspects of production, including efficiency, energy, sustainability and dealing with waste. It can produce its own energy from litter, and it is equipped with solar panel and wind turbines.
The winning design meets European regulations on animal welfare, and is suitable for free-range production as well as more intensive systems.
The only thing that does not appear in this article is the financial aspects. They do not tell anything about the price of the house and of its cost of operation and maintenance, as well as the impact on the cost price of eggs.
Comments Off | Poultry, Sustainability | Tagged: Architecture, Environment, Innovation, Layer hens, Poultry, Production Systems, Sustainability | Permalink
Posted by Christophe Pelletier
Nanotechnology is the technology of building structures from atoms, molecules or molecular clusters to make materials and devices that have new properties. It is a new field in agriculture and food production, but it offers a wide variety of applications that can help overcome a number of problems we are facing today. They can help improve food safety, traceability, reduce the use of chemicals and reduce waste.
Thanks to nanotechnology, agriculture and food production will be able to use very efficient devices and sensors that can help make better and faster decisions.
For instance, in “Controlled Environment Agriculture”, which is an intensive hydroponics greenhouse system used in the USA, in the European Union and in Japan, nanotechnology is a great fit for the already sophisticated computerized management that optimizes growing conditions.
There is also a lot of potential for precision farming, in which nanoparticles can be used to store and release pesticides and herbicides in a targeted and controlled manner. Nano-clay capsules can store fertilizers and release them slowly, allowing only one application during the cycle of the crop, thus saving time and fuel to the farmer. This helps reducing the use of chemicals, too. Further, nanosensors can be used to measure crop growth, help diagnose diseases even before the farmer can visually notice them, or help him carry out microbiological tests and get results within an hour. The use of nanosensors also helps the farmer make better decisions and act effectively faster than today, as they can help him monitor soil moisture, temperature, pH, nitrogen availability, and in the future could open the path toward a remote farm surveillance system.
In the area of pest control, using nanocapsules is useful in the system called “Integrated Pest Management”. Not only, the problems can be identified earlier, but also plants can be treated much more effectively. Giving treatment to farm animals also can benefit from this technology, which is already used in human medicine.
Nanotechnology is already used for water treatment, and there seem to be many possibilities in that particular field to help solve existing environmental problems. For instance, the American firm Altairnano from Reno, NV produces lanthanum nanoparticles that have the ability to absorb phosphates in water, which offers interesting possibilities to reduce algae growth in ponds and rivers.
Similar applications of nanotechnology can be used to decontaminate soils and groundwater by using iron particles that help break down dioxins and PCBs into less toxic carbon compounds. They also can help remove arsenic from drinking water, a problem that occurs in many regions.
Agriculture is not the only field where this technology can bring benefits, but the food production industry is very interested by the possibilities, too. Some nanodevices can be used to tags food items. This can be of great use to ensure traceability and to help optimize the supply chain. Large retailers like Wal-Mart and Tesco are investigating such devices made out of silicon, but it appears to be too costly at this early stage. We can be sure that this will change in the future.
Food packaging is an area with interesting potential, and there are new packaging materials in development. The nanotechnology helps reducing the risks of food contamination. Some systems reduce the ability for oxygen and gases to travel through the plastic wrap, which extends the shelf life of the product. Other food packaging systems are aimed at controlling the level of humidity, of oxygen, as well as reduce bacteria counts and eliminate any problems of odor and flavor. Antibacterial packaging using nanosilver particles is in development and the applications range from plastic cling wrap to plastic bags, containers, even teapots and kitchenware. Packaging containing nanosensors are made of carbon nanotubes or of titanium dioxide that can be activated by UV help detect microorganisms, toxic protein or food spoilage. The firm AgroMicron, from Hong Kong, has developed a spray which contains a luminescent protein that has been engineered to bind to the surface of microbes such as Salmonella and E. coli. When it is bound, it emits a visible glow, which allows the detection of contaminated food or beverages much more easily.
Developing “molecular food manufacturing” which consists of building food from component atoms and molecules is already a possibility that some are considering. Although such a development is far into the future, such a technology could allow a more efficient and sustainable food production in which less raw materials are consumed, and food that would be obtained would have a higher nutritional quality.
