A new study by Cambridge scientists and researchers from 17 organisations across the globe found that high-yield agriculture is the most sustainable method of farming, as it uses less land and causes less environmental damage in terms of greenhouse gas emissions, fertiliser and water use. An example is the European dairy sector, where organically produced milk causes one-third more soil erosion and takes up twice as much land than conventional dairy farming.
Competitive logistics, and especially freight, is another important component to efficient farming. Brazil, for one, is seeing a revival in farming with a 35% increase year on year in farm credit in the June-July period. However, analysts warn that the country’s agribusiness performance will depend in big part on its ability to maintain competitive freight – something which is threatened by the government’s minimum truck freight rates. The higher local freight costs have already led to a surge in the import of cereals from Paraguay where transport costs are much lower.
The escalating trade war between the US and China is now seen by many as a major concern and not just a small irritant. Analysts now predict that the dispute will slow the US GDP growth to just 2% by the end of 2019, compared to 3.1% for the current quarter, according to a Reuters poll. China has consistently targeted the agricultural sector, just as Iowa’s corn and soy farmers are about to start their harvest. The National Farmers Union estimates that corn, soy and wheat farmers lost USD 13 billion in June alone.
On the other hand, some producers are seeing benefits to the new trade flows, like the US garlic company Christopher Ranch who welcomed the 10% duty on Chinese garlic. And in an unusual twist, Brazil may import 500,000-1 million mt of soybean from the US this year, according to Anec, which represents Cargill, ADM and Louis Dreyfus. An adviser explained that Brazil’s soybean supply was tightening because of a surge in export demand following Chinese duties on US origins.
While the USDA said it was confident it would be able to regain market access once trade issues are resolved, Chinese industry representatives claim that they will be able to completely move away from purchasing US soybeans. The vice chairman of a China-based Wilmar subsidiary said the country would support the government amid escalating tensions, while experts noted that feed processors could easily half the amount of soybean used without affecting livestock growth.
In a bid to improve supply chain efficiency, Cargill has tied up with South America’s Agriness to launch a digital farm management platform, initially to boost pig harvest and then expand to other species like poultry and dairy. Agriness, which manages 2 million sows, will provide real-time data on key indicators such as the number of piglets/sow, weight gain, and production cost. Cargill’s vice-president believes the platform will ensure food safety, food security, sustainability and transparency.
Cargill is also expanding in Poland where it announced it had signed a deal to purchase Polish group Konspol’s feed manufacturing plant, five broiler farms and two processing centres along with the brand and customers and suppliers.
With the use of satellite technology, Nestle said it hopes to prevent deforestation in its palm oil plantations, especially in Malaysia, Indonesia and Papua New Guinea. The company wants all its products to be deforestation-free by 2020 compared to 63% in 2017.
In Pakistan, meanwhile, the Supreme Court has appointed a forensic auditor to conduct a detailed inquiry into Nestle’s USD 49 million mineral water operations. The order came on a petition accusing the company of exploiting groundwater and selling water that is unfit for human consumption. The apex court noted that Nestle was paying a negligible tariff for extracting water while selling its product at high rates.
In the US, Starbucks has developed a six-pronged approach to make 10,000 out of its 28,000 stores greener by 2025. According to the strategy, which will be made public to encourage others to follow, the company plans to reduce energy use by 25%, use only renewable energy, reduce water usage by 30% and save food aggregating about 50 million meals/year. To reduce food wastage further up the supply chain, Rabobank is inviting startups to submit tech-based solutions for reducing food wastage in its Food Loss Challenge Asia.
Finally, Coca-Cola is reportedly looking into launching a functional wellness cannabis drinks. Coke is said to have held talks with Canada’s Aurora Cannabis. Its drinks became cocaine-free in 1929 when scientists found a way to remove all psychoactive ingredients from cocoa leaves.
This summary was produced by ECRUU
