What a waste!

Nobody can have missed it. The hot topic of the past month was the so-called global food crisis. If you believe the media, the conventional ones as well as the social media, we are facing food shortages. For those who follow my articles, it will be no surprise that I am inclined to challenge such statements.

When 40% of all the food produced is wasted and lost, it is not possible to talk about food shortages. As I had explained in “Hunger is about more than just food production”, there is plenty of potential to increase food availability. Currently, and with this extremely sloppy 40% food waste, the world agriculture feeds quite reasonably six billion people. Unfortunately, this is not the case for one billion hungry people. By eliminating the waste, we could supply enough food to feed nine billion people. Not in 2050, but today already! That is not ideology or political agenda. It is simple math. Interestingly enough, the amount of the 40% food waste corresponds with the 70% more food the FAO says we should produce to feed nine billion. The more food we will save, the less we will need to push production up.

Unfortunately, the food waste issue receives little attention in the media. This is surprising because there would be some sensational articles to write about it. A little bit of guilt here, a little bit of horror there. That should sell some newspaper or get people watching TV. If this does not happen, it is probably because the food situation is not dire. From time to time, I receive requests from journalists. Sadly, the stories that interest them have to be scary, such as doomsday scenarios including food shortages and the imminence of food riots everywhere, to be followed of course by World War III. I do not do that. Other type of topics that journalists love is science fiction stuff, such as meat artificially grown in labs and anything related with high-tech, or freaky stuff like eating insects and worms.

The food crisis was not so about shortages. If it had been the case, we would have seen pictures of people fighting for food. It did not happen. Actually, it is a price crisis. The price increase of commodities futures results from the depreciation of the dollar (as I was predicting in “The danger of a weakening US dollar”), and the strategy of what the financial media likes to call hedging against inflation. The later is really smart stuff, as investors rush into buying commodities to hedge against potential future inflation. The high demand for commodities results in price increase. That is the best guarantee to get inflation. Brilliant!

The media attention has been interesting to follow, though. Every newspaper wanted to have a piece about the subject. And they really published a lot. Everyone became a food security expert, from restaurant critics, to balcony gardeners and other economy reporters. Depending on the sources they wanted to use, the sponsors, and of course their paying audience, everybody could find about anything and everything about the subject. Some made a bit of sense, but many reports were sadly erroneous.

For some pundit, we are just one bad harvest away from a global food crisis. That was true 10,000 years ago, that was true just before the Irish famine, and it will be true as long as farmers do not control the weather. Is that worth receiving coverage? For many, it has been an opportunity to push their respective agendas. For some, the only way is high-tech big agriculture. Hmm is that so? For others, only small-scale organic farming will save us. Hmm again. For others, eating meat is responsible for all the problems. Did I say hmmm already?

In this frenzy of food apocalypse reporting,  I simply have not seen one article dedicated to food waste, just like I have not seen any sensible research about how the price of commodities is set, either. When the total market for financial derivatives is US$ 600 trillion, while the world GDP is only US$ 60 trillion, something is a little out of balance, would not you think? The daily trading volumes of commodities largely exceeds the actual physical daily consumption of these commodities. Are all the traders only adding costs in the food chain?

However, let’s come back to the waste part. What the math I presented at the beginning of this article shows, is that the future is not so much about producing more, but about producing better and smarter, consuming better and smarter, and organizing the supply chain more effectively to ensure that food indeed reaches consumers.

The waste issue is rather simple to sum up. In rich countries, and also increasingly among the wealthier in emerging countries, the food waste occurs at the consumer end of the chain. In developing countries, the waste occurs at the post-harvest level. Food rots before it had a chance to reach consumers. In these countries, food losses are the result of an insufficient infrastructure. Another area of major food waste is fisheries. Because of (ironically) highly efficient trawlers, many fish species, as well as large quantities of edible fish are lost as they are crushed in fishing nets