Nanotechnology obviously offers interesting possibilities for food production. Yet, some people express a number of concerns. This is what can bring the next controversy in the food business.
The problem is that nanotechnology in food is relatively new, and we know very little about the long-term effects of using these components. Moreover, because it is so young, food safety regulations are not properly written to deal with this, and the status of the nanoproducts is unclear. One of the concerns is that such particles are very active and very reactive because of their size; and by the nature of the chemicals that they are made of; they could bring health risks as well.
There are new very promising possibilities, but we must be vigilant and address the risks as well, and true progress is about to use this new technology, for our benefit.
Copyright 2009 The Happy Future Consulting Group Ltd.
2 Comments | Agriculture | Tagged: Agriculture, Food safety, Innovation, Nanotechnology, Packaging | Permalink
Posted by Christophe Pelletier
Coca-Cola will start selling its beverages in a special bottle, called the PlantBottle, which is made from PET plastic and from plant-based materials by the end of 2010. A first launch will take place in Western Canada during the Olympic Games held in Vancouver, BC.
In the US and Canada, the bottles will include 30% of plant material, and the bottles are 100% recyclable. The biological material will come from sugar cane by-products, originating from the production of ethanol, mostly from Brazil. Including this material in the PET plastic reduces the carbon footprint of the bottles, and reduces the dependence on oil-based materials. The benefits are both environmental and economic.
The ultimate goal of the company is to produce bottles that will be made of 100% non-food plant-based materials such as wood chips and wheat stalks.
For further details, read the Coca-Cola press release at http://www.thecoca-colacompany.com/presscenter/presskit_plantbottle.html.
Comments Off | Consumer Market, Sustainability | Tagged: Beverages, Bio-plastic, Bottles, Consumer Market, Environment, Innovation, Sustainability | Permalink
Posted by Christophe Pelletier
Here is a think-out-of-the-box article about the “vertical farm”.
It is an interesting vision of a replacement of agricultural land, by indoor robot-tended hydroponic agriculture. They also envision the possibility of raising farm animals and developing aquaculture in the water used to grow the plants; and the fish waste would be used as fertilizer.
All of this would be grown in a 30-floor skyscraper located in the city, powered by the energy coming from city sewage, and the ground floor would be a food supermarket that would provide food for 50,000 people.
Such projects are under review in Abu Dhabi, South Korea, Seattle, WA and Las Vegas, NV.
It looks like science-fiction, yet there are some really interesting arguments in favor of such a development.
Comments Off | Agriculture, Aquaculture, Economy, Water | Tagged: Agriculture, Aquaculture, Consumer, Hydroponics, Industry Future, Innovation, Production Systems, Retail, Water | Permalink
Posted by Christophe Pelletier
The level of automation in processing plants have increased continuously over the years and the statement made above makes some sense.
This article from MeatPoultry.com reports of an interview with Jeff Burnstein, president of the Robotics Industries Association. Although there is no specific details of things, if any, that may come, other examples in other food industry can be an indicator of future possibilities.
Something to follow on.
Comments Off | Meat, Poultry | Tagged: Industry Future, Innovation, Meat, Poultry, Processing plant, Robotics | Permalink
Posted by Christophe Pelletier
We all have heard about this rule across all industries, including agriculture and food. Eighty percent of the food would be produced on 20% of the farms and vice-versa. If it still applies in the future, it can indicate us how our food production and supplies will look like in the future. Of course, this is always a theoretical exercise, but it is quite convenient to elaborate on our thoughts.
As the population is expected to grow quite strongly in the coming decades, especially in urban areas, this could indicate two dominant trends:
• Further size increase of the largest farms and further industrialization of agriculture and food for global markets, although the number of farms in this segment would not increase strongly.
• Strong increase of the number of small farms involved in specific value chains and strongly linked with their local economy.
Industrial agriculture
This group will continue to be involved in mass production of commodities for global supplies, like this is the case today.
Yet, they will face an increased pressure to adapt to the requirements of sustainability, which technically is quite possible. New systems and more efficient technologies will be the pillars of its growth and development. They will have to find ways of reducing the amount of chemicals in crops and the amount of pharmaceuticals in animal productions
The requirements for capital will be quite high and the sector will be led by increasing larger corporations, by an increasing level of capital by large private investors and, last but not least, by some governments. This agriculture will innovate further and will be developed thanks to this capital. It will use automation and mechanization to reduce the dependence on labor. Mergers & acquisitions will continue in the agricultural sector and a few large blocks will remain, dominating their sectors.
