Farming in the Southern Cone - World...
Transcript of Farming in the Southern Cone - World...
Farming in the Southern Cone Sustainable Development Model
- Institutional- Argentina & Uruguay- Brazil- Sustainability
Content
April 2010
Mission & VisionMission & Vision
To become a leading global producer of food and renewable energy, offering shareholders and investors an attractive, stable, liquid and trustworthy investment alternative.
Team
Owning Farmland
Diversification
Technology
Sustainability
Lowest Cost Producer
Honest, trustworthy, highly qualified and empowered management
Stable production capturing land transformation & appreciation
Introducing cutting-edge technology in every business line
Managing risk through geographic and portfolio diversification
Long term production side-by-side with nature
We aim to be the lowest-cost producers in each of our businesses
Profitability Effectively generate attractive and stable returns for shareholders
How to achieve it
Following 7-years of aggressive growth, Adecoagromanages 275K hectares of own farmlandFollowing 7-years of aggressive growth, Adecoagromanages 275K hectares of own farmland
Producing each commodity in the right location (*)
Brazil
Argentina&
Uruguay
Cotton, Soy & CornEthanol, Sugar & Power
49,000 Hectares
Coffee
Crops
Dairy
4,500 Heads
Rice
Beef
(*) Includes 80K hectares of leased land
Rice Mills
160,000 Tons
Milk Industry
145 M Liters
13,000 Hectares
1,000 Hectares
155,000 Hectares
18,000 Hectares
74,000 Hectares
To date, the company has evaluated investments of over 1MM hectares with a total value of USD 5BN
HumidPampas
Northern Region
FarmsIndustryOffices
Producing each commodity in the right location
Argentina & Uruguay production unitsArgentina & Uruguay production units
Crops155K HA
489K TONS
Rice18K HA
110K TONS
2010 Forecast
Cattle land lease
74K HA
Dairy4.5K HEAD
50M LTS
Grain Handling
30K TONSx5 Rotation
Rice Processing
160K TONSUSD 45M
Rice Seed Plant
6K TONSUSD 3M
Rice Processing
160K TONSUSD 45M
Rice Seed Plant
6K TONSUSD 3M
Rice Processing
160K TONSUSD 45M
Rice Seed Plant
6K TONSUSD 3M
Rice Processing
160K TONSUSD 45M
Rice Seed Plant
6K TONSUSD 3M
Soybean80K HA
195K TONSUSD 46M
Corn34K HA
190K TONSUSD 35M
Wheat26K HA
72K TONSUSD 21M
Sunflower16K HA
32K TONSUSD 17M
Soybean80K HA
195K TONSUSD 46M
Corn34K HA
190K TONSUSD 35M
Wheat26K HA
72K TONSUSD 21M
Sunflower16K HA
32K TONSUSD 17M
Soybean80K HA
195K TONSUSD 46M
Corn34K HA
190K TONSUSD 35M
Wheat26K HA
72K TONSUSD 21M
Sunflower16K HA
32K TONSUSD 17M
Soybean80K HA
195K TONSUSD 46M
Corn34K HA
190K TONSUSD 35M
Wheat26K HA
72K TONSUSD 21M
Sunflower16K HA
32K TONSUSD 17M
Argentine Humid Pampas is Adecoagro'score region for grain productionArgentine Humid Pampas is Adecoagro'score region for grain production
Abundant and Even Rainfalls
High Soil Fertility
Temperate Climate
Soil does not frost
+500 Hectare Plots
Specialized Contractors
High productivityStabilized yieldLow fertilizers useLow production costDouble CroppingEfficiency
HUMID PAMPAS: HIGHLY PRODUCTIVE FARMLAND
Cereals & Oilseeds Production and AreaK tons K hectares
73 102172 173
335330
308
0
100
200
300
400
' 03 ' 04 ' 05 ' 06 ' 07 ' 08 ' 09-50-20104070100130160
Production (K tons) Planted Area (K hectares)
Grains Production
Humid Pampas
45%
In Venado Region we are boosting productivity of both Grains & Forages
Tons per cropabble hectare
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10E
Tons
/he
Northern farms offer maximum transformation potential over natural grasses and savannahsNorthern farms offer maximum transformation potential over natural grasses and savannahs
FarmsIndustryOffices
700 to 1,400 mm annual rainfall
15 C° winter average temperature
Medium and Fertile soils
Rotation & double cropping decrease productive risk
Cheaper land
Large scale farms
Great expansion and transformation potential
North Main Features
Land Transformation at Northern farms:
Oscuro: Average Gross Margin over last 5 years stands at 200 USD/he (versus 5 USD/he of original cattle system)
Technollogy Development - Oscuro Farm CaseUSD/Hect. Tons (000)
1485* 25 120
270
304
140
050
100150200250300350400450500550600
' 03 ' 04 ' 05 ' 06 ' 07 ' 08 09 10F012345678910
Gross Margin (USD/Hect.)
