Perhaps the ultimate challenge

There certainly is no lack of challenges on the path to feeding a growing world population, but a successful future does not just stop with food volumes. Beyond quantity, it is necessary to ensure that people eat balanced diets. Of course, this is true for those who are food insecure and need help to be able to access more food, but it just as true for the overweight and the obese. The health cost to society is high and is so the cost to the environment. Although excess calories end up as body fat and not in landfills, overweight and obesity should be looked at as food waste nonetheless. After all, body fat is food that has been produced but not consumed for any useful purpose. The problem is only getting bigger as rates of obesity are increasing among the population of emerging countries and are reaching alarming levels. It is not a Western countries’ problem anymore. It is a global one. There is no one particular cause to explain this trend, but it is a combination of lifestyle, example at home and education about the basics of nutrition. We are what we eat and we eat what we are. Diets are undoubtedly a reflection of society and its values.

One of the drivers of today’s economies is growth and too often this concept is restricted to quantitative growth. We must be honest and recognize that our food and agriculture systems still are greatly production driven. Although the idea of a market-driven approach is widely spread, the practice seems to differ, and it looks like it is only translated in marketing-driven instead, always with an underlying production-driven thinking. About all food sector and companies always look for ways to sell more volume. There is competition within any particular industry, but also between industries. For example, in the animal protein sector, poultry, pork, beef and fish are always trying to get a higher stomach share at the expense of one another. Usually, the main decision factor for consumer to make their purchase is the relative price of one type of protein versus the others.

The main message that consumers receive every day is: eat more of this or more of that. Then, it is only normal that they do just that. Why expect any other behaviour? The result is a value system of always more, without really thinking about how it all adds up, while it should be about always enough. Overconsumption leads to waste and to unbalanced diets. Waste is the number one enemy of sustainability, and educating the public about proper diet is actually an important weapon in fighting waste, but it is a difficult one. Although good habits are generally not any more difficult to adopt than bad habits, it seems that the latter group is more attractive. Changing eating habits is all about education. It starts at home and in school. Actually, it is rather easy to learn about the proper ratios between protein, fats and carbohydrates –both fast and slow ones- that are needed in a balanced diet. Information is everywhere, but unfortunately, the lack of education and therefore knowledge about nutrition results in many consumers having no idea how to read labels and how to compose proper meals. If our lifestyles and our needs have undergone major changes over the past five or six decades, physiology of digestion and nutritional metabolism have not changed much at all over the tens of thousands of years that humans have been roaming the planet. It would seem obvious that such an essential element of life should be common knowledge, but it is not. An interesting experiment is to ask people at random what the nutritional needs of an average human being are. Usually, people have an idea about how many calories a person should eat on a daily basis. When it comes to how many grams of protein and even more so fat, then the faces tend to turn blank. Another even more interesting experiment is to ask the same question to people working in food and agriculture. Just go ask how many calories, how many grams of protein and fat. It is an eye opener.

It is possible to make consumer behaviour change from harmful to healthy. There are lessons to be learned from the example of tobacco. To change, consumers need the proper incentives, but the bottom line is that people change only if they perceive the change to be an improvement. Since eating habits rest on powerful psychological triggers, the difficulty is in finding the right triggers and creating a perception of reward. Food producers have a critical role to play in this transformation, and it has to be a collective and collaborative effort with all other stakeholders as well.

Copyright 2017 – Christophe Pelletier – The Happy Future Group Consulting Ltd.

Feeding the future with focus on health and environment

In my opinion, the food and agriculture sector does not receive enough praise for its performance. Over the past four decades, the world population increased by 80%, which means that farmers have been able to supply food for an additional 3.3 billion people during that same period. Unfortunately, the number of hungry people has remained about stable, around a billion people. Every person who is hungry is a hungry person too many. There cannot be any discussion about that, and there still is a lot of work to be done. This is no small feat. Clearly, there is plenty of room for improvement, especially when you consider that about a third of the food produced is wasted but that means that the potential to supply future food demand is there.

nutrition

Image created by Paula Nettleton Source: Educational Materials Center (EMC), Central Michigan University

The discussions about meeting future food demand always tend to focus on production volumes. Of course that is the minimum requirement but to meet all other challenges, it is necessary to broaden the scope beyond volumes. Production is only half the equation. The other half is consumption. There is a lot of work to help consumption patterns contribute to a balanced future between supply and demand. The ongoing increase of obesity and diabetes are at least as worrying as hunger because of the negative health, environmental and economic consequences. One of the most important roles in the future for the food and agriculture sector will be to help people feed themselves properly. There is a need for this and it goes far beyond a marketing exercise. The basis for success will have to be education about nutrition and home economics. There already is action in these areas but it will be necessary to move towards a collaborative education, centred on physiological needs and how any particular food product contributes –or not- to healthy meals. The purpose will not have to be about enticing consumers to eat more volumes but to make educated decision and pick the right ingredients. Changing the focus from always more to always enough will also require a change in which foods to produce and what their future physical and organoleptic qualities will have to be. It also will change the dynamics of markets and on which criteria farmers get paid. Collaborative education will have to be carried out by and with full involvement of all stakeholders. It will have to place human physiological needs as the primary focus. Consumer well-being will have to come first, before particular interests and before volume.