Their mandate will be about more control the natural conditions of production and about reducing to a minimum their impact on air, water and soil, by using less polluting transport methods, water preservation, effluent treatment and soil preservation. They also will have to engage in maintenance of their environment.
The role of this type of agriculture will be to bring to market large amounts of affordable food for the masses, and should play an important role in strategies around food security, which is where corporations and government will interact on a regular basis.
Local food value chains
This sector should undergo a strong growth and be build in a market-driven approach. These are the farmers that produce specialty products aimed at serving either a very specific segment of the retail or foodservice market.
This trend, which has been already initiated around concepts such as organic or authentic, will evolve into a more integrated local economy, and the initial concepts will probably become less differentiated as food production in general, be it industrial or traditional, will use more sustainable techniques.
Contrarily to the common belief, this agriculture will be developed thanks to very efficient techniques, but will be centered relatively more about labor and relatively less about capital. In this case, efficiency does not necessarily mean intensification.
We must not underestimate the significance of this part of the food production, as it will play an important role. However, we must not expect this type of agriculture to be the solution to feed the world, and this is not the purpose of the farmers involved in such food production chains.
This type of farming will grow in two different environments:
In emerging countries, the development of a local agriculture, and aquaculture, will be a key driver of economic development for under industrialized and/or under urbanized regions. It also will be a way of slowing down the migration of population to urban centers and limit social problems, by creating satisfying economic conditions and by securing food supplies locally. This farming will be about basic needs, before marketing.Copyright 2009 The Happy Future Group Consulting Ltd.
Comments Off | Agriculture, Aquaculture, Consumer Market, Economy, Politics & Policies, Sustainability, Value Chains | Tagged: Agriculture, Air, Aquaculture, Commodities, Consumer Market, Economy, Environment, Industry Future, Innovation, Investments, Land, Marketing, Mergers & Acquisitions, Organic, Production Systems, Quality, Retail, Soil, Sustainability, Value Chains, Water | Permalink
Posted by Christophe Pelletier
Here is a nice illustration of what I meant with my article “Innovation and tradition shape the future“.
This is an article from WorldGrain.com describing the result of a test on a new harvesting system for grain carried out by the USDA. They tested the stripper header on millet and wheat.
The idea of this system is to strip away the grain and leave as long as possible a stubble, so that it protects the soil from erosion and enhances precipitation storage. So far results tend to indicate that yields are not affected by this harvesting method.
Just an example of using new technology and innovation to help improve a rather traditional method of getting organic matter in the soil.
Comments Off | Agriculture, Grains, Sustainability, Water | Tagged: Agriculture, Grains, Industry Future, Innovation, Production Systems, Soil, Sustainability, Water | Permalink
Posted by Christophe Pelletier
Here is an article of the National Geographic about “Giant Robotic Cages to Roam Seas as Future Fish Farms?”
This article addresses a number of very interesting and valid points, such as the possibility to move to better farming environment, or getting farms closer to consumer markets.
Having the ability to change location has several advantages. It allows finding areas where water quality is better as this varies with seasons and climate conditions. It also can allow farms to move away from the routes of wild fish and substantially reduce risks of disease and parasite contamination and spreading. Being closer to consumers market also has the advantage of reducing the amount of transportation and have the fish brought to market faster, therefore fresher, theoretically.
However, this article does not address a number of important aspects of fish farming. Going far offshore brings some organizational issues, such as rotating the crews working on farms, or dealing with rough weather. Probably some fine tuning would be needed to organize feed deliveries to such farms as well and the mobility must not happen at the expense of the life of equipment or the functioning of cameras and computers used for management purposes. As such, nothing that cannot be resolved, but it would come at a cost as well. Then it is to the farmers to weigh the pros and cons and make their decision.
Nonetheless, this is an interesting idea that shows that this industry is in full evolution and is adapting to the future.
