Beyond the merger Shuanghui-Smithfield

Last May, when the Chinese company Shuanghui announced it was buying Smithfield Foods, the world’s largest pork producer, I was very curious to read about reactions to the news, in particular from the US. The takeover did not surprise me. In my second book, We Will Reap What We Sow, I already told my expectation that the geography of corporations would change, following the shift of economic power around the world. I predicted that the new emerging powers would take over some of today’s agribusiness beacons, and hinted that eventually, headquarters of large corporations would also move to locations closer to the bulk of consumption. The Smithfield takeover quite fits in this scenario. My interest in the reaction of Americans came from some of my earlier speaking engagements. At the beginning of my activities with The Food Futurist, I presented in several occasions how the rise of the Asian middle class would affect markets. In particular the magnitude of the Chinese market always put things in perspective. When I showed my audiences how much volume an increase of 10 kg per capita per year of beef, pork and chicken would represent, there was usually a silence of surprise. Then, when I told that the evolution is not just about volume but also about the choice of cuts, that instead of being complementary to Western consumption by buying low quality cuts, the Chinese market would become a direct competitor for the same pieces of meat, the surprise usually turned into annoyed denial. The price of the meat that Americans would buy would be set by the consumers in Beijing and Shanghai at least as much as by those in New York or Los Angeles? That’s bold, isn’t it? I could understand the reactions. After all, the coming situation would mean the end of the undisputed dominance of American stomachs (and to some extent, their minds as well). The highest bidder will get the best product. It is not just a hunch about the future. It is the here and now. There are already examples of that in the seafood sector, where the top quality products are shipped to China instead of ending on French tables as it used to be, simply because the Chinese buyers are willing to pay more than the French to get the product, probably because they still make very good money at those prices.

However, many reactions from the US have been the ones I expected. I could find outrage at the idea that a Chinese company could dare buy an American one. I do not remember seeing such opposition when Brazilian meat companies would buy Western ones, but after all Brazil is not perceived (yet) as a contender to the US supremacy as China is. That would explain the double standards, I suppose. There were the extreme reactions such as those who decided and claimed they would not eat meat from Smithfield because, according to their simplistic conclusions, their pork would sink to the quality standard of what they think Chinese products are. Well, no… because applicable food standards in the US would still be those of the USDA and not from the Chinese government. How simplistic they may sound, such reactions are not from average Joe. They come from comments posted on professional meat magazines for which readers need to subscribe. The world is changing, but some still hope the old status quo will prevail. Good luck with that!

Yes, there will be competition for the attractive cuts of meat. Actually, it will shape the coming couple of decades of global agriculture, and of agricultural markets. Prices will depend on the ability to forecast and align production and consumption of animal products with commodities for animal feed. There is much work needed in that area. Those who attended my presentations in which I mention the dynamics of future markets know what I mean.

But there are more lessons from the Shuanghui-Smithfield merger, beyond the simple competition for the carcases and the geography of purchasing power. It sends a clear signal that the Chinese market is evolving towards more quality. The local suppliers want to be able to provide the market of the increasing affluent Asian middle class with the same standards as Western markets, which I have been also indicating as a growing trend both in my writings as in my presentations. Purchasing a company such as Smithfield offers Shuanghui the possibility to speed up the learning curve towards a better pork quality by also buying the processes and procedures that already exist in the production units in North America and Europe. Such a move is going to have interesting ripple effects. Normally, it should give Shuanghui a competitive advantage, as they should learn and implement better procedures faster and better than their Chinese competitors. This will give them a strong position in the urban centers, at least in the short term. In the long term, the side effect is that their competitors will also work harder at raising their own standards and improve food quality in China. This will also indirectly serve the Chinese governments by having market forces working in the same direction as government regulations to achieve better food standards. Finally, it will benefit the Chinese consumers, as they will be able to buy better quality foods. As they became wealthier, Chinese consumers have also become more critical and aware of environmental and food safety issues. They will not accept the current situation anymore and they want the same top quality as the Westerners. After all, the income in large Chinese urban center is quite similar to the one of Westerners. Why should they settle for less? And in the future, we will see the same trend growing in other emerging countries. That is where the best opportunities will arise in the coming decades.

