Feeding the World. Ramon S. Abadilla Managing Director, DuPont Philippines. ASEAN Media Forum 27 July /26/2012 1

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1 Feeding the World Ramon S. Abadilla Managing Director, DuPont Philippines ASEAN Media Forum 27 July /26/2012 1

2 The world s population reached 7 billion. By 2050, it will be 9 billion. Philippines 101 million in 2012 Annual population growth rate 1.8% National Geographic image 2

3 Food Security - One of the most pressing challenges for the Philippines Assessment through Affordability, Availability, and Quality & Safety Philippines food consumption makes up more than 43.3% share of household expenditures. Agriculture sector is made up of 4 sub-sectors: farming, fisheries, livestock and forestry which together employ 39.8% of the labor force and contribute 20% to the GDP. Over 11 million people employed in agriculture sector. Food nutrition & sufficiency are in needs for the Philippines growing population. 3 3

4 The Philippine Food Staples Self-sufficiency Roadmap (FSSR) Oil price, climate change, unsustainable production and rice intensification are factors that can dampen PH's agricultural production. A principle constraint that many poor farmers face in becoming more productive and profitable is the lack of adequate infrastructure, particularly rural roads and irrigation. Philippines low levels of infrastructure expenditure, as low as 2.8% of GDP in This limits the access of people to basic agricultural inputs, transport and storage facilities and results in difficulties to access markets. For 2013, an infrastructure budget of over 400 billion pesos ($9.6 billion) set aside to pursue major upgrades of ports, airports, road and bridge networks to speed up growth. 4 4

5 Philippine Food Security The Bureau of Food and Drugs or BFAD of the Department of Health, has identified several food safety concerns - microbiological contamination, presence of food contaminants, use of non-permissible food additives and use of food additives beyond allowable limits. DOH through the Bureau of Food and Drugs (BFAD) undertakes measures to address concerns - continuous assessment of Good Manufacturing Practices and the Hazard Analysis Critical Control Points or HACCP for compliance. The BFAD is also engaged in the review and development of food standards. 5 National Geographic image

6 Food Security Indicators Food consumption as a share of household expenditure Proportion of population under global poverty line Gross domestic product per capita Agricultural import tariffs Presence of food safety net programs Access to farmer financing Affordability Sufficiency of supply Public expenditure on agricultural R&D Agricultural infrastructure Volatility of agricultural production Political instability Availability Diet diversification Nutritional standards Micronutrient availability Protein quality Food safety Quality & Safety 6

7 Global Food Security Index Key Findings Philippines ranked No.4 in ASEAN, No. 63 in the world Strength 100 Nutritional standards 95.5 Volatility of agricultural production 86.9 Agricultural imports tariffs 86 Prevalence of under nourishment 81.6 Food security Challenges 0 Public expenditure on agricultural R&D 5.9 Gross domestic product per capita 7

8 Food Security Index ASEAN ranking Philippines ranked top three in affordability & quality & safety in ASEAN and no.5 in availability. World Rank OVERALL SCORES Affordability Availability Quality & Safety 33 1 Malaysia Thailand Malaysia Malaysia Thailand Malaysia Vietnam Thailand Vietnam Philippines Thailand Philippines Philippines Indonesia Indonesia Vietnam Indonesia Vietnam Philippines Myanmar Myanmar Myanmar Myanmar Indonesia Cambodia Cambodia Cambodia Cambodia

9 We are applying our science to find solutions to some really BIG challenges FEEDING THE WORLD REDUCING OUR DEPENDENCE ON FOSSIL FUELS KEEPING PEOPLE AND THE ENVIRONMENT SAFE 9 National Geographic images

10 Aiming Our R&D Engine at Big Challenges 86% of R&D Spend Targeting Food, Energy, Protection $2 billion R&D spend in 2011 Electronics Chemicals & Materials 10

11 National Geographic image Food Security Solutions Food security solutions must be local - due to variations in climate, soils, cultural traditions, transportation/distribution infrastructure and economic viability Solutions must be collaborative - reached in concert with communities, governments and NGOs who know the facts on the ground, and with business entities who have the specialized expertise to help solve particular problems. Science must become local wisdom - know-how must be brought to the people and places that need it the most. This is accomplished by working side-by-side with all involved to transfer knowledge to local communities. Sustainability is key - by focusing on specific local challenges, collaborating broadly on solutions, and bringing the know-how needed to bring those solutions to life. 11