Retailers are working on improving their part. For instance, Wal-Mart has initiated a large program to offer food to food banks, as part of their zero-waste strategy. European retailers did something similar several years ago. Consumers must do their part, too. Throwing food away is inexcusable for people who have refrigerators at home. People need to get some basics of household management. When I was a kid, there were classes about this at school, but it disappeared somewhere in the 1960s. Throwing away food is bad economics. Although nobody would think of throwing away coins and bank notes in the garbage, throwing away food is exactly that. That money could be used for better purposes.  Throwing food in the garbage, or as I have recently read in a local paper here in Vancouver throwing it in the toilet pot, is pretty much an immoral act, especially when so many lack food. Of course, not throwing away food in North America will not solve hunger in Africa, but there are other consequences to think about. Producing food requires a lot of energy (for production of fertilizers, for transport, for agriculture machines, packing plants etc..) and water. Wasting food means that the water and energy have been used for nothing! It is pure waste. Some may think that this is not relevant in Europe or North America. Do not be so sure, because for instance California is struggling with water scarcity, while exporting its water to other regions in the form of produce and other perishables. The gas emissions created for the wasted food will have been for nothing. Not wasting food actually reduces the environmental impact of agriculture, and this particular impact is the consumers’ responsibility. They need to know about this, because their behaviour influences the quality of the environment.

In rich countries, there is no food shortage, but we could use more leadership in informing and educating consumers to do the right thing. This is not only a matter for retailers or food service, but for all levels of the society. Rising awareness about the cost of wasting food should be on the agenda of all community leaders. Schools, parents, religious and political leaders should all address this topic in their respective circles. Food waste is where economics meet morals.

The post-harvest losses in developing countries are also both about economy and morals. The moral part is about their populations who already have so many difficulties to afford enough food, while almost half of it rots because of poor storage and infrastructure. The economic part is about the waste beyond the food losses. In many developing countries, water is scarce and most of them use large amounts of this water to irrigate food crops. Many developing countries already struggle to have clean drinking water, yet almost half the water used for irrigation is wasted together with the food. This is not acceptable, morally and economically. Moreover, some governments subsidise water for farmers to irrigate. Yet half of these subsidies are wasted with the food. Some governments also need to subsidize food for low-income families and to counter food inflation, simply to allow their people to buy food. If food availability were about to almost double by fixing the infrastructure, this would have some very positive consequences. Today, close to half the food receives zero money for revenue, while the production costs have been made to produce all of it, the eaten food as well as the wasted food. By eliminating the post-harvests losses, the currently lost quantities would create revenue that is currently missing. Considering the volumes of food involved, the total amount of new revenue generated in all these countries would be astronomic. Everybody would win. Retailers and wholesalers would increase their sales substantially. Farmers would make more money. Storage companies would have a business. Transport companies would have more business as there would be much more food to bring to market. More food available would also mean less inflationary pressure on food prices. This new activities would create jobs. This would help more people have a better income and be able to afford food a bit more easily. Governments would not have to spend as much money to subsidize food. A population that eats better would not be as tempted into social unrest as a hungry mob. At the production level, less food waste would mean less waste of water, energy and inputs. This would alleviate water problems, and increase the efficiency of the use of energy. All of this has a positive impact on the environment. According to the FAO, the cost of fixing the post-harvest losses in developing countries is about US$81 billion. Considering the quantities of extra food involved available “almost for free” since it has already been produced, the US$81 billion sound like a bargain. Indeed, agriculture represents 5.8% of the world GDP (source: CIA Factbook), or roughly US$ 3.5 trillion! Therefore, saying that post-harvest losses must be in the neighborhood of US$ 1 trillion is probably conservative. One would expect to see the payback time for infrastructure investments to be rather short. Someone needs to crunch the numbers, to take the lead and to show to all parties involved what their advantage will be. I certainly would be happy to do that. All actors of the food chain will have to participate, private sector as well as public sector. The return will be high in all respects, financially of course, especially once the current social and environmental externalities will be eliminated as the result of an efficient supply chain.

Copyright 2011 – The Happy Future Group Consulting Ltd.

SeaAgra Seafood and The Food Futurist team up for consulting of seafood projects

Vancouver, 9 March 2011

SeaAgra and The Food Futurist will cooperate to offer consulting services to their customers involved in the seafood industry. By combining their pool of expertise in the field of sales, marketing, processing, quality, supply chain, business management and strategy, the new partnership will focus on actively helping execute the development of market-driven seafood projects.

The ultimate objective will be to develop viable value chains between producers and seafood buyers by matching the best partners together and by removing all unnecessary costs in the chain. Thus, the maximum value is distributed between the links of the chain. The focus will be on market-driven strategy, efficiency and optimization, sustainable projects, business organization, setting up long-term win-win partnerships, and fostering customer service. The results for the customers will be a stronger market position, improved financial results and a clear and focused future.