Production (Tons)
Oscuro Farm - Crop Production evolution
* Cattle grazing margin
Requires a vast know-how to determine the best productive use of the land.
Implies mainly a removal of wild vegetation (mechanically and or chemically) in order to change land use from cattle to crop production.
Technical management such as rotations, integrated pest management, weed controls, balanced fertilization, is fine-tuned during the process.
Transformation costs will depend on vegetation, ranging from 75 USD/he for natural grasses up to 600 USD/he for heavier savannahs.
Conditions for Rice Production
Optimum insulation
500mm of rain + irrigation from runoffs
Electric Power investments Lower costs
High productivity and stability 8 tons/hect.
Experienced and skilled team
Own genetics through seed facility
Environmentally regulated
Northeastern Argentina offers optimum rice production capabilities and expansion potentialNortheastern Argentina offers optimum rice production capabilities and expansion potential
FarmsIndustryOffices
YIELD [TONS/HECTARE] 7.0 8.0 8.6
GROSS PRICE (USD/TON) 215 235 304
GROSS SALES 1,505 1,883 2,612
TOTAL EXPENSES (814) (1,137) (1,484)
HANDLING & DRYING (88) (94) (142) COMMERCIALIZATION (22) (94) (91)
GROSS MARGIN 582 558 895
OVERHEAD (67) (79) (380)
NET MARGIN 515 479 514
COST PER TON (1) 141 176 244
ARGENTINA URUGUAY BRAZIL
10395103
99
514337
0
20
40
60
80
100
120
2004 2005 2006 2007 2008 2009 2010F
K Tons
-2468101214161820
K Hectares
Production (K Tons)
Area (K Hectares)
Rice Production Evolution (Hectares & Tons)
Argentina: the lowest production cost
Rice Industry Highlights
160K tons processing capacity in 3 facilities
3rd parties rice purchases
Production of white, brown and parboiled rice
Exports to Chile, Brazil, Peru, Haiti, Senegal,
Ghana, Malaysia, Germany and Spain
15% Market Share in Argentina.
Own brands for domestic markets:
In a complex market, being vertically integrated generates high benefits
Technollogy Development - Oscuro Farm CaseK tons
5 5 21
160
65
130
21
648380
020406080
100120140160180
' 05 ' 06 ' 07 ' 08 ' 09f
Processing (K tons) Exports (K tons)
Rice Processing & Exports
Molinos Ala: 3rd largest in Arg.
Usina Monte Alegre: southern Minas Gerais.