12 We believe no single company or organization in the country alone can solve the issue. 12 National Geographic image

13 DuPont Food Solutions DuPont Food Solutions Discover DuPont sustainable innovations for agriculture, nutrition, food safety and packaging. SUSTAINABILITY AGRICULTURE NUTRITION SAFETY OPERATIONS Sustainable innovations. DuPont puts science into work to help achieve better, healthier and safer lives. Agricultural productivity and improved quality. DuPont helps to increase the quality, quantity and safety of the world s food supply. Premium ingredients and nutrition. DuPont is committed to delivering nutritious and tasty ingredients to the marketplace. Food safety and traceability. DuPont helps you meet the highest standards of quality and integrity in products and processes. Cost-effective operations. DuPont brings solutions to achieve high efficiency in food processing. PACKAGING Sustainable packaging solutions. DuPont is constantly exploring new ways to reduce waste and renew materials, without compromising packaging performance. 13

14 DuPont Solutions: Food Value Chain Animal Health Solutions disease prevention, animal feed Food Ingredients soy protein, enzymes Engineering Polymer economy & durable People&Food Safety business excellence Anti-counterfeiting robust & convenient Aquaculture Solutions disinfectant, disease prevention Crop Protection optimal yield Seeds optimal yield Packaging easy-to-use & durable Microbiological Safety rapid & easy Food Service hygiene & style Refrigeration cost effective & environmentally friendly 14

15 National Geographic image Together, we can feed a growing population. Maximizing the yields of seeds through sustainable farming practices Protecting fields against pests and disease Enhancing the nutritional value of food Reducing waste by diagnostic testing and packaging technology to protect food from contaminants and decay 15

16 Maximizing the yields of seeds through sustainable farming practices Hybrid corn million farmers depending on corn as their major source of livelihood. 2. DuPont Pioneer hybrid corn P3482YR - latest hybrid corn varieties, allow farmers to achieve higher yields compared to old varieties. 3. P3482YR also boasts of excellent grain quality. Its golden yellow kernel color preferred by corn traders. Farmers attributed ability to command a higher buying price per kilo to these qualities. 4. P3482YR can be harvested as early as days after planting, compared to other varieties, which mature in four months time. 5. DuPont reaffirmed commitment in the Philippines corn industry with P1B investment of the Pioneer Tarlac Production Plant which is the second seed production facility with the first at Polomolok, South Cotabato. 6. Tarlac Production Plant s seed output is estimated >12,000 MT per year with equivalent hectares planted with seeds from this facility* of >700,000 hectares per year (*at full operating capacity). 16

17 Maximizing the yields of seeds through sustainable farming practices Good Agriculture Practices (GAP) thousand farmers and chemical applicators nationwide benefited from the Pure Safe Use Meetings and Stewardship initiated by DuPont over vegetable growers benefited from the Insect Resistance Management (IRM). DuPont collaborated with CropLife Philippines in a series of train-the-trainer sessions. 3. Collaborated CropLife Philippines, farmers benefited from the farm production materials on the proper use, mode of action, target pest spectrum. Farm production efficiency improved resulted to higher quality of crops and commanded higher buying price. 4. Over 500 Barangay Health Workers and 5 thousand farmers benefitted from the Emergency Management of Poisoning Cases and Farmers Safe Use Training (Benguet). 5. Mango growers were trained on principles of GAP in Mango Production with the "Bamboo Pole" Program --- emphasized on safety exposure improvement through reduced exposure. 17

18 Enhancing the nutritional value of food - Reducing waste by diagnostic testing and packaging technology to protect food protect from contaminants and decay DuPont Appeel resins are used typically as a controlled peelable seal layer on flexible foil, film or paper lidding and labels on cups, bowls, trays and single-serving food containers. Surlyn packaging resins - in the world of food packaging, Surlyn resins offer food contact safety and easy coextrusion with other materials, often forming a problemsolving inner heat seal layer for challenging packaged goods such as meats and cheeses. 18

19 Enhancing food safety DuPont Qualicon is dedicated to food safety and protection with science-powered innovations for pathogen detection and microbial monitoring that help food, pharmaceutical and personal care companies protect their products, productivity and brands. BAX System - this award-winning detection system is a fast and accurate method for detecting pathogens or other organisms in food and environmental samples. The system breaks down samples at the genetic level, using the power of the polymerase chain reaction (PCR) to detect bacteria and other microbes with certainty. In addition, AvGard Antimicrobials - enhances the safety of raw poultry by controlling growth of pathogens. 19

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