Agriculture : models and conflicts A multifunctional agriculture in the bio- economy era: The global and local cha

1. Agriculture: modelsandconflictsA multifunctionalagriculture in the bio-economy era: The globalandlocalchallenges Prof. Dr. Dr. h.c. Guido Van Huylenbroeck Professor in agriculturalandruralenvironmentaleconomics Ghent University President of ICA

2. CONTENT The globalchallenges Challengesfor EU agriculture Multifunctionalityand bio-basedeconomy: A basis forinnovation? New farm models Conclusions

3. 1. The globalchallenges

4. The context Growingworldpopulation Biodiversitydeclineandclimate change Price volatilityandspeculation Scarcity of natural resources Growingcompetitionforbiomass Urbanisationandincreasingdemandfor public good services

5. World population growth between 2010 - 2025 -1% 4% 56% 32% 8%

6. Increase in population – increase in food demand

7. DeforestationClimate change Consuming the Amazon “Meat reared on rainforest soya”

8. Price volatility and speculation

11. Other uses of biomass: feed versus fuel

12. World wide trend of urbanisation

13. The demand for space and public goods and services

14. 2. Challengesfor EU agriculture

15. Agriculturein Europe • Highly diversified production possibilities and thus high diversified production systems in the 25 member states • High density of population and thus high presence of consumers, but also high pressure of citizens • Highly productive agriculture but depending on external (often imported) inputs • High labour costs in comparison with competitors • Strong regulatory framework resulting in higher costs

16. EU agriculture : Strong increases in productivity

17. Source: prelimanary results of Contract No 30-CE-0467350/00-79 for DGAgriculture and Rural Development.

20. Fundamental problems • Price erosionthroughglobalisation • Costincreasesbecause of increasedregulation • Treadmillof scaleenlargement, specialisation, technologicalprogressandlabourreduction • Agricultural policy fighting the symptomsratherthanfacilitatingstructuralsolutions • Model of intensification is socially questioned • Need of a new model? Canthisbe ‘multifunctional’ agriculture ?

21. 3. Multifunctionalityand bio-basedeconomy : A basis forinnovation ? BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics

22. Visionon EU agriculture • The visionon EU agricultureas expressedby EU in 2000: • “The fundamental difference between the European model and that of our main competitors lies in the multifunctional role of agriculture in Europe and in the role it plays in the economy, for the environment, in society and in the conservation of the countryside. Hence the need for maintaining agriculture all over the EU and protecting the farmers’ income” (EC, 2000)

23. The multifunctionalityparadigm • Multifunctionalitymeans to accept thatfarming combines food production, biomassproductionfor non-food applications (commodity outputs) with non-food functions (non-commodity outputs) • MoyerandJosling (2002) call multifunctionality ‘a thirdmodel’ between the oldprotectionist model and the liberalcompetitivemodel • MF is not a soft paradigmthatstatesthat we should keep subsidising non-competitive farms or only support diversification but is arguingfornew waystodefine efficiency andcompetitiveness • Farmers shouldbe performant in respondingtoallsocietalneedsbothwithregardto food and non-food issues • Thiscreates new possibilitiesforvaluecreationboth at regional as at individual farm level BVLE Rural Development in Flanders – Prof. G. Van Huylenbroeck - 30/11/2005 Faculty of Bioscience Engineering – Department of Agricultural Economics

24. Possible services byagriculture Bleu Red Yellow White Green • Rural cohesion • Rural heritage • regional identity • tourism • Green care services • Bio-energy production • Other energy forms • bio-chemicals • Landscape management • biodiversity • Animal welfare • Wild fauna management • Water management • Flood control • Food safety • Food security

25. MF agriculture fits in the transitiontowards a bio-basedand green economy Why: Fossil resources are non-renewableandexhaustible, thusnotsustainable. They are affectedby high pricevolatilityandinfluenceoureconomyand environment. Thereforethere is a needtoreplacethem What: a bio-basedeconomy is aneconomy in which the building blocks of materials, chemicalsand energy are derivedfromrenewable resources, thusmainlybiomassand in which loops are closed (green economy) . • Thiswill change andenlarge the role of agriculture in society: • from provider of food towards provider of biomass, recycling sector for waste, provider of ruralrecreation, ….

26. Food and feeding technologies BiotechnologyBiocatalysisProcessTechnology Bron: Von Braun, 2011 adapted from Bioeconomy Council, Germany, 2010

28. Biobased economy = Broadening the role of agriculture = multifunctionality •

29. 4. New farm models

30. VERTICAL, DEEPENING, CHAIN New types of rural companies: - chain companies - partnerships Source: visiontext of Flemish Policy Centre forSustainableAgriculture LATERAL, BROADENING, DIVERSIFICATION

31. Option 1: chain companies

32. Smart innovation • Genomics (better use of genes): • Faster selection of varieties/races (biotech ?) • Better control of diseases • Precision agriculture (ICT use) • More with less • Use of agro-ecology • Post-harvest techniques (max taste/min waste) • Food technology • Intelligent post-harvest techniques • Bio-refinery (waste = byproduct)

33. Smart intensification = increased control of production factors

34. Smart intensification = less use of environment

35. Past and present: Mass production Lowest price Consumer as threath Supply driven chains Future: Customized, flexible Correct price Consumer andretail as active actor in co-creation Consumer-centerednetworks New ways of creatingvalue

36. Chain companies = agriculture in the global value chain

37. Option 2: partnership farm

38. New income opportunities for local farmers The LATTE concept: Local Authentic Trustworhy Traceable, Ethic

39. LATTE concept andcreatingaddedvalue

40. 5. Conclusions

41. Closing the globalandlocalinnovation gap • Both modelswill co-existand have theirplace in the market • Smart intensificationby chain companies = leaving room forotheruses of land ( = partnership companies) • Smart intensification = reducinginputsandlesspressure on environment • Bio-basedeconomyand MF agriculturerequiremovingfromindividualstrategiestonetworkand system strategiesinvolving the wholevalue chain and the whole portfolio of possibleoutputs of agriculture

42. Bio-based economy = a multifunctional agriculture integrated in the global economy

43. Requirements • Scientificandtechnicalinnovation: increase in productivityand efficiency in allaspects of productionanduses of resources • Socialinnovation: mobilising stakeholders around a common project (agreementsandconflicts) at regional level • Institutionalinnovation: new ways of sharingaddedvalue in the globalvalue chain • Embeddingagriculture in a regionaleconomicstrategy: • Rural – urban relations • Branding of regionsandproducts • New financingmechanismstopayforlocal public goods

44. Embeddingagriculture in the globalandlocaleconomy = thinking aboutverticalandhorizontallinkages Global biobased Global bio-based economy Local environment (recreation/biodiversity) The place and role of local Agriculture Regional food economy Science and technology

45. Thankyouforyour attention 45