”A synergy of talent is what makes this partnership special. Different expertises, different experiences, and a wealth of knowledge, combined with a common focus will allow us to offer a service that is unparalleled” says SeaAgra’s Joe Collins.

About SeaAgra Seafood

Sea Agra Seafood Brokerage Ltd. commenced operations in 1992, initially as a fresh farmed salmon brokerage company servicing small and medium sized salmon farms. Since inception, the company’s product line has expanded to include fresh wild salmon, wild B.C. caught ground fish, farmed steelhead, sablefish and salmon.
We have since expanded to include the purchase of niche wild and farmed seafood products for re-sale to our highly discerning customers. Our team offers an unrivalled combination of 95 years of experience in the seafood industry and brings a genuine passion for what they do to our business.
Honesty, integrity and a keen understanding of the inner workings of our industry converge to form the basis of our approach to business. We have earned an outstanding reputation in the seafood industry in part because we treat the products we sell as if they were our own. This approach keeps our customers coming back year after year for our fresh and irresistibly delicious seafood.
SeaAgra services fresh seafood markets across North America and other major consumption countries.


I am very enthusiastic about the cooperation with SeaAgra. I have known the owners of SeaAgra, Ralph Shaw and Joe Collins, for many years. When I was in the salmon business, Joe was part of my team, and Ralph was one of our customers. They contacted me last year for a project. We did a superb job under a very tight deadline, and we have received praise from third parties who have read the report since then. Our work has been much appreciated. This has led us to pursue this partnership further. The combination of talents with the great chemistry between us generates a positive energy. We will add tremendous value to the customers. Our concept goes beyond simply advising, it ensures the successful execution of the projects!

This partnership will also allow us to explore scenarios for the future of seafood and develop marketing strategies for new species, such as barramundi, cobia and other high-end specialties.

Christophe Pelletier

An Interview with The Food Futurist: 100 Answers about the Future of Agriculture

Following up on the recent publication of the report “100 Questions of Importance for the Future of Global Agriculture” by a group of experts from all over the world under the lead of Jules Pretty of the University of Essex in the United Kingdom, I wanted to react candidly and spontaneously on every of these 100 questions.

Since giving extensive answers would represent several months, if not years, of work for a single individual, I chose for the interview format. I gave myself just a couple of minutes to say what came to my mind.

The result is this document: 100 Answers – An interview with the Food Futurist

I hope it will be as enjoyable for you to read as it was for me to write. I hope that it will trigger reactions, as this is more a first attempt to initiate a forum discussion.

The questions were quite interesting. However, I missed a few elements tat I believe to be quite important in the challenge of feeding a population of nine billion by 2050. The initial report did not raise enough questions about the issue of water. Water is essential to agriculture, and the challenge of accessing enough water is even more urgent and more critical than improving food availability. Similarly, the initial report did not reflect much on urban farming. Estimates of today’s urban food production are of 15-20% of the total world food production. Considering that about 50% of the population lives in cities, this means that 30-40% of all the food consumed in cities is produced in urban centers. This is far from negligible. As the urban population is expected to double by 2050, urban farming will be an essential part of our food supply. I had also expected more attention to aquaculture, which is the fastest growing food production.

The initial report focuses more on production aspects and systems than it does focus on the human factor. Population increase, distribution and especially the quality of leadership will be crucial for the way food security strategies can be set up. As I mention in one of my answers, our future will be as bright as our leaders.

Writing this document, and reacting to questions asked by highly qualified experts, was a good way of assessing the book “Future Harvests” that I published in August 2010. I was quite happy to see that the book addresses all the concerns of the thinkers and policymakers.

I wish you happy reading.

Helping farmers produce better

Meeting food demand depends for a large part on the ability of farmers to produce adequate quantities of the food products of the right quality. To achieve such an objective, farmers depend on their business partners. To feed an increasing world population, helping farmers succeed is not an option; it is a necessity.

There is no argument against producing better. A market-driven and more efficient production reduces the amount of waste, and it increases the amount of food available for consumers. It reduces the impact on the environment and it actually reduces the cost of production. However, it is important to realize that actions to produce better often are investments, as the effect is not always immediate.

From a value chain point of view, efficient production starts with high-quality ingredients. If the world wants farmers to produce higher volumes, they must have access to good genetics. Seeds that have the potential to deliver high yields, or farm animals that can produce and grow fast, while using feed and water efficiently, are an absolute necessity. Genetics and agriculture must also take genetic diversity and sustainability into account, but with poor genetics, farmers will not be able to meet food demand, and they will not be financially viable for the long-term. Vision and proper strategy are the elements to deal with this dilemma.