Making future food and agriculture sustainable requires that we address both production and consumption. Waste and excess do not fit in a sustainable future. Food waste is only a part of the total picture. When food is wasted, all the inputs required, such as water, energy, fertilizers, crop protection and money, are all wasted in the process. Overconsumption is not a sustainable strategy either. It takes a lot of resources to produce all the excess calories and protein than end up producing nothing else than excess human body fat. Until the rise of mass consumption, our grandparents knew what sustainability meant. It was about saving and about moderation. These two concepts vanished from the moment that consumption goods became so cheap that and consumers lost touch with scarcity and long-term negative effects, also known as negative externalities. It would be an eye opener to quantify these externalities and include them in the cost structure of consumer products. The consumer price and/or the producer margin would look different! Although it is quite a difficult exercise to quantify the externalities, just carrying it out would give some good insights about the limitations of the current economic model and in which areas it needs to change. Such a calculation would help rethink many of the existing financial incentives that drive the economics of food and agriculture, in particular many subsidies that find their origin in times where the objectives were quite different than the ones of the future. For example, health issues related to food should be considered as externalities. Many governments have calculated estimates of the cost generated by these two diseases. If society were to be able to quantify what part of the amount should be factored in food, as well as lifestyle and distributed between the entire chain from farm to patient, and to try to estimate the relative part of responsibility between the different links of that chain, it certainly would give a good indication of how to look at future economics of a healthy and satisfied society. The price of food would change but the key would be to have it change in a way that helps a better nutrition and better health while keeping good food affordable.

Copyright 2017 – Christophe Pelletier – The Happy Future Group Consulting Ltd.

Rise of the Asian middle class and the competition for animal protein

The complete story about this topic and how it will influence the future markets can be found in my book We Will Reap What We Sow.

The size of the world population is among the most significant changes for the future. There are many challenges, as the media tell us on a daily basis, but there are opportunities. The first and the main of these opportunities is the population increase itself. In the coming four decades, there will be two billion more people to feed. Never before, has humanity seen such a demand increase. This means that farmers and food suppliers do not have to worry about a lack of market opportunities. Not only the number of people will increase, but the consumption pattern will change, too.

Until recently, most of the consumption took place in industrial countries, mostly the USA, the EU and Japan. For the coming decades, food consumption in these areas will not increase. There are simple reasons for this. One is the demographic stagnation of industrialized regions. Another reason is that people of these regions already eat too much. They have no room for more consumption. At best, they can replace one food by another. Before the economic crisis of 2008, the average daily intake of calories per American was on average of 3,800. This amount is about 50% more calories higher than a normal human being needs on a daily basis. Nobody should be surprised that in such conditions a third of Americans are obese.

In emerging countries, the economic growth results in the rise of a new middle class. A change of diet is the first change that takes place when the standard of living increases. People switch from staple foods such as rice or wheat to higher quantities of animal protein and more fruit and vegetables. The OECD (Organization for Economic Cooperation and Development) looked at the future evolution of the respective shares of consumption by the middle class, between different regions of the world. Their study was for consumption goods at large. The graph is simply amazing.

Click on the picture see the enlarged version

The relative consumption of Western countries will shrink dramatically. While the USA represented about 5% of the world population in 2000 and consumed about 25% of the world resources, they will represent only about 4% of the population and consume about 4% as well. A similar evolution will take place in the EU and in Japan. China and India show the opposite trend. With a share of the total world consumption close to negligible percentages a few years ago, their economic development and the size of their middle classes will transform markets dramatically. Estimates are that the middle class from China and India combined will represent about 45% of the world middle class by 2030! Market demand and therefore world prices will be dictated by the demand from these two countries and not by Western countries anymore.

While the graph covers all consumption items, the situation for food alone might show some differences, but the trend would show a similar pattern. The demand for food in emerging countries will grow strongly. This will not affect only the consumption volumes but also the type of food. The change of the type of food that consumers of the middle class of emerging countries will demand will go beyond switching from a starch-based diet to an animal-protein-rich diet. The type of animal protein that they will eat will change, too. A couple of decades ago, China would import many of the low quality animal products that Western consumers did not want to eat. China used to import products such as chicken feet, chicken wingtips, sow uteri or fish heads. The new middle class is no longer much hungry about those products. They want the prime cuts, too. Instead of being complementary, emerging markets and developed countries will be in competition with each other for the better animal products. This will have profound consequences for the future. It will make the sale of the low-quality products more difficult and affect negatively the profitability of meat producers. At the same time, it will make the demand for prime products literally explode, pushing prices up. Western consumers and Western markets used to set the prices. In the future, Western consumers will have to buy food based on the price set in Asia. Their alternative will be to not have access to these prime products anymore and have a choice between changing their diets or eat less animal products.

This change will make producers and buyers look at business opportunities in a completely different manner than they currently do. All emerging countries show the same trend. Brazil now sees domestic demand for chicken meat increase faster than export markets. Brazilians eat more meat because they become wealthier. Chilean salmon farmers see growing possibilities in the Brazilian market. While their traditional market for Atlantic salmon was the US market, this may change. Since air transport from Chile to the USA is quite expensive, at least more expensive than transport to Brazil, the flow of trade will change from the past. Norwegian salmon might become a better alternative, but the Chinese are now buying increasing quantities. American buyers must prepare themselves to pay much more than in the past to get salmon products.

It becomes clear that the challenge of feeding the world depends for a large part on future consumption of animal protein.

To understand the effect of the increase of consumption of meat in China, a few numbers are helpful. When 1.5 billion people eat on average 1 kg more of chicken meat, world production needs to increase by about 750 million chickens. That represents about 2% of the world production. Similarly, when the Chinese consume on average 1 kg of pork more, the world must produce 15 million pigs more. That number represents 1.5% of the world pig production. The meat consumption in China has already passed the milestone of 50 kg per capita per year, and projections indicate that it would reach 8o kg per capita per year in 2030. Clearly, consumption increase will be much more than just 1 kg. An increase of 10 kg of chicken meat per capita per year in China means that chicken production would have to increase by 20% to meet the new demand! This represents almost the US chicken production volume, and more than Brazilian production. In the case of pork, an increase of consumption of 10 kg per capita means that world pig production would have to increase by 15%. That is 5 times the current pig production of Iowa. That is 60% of the EU production. For beef, the world production would have to increase by 24% to meet an increase of 10 kg per capita per year! This number also represents about 25% more than the current total beef US production.

The Indian population, although still largely vegetarian, is also changing its eating habits. Meat production is increasing there, but not in such dramatic proportions as in China. Nonetheless, with a population of 1.2 billion people, any incremental meat consumption will have consequences.

