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IFAMA 2011: The Road to 2050
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Follow the Agricultural Business Chamber via
social networking sites
Facebook, Twitter and Flickr
at the 21st IFAMA Forum & Symposium
in Frankfurt, Germany
20 - 23 June 2011
  
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| Updated news from IFAMA by ABC representatives in Frankfrunt, Germany |
| 22 June 2011 |
Quotes and snippets from Day 3 at IFAMA
“The difference between agriculture and the roller-coaster industry is that the roller-coaster industry gets its money at the start and agriculture must try to get it in the middle of the ride.” Dirk Bensmann, Board member of Agravis.
Dirk Bensmann from Agravis explained the company’s strategy to be “Hands on Grain”. This company aspires to be the first in the value chain after the farmers and therefore be the closest to the farmers. To be able to do it, it requires investment, in the farmers and in infrastructure to optimise quality. Ultimately the company recognises that they do not work with agricultural commodities; they work with the food! Agravis’ strategy and approach toward sustainability is truly inspiring for South African agribusinesses.
Peer Ederer from Friesland Campina urge agribusinesses not to focus on cost-saving strategies, but rather on efficiency. Cost will then automatically be saved.
Cargill International says that price volatility risks can be managed through:
1. Increased production and productivity.
2. Infrastructure for storage and moving of surpluses.
3. Review of bio-fuels mandate.
4. Transparent future markets.
5. Real effort from government, such as honesty in trade liberalisation.
Andreas Rickmers, EU Vice president from Cargill International stated that: “We need to distinguish between high prices and volatility”.
“We are now moving away from 30 years of surplus management. Ethanol was a fantastic management tool of surpluses.” Carole Brookins.
In the milk industry, primarily in the Netherlands, Friesland Campina plays a very important role in Green House Gas emissions management. Peer Ederer explained that Friesland Campina adapt the following to manage its farmers’ GHG emissions: 1. Biogass factories on farm, 2. Low emission feed to cows, 3. Wind energy generation on farms (thus no external energy use), 4. Manure treatments and processing before going to biogass factories, 5. Improve health management of cows to get more lactations from cows, 6. Reduce overall energy use. It would be fantastic if such sustainability programmes can be implemented in South African agriculture, especially considering the energy costs and supply problems we’re facing!
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| 21 June 2011 |
Potato industry in South Africa
Lindie Stroebel and Dirk Strydom, from University of Free State both presented at IFAMA at the same session on aspects regarding the potatoes industry in SA. Dirk enlightened the audience with his insights and finding regarding collective action farmers engage in to improve their positioning in negotiations for contracts. Lindie focussed on the forces driving competitiveness of the potato industry and about formulating interventions and action to improve the industry’s competitiveness.
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| 21 June 2011 |
SA students participate in student case study competition
IFAMA entertains a student case study competition annually. The NAMC’s interns – all students from different universities in SA participated. They presented an excellent solution for the difficult case study they were presented with and the short time given to address it. The Kansas State University from the USA won the competition.
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| 21 June 2011 |
Exploring India’s growth is amazing, but exploring the growth of it’s organic food production leaves one breathless! Prof Sign, from India, presented thereon at the IFAMA Symposium
Amongst India’s organic production is products like tea, coffee, spices, rice, wheat, cotton and fresh produce. India’s income and growth and urbanisation trend pose a good demand for local fresh produce, but the dry products are mostly exported. SA is one of their important export destination for organic products.
India’s government actively assists the establishment of their organic production, through R&D improvement on the production side, making certification more accessible, etc. A enabling policy environment is assisting the growth in this industry. SA government, with its many intentions and very few favourable actions can learn from the Indians in this regard.
The Indians recognise the many challenges on marketing fresh organic products; such as shelf life management. This not much different from the challenges in traditional fresh market. However, their advantage is in producing dry organic products and exporting them.
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| 21 June 2011 |
Food Habits are going back to the future!
For more than a decade now, strategic decision makers in agribusinesses considered the changing trend in food habits due to globalisation, westernisation, food innovation and the supermarket phenomenon. Stefano Pascucci, from Italy found that Italians are now again turning back to their traditional eating habits and again purchasing goods at Farmers’ Markets instead of new Supermarkets.
Could SA perhaps also be facing this trend? Will the Sandton Sushi eaters turn back to pap en braai vleis?
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| 21 June 2011 |
Spain analyses transport options for the fresh produce industry
The fresh fruit and vegetable industry in Spain has empirical models to analyse the option of transport fresh produce from Spain to other EU destination. Their option are between road and short sea transport. Juan Carlos presented their finding which provides their industry with analysis to base their options on. It could be beneficial if researches in SA could do the same for the option between road en rail transport where the option exists.
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21 June 2011
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Lindie Stroebel, ABC Economic Intelligence Manager, presented to the international audience at IFAMA Symposium in Frankfurt, Germany.
Stroebel presented on the mehtobdology to how to identify factors and forces driving the competitiveness of an industry. It is based on the experience learnt from a study done for Potatoes SA. The NAMC, Universities of Pretoria and the Free State and the ABC worked together on this study. The method of identifying the forces, assist the industry to establish workable solutions to improve their competitiveness.
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| 20 June 2011 |
The new trend of teaching in the field of agribusiness, is the “Case study method”
The ABC learnt at the IFAMA conference about the method, in an applied way. Many universities, especially the University of Stellenbosch, teach and guide their students to become the next generation of agribusiness leaders, by exposing them to a real life case study. They find, by way of open discussion, solutions for every day, real life agribusiness challenges. It will be off fantastic benefit to the next generation of South African agribusiness leaders if this can be implemented in SA. Representative from the universities of North West, Free State and Pretoria also attended the case study event at IFAMA with the intention to determine the possibility to implement it in SA.
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| 20 June 2011 |
What are the key driver for implementing sustainability strategies by agribusinesses?
The ABC learnt from Allan Gray, from the USA, at the IFAMA conference, what drove US based agribusinesses to implement sustainability strategies. Strong intentions by management were the most important driver, and not at all those of shareholders! The different sizes of agribusinesses observed did not influence the finding – size did not matter towards sustainability strategies. He also found that there is a great need for research and communication regarding sustainability strategies, for agribusinesses who’s not implementing them is mostly due to the lack of knowledge regarding it.
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| 20 June 2011 |
There are pro’s and con’s to Trade Liberalisation.
Hamish Gow (a huge All Black supporter and friend of the South African Springbok supporters and researchers in agriculture) found, based on the Pakistani experience, that trade liberalisation bring about increase trade – to a more, or lesser extend for different industries and products, but most importantly, increase aggregate production output. The Pakistani economy in general benefitted. They just had to manage distortions internally, specifically regarding management and resource allocation to ensure overall welfare gain. South Africa can learn much from it.
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| 20 June 2011 |
Impact of the global recession on SA fruit and wine export volumes
Ernst Idsardi, a researcher at North West University in SA, presented to the international audience on the impact of the global recession on SA fruit and wine export volumes. He found that exogenous factors are mostly responsible for the decrease in export volumes, rather than recessions (negative growth in GDP). Lower income, therefore did not have significant negative impact on fruit and wine volumes exported to our major export destinations. Quality, taste, window of opportunity and competitiveness are more important factors for exporters than the income from importing countries.
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| 20 June 2011 |
International investment in food and agribusiness
Marcos Fava Neves, from Brazil (well-known among South African agribusiness leaders) presented first at the Symposium. He presented on the discussion on international investment in food and agribusiness. Based on the phenomenon of certain countries buying land and investing in production and processing in developing countries, the discussion focussed on promoting these FDI’s in such a manner as to achieve the best outcomes for both the investor as well as the local economy. Emphasis was placed on efficient regulation thereof, without creating an unfavourable environment due to over regulation.
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