Farming inputs, such fertilizers, pesticides, herbicides and animal feed, must help plants, and farm animals, to express as much of their genetic potential as possible. Suppliers can play a very important role in helping farmers use the proper products in the right amounts, in the right place, and at the right time. The same principle applies for food processors and distributors. It is their role to help farmers deliver what the market needs when it needs it. They must encourage this by rewarding financially the farmers who do things right. This is in the interest of all the parties involved. Farmers make more money with their products. Processors get products that are more efficient to process, thus saving on costs. Distributors gain market share because they offer the right product to their customers, thus increasing customer satisfaction, appeal and loyalty. The advantage of doing things right is that it becomes more difficult for business partners to switch to a competitor. By being the best partner in business, the need for complicated contractual and legal agreements becomes a little less relevant. It is about loyalty and mutual security.

To achieve this kind of ideal situation requires a lot of effort, commitment and communication. Market needs must be translated in clear product specifications. The knowledge on how to be able to meet the required standards needs the proper channels to be transferred to farmers. Access to information has become much easier with the development of communication tools such as Internet and cell phones. Smart phones are helping further, and now farmers, anywhere in the world, have much faster access to market and technical information than by the past. This helps them make faster and better decisions. However, better technologies and better communication tools are not enough. Extension services are crucial. In my book, Future Harvests, several examples show how positive this is for food production. One is the policy of the Ugandan government that resulted in a boom in rice production, making the country a net exporter of rice. The second example is about the extension services of a food corporation, McCain Foods, in India, that helped farmers produce a better quality of potatoes, meeting market requirements, and earning substantially more this way. Another illustration of the positive effect of knowledge transfer is about the farming leader in Burkina Faso who helped increase food production with simple techniques, and stopped the exodus of population. Proper education and on-going training is part of the food production of the future. The human factor in knowledge transfer is as important as ever. Only people can know what the specific situation of a farmer is. Knowing the farmer is the best way to help them set up plans and strategies to improve their technical and financial performance. A farmer being independent business owners, their main concern is to generate enough revenue to stay in business, and to offer a decent standard of living and a secure future for their families. Helping them in these objectives is the way to get their attention and loyalty. Extension services need to offer the most effective solutions by taking into account the level of skills of the farmers, as well as their financial situation. Some farmers can afford and use high-tech solutions easily. Others may have money, but lack the skills to use certain techniques or technologies. Others may be technically savvy, but may lack the money. Extension service people are the ones who can help farmers make the best choices. They also must assist farmers to get the proper financing if this is the limiting factor, for as long as the money would used to deliver the proper return.

As Cicero stated, “The sinews of war are… endless money”. This tends to be overlooked by many who talk about increasing food production. If farmers do not have access to enough money to be able to produce the food the world needs, they simply will not. Developing agriculture requires serious investments, either from individuals or from governments. Asian and Arab countries know this and this is why they spent massive amounts of money in African and Asian countries, and even in Brazil and Argentina. If farmers cannot buy the basics to produce efficiently, they will have poor harvests. If farmers cannot be profitable, they will stop farming. This is important to realize that being a farmer must be attractive financially, too, if we want to motivate the next generation to be in agriculture. Money is important, but just for food production, more is not necessarily better. To get good results, we must ensure to have the right amount of money at the right time at the right place for the right purpose. The money must be aimed at producing for the market. Financing agriculture is about meeting food demand, not to produce blindly. Just like there is a need for efficient market-driven precision agriculture, the future of agriculture financing must evolve to efficient food-market-driven precision financing.

Copyright 2010 – The Happy Future Group Consulting Ltd.

The importance of values in value chains

When it comes to looking for partnerships as part of a value chain, one area tends to be neglected. Usually, business people will develop their business plan properly, identify their market and their source of supplies, and make sure that the math is solid. Beyond the numbers, there is always the human factor that will play a role. Every company, therefore every partner in the chain has its own specific culture. This is important to realize, because when cultures, and values, do not match, the relationship will always bring some hardships at some point.

This is not a simple problem to solve, and usually, only few potential partners share your values. It is also important to realize that the word “values” does not necessarily imply good ethics and honesty. After all, hyenas move in packs. Sometimes, the partner that can help grow your business the fastest might not be the right one for the long-term, but it might be the best choice for now.