Copyright 2013 – The Happy Future Group Consulting Ltd.

What more demand for meat means for the future

Here is an excerpt from We Will Reap What We Sow, the book I published in May 2012. The recent difficult climatic conditions for agriculture and their impact of agricultural markets have made the issue quite relevant. Here it is then:

As the economy in emerging countries is improving, their population becomes wealthier. Just as it happened in Western countries during the 20th century, the increase in wealth translates into dietary changes. The consumption of animal protein, especially the consumption of meat, increases.

To realize what the consequences of a higher consumption of meat might be, it is interesting to make calculations for China. When 1.5 billion people eat on average one more kg of chicken meat per person, world production needs to increase by about 750 million chickens. That represents about 2% of the world’s production. Similarly, when each Chinese consumes on average one more kg of pork, the world must produce 15 million more pigs. That number represents 1.5% of the world pig production. For beef, an increase of consumption of one kg per capita per year means the need for a production of 2.4% higher than today.

Meat consumption in China has already passed the milestone of 50 kg per capita per year, and projections indicate that it should reach 80 kg per capita per year in 2030. Clearly, consumption will increase by much more than just one kg.

An increase of 10 kg of chicken meat per capita per year in China means that the world’s chicken production would have to increase by 20% to meet the new demand! This represents almost the entire 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 the world’s pig production would have to increase by 15%. That is five times the current pig production of Iowa, USA. That is 60% of the EU production. For beef, the world’s production would have to increase by 24% to meet an increase of 10 kg per capita per year! This number also represents about 125% of the current total US beef production.

Different animal productions have different feed conversion ratios (FCR). The FCR is the quantity of feed needed to produce 1 kg of meat. For chicken meat, the FCR is of 1.8. For pig meat, the FCR is about 3. For beef, depending on the proportion of grass in the cattle’s diet, the amount of grain used to produce 1 kg of beef varies. With an average FCR of 3 for the various types of meat productions, an increase of meat consumption of 30 kg in China would result in the need to produce three times 30 kg times 1.5 billion. Depending on the consumption of which type of meat will grow the fastest, the need for feed, excluding grass, would vary between 100 and 150 million tons.

The world’s second largest population, the Indian population, is still largely vegetarian. Although India is among the countries with the lowest meat consumption, with less than 4 kg per capita per year, Indians are gradually changing their eating habits. Meat consumption is increasing in India, too, but not in proportions as dramatic as in China. Nonetheless, with a growing population, any incremental meat consumption will have physical consequences. Some simple math can show the magnitude of the higher demand for meat.

Between 2010 and 2050, the world’s population will increase by 2.2 billion, from 6.8 billion to nine billion. If everything stays equal, the consumption would increase by about a third (2.2/6.8). According to the FAO, the average consumption of meat per capita in the world in 2010 was of about 47 kg. The population growth alone would represent a meat consumption increase of 2.2 billion times 47, or 103 million tons. This number represents about a third of the 2010 meat consumption.

In the example of China mentioned earlier, the predicted increase of 30 kg per person represented an increase in meat consumption of 45 million tons.

Even if the world average meat consumption per capita remained stable between 2010 and 2050, the need for additional meat production would be of 2.3 (103/45) times the numbers in the China example. This represents an additional need for animal feed, excluding grass, of between 230 and 345 million tons compared with 2010.

The situation becomes even more interesting when the average consumption per capita increases. For every 10 kg increase of individual consumption, the need for additional meat production increases by nine billion times 10 kg, or 90 million tons of meat. For each 10 kg increase of average meat consumption, an additional volume of 600 to 900 million tons of animal feed is necessary. The following table presents the effect of the population increase to nine billion people and its meat consumption on production volumes.