Different animal productions have different levels of feed efficiency. It takes about 1.8 kg of feed to produce 1 kg of chicken meat. It takes about 3 kg of feed to produce 1 kg of pig meat. For beef, depending on how much grass the animals are fed, the amount of grain used to produce 1 kg of beef varies. With a population of 1.5 billion, an increase of meat consumption of 30 kg would result in the need to produce 3 times 30 times 1.5 billion. The need for feed, excluding grass, would be between 100 and 150 million tons of grains.

Human consumption of grains increase rather limited. Considering that in 2011, animal feed uses about a third of all grains produced, more production of animal protein will put much more pressure on the markets of agricultural commodity. Producing enough to meet the desires of a more affluent world population is actually about allowing the luxury of more meat than people really need. There is no doubt that the “meat question” will become more and more vivid in the future.

My next book, We Will Reap What We Sow, will get in depth about this topic and many others, and discuss the pros and cons of different future scenarios. Stay tuned!

Copyright 2011 – The Happy Future Group Consulting Ltd

A five-dollar meal is not much of a challenge

Those who follow my blog know about my last fancy Christmas dinner, which came down to five dollar per person, including aperitifs and wine. My everyday meals usually cost me less than three dollars, and they are balanced. They include a soup or a salad, a main course and a dessert. I suppose my being French gives me an advantage, as composing such meals is for me the most natural thing in the world. It simply is the way it is, at least in my world. All it takes is to have some time to cook, which usually takes about half an hour of my time.

Half an hour is nothing, especially when you compare it with the amount of time that people waste by checking their cell phones and emails for new messages just to find out that “you have no new message”.

It is time that people rediscover the simple things that make life interesting. Cooking dinner is not only a lot of fun, but it is actually very easy, too. Eating with all family members at the same table at the same time, while having turned off the TV, the computer and the cell phones is a special time. It creates a bond between family members, it is a moment of sharing, and it contributes positively to the development of children. Taking the time to enjoy the meal without to rush anywhere is amazingly relaxing.

The key for saving money on food and at the same time eating better is to do it yourself. Convenience has a price, and so does having someone else preparing your meals, even if they are paid minimum wage. The savings are huge, both in money and in health. My rule of thumb, in North America, is that making dinner it costs a tenth of what the local pub or restaurant would charge for it.

The five-dollar challenge is not much of a challenge, really. All it takes is to shop smart. Just check the pictures of dishes that I have taken in my own kitchen! All for less than $2.50 per person.

Click here for the slide show of dishes and breads!

All photos taken by Christophe Pelletier (click on the thumbnails to enlarge the pictures, they will open in a different tab)

Copyright 2011 – The Happy Future Group Consulting Ltd.

Future evolution of genetic engineering

Genetically modified organisms (GMOs) are one the most, if not the most, controversial aspects of modern food and agriculture. So far, the focus had been on offering farmers alternatives to pesticides and herbicides. The proponents of GMOs praise the progress made and they claim that agriculture production benefits from this. Opponents warn about all sorts of potential disasters in health and environment. The reality is that GMOs have been around for about a decade and a half, and they are here to stay. There is currently no sign that they would be banned from the Earth, especially since genetic engineered traits have been found outside of farm fields, as I had mentioned in a previous article.

At his juncture, and to think of how this technology –and business- will evolve, it is worth asking a few questions.

Has the use of GMOs been successful for agriculture and food production?

There are several levels in this question, actually. From the yield point of view, it is rather difficult to answer objectively, as there is little possibility to compare the respective performance GMOs and non-GMOs. From what I gather, it would appear that the Bt cotton may have delivered better results. For corn, the picture is much less clear. Actually, some varieties have proven to have rather disappointing performance. For instance, the genetically engineered corn from Monsanto failed to produce in South Africa, and recently their SmartStax variety (developed together with Dow) has had lower results than expected. This forced the company to drop the selling price per unit from US$24 down to US$8! The stock market did not appreciate. Clearly, GMO producers can make mistakes, and this is not particularly reassuring.

However, GMOS have delivered some benefits, too. In Argentina, the use of glyphosate-resistant soybean has allowed the production of soybeans to recover strongly from the brink of disaster. After many years of intensive monoculture of soybeans, the soil had been damaged to a nearly point of no-return, With the use of glyphosate-resistant plants, combined with no-tillage technique, farmers have been able to rebuild the level of organic matter in their soils. The result has been a huge increase of production, as farming conditions have been restored.

Opposite to this success story, a study from China concluded that the use of Bt cotton changed the ecosystem in such a way that pests that are naturally not sensitive to the Bt toxin thrived in cotton fields. This forced farmers to use other regular chemical pesticides to fight them, and the overall use of pesticides was actually higher than before the introduction of Bt cotton. The number of glyphosate-resistant weeds is a growing concern in many areas of the USA, and farmers need to use other methods to eliminate the weeds. Currently, the situation has come to a point that Monsanto is offering a rebate to its customers to buy and use herbicide from their competitors, so that at least they keep buying their genetically engineered glyphosate-resistant seeds, because they do not have the solution of the problem in-house. These two examples demonstrate a simple fact: genetic engineering is not a panacea that solves all the problems. It must be used as a part of a well-thought set of techniques. Producing one type of crop with the included traits without understanding the ecosystem that a field is, simply does not work. A field is not a dead zone. A biologically very active system resists constantly the attempts of humans to get it under control. Since the odds of developing a resistance for all available products is statistically close to zero, rotating herbicides and pesticides strongly increases the chances of eliminating the “super weeds” and the “super bugs”. Of course, companies would rather not promote their competitors products by advising farmers to rotate herbicides and pesticides.

Are GMOs necessary?