Rice processing allows us to maximize the value of our riceRice processing allows us to maximize the value of our rice
We have developed a highly efficient system to transform vegetable protein into animal proteinWe have developed a highly efficient system to transform vegetable protein into animal protein
3,000 milking cows modules
100% confined
High quality feed based on corn
35 liters per cow per day
Production: 38 MM liters year
First module: 1,500 cows by July ‘08 and 3,000 by Feb ‘10
Adecoagro’s Free Stall Modules
Feed to milk conversion is 50% more efficient under the free stall system
Large scalesFeed based on corn and silos Controlled atmosphere Tasks specializationHigh standardization of processesEfficient effluent management
Free Stall Model vs. Traditional GrazingModel
Free Stall Dairy is the key technology for large scale milk production
June 08 June 08
La Pampa
Buenos Aires
Coffee1K HA
3.5K TONS
Cotton, Soy & Corn13K HA
50K TONS
Ethanol, Sugar & Power
49K HA259K TONS
Producing each commodity in the right location
Brazil production unitsBrazil production units
120K hectares of sugarcane
10MM Tons of sugar cane processed
500K M3 of ethanol
770K tons of VHP Sugar
Cogeneration power of 821 MW
Our 10MM ton Power Cane Project is based on synergies and economies of scale Our 10MM ton Power Cane Project is based on synergies and economies of scale
2015F Key Metrics
Cane Cluster’s Synergies
Economies of scale:Centralized managementHarvest efficiencies (non-stop harvest)Plantations being developed at 2 sitesViability of logistics projectsTechnological package
ANGELICA (2008)
IVINHEMA (2012)
Goal is to achieve 50% of Cotton
Corn & soybeans rotation helps to decrease pest and disease incidence
Fertilization is balanced among all crops
Cover crops help to maintain/gain organic matter, while storing water
Cotton is the main crop at western Bahia and especially for large scale production
Cotton
Cotton
CornSoy
Miletto (*)
Brachiaria (*)
Main features for Cotton rotations
Intense sunshine: 800 Kcal/cm2/day
Optimum rainfall: 1,800 mm with dry period
Good temperatures due to elevation
Deep and well drained soils
Even topography for full mechanization
Optimum conditionsOptimum conditions
(*) Cover crops
Chapada at 800 meter elevation (Conquista Farm)
Chapada at 800 meter elevation (Conquista Farm)
High efficient irrigation system
International Certifications for Specialty Coffee quality
Introducing premium quality coffee by irrigated & fully mechanized operation at western Bahia Introducing premium quality coffee by irrigated & fully mechanized operation at western Bahia
High quality coffee at a competitive cost
Seedling & Nursery facilities
Modern mechanization
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People, Technology & Environment
Sustainable food production is based on professional team worksSustainable food production is based on professional team works
Creating and strengthening professional teams with values
Leading with commitment to the local community: Supporting Programs (ARG)
EducationEducation
HealthHealth
NutritionNutrition
Trustworthy
Professionalism
Honesty
Flexibility
Communication
Collaboration
Empowerment
Promoting technical excellence by training the staff & contractors
Over 160 trainees had succeeded our programs
Local and global Universities agreements
More than 40 trainees has started to from part of staff
18
Our long term players goal makes the strategy based on sustainabilityOur long term players goal makes the strategy based on sustainability
Sustainability as a way of doing things
Sustainable approach must be adapted to local circumstances
Sustainable approach must be adapted to local circumstances
Environmental
viability
Social
viability
Economic
viability
Ethic Environmental
viability
Social
viability
Economic
viability
Ethic
Land use change criteria
NATURAL GRASSESNATURAL GRASSES
NEW BUSHESNEW BUSHES
LOWLANDSLOWLANDS
SAVANNAHSSAVANNAHS
WEEDSWEEDS
ENVIRONMENTAL ASSESSMENTSENVIRONMENTAL ASSESSMENTS
HEAVYWOODSHEAVYWOODS
WETLANDSWETLANDS
Source: adapted from Satorre and Solbrig
Natural resources are the main foundation of
our activities
Natural resources are the main foundation of
our activities
Oscuro FarmReserve areas and corridors
Biodiversity is considered when transforming land from natural vegetation
Main criteria involved
Environmental Assessment
Soil surveys
Land use management
Biodiversity studies
Alejandro Giraudo, December 2004
Oscuro Farm
Biodiversity moving within corridorsBiodiversity moving within corridors
Sources: NIPE-Unicamp, IBGE and CTC
87% of powercaneproduction
Main sugarcane production area is far away from rainforestMain sugarcane production area is far away from rainforest
Land availability
Center-south (Sao Paulo state) is the most developed area
South-west region (MatoGrosso do Sul) present huge potential for new area
Main landscape in new areas consist in degraded grasslands
No need of deforestation to increase sugarcane area
25 million hectares of degraded pastures are
available for power-cane
25 million hectares of degraded pastures are
available for power-cane
Land transformation for power-cane is carried out under sensitive biodiversity careLand transformation for power-cane is carried out under sensitive biodiversity care
Optimum soil and climate
Even topography for mechanization
Large scale land availability
Land transformation from pastures
Mato Grosso do Sul’s strengthsMato Grosso do Sul’s strengths
Legal Reserve Areas (20% of farm)
Permanent Preserved Areas (river banks)
Law ComplianceLaw Compliance
Improving 2.5X productivity by turning pastures into sugarcane
Improving 2.5X productivity by turning pastures into sugarcane
Legal Reserve Areas17.8%
Infraestructure1.2%
Permanent Preservation
Areas7.7%
Natural Forests2.0%
Agricultural Area
71.3%Angelica original
Land Use
Empowered team and strong corporate platform facilitates efficient land transformationEmpowered team and strong corporate platform facilitates efficient land transformation
Technical Group promoting the best thing to do
Engineers building roads, ditches, dams, bridges, storages.