Average individual meat consumption increase from 2010 (kg/capita/year)

0

10

20

30

40

50

Average individual meat consumption(kg/capita/year)

47

57

67

77

87

97

Total meat consumption(million tons)

423

513

603

693

783

873

Total meat consumption increase from 2010 (million tons)

103

193

283

373

463

553

Percentage of increase from 2010

32%

61%

89%

117%

145%

173%

An average meat consumption of 97 kg per capita per year would be about the current average of developed countries. If the average meat consumption per capita per year in the world were to meet such a number, meat production would have to almost triple from 2010 volumes.

Most of the gloomy scenarios about the challenge of feeding the world are based on the assumption that the diet model would have to be the Western diet, and in particular the American diet. This is far from certain. Actually, it probably will not be the case. As the world’s population increases, one of the sensitive issues, especially in the overfed world, will be what to eat and how much of it. Higher food prices will also force people to indulge less. It is important to understand the difference between nutritional needs and consumer desires. Today, the world produces enough calories and protein to meet the actual nutritional needs of nine billion people. If the nine billion people expected for 2050 all want to have a Western diet, the amount of calories needed would be equivalent to the nutritional calorie needs of 17.5 billion people.

It would be normal to expect feed conversion efficiency to improve in the future. Nonetheless, the production for animal feed would then increase with 3,000 to 4,500 million tons above the volumes necessary in 2010. Since a third of grain production goes to animal feed, a tripling of meat production means that grain production would have to double, just because of the desire for more meat.

Clearly, the challenge of feeding the world will depend increasingly on meeting the demand for meat. The challenge for producers of agricultural commodities will be to keep up with the demand for animal feed. As demand for meat increases, there is no doubt that more and more questions will arise about how much meat the world can afford to eat. The world food situation will depend on how much meat people want to eat, not on calorie count.

How much meat should we eat?…

The rest of the text for this topic and much more is in the book.

Copyright 2012 – The Happy Future Group Consulting Ltd.

The rise of the non-profits and how they shape food production

In the years before the current economic crisis, the non-profit sector was already creating more jobs than the for-profit sector. Last year, the total of all operating budgets of non-profit organizations passed the US$1 trillion mark. This makes non-profits the eighth economy in the world. This amazing number seems to have been rather unnoticed, yet it has quite some significance for the way economy might evolve in the future. They are a force to be reckoned with.

They are perceived as independent, although this is not necessarily the case, and this tends to give them a higher moral status, especially compared with the for-profit sector. As I had written in a previous article, nobody has the monopoly of morals, but non-profits have a PR advantage in this area. A part of their strength comes from the loss of trust in government, science, industry and politics by the general public. In the food and agriculture sector, the influence of non-profit organizations is growing, and it challenges the way food is produced.

Just like in the for-profit sector, the size of non-profits as well as the quality of their message varies. Similarly to many corporations, the integrity of some non-profits is questioned. However, in order to motivate individuals and organizations to donate money, they need to have and to keep enough credibility. Competition exists in the non-profit sector, too. Only the ones that do the best job can survive. Nonetheless, non-profits have been instrumental for many changes in food production. It is also clear that change and improvement comes only from being challenged. In this article, I just want to name a few examples of the power of non-profits and their ability to cause visible change.

First, here is an example as recent as last week. The HSUS (Humane Society of the United States) came out with video footage of what they called inhumane treatment of pigs at a Smithfield Foods pig farm. For those who may be unaware of who these two organizations are, the HSUS is a non-profit organization strongly opposed to intensive animal husbandry. They want to end factory farms. Smithfield is the world’s largest pig processor. The HSUS and the US meat industry are no friends. They have opposite views on animal husbandry and meat production. They accuse each other of the usual shortcomings and lies, as is the case between industry and its opponents. What I found quite interesting in this case, though, was the communication of Smithfield about the “crisis” on Twitter. Here, I can only speak about my perception, which was that Smithfield was quite nervous about this matter. Obviously, the HSUS scares them, and not just a little bit. The pork company came with numerous tweets about the problem, and in my opinion too many messages. As long as the investigation is not completed, any communication is unnecessary, and potentially confusing. I got confused to the point that I even wondered how they actually implement the procedures about animal welfare that I believe they have. They even communicated that they would have emergency audits from authorities in the field of animal behaviour and animal handling, such as Temple Grandin and Jennifer Woods, from Alberta, Canada. The farm is in Virginia. That sounds rather drastic if all procedures are in place and followed. The end of the story, at this day, is the report of the Virginia State vet, who did not notice any violation during his visit. There is no way of knowing whether something bad actually happened. The vet’s reports also mentions that the farm will have to be monitored, which makes sense in the context. Smithfield also communicated to have fired three employees for violation of animal welfare procedures, which tends to confirm that the HSUS had put their fingers on something true. Of course, the background of the story is that the HSUS finds that Smithfield does not make the move to banning gestation crates for sows fast enough, as the company had announced a few years ago. They compare Smithfield with other US hog producers who have already implemented change of husbandry systems. Regardless of this specific case, the reaction of the world’s largest pig producer tells me that the HSUS is going to win its battle to reform substantially the US meat industry. It will not happen overnight, but it is just a matter of years.

Another example, still in the pig sector, comes from The Netherlands. The largest supermarket chain, Albert Heijn, part of Ahold, the fourth largest retailer in the world, will sell only pork produced in animal friendly conditions, according to a protocol set up together with Vion, The Netherlands’s largest pork producer and Dierenbescherming, a non-profit organization dedicated to humane animal treatment. I remember when I used to work in the pig industry in the late 1980s in The Netherlands; Dierenbescherming was considered a rather extremist organization that supposedly did not get the realities of meat production. How things can change in 20 years!

Greenpeace is one of the most active organizations that try to change how food is produced. The agriculture lobby is not too enthusiastic about their actions, but Greenpeace gets things changed. They addressed the issue of beef production in Brazil and its relation to deforestation. They achieve more than the Brazilian government by reaching agreements with beef producers in a region where the “law of the gun” tends to prevail, but also mostly with the beef producers’ customers. The main fast food companies (McDonald’s, Burger King, etc…) and retailers like Wal-Mart have pledged not to buy beef that would be produced at the expense of deforestation. Be assured that something like this has quite some leverage. A similar situation has happened about the production of palm oil in Indonesia and Malaysia. Greenpeace’s action to save the orang-utans’ natural habitat has resulted in large users such as Nestle and Unilever to purchase only sustainable palm oil products. This has more impact than government action. I had mentioned a few weeks ago, the ranking for seafood sustainability by Greenpeace of retailers. Costco, which came last, first tried to contest the results. However, within a couple of weeks they reduced their seafood assortment from 15 to only seven, sustainable, species.

Another non-profit with influence on food production is World Wildlife Fund (WWF). They created in 1997, together with Unilever, the Marine Stewardship Council, which role is to set sustainability standards and conduct certification of fisheries. In 2009, the WWF created, together with the Dutch Sustainable Trade Initiative, the Aquaculture Stewardship Council, which has a similar mandate as the MSC, but for aquaculture.

Another typical example came with the wish list of a prominent seafood industry representative for 2011. On that list, he chastises environmental organizations for their negative and critical picturing of the seafood industry. Especially Greenpeace and the WWF are on his “bad guys” list. That is not surprising, but the irony is when he expresses his wish for further development of clean energies to stop the risks of pollution by oil spills and other contaminants. When it comes to other industries than his, he sounds very much to me like a Greenpeace and WWF supporter.

These are just a few examples, but they show without any doubt that the message of non-profit organizations has an audience, and with environmental issues becoming common media material, their influence will only increase. It is also clear that, more and more, retailers, foodservice and, to a lesser extent, consumer goods manufacturers are joining them. The businesses with direct contact with the consumers (aka the public) are leading this change, as I had mentioned in “The quiet revolution of food retailers”.

The next step that I foresee to enforce more transparency is the development of WikiLeaks-like activities that will make public confidential internal memos and other information not destined to publication. This will bring deep changes in the way food is produced. Of course, where there is change, there is resistance, too. The food industry’s reaction is normal in this process. The winners of tomorrow will be the companies that understand where the business environment is heading, and that will see the opportunities to implement change faster and better than their competitors.