Pioneering the oceans and robotizing aquaculture connects quite well with my previous articles “Innovation and tradition shape the future” and “The ocean, not Mars, is the next frontier“
Comments Off | Aquaculture, Consumer Market, Oceans | Tagged: Aquaculture, Consumer Market, Industry Future, Innovation, Production Systems, Seafood | Permalink
Posted by Christophe Pelletier
In order to understand what changes are ahead of us, we need to realize that opposite forces are engaged in shaping the world of the future. As we all know, accepting change is always a slow and sometimes a difficult process. There are those who see the possibilities and those who see the drawbacks. The first train was going, supposedly, to get cows stop giving milk, but we now know that cows love to watch trains passing by. Probably, the first caveman who drew a picture of an animal on the wall was considered by some as a great magician and probably by others as pure evil. As such, such a struggle is very useful, as on the one hand it shakes immobility and open new doors, and on the other hand it prevents us to rush into the unknown without thinking first.
Change is part of our lives and that will not change. The problem that we face about change is actually about the pace of change, more than over the change itself. Over the last century, this pace has just increased steadily, thanks to more and more efficient technology.
If we look back the lifespan of the oldest living person, which brings us back to the end of the nineteenth century, just take a minute to think of all the changes that have occurred since then. There was no car industry, no antibiotics, no commercial airlines, no TV, no internet or cell phones, no supermarkets, just to mention a few things that we take for granted nowadays.
Although such a change is dramatic and has affected the way we live today, it has been a process that has needed time. Usually, it is said that more than 60% of the products that exist today did not exist 10 years ago and if we extrapolate this to decade to come, we can expect some even more spectacular changes.
Innovation is in constant motion and technology helps us to conceive and to use much faster than by the past. Yet, it is interesting to see that even with such a pace of change, traditions still play a very important part in our lives. Even with lots of modern gadgets, most cultures keep their specific characteristics. Their respective values do not evolve as much as our “things“, these just become part of the culture. This is an important point when it comes to innovation: what you offer must meet a need, if it does not, it will either fail, or at best be a fad.
Having a look at the future, you must wonder what the underlying trends of innovation are since it started. I can see several major constant areas of innovation:
What could this mean for food production in the years to come?
More technology to improve efficiency of water use, fertilizer use, animal feed use, land use, energy use (objective: zero waste).While such changes will come over time, consumers will still be looking for some level of tradition in foods. This can be about authenticity, regional specialties and recipes, or choosing to buy directly from farmers. Obviously, this is not a rational process, but it is more about the perception of “true” and “natural” production systems. After all, nostalgia is a constant of human emotions, too.
Copyright 2009 The Happy Future Group Consulting Ltd.
Comments Off | Agriculture, Aquaculture, Fisheries, Politics & Policies, Water | Tagged: Agriculture, Aquaculture, Fisheries, Innovation, Politics & Policies, Production Systems, Soil, Sustainability, Water | Permalink
Posted by Christophe Pelletier
Here is an article I found on CNN about in-vitro meat. Of course at this stage there is no way of knowing whether this has a future or not.
There are some interesting arguments brought up in this article, that can make some think that in-vitro meat is a possible alternative. Yet, they do not mention anything about the cost of producing meat in such conditions, but my guess is that it will not be cheap, and certainly not cheaper than the lesser meat cuts it is supposed to replace; and the production cost of in-vitro meat is probably its main challenge for future marketing purposes.
My view is that animal protein will become much more expensive in the future (see my previous article “The future price of meat and fish: up”), and that Westerners do not need to eat as much meat as they currently do, anyway.
The irony is that in-vitro meat has the support of some environmentalists, while it depicts a situation where humans would almost not be in touch with nature anymore when it comes to meat. So much for natural food!
I will leave it up to you to decide what to think.
1 Comment | Meat | Tagged: Industry Future, Innovation, Meat | Permalink
Posted by Christophe Pelletier
Here is an article reporting about the World Nutrition Forum held recently in Austria.
It presents the future of animal productions quite along the same lines as I think.
Efficiency, innovation and location will become the key components for the future.
Efficiency will act as a “natural selection” between the species farmed, as an increasing need for protein combined with a limited volume of feedstuffs and water will decide what productions can grow the most and which ones might not be able to do so. Poultry is definitely a winner thanks to its low feed conversion ratio and to its relatively high water use efficiency, pork is uncertain, and cattle will have the toughest time, although cattle is the only production that can transform cellulose into animal products, so the production systems will likely change and offer a different kind of future for beef.
Location of production will follow the location of the consumer markets. With a population increasing strongly, as well as their standard of living is improving, Asia will become a very active production area. This probably will also be the result of a need to reduce transport costs, as well financially as environmentally speaking.
Innovation, as I have mentioned in previous articles, will be a key driver for the future of animal feed and of animal productions. I am quite glad to read that the industry is fully aware of this need, and also that they see their future in “creating value” more than just “cutting costs”.
Although the conclusions of this forum are quite encouraging and positive, the next step might be the challenging one: how to turn these great ideas into systems that will work and will ensure the long term future of the production side as well as of the consumption side? It will all be in the proper planning and execution that this will succeed.
Comments Off | Animal Feed, Beef, Consumer Market, Meat, Pork, Poultry | Tagged: Animal Feed, Beef, Consumer Market, Industry Future, Innovation, Pork, Poultry, Production Systems, Sustainability, Water | Permalink
Posted by Christophe Pelletier
With an increasing population that needs more food and more water to live, we can expect that water is going to become a highly strategic and needed resource. As climate changes, the current rain distribution and geographic availability of water is likely to change dramatically, too. This increasing competition between agricultural areas and urban areas will bring major changes on how we use water for both personal use and for food production. On the personal side, we certainly can expect that current bathroom systems to disappear, as they use too much water. Every time we flush a toilet tank, we actually waste the daily drinking water needs of a couple of people, and local water reserves are gradually depleted as well. Clearly, this has no future. Similarly, we can expect the legislation on water use for lawn sprinkling and car washing to change.
Food production will become more and more focused on water efficiency. The main themes will be about taking what we need, but no more, and about collecting, conserving and recycling water. This will bring us to rethink our crop production, the watering systems we use and develop systems aimed at collecting and conserving water.
Our choice of crops will get under review. Some plants have such high needs for water that their production systems will have to be altered, or maybe even we will have no other choice of limiting them to small selected areas. The use of combined crop productions on the same field is likely to gain some popularity back, as this is a way of saving water and protecting the plants and the soil from excessive evaporation. This, of course, will mean a different look on yields and on harvesting systems. 
More efficient irrigation systems will replace the old ones. Computerized systems are already in use in wine production, using sensors for humidity and temperature, to determine how much water the plants needs at the most optimal time of the day and deliver it at the exact spot. You can expect that such an optimization approach will prevail. The path that Monsanto follows with the production of genetically modified (GM) wheat that needs only a third of regular wheat varieties is quite interesting. The tricky part is the GM part, as on the contrary to natural “mutations”, such a process does not undergo natural selection, and therefore we do not know what possible side effects it might bring. Nonetheless, this is an attempt to deal with future water shortages. Hopefully, other less controversial solutions can be found that will deliver a similar result. Once again, we can shape our future through continuing innovation.
Food processing, such as slaughterhouses or washing stations for produce, uses large amounts of water. In these sectors, too, new more efficient systems will have to be designed to reduce water use, and they will have to guarantee to meet hygiene and food safety standards. Water treatment and recycling have already been in use for years and they will continue to gain market share.
Next to the above, which is mostly in the hands of individuals and companies, there is a need for political action to address water shortages and water quality issues that expand far beyond the local operations. A number of agricultural areas suffer from drought on a regular basis, such as Australia and some parts of Canada. Other areas have seen the flow of rivers drop dramatically, like for instance the Yang Tse River in China, which has more and more difficulties to reach the sea. In other areas, such in the Arabic Peninsula, the countries realize that traditional irrigation systems are meeting some serious limitations because of the competition between need for drinking water and need for irrigation. Some very interesting projects are in the works to offer alternatives. For example, there are studies to consider the use of floating islands covered with solar panels in order to produce on the spot the energy necessary to desalinize seawater, therefore providing these areas with water that does not originate from underground reserves.
These problems affect the availability, the quality of the water and strongly affect the environment. Failure to address and more importantly to solve such problems properly would have catastrophic consequences for large populations. A balanced plan to offer the availability to water for people, agriculture and industries is absolutely necessary.
Copyright 2009 The Happy Future Group Consulting Ltd.
