Green Growth in the Agro-Food Chain: What Role for the Private Sector?

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1 Green Growth in the Agro-Food Chain: What Role for the Private Sector? Dr. Thomas Kirchberg Vice-Chair of the BIAC Food and Agriculture Committee and Member of the Executive Board of Südzucker 24 April 2013, Paris

2 Why discuss green growth in the agro-food chain? Major global challenges face the food & agriculture sector at the same time as rising demand. Need to produce more with less. By 2050, an estimated 50 % of current arable land will become unusable due to desertification and degradation

3 and why discuss the role of the private sector? The private sector is crucial for investment and innovation two key drivers of green growth. Example: But the private sector needs the right enabling policies in order to deliver. 3

4 What can be done to enable green growth in the agrofood chain to thrive? Build and improve upon enabling business environments e.g. rule of law and predictable, fact-based policies close public-private co-operation and consultation good governance and institutions trade & investment liberalisation education and training etc. Public-private partnerships (PPPs) Training and extension services for farmers Knowledge sharing along the entire agro-food chain Private sector voluntary initiatives Measuring performance 4

5 Sustainable sugar beet cultivation due to Use of the whole beet Sugar for human consumption and the industry Animal feed (beet pulp and molasses) Fermentation (yeast and bioethanol production) Biogas production Fertilizer (carbonation lime) so all nutrients return to the field Water from sugar beets used in the sugar production process Beet pulp: A valuable feed for cows and pigs. All nutrients from the factory return to the fields: fertilization with carbonation lime. 5

6 Sustainable sugar beet cultivation due to Increase in efficiency per hectare Evolution of the beet and theoretical sugar yield SZ Polska (1997 = 100 %) 11,3 t/ha ,2 t/ha t/ha 5,9 t/ha * Beet yield theoretical sugar yield 6

7 Nitrogen fertilization [kg N/ha] Beet yield [t/ha] Sustainable sugar beet cultivation due to Producing more with less Higher beet yield and improved beet quality, reduction of the nitrogen fertilization at the same time Beet yield Nitrogen fertilization Source: Produktionstechnische Umfrage, IfZ, 2010

8 Sustainable sugar beet cultivation due to Research universities IfZ official advisory service Südzucker AG breeders IIRB VDLUFA RT SZ Polska COBRI beet growers association Landesanstalten SLS Agrana EUF-workgroup Kuratorium SZ Agro research Bodengesundheitsdienst and others 8

9 Sustainable sugar beet cultivation due to Advice to farmers Together with farmers associations, official service and science Topics of field trials: varieties, crop protection, fertilization, etc. as basis for advice Advice through meetings, visits of field trials, print media, and internet (BISZ) Harvest of the extensive field trials Visit of the field trials: Advice on the field BISZ, BISZ on facebook, regional information leaflets 9

10 Sustainable sugar beet cultivation due to Optimization of harvest, cleaning and transport Reduction of harvest losses Covering beet clamps is protection against sugar losses Cleaning beets reduce the transport of soil Higher payload of the trucks with a lower diesel consumption Fewer trucks, low noise level, less traffic 10

11 Sustainable sugar beet cultivation A success story Sugar beet cultivation in Germany Yield (efficiency per ha) N-fertilization 49 t/ha 65 t/ha 145 kg/ha 100 kg/ha Use of pesticides 28 l or kg/ha 7 l or kg/ha Diesel consumption 45 l/100 km 32 l/100 km Soil tare in sugar beet deliveries 10 % 6,7 % Share of mulch-till in the total area 9 %* 45 % + 33 % - 31 % - 75 % - 29 % - 33 % % *

12 Open house presentation: Sustainability days at Südzucker farm in Bockschaft, Heilbronn, April 20 th & 21 st Machine demonstration of modern sugar beet cultivation Demonstration of soil profile Posters and Flyer to illustrate sustainable sugar beet cultivation for adults and children as well, available online on: Nearly 600 visitors from all parts of society 12

13 Conclusions Food security and environmental protection are not mutually exclusive goals and win-win solutions should be actively sought. The private sector has a crucial role to play, but it can only realise its full potential if appropriate enabling policies are put in place. The OECD can play an essential role in helping to green the agro-food chain by generating data, sharing best practices, and encouraging international policy co-operation and dialogue with the private sector. 13

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