Copyright 2010 – The Happy Future Group Consulting Ltd.

Follow the water!

Without water, there is no agriculture, there is no food, and there is no life. It is obvious, and yet the water question is too often neglected. The quantity and the quality of water available are absolutely crucial for the future production of food. It will influence where and what type of food we can produce. It will define food security and world politics. Since 70% of fresh water use is for agricultural purposes, it is clear that water will soon be power.

The need to preserve water and use it efficiently is going to be one of the main challenges to overcome for the decades to come. This will stimulate innovation and the development of new technologies and new techniques.

Field sensors that measure the level of humidity in the air and in the soil connected with “crop per drop” irrigation systems can allow the distribution of the right amount of water at the right time, thus saving waste through evaporation and drainage. The selection of plant varieties will focus more and more on water efficiency. Drought-resistant plants that can thrive in arid conditions are in the works. For instance, a trial on wheat in Australia has delivered promising results, as the yield was 25% higher than non drought-resistant varieties. Researchers, through hybridization and genetic engineering, are working to develop varieties that can use less water and produce similar yields as per today. Although high tech may bring solutions, other methods deliver good results, too. Agro forestry, the production of crops under a cover of trees seems to help farmers achieve satisfying results in the Sahel region. The foliage of the trees helps reduce evaporation from the soil. Combined with proper techniques to apply organic matter and fertilizing elements, farmers can create better conditions for plants to grow.

Another field of research is the development of alternatives to traditional desalination, which is very demanding in energy. Transforming seawater into fresh water for the production of food is not simple, and it is expensive. The technology is here.  Israel has used it for decades. Currently in the United Arab Emirates, a project of floating islands covered with solar panels to provide the energy to desalinate seawater is being developed. This system has the advantage to produce both fresh water, which is precious in desert countries and clean energy at the same time. A project, called The Sahara Forest Project aiming at producing food in the desert is currently in the works. It combines solar energy, modern biomass production and a type of greenhouse, built by the Seawater Greenhouse company, that helps the humidity produce by the plants to condensate.

In many countries, the problem is not so much physical scarcity of water as it is a lack of proper infrastructure to collect, pump and irrigate efficiently. The population density contributes to the problem, because the more people, the less for each of them. In many countries, for instance in India, the equipment is old, inadequate and poorly maintained, because of a lack of finance of governments and farmers. The result is a waste of water resources, and a suboptimal production. Another area that has potential for improvement is the collection and the storage of rainwater. A large quantity of water runs off and is not available for food production because there are not enough containers, if any. Developing and improving storage infrastructure will definitely help farmers to produce more food.

If the availability of water is important, so is its quality. In China, the situation is a lack of both, because of the heavy pollution of many streams and rivers. In many areas, the water is there, but it cannot be used, as it is fit neither for human consumption nor for agricultural production.

The respective situation of countries about water availability will determine their ability to feed their own people or not. In Arab countries, irrigation has led to a high level of salinity and it has depleted drinking water reserves. Saudi Arabia, for instance, has now abandoned its policy of increasing food production to become be self-sufficient. Saudis are actively purchasing land in African and Asian countries to meet their food needs. China and India, that represent about 40% of the world population, are following a similar approach and invest heavily to help develop land in Africa. In countries where drinking water is scarce, there are discussions about the need of not exporting, as export of food is actually water export as well.