Considering the rather mixed results, it is quite difficult to answer this question with certainty. The technology of genetic engineering is useful because it offers the possibility to introduce desirable traits in plants. However, genetic engineering deals with genes, and the actions of the genes, as well as their interactions with other genes, are very complex. This is still a field where we have much to learn. Caution is required. Genetic engineering is only one of the many ways we have to increase and improve production. It certainly is not, as some would like to make believe, the only way. This is also important to keep in mind when it comes to developing countries. In these countries, the problem is not that all other techniques have reached their potential. Many farmers do not even have access to just good seeds. If they had, together with proper financing, access to input and adequate techniques, they would achieve much better yields. Since they are poor, how could they even afford to buy GMOs? In my previous article, Hunger is about more than just food production, I indicated how Africa could become a net exporter without GMOs. On the other hand, in developed countries, such as Europe, where farmers achieve outstanding technical results, for instance wheat yields 2.5 to 3 times as high as in the USA, what could be the incentive? Europe is food secure, actually several European countries are among the world’s largest exporters of food and agricultural products. Why would consumers be hungry for GMOs, while food is already affordable? People may not always be rational, but there is always a strong logic about why they do what they do.

Are GMO safe or not?

In all objectivity, there is no certain answer to this question, either. Until this day, there has not been any proven disaster linked to GMOs. Since in biology things may take a long time to come out, there cannot be any certainty that something is not already changing, either. This debate is between those who think that progress always brings some new uncertainties that should accept, and those who think that we should not take chances. Genetic engineering is still a young science, and 15 years is a very short period in ecological terms.

A related question about this is: “Is there a moral issue about GMO?” There certainly is something about morals in the debate. There is the theme of playing to be God. There is the theme of corporate profits vs. people and environment. There is the theme of the control of food by a select few, and that is about power. There is the theme of secrecy vs. transparency. This is also about a certain vision of the world, and about which values should prevail. There is the New World set of values vs. the “Old World’s”. None of these themes has much to do with science, but they are quite important to many people, and they will remain so for a long time. The controversy and the debate are far from over. The food retailers, such as the giant Carrefour, are now entering the debate. A new interesting element is the awakening of the US consumers who start to question food production; while until recently, they were rather passive in that area. Many things will happen and change. At this stage, it is rather difficult to say what will emerge.

What is at stake?

Next to the themes that I have just mentioned, the most at stake is money, and a lot of it. This industry would never have developed if they had not been granted the possibility to apply for patents and collect royalties on their intellectual property (IP). Without IP, there are no GMOs. Patenting life is in itself a controversial topic. This is especially more so when a whole plant becomes private property while only a tiny part of it has been altered. The original whole plant was the collective property of humanity. Without asking permission to mankind, and not even offering to pay a rent for this collective property, GMO producers have managed to become the owners. For many people, there is a feeling of wrong entitlement.

The key element is IP. This is understandable, because most GMO companies are spin-offs from molecule makers, from the chemical and pharmaceutical industries. Their business has always been about investing large amounts of money in R&D to put new molecules on the market. Their philosophy behind GMO production is the same. They think like molecule makers, not like farmers. The objective is to develop products for which they can collect royalties to pay back for the R&D expenditure. The driver for this is the need to develop high margin products to satisfy the expectations of the shareholders. This is why GMOs were a logical step to replace gradually the chemical herbicides and pesticides, for which margins have been eroding. Something else needed to be developed to bring out solid financial results and future prospects. With the patent period ending soon, the existing GMOs will become generic products that will no longer be IP. This forces the producers to think of new traits to include, thus generating more IP for royalties. This leads to a new generation of GMOs

What will be the next phase?

We will see two different paths for genetic engineering. One is a market-driven genetic engineering aimed at solving actual problems that farmers need to overcome. This will not be so much about IP and royalties, but it will be about practical and affordable solutions. This area will be taken over gradually by plant breeders and to some extent with government support. They will focus on issues such as drought resistance, flood resistance, ability for plants to grow in saline soils, and ability to transform solar energy more efficiently into food by enhancing photosynthesis processes. An interesting case to follow is China. Over there, the government is already leading a nationwide restructuring of the currently fragmented seed industry to make it more efficient, and deliver solutions that will help the country improve its food self-sufficiency. Since China is quite involved in farming investments in Africa, we can expect to see Chinese seed producers become more aggressive on that continent, too. China has also clearly expressed that genetic engineering is a part of their new approach.

The molecule makers, as I like to call them, will choose a different path. They will look for sophisticated products for which they can receive a high margin in the market. Their objective will be to introduce as many traits as they can in plants and help them produce… molecules. They are more interested to produce high-tech novelties. They will become the Apple of biology. Chemical synthesis will be replaced by biotechnology. Their areas of interest will be pharmaceutical production and health, more than agriculture. The industry will introduce genes in plants to produce medicines that can be used to treat all sorts of diseases, such as diabetes, cancer, possibly Aids, and many others. They will also focus on the development of healthy nutritional components, such as high Omega-3 fatty acids content in oil seeds and the elimination of allergic components in current foods.

This next phase will see a change in the landscape of GMOs. Companies will make strategic choices about which segment they want to operate. There will be divestment of activities, and there will be new Mergers & Acquisitions, too. It is very likely that GMO producers will focus on biotech and sell their herbicides and pesticides activities to the companies that will choose to specialize in chemicals only. Pharmaceutical companies will get closer to GMO producers, and we can expect to see a new generation of biotech start-ups that will aim at being taken over by larger corporations. Some companies will choose for business-to business, while others will choose for consumer products. For pharmaceuticals and nutraceuticals, companies will subcontract farmers, while remaining in charge of the marketing of the molecules.

Copyright 2010 – The Happy Future Group Consulting Ltd.

Hunger is about more than just food production

Everyone who works in agriculture and food knows that there are about one billion people on Earth suffering from hunger. The temptation to think that the cause is a lack of food production is great, but it does not reflect reality. Quite a few serious organizations and personalities claim that one Earth is not enough to feed nine billion people by 2050. Some claim that we would need two Earths. Others even go as far as mentioning the need for three, and even four, of our blue planet.

There are two possibilities with such statements.

If they are true, then humanity has a problem, because there is only one Earth, and we will not get a second one. In such a case, the only way for supply and demand to get in balance is a reduction of the world population. This could happen through famine, disease and/or wars. Since in such a scenario there is a maximum to the world population, once this number is reached, there must be a constant elimination of the couple of billion people too many, through one of the means just mentioned. This is not a particularly happy thought.

On the other hand, if such statements are erroneous, there is hope to feed the increasing world population with one Earth.

Then, is one planet enough or not? Simple math should help finding the answer. If we need two Earths to feed nine billion, one planet would only feed 4.5 billion people. Currently, the world population is around seven billion, out of which one billion is hungry. Conclusion is that we currently can feed about six billion people. We are not doing that bad. Is it possible to find ways of feeding three more billion on this Earth? From the simple math above, it is clear that those who claim that we need three Earths or more are wrong.

Out of the six billion who do not suffer hunger, it is estimated that one billion is overweight, a part of which, mostly in the USA, is obese. They clearly ingest more calories than they need. Purely theoretically, if those were to share the excess food they consume with the ones who have too little, the billion hungry people would have about enough. This means that today there is already enough food available to feed seven billion people.

Another interesting factor is waste. According to the FAO, about 40% of all the food produced is lost and wasted. In rich countries, most of the waste takes place at supermarkets, restaurants and households level. People simply throw away food. In developing countries, the waste takes place mostly post-harvest. The food does not even reach the market. The food is spoiled because of a lack of proper storage facilities and logistics. The food ends up rotting, contaminated with mould or is eaten by vermin. To fix the problem, the FAO estimates the cost to improve infrastructure at US$ 80 billion. This is less than the amount the EU just made available to bail out Ireland. What to say of the US$ 3.3 trillion that the US Federal Reserve lent to banks to alleviate the financial crisis? Of course, it will be impossible to achieve an absolute zero waste, but if we were to achieve 10%, this will feed many people. I have heard the statement that if post-harvest losses were eliminated in India, the country would be fully food secure. Per 100 tons of production, 40% wastage means that only 60 tons are available for consumers. By reducing waste from 40% down to 10%, there would be 90 tons available. This represents an increase of food available by 50%! Since we could already feed seven billion with the 40% waste, reducing wastage to 10% would allow feeding 10.5 billion people.

There are also many debates about whether we should eat meat or not. The nutritional need for protein is easily covered with 30 kg of meat per capita per year. I had shown in an earlier article that if Western consumers were consuming just what they need instead of eating superfluous volumes (very tasty and enjoyable, though), it would free meat to feed 1.4 billion people the yearly individual 30 kg. In China, the average meat consumption is already up to 50 kg per capita per year. The consumption is very unevenly distributed, but this is the average. Cutting 20 kg per capita over a population of 1.5 billion would free meat for the nutritional needs of an additional one billion people.

The other area of potential is Africa. The FAO estimates that the area of arable land that is not exploited is about 700 million hectares. This is about the size of Australia. To simplify and get an idea of the potential, we can calculate what it means in wheat equivalent. With the assumption that wheat yields would be the same as the current African average, a low 1.5 tons per hectare, this adds up to 1.05 billion tons of wheat. Since a person needs about one million calories per year, and there are about 3,000 calories in a kg of wheat, one ton of wheat can feed three people, the 1.05 billion tons of wheat can feed more than 3 billion people. Normally, there would a crop rotation of at least two harvests per hectare. With proper investment and financing, farms should be able to reach easily the US average of 3 tons of wheat per hectare. Clearly, this performance could be achieved with traditional techniques and good quality seeds. This is not even about high-tech or GMOs. This tremendous potential of Africa is why China, India and Arab countries are very active developing farming there. They did the math. This scenario also shows that Africa can easily become a strong net exporter of food. In this case, the world map of food looks very different. Without Africa being able to produce large amount of foods, the prospects for food security in Asia and the Middle East are a bit bleak. They can depend only on Western Europe, Russia, Ukraine, Kazakhstan, North and South America, and with Australia to a lesser extent. With Africa as a net food exporter, the world map looks a lot more balanced, East-West as well as North-South. Sea routes from Africa with the Arabic Peninsula, the Persian Gulf, and farther away with India and China create a much safer feeling of food security for the countries in those regions. For Africa itself, it may change the relations between Sub-Saharan country and the Maghreb countries. This in turns changes the type of relationship that the Maghreb may have with Europe, by creating more economic activities to the South. Africa’s success –or failure- will affect the whole world.

With the above, everyone can develop further assumptions, but these calculations show that this one Earth can produce enough food to cover the needs of between 12 and 15 billion people. It almost sounds impossible to believe, yet these numbers are not even ambitious. I have not even taken into account that in 2009, 25% of the corn produced in the USA was destined to feed cars, not people, via ethanol production, and that number is expected to grow to about one-third for 2010. The potential is even higher when one considers that a large part of the US corn goes into soft drinks, while it could be used to produce tortillas, with a side glass of water, a much healthier alternative.

That said, if the potential for food production supply looks adequate, actually producing it may not be as easy. The human factor, especially through politics and leadership, will be crucial to succeed.

One would ask why there is hunger if we can produce so much food. The answer is simple. Hunger is not just about food production, it is about poverty. People are hungry because they do not have money to buy food. They do not have money because they do not earn enough, as they have low paying jobs or simply no jobs at all. By developing the economy in these regions, people would get better wages. They could afford more food. The demand would drive the development of food production. Agricultural development would then be a normal and natural activity. Trying to develop agriculture if the locals cannot buy the food cannot work. Recently the FAO estimated that two-thirds of the world’s malnourished live in only seven countries: China, India, Pakistan, Bangladesh, Indonesia, Ethiopia and Congo. These are countries where most of the population is poor, and most of which lives in rural areas. The other proof that hunger is not only a consequence of low food self-sufficiency can be found in two agricultural exports behemoths: Brazil and the USA. In the latter, a recent survey carried out by Hormel Foods, the deli producer, shows that 28% of Americans struggle to get enough money to buy food, or they know someone who struggles. Last year, the USDA had estimated at 14.6% the percentage of US households that do not have enough food on the table. Food will find the money and vice-versa. If Bill Gates decided to move to the poorest and most food insecure place in the world, and would fancy a lobster, I am sure that someone would manage to find him one and deliver it within reasonable short notice.