Technical Group promoting the best thing to do
Engineers building roads, ditches, dams, bridges, storages.
Over 110K hectares under transformation
Land Transformation evolution
-
5
10
15
20
25
02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11F
Hec
tare
s ('0
00)
-
20
40
60
80
100
120
Accu
mul
ated
Hec
tare
s ('0
00)
New Area
Accumulated
Highly qualified technical team capable of analyzing and executing any type of transformation project
Strong farm level support
People makes the difference even at
large scale
Efficient use of resources & energy
Best land use option
No Till development
Crop rotations
Water management
Balanced fertilization
Variable input management
Energy & GHG balances
Best land use option
No Till development
Crop rotations
Water management
Balanced fertilization
Variable input management
Energy & GHG balances
Integrated Pest Management
Soil & water quality survey
Triple cleaning of pesticide cans
Responsible pesticide usage
Environmental assessment
Residues recycling
Biodiversity management plan
Integrated Pest Management
Soil & water quality survey
Triple cleaning of pesticide cans
Responsible pesticide usage
Environmental assessment
Residues recycling
Biodiversity management plan
Less waste and contamination
Environmental Management PlanEnvironmental Management Plan
Helping to protect the environment by implementing Best Practices
Best Practices for a Renewable Project
Monitoring Preventing CorrectingEducating
No-till constitutes the cornerstone of our crop production technologyNo-till constitutes the cornerstone of our crop production technology
Technical overview
No-till increases land productivity and returns over time
Crop residues remain on the soil surface as mulch, creating a permanent soil cover catalyzing biological processes that significantly increases the presence of organic matter in the soils
Special no-till planters cut through crop residues and plant into soil without plowing or disking
Crop rotation is compulsory so as to maintain nutrient renewal and avoid crop plagues
Improves water efficiency
Reduces erosion risk
Increases organic matter
Decreases use of pesticides
Improves soil fertility
Reduces CO2 emissions
Higher and stable yields & lower costs year by year
No-till Benefits
ALTA PRODUCTIVIDADAD
CROP ROTATION
FERTILIZATION
NO TILL
WATER ECONOMYBIOTECH
INTEGRATED PEST MANAGEMENT
ALTA PRODUCTIVIDADAD
CROP ROTATION
FERTILIZATION
NO TILL
WATER ECONOMYBIOTECH
ALTA PRODUCTIVIDADAD
CROP ROTATION
FERTILIZATION
NO TILL
WATER ECONOMYBIOTECH
INTEGRATED PEST MANAGEMENT
Complex biological processes
Zone of active agregation
Zone of active decomposition
0 - 5 cm
Aggregates formation in layers
Source: J.C.Moraes Sa, 2003
Zone of active agregationZone of active agregation
Zone of active decomposition
0 - 5 cm0 - 5 cm
Aggregates formation in layers
Source: J.C.Moraes Sa, 2003
Zone of active agregation
Zone of active decomposition
0 - 5 cm
Aggregates formation in layers
Source: J.C.Moraes Sa, 2003
Zone of active agregationZone of active agregation
Zone of active decomposition
0 - 5 cm0 - 5 cm
Aggregates formation in layers
Source: J.C.Moraes Sa, 2003
Soil formation process
0
15
30
45
60
Convetional Tillage No Till
Lite
rs p
er h
ecta
re
Decreasing fossil fuel usage (Venado Tuerto Farms)
Source: Adapted from J.C. Moraes Sa, 2003
Life in the soil (kg)
Bacteria1100Actinomycetes1100
Fungus2200Algas110