If a number of countries face a water shortage, others have a different situation. This is the case for large areas of North America and South America. Especially Brazil disposes of large water reserves. Together with a favourable climate, Brazil has many advantages to produce food, especially animal protein. According to Osler Desouzart of OD Consulting, the production of 1 kg of beef requires 16,000 litres of water, while it takes 6,000 litres for 1 kg of pork and only 2,800 litres for a kg of chicken. This shows why Brazil has been gaining market share in beef and poultry. It indicates that intensive animal production will be more challenging in countries where water is not as abundant. This also tends to show that poultry will be the most successful type of land animal production. The US and Canada have large water reserves, although there are also clear regional differences. The South West of the US becoming increasingly arid, and one can wonder if California, that currently produces most of the fruit and vegetables for the North American continent, will be able to keep its production levels. It is likely that fresh produce will be gradually produced closer, even inside, the large urban centers in the northeast as well. Considering the emphasis on water preservation, it is also interesting to note that before the housing crisis in the US, the most irrigated type of plant production were lawns, using three times as much water as US corn. Food recalls are another source of water waste, especially meat and eggs recalls. From the numbers presented above, it is easy to see how much water is lost when dozens of tons of animal products must be destroyed, not to mention the huge food waste that this represents.

When it comes to food and water, aquaculture offers interesting possibilities for the efficient production of protein. Fish produced in the ocean do not consume freshwater. This saves large amounts that can be used for other purposes. However, one of the challenges for the fast-growing aquaculture industry will be to be able to source feed ingredients that do not directly compete with other farm animals and direct human consumption. Land-based aquaculture is developing the very interesting concept of aquaponics, which is a combination of fish production in tanks combined with the production of vegetables indoors. The system recycles the water used for the fish tank, and helps fertilize the plants with fish waste. This is a very water–efficient system that can help produce large amounts of food on a small area, making it fit for urban farming units.

Copyright 2010 – The Happy Future Group Consulting Ltd.

The quiet revolution of food retailers

While many debates continue in the political and “parapolitical” world about many aspects of food production systems and the impact of human activity on the environment, retailers lead a quiet revolution. Without making the headlines, they gradually change the way their suppliers will do business in the years to come.

Such an evolution is certainly welcome, especially in a time where important decisions need to be made. Political leaders seem unable to reach any agreement on environmental issues, as the world could see at the late Climate Summit of Copenhagen. In the food sector, there are many discussions going on about sustainability and genetic engineering, to name the two hottest items, but the political class does not seem to generate clear and concrete action plans.

Just like what happened in the 1990s about food safety in Europe, retailers are taking the initiative to create momentum on the current issues. The problems that plagued the food industry in Europe, such as salmonella in poultry, the mad cow disease, or the dioxin in Belgian fat for chicken feed showed a number of weaknesses that needed to be addressed. In the case of BSE, UK retailers did not wait for British or European legislation to demand meat and bone meal-free feed for farm animals. As I was working for a company supplying the UK market with chicken meat, I can testify that these were dramatic times. Tough decisions had to be made on a very short notice that had serious financial consequences. By then, a couple of reasons made the retailers took the lead. First, the inability of the government to prevent and tackle the issues was creating a bit of a vacuum on leadership. Consumer confidence in their institutions was fading, and retailers were the only ones, true or not, perceived to take the proper actions to protect the public. The second reason was the fact that many retailers had their own private labels. In this case, the problem was not the supplier’s problem anymore because the supermarket chain could have risked serious PR damage if a food safety issues would have been associated with their brand.

This time, retailers are again in the position where they can present themselves as the consumers’ champions. Legislation is slow to move and make significant decisions. The involvement of interest groups adds to the infighting and delays decision-making.

To prepare for the future, they already have come out with plans and communication on how and where they want the food they sell to be produced, and they try to offer a choice to consumers. By doing so, the most active among them are setting new standards, and forcing the whole production and supply chain to think about the things to come.

In previous blog posts, I have mentioned some of such initiatives, and in Future Harvests, I described the increasing leadership role of food retail in agricultural practices.

In particular, I mentioned the carbon footprint labelling on dairy products by Tesco, Wal-Mart’s Sustainability Index questionnaire to suppliers, and the seafood sustainability programs of many retailers. Marks & Spencer started their Plan A in 2007 with the objective of making their business more sustainable. To achieve this, they are involving their suppliers and the farmers producing for them to carry out the changes that M&S finds necessary for a better future.

