Welcome / Opening. Knut Nesse, Nutreco

Transcription

1 Welcome / Opening Knut Nesse, Nutreco

2 Knut Nesse, CEO Nutreco 19 June 2013

3 Welcome SPONSORED BY: INITIATED & ORGANISED BY:

4 Agenda AgriVision Nutreco: Feeding the Future Sustainable growth AgriVision 2013: Programme

5 AgriVision and AquaVision over the years 1996 First AquaVision 5, Participants AquaVision conferences AgriVision conferences 16 th Conference in 18 years

6 Why AgriVision? Inspiration Intellectual stimulation Input for strategy Networking!

7 Multistakeholder dialogue across the chain Next generation of leaders: Government & special representatives: Brazil Canada Chile The Netherlands Norway Kofi Annan Futurists: Lester Brown David Hughes John Naisbitt Kjell Nordström David Orrell NGOs: Science: Frank Asche, University of Stavanger Michael Boehlje, Purdue University André Faaij, Utrecht University Stéphane Garelli, IMD Graham Plastow, University of Alberta Business: John Tyson, Tyson Alberto Weisser, Bunge Larry Pope, Smithfield Åse Aulie Michelet, Marineharvest Justin Sanders, Friesland Campina Simone Hertzberger, Albert Heijn

8 DOUBLING FOOD PRODUCTION HALVING THE PRESSURE ON THE PLANET FEEDING 9 BILLION PEOPLE IN 2050

9 Struggling supplies ADVERSE WEATHER BIOFUEL PRODUCTION LOW STOCKS PRICE SPECULATIONS

10 Surging demand GROWING POPULATION URBANISATION GROWING MIDDLE CLASS 7 to 9 billion by % to 70% by billion more by 2030 CONVERGING DIETS Globally: 39 to 49 kg meat, 83 to 99 kg dairy by 2050 Source: McKinsey 2011, Resource Revolution FAO, World Agriculture towards 2030/2050, The 2012 Revision

11 Consistent growth globally in animal feed 4.1% 0.3% % % % Asia Pacific North America EU-27 South America Other Europe & Russia Animal feed volumes (million tonnes) and average annual growth Sources: Feed International, 2012

12 What do we mean by animal protein production?

13 Nutreco Ambition 2016 driving sustainable growth Higher value added portfolio of nutritional solutions Segments Premix, Feed Specialties & Fish Feed Growth geographies Latin America, Russia, Asia & Africa Sustainability

14 Sustainable growth in practice Increasing productivity in animal protein production Reducing antibiotics in animal protein production Reducing pressure on high impact key commodities Upgrading the value of by-products from other industries

15 Sustainable growth in practice Increasing productivity in animal protein production Reducing antibiotics in animal protein production Reducing pressure on high impact key commodities Upgrading the value of by-products from other industries

16 Sustainable advances in animal protein production (NL) From 1975 to 2010 animal protein production became more efficient Milk production per cow 65% Piglets raised per sow per year 65% Feed conversion ratio broilers 30%

17 Sustainable advances in animal protein production (NL) Fewer resources and lower emissions to produce the animal protein for feeding the 9 billion 100% per kg milk per kg pig meat 100% per kg broiler meat 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 60% 60% Energy use Carbon footprint Land occupation

18 Sustainable advances in animal protein production (NL) Fewer resources and lower emissions to produce the animal protein for feeding the 9 billion Halving the pressure on the planet

19 Milk yields, a variable story 1996 L/cow 2011 L/cow # cows (mio) USA 7,023 9, Netherlands 7,113 8, Russia 1,903 3, India 739 1, Brazil 1,139 1, Ethiopia Productivity improvement especially important in countries with low production, high cow numbers and high growth rates If these three countries alone produced today at best-in-class levels, global milk production would double! Source: IFCN, 2012; for India: FAOSTAT

20 Closing the gaps - key focus areas for innovation at Nutreco LIFE START HEALTH & WELFARE FEED EFFICIENCY APPLICATION SOLUTIONS Young animal feed Young animal vitality and later life performance Supporting intestinal health Nutritional solutions for transition periods Feed additives for production efficiency Reducing emissions Precision feeding: Services & models for quantitative nutrition Optimised feed value and predictable performance