Depending on in which region of the world you do business, the sense of time, sometimes even of urgency, can vary a lot. For instance, North Americans tend to want to start business immediately, while the Japanese will take all the time they need to find out whom they do business with, and build enough of confidence in their potential partner before starting business. In the land of the rising sun, it can take several years before the first transaction takes place.

What are the risks of a mismatch of values? It can have serious consequences, depending on how much of your business is engaged with the “wrong” partner. It can range from dissatisfaction about the profitability of your business, constant disagreements and tensions with your business partner, to your being ripped off. One thing is sure: there will never be complete trust and loyalty when values are not aligned.

Several years ago, I developed a quantitative system to evaluate the value of a business partnership. It is rather simple in its design and very powerful in its implementation. It helps identify the strengths and the weakness of the business relationship, and it is an amazing to tool to use to address potentially damaging issues over time, and create clarity for future dealings. By realigning values, both business partners can develop a plan of action and look beyond the price negotiations alone.

Copyright 2010 – The Happy Future Group Consulting Ltd.

What a game changer my book is!

Future Harvests has been published less than two weeks ago, and it is going to change my company rather profoundly.

What started as a blog on the side of The Happy Future Group Consulting Ltd. is now about to become the very core of my business.

Not only the book sales are already higher than I would have thought, the book is creating much interest for my other activities. The book has already been shipped not only to Canada or the USA, but also as far as South America, Asia and Europe. This is truly amazing.

The reactions to the announcement of the book’s publication have been amazingly enthusiastic and they made me feel like I had just produced something that many were waiting for. This is both very rewarding and very humbling, because working on solutions for future food supply to an increasing world population is a huge task. Since the publication, people with whom I never had contact before, from all around the world, have approached me, thanking me for having engaged in this venture.

New contacts are asking me to participate in conferences and to organize workshops and seminars for them. The CBC (Canadian Broadcasting Corporation) is interested in having me on one of their programs. Of course, the concrete discussions are still to come, but I have to admit that my Food Futurist is now showing incredible potential.

The part on policy making and strategy is getting more attention, too. This activity has the potential to become a solid business that will need to involve more people in my organization. I have already started to develop a plan for this. I can see interest coming from companies, professional associations and governments, not only in Western countries, but in many emerging countries, such as in South America, Southeast Asia, India, or Russia to name a few.

The first step that results from all of the above is for me to formalize the Food Futurist further into a more structured activity than it has been so far. This has started with my defining and posting the mission on all the business pages of the website. The mission is “To help our clients challenge today’s certainties, shape the future, and manage the transition with a targeted and practical action plan for the coming 10 years and beyond”.

The following step is going to be to develop business around this mission and the principle expressed in Future Harvests.

If you are interested in this, please do not hesitate to contact me. Talking is cheap. If you know people who would be interested, please pass it on to them.

As Humphrey Bogart’s character said in the movie Casablanca, “I think this is the beginning of a beautiful friendship”.

Future Harvests – A preview of the book

My book, Future Harvests, is expected to be published before the end of 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.

Beyond the book

Now that the publishing company is working out the final details before the release of the book, time has come for me to spend some time again on the blog part.

During the making of the book, I have been asked about my opinions on a number of subjects. Listing opinions was not the theme of the book, but the blog is a good vector for this. In the course of the coming weeks and months, I will review as concisely as possible specific subjects, present which areas require attention and how I believe the topics will evolve in the future. If you have any request, please let me know.

In addition to these articles, I will develop new topics for seminars and conferences that relate to the book and that offer matter for reflection to the attendees. I also will introduce new modules aimed at improving organization and efficiency of –and within- food value chains. The purpose of these modules will be twofold. They will help participants understand the broader picture, and they will help improving the functioning and the performance of business relationships. This is not only about economic performance, but also about technical, environmental and social performance.

 More about this soon.

Future Harvests – The book is coming soon!

 

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!

Study on waste production in meat and fish supply chains

A study to determine how much waste is produced in the meat and fish supply chains has been initiated in the UK by the Waste and Resources Action Program (aka WRAP) and Envirowise. The goal is to help reduce waste and save money.

To read the article from fis.com, please go to http://fis.com/fis/worldnews/worldnews.asp?l=e&ndb=1&id=34467

This confirms the issue I mentioned in my article “More action needed on food waste