More recently, new initiatives indicate that retailers are pursuing further on such initiatives. Wal-Mart came last week with their plan for sustainable agriculture. In the UK, Sainsbury let know last week that they were committing GBP40 million to invest in farming. Earlier this week, Carrefour unveiled their “Reared without GMO” program. In their stores in France, they will sell 300 food items labelled as being GMO-free, to offer consumer a choice based on transparent information. If Carrefour ventures into this, one can be sure that they do so because they already know that this will be good for their business. By gaining market share, it is very likely that their competitors will soon react by issuing similar programs. The EU Commission may be struggling to figure out how to deal with GMOs, but Carrefour says “Let the consumers tell us!” Vox populi, vox dei!

Of course, such initiatives do not please everyone. Today, I could read in a blog for a US magazine backed by the meat industry some interesting reactions about Carrefour’s new plan. Some readers were bringing up the typical arguments. Meat would be so expensive in Europe. Well, meat is quite affordable in France, even without GMOs, so think again! The other argument was about freedom of choice: people should be able to eat what they want. By labelling its food item, Carrefour does just that. French consumers are free to buy at Carrefour or somewhere else, and they have the right to choose what label they prefer. The freedom of choice is ironic coming from the US meat lobby, since American consumers do not have that freedom. Reared with GMOs is pretty much the only choice in the US. For now, that is. However, it is interesting to see on Carrefour’s press release that the pictures of fish, chicken and pork chops are exactly the same, regardless of whether they would be grown with or without GMOs.

In the 1990s, British and European consumers, and retailers, were challenging food industry practices because they were worried about their health and about the lack of transparency about food. Nowadays, in the USA, consumers are increasingly suspicious of their agribusiness, because they are worried about their health and the lack of transparency of the industry. Beef recalls because of E. coli, egg recalls because  of salmonella, spinach contaminated with manure are in the news on a (too) regular basis. They are also increasingly aware, and suspicious, of the relations between interest groups and their government agencies, and how this influences decisions on what they eat.

Retailers are now saying that they are not waiting for politicians to make decisions. They have defined their vision, they know what they want, and they are passing the message on to the suppliers. What would happen in agribusiness USA if Wal-Mart took a similar approach as Carrefour?

Copyright 2010 – The Happy Future Group Consulting Ltd.

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.

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!

World meat consumption up by 21.3% between 2005 and 2015

According to research from GIRA, meat consumption will increase by 21.3% during the period 2005-2015. Two third of the increase will take place in China only!

Poultry and pork show the strongest increase.
Poultry will increase with 24 million tonnes to 105 million tonnes (+29.6%).
Pork will increase with 21 million tonnes to 125 million tonnes (+20.2%).
Beef will increase with 8 million tonnes to 70 million tonnes (+12.9).

Getting closer to lab meat

Dutch researchers have extracted cells from a live pig and put them in a broth derived from the blood of animal fetuses. After the cell have multiplied, the researchers have obtained a mass of muscle tissue.

The texture is obviously not what they are looking for, but they are optimistic about the possibilities.  They have not tasted it, but I think they should have, just to show that they believe in the quality of the meat. Nonetheless, they expect that such meat could be on the market within 5 years.

This project is backed by the Dutch government and by Stegeman, a Dutch subsidiary of Sara Lee that produces sausages and deli products.

After all, if such meat goes into processing, grinding and soaking, the physical properties of the meat do not have to match “true” meat, and it could be a good alternative to meat from a slaughtered pig. A cost analysis will be necessary to see if this indeed has a future. Moreover, it is quite interesting to see this project backed by the government of a country that produces and exports a lot of agricultural products.

Click here to read the article from Meat International

Environmental performance on labels: it is coming. Really.

Sweden has started presenting the carbon footprint of food on the labels for food products sold in supermarkets and on some restaurant menus. The Swedish National Food Administration is managing this program.

I was announcing this trend to inform consumers about the environmental impact of the food they consume, and as an aid to make their eating choices, in my earlier articles “Environmental performance on foods labels” and “The dining of the future“.

Here is the link to the article from fis.com with more details on how some food items, such as fish, beef, chicken or pork, perform.