My book, Future Harvests, investigates the possible scenarios to increase food supply and meet the demand at the horizon 2050.

Copyright 2010 – The Happy Future Group Consulting Ltd.

Consumers shape food production systems

Although it is tempting to think that food production systems are created by agribusiness, they depend greatly on the choices and the attitude of consumers and society. For humans, food is not just about nutrition, but it is loaded with a high emotional content.

Consumer choices are highly irrational. To demonstrate this, here are some examples.

When the mad cow disease, or BSE, hit the UK in 1996, beef consumption dropped, but the behavior of consumers was odd. A leading retailer put British beef on sale at 50% off the normal price. They had their best weekend sales ever by then. When asked why they had bought beef, while there were concerns about health risks, some consumers gave answers such as “At that price it is worth taking the risk” or, even better, “ I will freeze it and eat it once the mad cow crisis is over”! At the same time, customers’ visits to the leading fast food chain drop sharply and beef burgers were not in demand, although their beef was from the Netherlands, a country free of BSE by then.

In Europe, mostly in France, consumers used to demand veal to be white. Not slightly pink, just plain white. To achieve this, calves were fed a milk powder diet, which kept them anemic. Yet, at some point, consumers denounced this technique as being against proper treatment of animals. The demand of white meat with a normal diet could not be reconciled. It took years before consumers finally understood that veal was supposed to be pink.

For most customers, white eggs are perceived as being from intensive cage production, while brown eggs are perceived as being more “natural”. Everyone with knowledge of the industry knows that the color of the shell has nothing to do with the nutritional quality of the egg. The belief that the egg color indicates a difference persists, though.

Some blind tests carried out between “industrial” and free-range chicken meat carried out in the Netherlands in the 1980s showed interesting results. When consumers were not told which was which, they could not clearly taste a difference, while when they knew which meat was from which production system, they overwhelmingly gave the preference to the free-range chicken.

Here, in Vancouver, there is a strong trend towards organic foods produced locally. Farmers markets flourish and the environmentally conscious consumers choose to buy their “natural” food on these markets. Ironically, many of them drive in their gas-guzzling SUVs to go there. So much for caring for the environment.

Who, with a rational mind, would choose to eat junk? Yet, junk food is quite a popular item in North America, and it has been a growing trend in many European and emerging countries as well.

In the case of tobacco, not a food, but an agricultural product nonetheless, the warning on the package is quite clear. Yet, some people decide to smoke.

The list could continue and I am sure that everyone has more examples of irrational behavior. Consumer demand (both the rational kind as the irrational one) determines what farmers and food companies produce and sell. In this regard, consumers also share a responsibility in what is produced, how it is produced, where it is produced and how it is distributed to them. Blaming retail or the agribusiness alone for the kind food systems that are in place is unfair.

Of course, it would be interesting to imagine what people would eat if they were rational, and what impact on our food production this would have. A rational diet would follow proper nutritional recommendation, and to this extent would follow the same principles as those used in animal nutrition. However, this would not have to be as boring a diet as what animals are fed. A rational diet does not need to be a ration. After, the human genius that is cooking would help prepare delicious rational meals. It would be like having the best of both worlds. The emotional, social and hedonistic functions of food would remain. The key would be about balance and moderation. If people were eating rationally, there would not be any diet-related illnesses. There would not be obesity. There also would be a lot less food waste. This would improve the level of sustainability of agriculture.

Will consumers become more rational in the future? I do not think so, but I believe that they will become better informed and more critical over time. Especially with the rise of social media, information circulates much faster and trends can gather momentum faster than in the past. More programs for healthier eating are currently running and action is taking place at many levels. In particular, schools are a place where much can be achieved. One can wonder how long the “lunch money and self-service system” will last. Having schools placing vending machines selling items that are highly unbalanced foods and leaving the decision over to kids to decide what they want to eat was of course a disaster waiting to happen. I cannot believe that anyone would expect kids to consciously making the choice of spending their lunch money on broccoli and mineral water. Kids will choose what they like best, not what is best for their health. They need adults for guidance.

Attitude towards food is changing all over the world. Currently, I can see two major trends growing. One is taking place in North America and the other is happening in emerging countries.

In North America, consumers are waking up and starting to question the way their food is produced. This is a major change compared with their attitude until a few years ago. When I moved to this part of the world in 1999, I was amazed by how easy consumers, and retailers, were for the food industry. Consumers simply seemed to consume without trying to know about production methods. Hormones, antibiotics or GMOs (genetically modified organisms) seemed to be accepted. This was a sharp contrast with what I had known in Europe, where all of the above was meeting strong resistance from consumers and retailers. What I currently see happening currently in North America reminds me strongly of what I had seen happen in Europe 20 to 30 years ago. The similarities are almost disturbing. Consumers are losing trust in government agencies, and retailers seem to be the ones to champion food quality, traceability and production methods. This will have much more profound consequences in the way food is produced in the USA and in Canada than the agribusiness seem to realize, or is willing to admit. The population is aging, the generations are changing and the values about food are shifting. The current opposition is not a short-term fad. Consumers will make different choices. Some food producers see that and are already adapting, but many producers still seem to think that opposition will pass. I believe that they are in for a surprise. The expressed plan of Wal-Mart to buy more from small and mid-size farms, to reduce waste, and to develop sustainable sources of agricultural products is a very clear signal that business is changing!

In emerging countries, consumers are changing their eating habits, too, but for a different reason. They now have better wages and more disposable income. The previous “”subsistence” diet made of mostly grain, such as rice, wheat or corn, are now including more animal protein, as well as fruit and vegetables. In these countries, consumers are not overly critical of their food production and distribution systems, but issues that arose in developed countries affect the way food is produced, especially in the area of food safety. These consumers probably would like to experience the same level of food security and affordability of food as in the West over the past 5 decades, but the growing population, and the financial markets will temper this trend. Food prices will be firm at best and they are more likely to increase in the future on an ongoing basis.

There is no doubt in my mind that consumers and retailers are increasingly going to put the emphasis on sustainability, health, food safety and transparency. This may sometimes lead to conflicting objectives with the need to produce more food globally. This does not need to be a problem, but this is why the world needs strong leaders to show the way towards meeting both the objectives of better food and of more food.

Copyright 2010 – The Happy Future Group Consulting Ltd.

How to attract people to food production?

With the population increase, food production becomes an increasingly strategic activity. Yet, the food sector does not seem to have the appeal it deserves, and attracting new people appears to be a challenging task.

In countries where the percentage of the active population in agriculture is low, many young people simply have never had any exposure to food production. Their food knowledge is limited to their visits to the local supermarket. Since one can love only what one knows, this seriously restricts the number of potential candidates. In a previous article, “Who will be the farmers of the future?“, I had already asked the question of who would be the farmers of the future. To get the attention of the youth, the food sector needs to become more visible and more approachable. There is a need for more interaction between education and visits to farms and food processors. As I mentioned in “Nutrition basics should be taught in school”, such activities should be part of the normal curriculum. Understanding food is understanding Nature, and understanding Nature is understanding who we are. Food, together with water and air, is the one thing that we cannot live without. This should make clear beyond any doubt how important food production and food supply are for the future of our species.

To attract new people to the food sector, it is also quite important to tell what kind of jobs this sector has to offer. These jobs need to be not only interesting, but they also must offer the candidates the prospect of competitive income, long-term opportunities, and a perceived positive social status. Many students have no idea about the amazing diversity of jobs that agriculture (including aquaculture) and food production have to offer. This is what both the sector and the schools must communicate. Just to name a few and in no particular order, here are some of the possibilities: farming, processing, logistics, planning, sales, marketing, trade, operations, procurement, quality, customer service, IT, banking and finance, nutrition (both animal and human), agronomy, animal husbandry, genetics, microbiology, biochemistry, soil science, ecology, climatology, equipment, machinery, fertilizers, irrigation, consumer products, retail, research, education, plant protection, communication and PR, legal, management, knowledge transfer, innovation, politics, services, etc…  Now, you may breathe again!

All these types of activities offer possibilities for work that can be both local and international. These jobs can be indoor or outdoor occupations. Employers are both small and large businesses. Jobs are available in industries, in government agencies, in not-for-profit organizations. Agriculture and food are about life science, and life science is about life. Not many economic sectors can offer such a broad choice of professions.

This said, getting more students in the field of food production will require relentless communication about the present situation as well as about future perspectives. It is necessary for colleges and universities to envision the future. Educating students today must help making them operational for the challenges of the future. Education is nothing less than developing the human resources that will increase the prosperity, the stability and the dynamics of the society of tomorrow. Attracting new students goes further than just agriculture and food production at large. Within food production, every sector also competes to attract new people. Some healthy competition should benefit the whole food chain.

Clearly, there is a need to identify future trends, future challenges and future needs to produce better food and more food. This will require a practical approach. Identify future needs is not an intellectual exercise. It is about providing people with food on a daily basis for the years to come. Identifying future challenges is a team effort between education, research, farmers, businesses and governments. All must work together to create a more secure future. If we want to avoid suboptimal solutions, there cannot be walls between the links of the food production chain.

In my opinion, the most effective way to work towards developing the proper curriculum and attracting students for the jobs of the future is to have a market-driven approach. The question is not only what type of jobs will be needed, but also where will they be needed? To be effective in this process, it is necessary to develop a vision of the things to come for the coming 10 to 20 years, which is the purpose of The Food Futurist (see mission statement). In our fast-changing world, today already belongs to the past. Developing a curriculum on current issues will not prepare students properly for their professional lives, and neither will it serve society properly. Only by identifying what skills will be needed is it possible to offer the best job perspectives for future food professionals, and being able to overcome future challenges. And feeding 9 billion people by 2050 is quite an objective! Identifying the challenges of the future indicates where the best job opportunities are. The action plans to develop tomorrow’s curricula will depend greatly on geographic location. Clearly, India will face with very different demographic, environmental and economic situations than North America, Europe or Brazil will. However, when it comes to food, we will become even more globally interdependent than we are today. This offers many opportunities to train people for work abroad, too.

As my head teacher in Animal Production, the late Julien Coléou, taught us in the first lesson of our final year at the Institut National Agronomique Paris-Grignon: “To live is to learn, to create and to fight”. When it comes being prepared for the future, these three pillars of life all need to be on the curriculum.

Copyright 2010 – The Happy Future Group Consulting Ltd.

Some basics about nutrition and metabolism that can improve your life

With obesity on the rise in more and more countries and legions of diets with little results, if any, I had been thinking about writing something about proper nutrition and some of the key physiological mechanisms involved in human metabolism. It is a bit away from envisioning the future, although the fight against obesity will gain momentum in the years to come.

There are many misconceptions out there. For instance, we all have heard that carbohydrates are not good, fat is not good or meat is not good. This is total non-sense. Carbohydrates, fat and protein are good. Actually, they are indispensable to our health. What is bad is too much, especially too much of the nutritionally poor quality carbohydrates, fats and protein sources.

Obesity and overweight are increasing health issues. In the world there are about as many overweight people as they are people suffering from hunger: around one billion people in each group. What causes overweight? The answer is simple. A person gains weight when he/she ingests more calories than he/she burns. The cause can be either too rich a diet and/or not enough physical activity. In most cases, it is a combination of both. The source of unburned calories are metabolized into fat and stored in the fat tissues. This is a problem, because fat tissues are poorly irrigated with blood vessels. This makes the stored fat difficult to eliminate. The body will use calories coming from the meals before it uses the fat reserves. This is why it is so difficult to get rid of extra pounds. The only way to use the fat reserves is through long intensive physical activity.

Some might wonder why our body does not tell us when to stop eating. Actually the body does, through two physiological mechanisms. One is a mechanical mechanism. When the stomach is stretched, the nervous system sends the information to the brain that the stomach is full and the brain makes us stop eating. The other mechanism is biochemical, through the blood composition, the brain sensors can detect when we have ingested enough energy, and the brain makes us stop eating. We feel “full”.

This could make you think that we should never overeat because the brain would let us know on time. Theoretically, this is true but the modern lifestyle has found a way of deceiving the brain. The biochemical mechanism takes time to react. It needs to detect a glycaemia level high enough to act. When we eat food and beverages that are highly concentrated in energy, and therefore have a relatively small volume, we ingest more calories than we would need before the stomach gets stretched, and before the glycaemia level rises in the blood to the normal level. Such foods are generally low in fibre and high in fat, such as fried foods. Soft drinks are not filling and they contain many calories. You can imagine the result of a combo bacon cheeseburger-French fries-pop package meal! The carbohydrates that they contain pass in the blood almost instantaneously. One of the advantages of fibre-rich food, such as fruit and vegetables, is that they fill the stomach and contain relatively few calories per volume unit. This activates the mechanical nervous mechanism and limits our food intake much faster than foods with little fibre. Do not fool yourself! The little leaf of lettuce in your burger is not enough to protect you.

This brings me to talk about carbohydrates. There are two types of carbohydrates: the slow ones and the fast ones. The main representative of slow carbohydrate is starch. Starch is a long molecule that does not get into the blood stream as such. When we consume starch in bread, rice, pasta or potatoes, the starch gets cuts in a smaller component, called glycogen. The glycogen is stored in the liver where it waits for instructions from the brain to be released in the blood stream. This happens through a biochemical mechanism. The brain sensors detect a state of hypoglycaemia, and it orders the liver to release the glycogen. As long as our liver still has glycogen in store, we do not feel hungry. The system regulates itself smoothly. When we run out of glycogen, which is between 2 and 4 hours after the meal, we get into a hypoglycaemic state and we feel hungry. Usually it happens around 11.00 am and noon. That is why lunch exists! Same thing happens around 5.00 pm. Starch is good and necessary for us (as mentioned before, too much, on the other hand, is not).

The second group of carbohydrates, the fast ones, follows a different process. This group consists of what we call sugars, such as saccharose, fructose or glucose. When ingested, they do not get stored for later release, unlike starch. They flow into the bloodstream almost instantaneously and there are two possible scenarios. If our activity level is high enough when we consume them, they are burned to provide us with energy. If our activity level is too low for the amount we consume, our metabolism deals with the fast carbohydrates in only one manner: it transforms the sugars into fat that then get stored in the fat tissue. This is why drinking large amounts of pop or snacking on candy bars while sitting on your couch watching TV or playing video games will make you fat. There again, the rule is enough sugar to sustain yourself is good, too much consumption is bad.

About fat, I can tell a similar story. Within the amount necessary to allow all our functions to work properly, fats are fine. As their name indicates, essential fatty acids are indispensable. Even the dreaded cholesterol is an essential element for us. What is not good is to consume too much fat, and to consume too much of the less good ones. The length of the carbon chain, the level of saturation and the configuration of the molecules also affect your health. The excess of fat in your diet will end up as fat deposit in your body. This is why potato chips while watching TV will hurt you, too.

Protein is good, but with moderation as well. As for the other elements, too much protein can cause some problems, as protein stored in the intestine before release will not ferment, unlike fibre, but will undergo a rotting process, resulting in the production of harmful amines. The kidneys have also more work to do, and a long exposure to a diet too rich in protein may cause kidney problems.

So, what is the lesson from all of this? For me, it is that food one of the enjoyable things in life, as long as it is consumed with moderation (an incidental excess once in a while is fine, too; it means that you enjoy life) and it goes together with a healthy lifestyle. A person should have 7 hours of physical activity (the kind that makes you sweat) per week. Also, remember that the best is to not gain extra pounds in the first place, because the fat tissue is remarkably persistent.

Copyright 2010 – The Happy Future Group Consuting Ltd.

German agriculture Minister says “Eat less meat!”

Ilse Aigner made that statement during the “Green Week” held in Berlin early January, one of the largest shows about food and agriculture in the world.

This is quite remarkable to hear a Minister of Agriculture making such a statement, based on the recommendation of the German Nutrition Society that indicates that 300 to 600 grams (that is about 11 to 22 ounces for our American friends, who usually consume this amount in less than two meals…) of meat per capita per week is enough for a person to cover their nutritional needs. Yet, her statement was linked to environmental concerns, since it is fashionable to blame meat production for climate change issues.

From a nutritional point of view, this recommendation is correct. That is all we need. That is less than most of us want, but that is a very different topic. I had addressed this, mentioning that 30 kg per capita per year (equals 600 g per week) was plenty,  in my earlier posting “The future price of meat and fish: up” a few months ago,. I also mentioned that if we ate only what we need, the West would free a quantity of meat large enough to feed a population as large as China’s.

It is unlikely that the Minister’s statement will change consumption patterns any time soon, but the future price of animal protein will. Considering the feed conversion ratio of farm animals and the increased competition between human consumption, animal feed industry needs and biofuels, the production cost of meat will increase. Feed is the main cost in those productions. Further, the amount of water required by farm animals and the manure issues that still linger with intensive animal husbandry, will add to the price pressure.

There is no need to become vegetarians, but the days of gluttony are numbered.

Copyright 2010 – The Happy Future Group Consulting Ltd.