Comments Off | Agriculture, Economy, Politics & Policies, Water | Tagged: Agriculture, Economy, Environment, Industry Future, Innovation, Politics & Policies, Production Systems, Quality, Sustainability, Water | Permalink
Posted by Christophe Pelletier
Here is an article from World Poultry, titled “Saving costs with alternative ingredients“ about research from Provimi on alternative feed ingredients that illustrate quite well my previous article about innovation as the way to add value in animal feed.
Comments Off | Animal Feed | Tagged: Animal Feed, Industry Future, Innovation, Raw Materials | Permalink
Posted by Christophe Pelletier
This is an interesting article, that shows that when you want to be market-driven, opportunities will come your way.
Here is the story of Canadian beef that might be sold in the EU, if the producers are willing to change their production system (by going hormone-free). While this means higher production cost, the sales price that they get makes them actually make a higher profit margin.
Story at http://www.nationalpost.com/related/topics/story.html?id=1658785
Comments Off | Beef, Consumer Market, Grains, Meat | Tagged: Agriculture, Beef, Consumer Market, Grains, Innovation, Marketing, Production Systems, Quality | Permalink
Posted by Christophe Pelletier
Here is a funny coincidence, as I wrote about innovation as the way forward for the animal feed industry, today I found this article about innovation in the chicken market in order to drive chicken consumption and improve profitability.
Here is the link: Canada: Developing new poultry meat products
Comments Off | Poultry | Tagged: Industry Future, Innovation, Poultry, Production Systems, Quality | Permalink
Posted by Christophe Pelletier
Animal feed is one of the main costs in animal production. Therefore, any performance improvement that will come from the feed or from nutrition gives a competitive advantage.
As such, a feed mill is a rather simple process that feed producers know and master. To put it in simple terms, the recipe is prepared in a big kitchen blender. As a very standardized industrial process, the focus, for a given quality specification is to produce at the lowest cost possible. So, has feed become a commodity or are there ways of offering added value to farmers?
You can look at this at two levels: the feed itself and its usage.
Feed manufacturing itself can be incorporated in the production chain in different ways that will all have the same purpose: cutting cost. The feed company can be independent and market its own feed, or it can just produce as toll milling for a farmer or processing group, as this is already the case.
However, the true added value lies somewhere else: innovation. This plays already today and will increasingly be the strategic area of the future for feed companies. Innovation will continue to cover many areas, from biology, nutrition, to feed technology with the purposes of further improving feed efficiency, and provide raw materials that are more efficient.
In an age where availability of raw materials will become scarce, because of the competition between animal nutrition, human nutrition and possibly demand for biofuels, everything that will help saving and recycling resources will win. To achieve this, we will see new techniques to increase the digestibility of feed, to reduce the feed conversion ratio and create less manure, as well as improvement of the texture and other physical qualities of the feeds. We will see further innovations in the feed composition in order to have the animal use most of it, and for instance the use of enzymes will increase further. Other developments, such as a promising sesame seed extract that can help replicate omega-3 fatty acids in fish feed, can help reduce the dependence on scarce (and expensive) fish oil, and offer substitution possibilities with more types of vegetal oil. However, in this case fish would compete with other farm animals and humans for those oils, making them more expensive in the end. There is also the development of algae as a feedstuffs for farm animals. If successful will such algae be produced in ponds on in the sea, or will it remain an incubator-based production? Who knows? But expect many new ideas to come to the market, as the fight for resources will become fiercer in the future.
Companies that will possess the latest scientific and technical knowledge, combined with a strong innovative capacity and the talent to locate and purchase the very best mix of raw materials will in fact own intellectual property. Nothing of the above is new, but the future changes will have more to do with the allocation of the different activities in the feed value chain itself. This intellectual property is what they might need to sell in the future, instead of a feed that customers do not always perceive as a differentiated product. Feed and nutrition might become two distinct products and maybe even distinct businesses. Could feed mills become franchises of nutrition and feed technology centers?
Copyright 2009 The Happy Future Group Consulting Ltd.
Comments Off | Animal Feed | Tagged: Animal Feed, Commodities, Innovation, Production Systems, Quality, Raw Materials, Value Chains | Permalink
Posted by Christophe Pelletier
Become a fan!
Christophe Pelletier