21 Sustainable growth in practice Increasing productivity in animal protein production Reducing antibiotics in animal protein production Reducing pressure on high impact key commodities Upgrading the value of by-products from other industries

22 Salmon farming Norway Use of antibiotics Antibiotics (kg) Fish production (tonne) 30, , ,000 20, , ,000 10, ,

23 Reducing antibiotics in animal protein production Much has been achieved but it has also resulted in challenges Antibiotic sales in the Netherlands (x 1,000 kg) Reference Target 2011: Target 2013: 247? E 2013 Source: Trends in Veterinary antibiotic usage in the Netherlands, MARAN, 2012

24 A global portfolio of branded specialty products Feed additives Animal health products Young animal feeds Important innovations

25 Sustainable growth in practice Increasing productivity in animal protein production Reducing antibiotics in animal protein production Reducing pressure on high impact key commodities Upgrading the value of by-products from other industries

26 Reducing pressure on high impact key commodities 15 high impact key commodities according to WWF which pose a key threat to the 35 biodiversity rich areas globally Palm oil Soy Cotton Fishmeal & oil Beef Sugarcane Farmed salmon Farmed shrimp Pulp & paper Tuna Sawn wood Tropical shrimp Dairy Whitefish Biofuels

27 MicroBalance : enabling the future growth of aquaculture 50% 25% Fishmeal in diet Production farmed Atlantic salmon E

28 Sustainable growth in practice Increasing productivity in animal protein production Reducing antibiotics in animal protein production Reducing pressure on high impact key commodities Upgrading the value of by-products from other industries

29 Upgrading the value of by-products from other industries e.g. biofuel industry 3% 37% 60% 10 KG RAPESEED 60% of the output is by-product 13 million tonnes rapeseed meal in EU-27 every year, productively used in animal feed Source:

30 Upgrading the value of by-products from other industries e.g. sugar industry (x million tonnes) 100 SUGAR BEETS 18.6 SUGAR 2.2 MOLASSES 11.6 FRESH PULPS 2.7 DRY PULPS ANIMAL FEED INDUSTRY Source: in EU /12, CEFS, European Association of Sugar Producers WUR report 662, 2013

31 EU-27 Use of raw materials by the feed industry (2011) 12% 48% 28% 12% Around 40% of animal feed is derived from by-products But: use of by-products results in challenges concerning e.g. digestibility, variation in nutrient content, gut health, food safety Source: FEFAC, 2012

32 The circle is closing

33 SPONSORED BY: it s time to provide more food from less of the world s resources by more efficient and sustainable extraction, conversion and use.

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35 Resourcify: challenges Increase resource supply Boost resource productivity Reduce environmental footprint

36 Resourcify themes Global trends & developments Science & Technology Africa Shared value creation & strategy

37 Global trends and developments Where are we heading in the decades to come and what makes trends & developments different from the past? What are the challenges? Prof. Jorgen Randers BI Norwegian Business School 2052: A Global Forecast of the Next Forty Years Dr. Fraser Thompson McKinsey Global Institute Resource revolution: meeting the world s energy, materials, food and water needs Mário Cutait International Feed Industry Federation Advancing animal protein production in times of limited resources

38 Science and Technology indispensable for achieving an increase in resource supply and a boost in resource productivity, while reducing our environmental footprint. Prof. Leo den Hartog Nutreco Applying science to boost animal protein production Paul Schickler DuPont Pioneer Science is universal, solutions are local Jeff Simmons Elanco Mapping the protein gap: The pathway to 2050 Dr. Graeme Codrington The T.I.D.E.S. of change: Tomorrow s technology today

39 Africa must be part of the solution with its unused natural resource wealth and huge potential for productivity increases. Siep Hiemstra Heineken Creating shared value: Partnering with farming communities in Africa Dr. Eleni Gabre-Madhin Eleni LLC Capturing the African potential through commodities markets and reliable supply chains Sipko Schat Rabobank The role of finance in fostering agricultural productivity

40 Shared value creation and strategy challenges and dilemmas will influence companies future strategies. for a sustainable future we need to create shared value: for business, society and the environment. Prof. Michael Porter Harvard Business School Creating a successful strategy: The shared value in an era of constrained resources Vinita Bali Britannia Industries Ltd. Eat healthy, think better - combining changing consumer needs and social responsibility

41 Thank you SPONSORED BY: INITIATED & ORGANISED BY: