Sanjay Sethi-Assocham - Actualizing Second Green Revolution

Small Ideas.
Big Revolutions

Actualizing Second Green Revolution

11 July, 2012
Sanjay Sethi
Small Ideas. Big Revolutions

Farming looks mighty easy when your plough
is a pencil and you are a thousand miles from
the cornfield Dwight D. Eisenhower

Contents
1. Generational opportunities in Food and Agriculture
2. Indias share in World Food Grains Trade
3. Three growth drivers Irrigation, Preservation Technologies
and Infrastructure
4. Relevance of irrigation in poverty alleviation
5. A model integrated agricultural projects
6. Concept of a Mega Food Park
7. A case study on Al Khadra Farm in Libya


Crop Demand
Increasing per capita income will enable a growing population to purchase
more and better food, fuelling the organic growth of agri-business
Population growth: The U.N assumes 1.1% population growth over the
next 30 years (a slowdown), expecting world population to exceed 9 billion
by 2050
Calorie intake per capita: Fastest growth in calorie consumption occurs
when income is less than $5,000/ year. 83% of the worlds population
currently earns less than $5,000/ year
Quality of diet: Exponential growth in grain production necessary to meet
increasing meat demand. Compositional change in demand as people
switch from starch-based to protein-rich diets. Demand for vegetable oils
will continue to grow
Bio fuels: Policies promoting bio fuels across the world and in particular in
the US, are adding to incremental demand

Crop Supply
Enhanced productivity will be the significant source of incremental crop
production
Most recently net growth has been negligible with declines in the EU and US
roughly offsetting growth in Latin America and Asia
Negative factors such as land degradation, industrialization, urbanization,
water restrictions, regulation and importantly climate change may be
increasing
Productivity/ yield gains have accounted for virtually all crop production
growth over the last 10 to 15 years however some data suggests that yields
may be slowing on a global basis
Water erosion vulnerability is a significant issue and new productivity gains
will have to be achieved with less water
Currently farmers use 70% of global water supplies but are increasingly
competing with rapid urbanization for water supplies
China and India in particular will be forced to divert water from agricultural
uses to urban populations, meaning they will become larger importers of grain
than they might have been had water not been a constraining factor

Generational Opportunity
SOLVING THE SUPPLY SIDE EQUATION = BIGGEST OPPORTUNITIES
Simply increasing land under cultivation not a viable option
Increase yields by better inputs and improving value chain
GM and hybrid seeds largely untapped, can tackle issues from water to nutrition to yield
Hard assets in the storage, processing and refining business help reduce wastage and
increase value
Revolutionary new technologies (agri nanotech?) to transform traditional thinking
GLOBAL FOOD CRISIS
Rising GDP/ Capita in EM Population growth Fragmented markets
Increasing protein consumption Higher grain demand Rising bio fuel demand
Inadequate government policies Global feedstock's at all-time low Record food prices
Water/ irrigation issues worldwide
The World Needs a Second Green Revolution

Focus on Biggest Value Opportunities
Seeds
Water
Fertilizer
Machinery
Land
Capital
F
a
r
m
e
r

Feed
Dairy<
Poultry
& Fish
Farmer
Fresh
Produce
Oilseeds
Grains
Dairy
Poultry&
Fishery
P
r
o
c
u
r
e
m
e
n
t
,

S
t
o
r
a
g
e
,

T
r
a
n
s
p
o
r
t
a
t
i
o
n
,

W
a
r
e
h
o
u
s
i
n
g

P
r
o
c
e
s
s
i
n
g
,

C
u
t
t
i
n
g
,

C
l
e
a
n
i
n
g
,

R
e
f
i
n
i
n
g

E
n
d

C
u
s
t
o
m
e
r
,

F
M
C
G

C
o
m
p
a
n
y
,

B
r
a
n
d
i
n
g

Fresh Produce, Oilseeds/ Cereals, Fishery/ Poultry : From Farm Gate to Consumer
Seeds: Control Technology and Distribution
Agrinanotechnology: Revolutionize Traditional Fertilizer
Water: Irrigation, Water Services. Infrastructure

VERTICAL DESCRIPTION:-


Forecast Indias Food Grains

Forecast Indias Food Grains




Key Challenges for 2
nd
Green Revolution
14
Inadequate Infrastructure and
Supply Chain
Skill Gap
Research & Development Market Linkage
Governmental Interventions

Funding Assistance for
agricultural inputs


Access Distribution Use
Increased
Return to
Labor
Direct Cost
Savings
Increased
Return to
Land
Increased
Investments
and Returns
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
abandonment
marginal change
substantial impact
+ +
________________________________________________________________
initial
adoption
realization
of
efficiencies
re-investment
and
growth
Drip irrigation system components and
pathways of impact

Factors to be considered when selecting an irrigation
technology
1) Crop
2) Field size and shape
3) Climate
4) Initial investment
5) Life expectancy of equipment
6) Yearly maintenance cost
7) Labor cost to operate
8) Flexibility of crop changes
9) Height of mature crop
10) Ease of management
11) Ability to move equipment to another field
12) Ability to remediate marginal soil conditions
13) Ability to leverage other operations such as the application of
fertilizers and chemicals


Perishable Food Products
Perishable
Food
Products
Fruits
Vegetabl
es
Milk &
Milk
Products
Fish and
Marine
Meat
and
Poultry
Flower

Improvement of Storage Life of Food Products

Use of titanium dioxide as Food Safety tool.
Role of Ozone in fresh food Sterilization.
Stabilization of milk fat for shelf life extension.
Analysis of high pressure treatment of fluid milk as an
alternative to pasteurization.
Calcium treatment to extend the shelf life of melons.
Control hormone levels of tomatoes to optimize their life
expectancy.
Ultra-low blanching to increase the firmness; hence shelf life
of canned vegetables.


Research Focus - Improvement in Packaging

Modeling of migration process of compounds from the packaging
material to the product.
Assessment of potential antimicrobial compounds for use in
packaging.
Use of natural antioxidants in packaging for shelf life extension of
combat rations.
Oxygen free packaging.
Biodegradable films made from pectin and starch.
Conductive inks developed for microwave packaging.
Silicon oxide films that improve oxygen and moisture barriers.


Components of Cold Chain
Farm
(Point of
Harvest)
Pre-
cooling
Storage
(Cold
Storage/
CA)
Processin
g/
Packagin
g
Storage/
Distributi
on
Centre
Retail
(Point of
Sale)
Transport
ation
Transport
ation
Inbound
Logistics

It is basically a logistics system, which provides and maintains a series
of facilities for ensuring ideal storage conditions for perishables from
point of harvest to the point of sale.

This necessitates providing pre-cooling facilities, packaging, ripening,
cold storage facilities, reefer transportation etc. on an end-to-end
basis.


Key Challenges in Cold Storage Industry
Integration of the Cold Chain

Technology

Lack of Modernization

High Project Cost and High Working Capital
Requirement

High Cost of Power

Wholesale Market Evolution in India
TWM
TRADITIONAL WHOLESALE
MARKET
MTM
MODERN TERMINAL MARKET
MFP
MEGA FOOD PARK
Price discovery
Aggregation
Physical exchange
Serving 1.1 bn population
Hub & Spoke Model
Transparent & efficient price
discovery
Stronger farm linkages
Market information
Storage facilities
Integrated trade for fresh

Synergistic cluster based
approach
Value addition facilities
Common infrastructure
Scale of economy
Integrated trade of fresh as
well as processed
Wholesale Market Evolution in India
Enablers: Government support, modern trade, increased awareness

Mega Food Park - Concept

Cluster Based Approach

24
Mechanized Handling

Silo Technology - Shipping
Special Food grain Carrying Wagons
2 Discharges at
Bottom
Top Hatch for Grain
Feeding
Wagon Loading System

Irrigation development and enabling infrastructure for modernizing
agriculture
Deployment of self sufficient renewable energy (solar and bio-gas)
systems to reduce reliance on conventional non-renewable energy sources
for irrigation and other uses
Capacity building and institution building for sustainability of initiatives
Market linkages and off take of agricultural produce and creation of
storage, handling, supply chain and procurement infrastructure
Processing and value addition infrastructure
Reverse logistics and distribution of farm inputs to the project area
including high yielding tissue culture planting material
Establishment of tissue culture laboratory
Credit support, assured farming and guaranteed price discovery
Investment in research and development for commercializing technologies
and their suitability to the local conditions
Replication of the project learning, demonstrations and scaling up
Model Integrated Project for India

27

28
Solar Powered Refrigerated Warehouses

Modern Loading Dock

Copyrights 2009 All Rights Reserved. Arshiya International Ltd
Pan India Rail Dedicated Freight Corridor

Connecting the
modern FTWZs

Strategic Rail
Terminal Network
across India


Cold Store Logistics Park, Hong Kong
Packing & Ripening
Centre
Fresh Produce Cold Centre
for storage
Temperature-Controlled Dock
Trading Arena
easy access & well planned
layout
Discharge &
Parking Zone
Business Complex
provide exhibitions services for local &
international clients

Libya Operations Before Project Start

Slip-form Canal Machine

Al Khadra Facilities

Al Khadra Reservoir

430 Horse Power 4 wheel drive

Planting Rig

First wheat crop

Irrigation Canal

Wheat

Libya Operations - Statistics
9,000 Hectares = 35 square miles.
Corn, Wheat, Alfalfa & Barley.
70 Employees.
Delivered 1,000 semi loads of wheat in 2011 to Benghazi Flour
Mill.


Wheat

Operations
Al Khadra Farm operated during the entire uprising.
Assisted Great Man Made River in the east during Revolution.
Worked closely with the locals to guarantee a harvest.
Upper management was in daily contact with operations.


Corn Harvest

Corn Harvest

Wheat Harvest

Wheat Harvest

JAIN IRRIGATION
The Best Bottom Line is a Farmers Smile

For too long, we've taken food for granted. We
cannot go on like this.

Thank You
Sanjay Sethi
Senior Vice President
Jain Irrigation Systems Ltd.
sethi.sanjay@jains.com
+254 732040000

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