Protozoos220Nematodes 50Insects100
Worms 1000Plantroots 2200
Fuente:D.Beck, 2005
No Till technology implies more than “without tillage” itself
Meaning more than common ideaSequestering Carbon
Implementing No Till at Bahia: From bared sandy fragile soils to cover protected fieldsImplementing No Till at Bahia: From bared sandy fragile soils to cover protected fields
Intensive training to the team was performed
Soil correction is previously needed
Strict weed control is being carried out
Cover crops are being tested and developed
Planters were re adapted to No Till fashion
No Till implementationNo Till implementation
Bahia Farms offer a potential Carbon Sequestration from No Till standing at USD 560K annually (*)
(*) Carbon Credit estimated value: 28 USD per ton
99% of No Till in 2009-1099% of No Till in 2009-10
Adecoagro - Potential Carbon Credits (Tons CO2 & USD)
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2003 2004 2005 2006 2007 2008 2009F
Tons CO2
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
000 USD
Tons CO2
USD*
Adecoagro - Potential Carbon Credits (Tons CO2 & USD)
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2003 2004 2005 2006 2007 2008 2009F
Tons CO2
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
000 USD
Tons CO2
USD*
Global GHG emissions
By sector
Sequestering best alternative
Main factor is CO2 accounting for 72%
USABraz
ilArge
ntina
Canad
aAus
tralia
Rest
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Millions hectares
World No Till adoption (Hectares)2004-05
World annual potential stands at
3.3 Billions Tons C02
Adecoagro potential Carbon Sequestration from No Till
There is a huge potential on global Carbon sequestration from farmingThere is a huge potential on global Carbon sequestration from farming
(*) Carbon Credit estimated value: 28 USD per ton
Planting decision and crop rotation is based on crop technical criteriaPlanting decision and crop rotation is based on crop technical criteria
Which crops and where?
Wheat/Soybean Corn Soybean
INTERCROPINGSOY + SUNFLOWER
INTERCROPINGWHEAT + SOY
COLZA, BARLEYRAIGRASS, WHEAT
Sf/CSf/CW/CW/C Sb/CSb/C C/SbC/Sb
W/SbW/Sb C/SbC/Sb C/CC/C
100% DOUBLE CROP100% DOUBLE CROP
Sf: Sunflower
C: Corn
W: Wheat
Sb: Soybeans
ALL REGIONSSOIL PRODUCTIVITY
Yield =>Tons/hectare
SOIL PRODUCTIVITY
Yield =>Tons/hectare
LOW OFFEROF RESOURCES
BIOMASS DIVERSITY
IntercroppingDiversified rotations
BIOMASS DIVERSITY
IntercroppingDiversified rotations
SOIL USAGE TIME
Double CropsCover Crops
SOIL USAGE TIME
Double CropsCover Crops
LARGE OFFEROF RESOURCES
Intensification: more crops per year
More crops mean more carbon
Responsible pesticides management
Training programs
Participation in Agrolimpio
Implementation of 3X Cleaning
Personal protection elements
Integrated Pest Management
Agrochemical warehouses
IPM & No Till synergies
Responsible Pest Management is a priority when protecting the EnvironmentResponsible Pest Management is a priority when protecting the Environment
Recycling of containers
Totaling Pesticides of 165K hectares
Agrolimpio Program: Container rycicling (kg)
36,405
28,004
21,776
4,3100
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2005-06 2006-07 2007-08 2008-09 F
Kg
Agrolimpio Program: Container rycicling (kg)
36,405
28,004
21,776
4,3100
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2005-06 2006-07 2007-08 2008-09 F
Kg
Avoiding burning of cansDecreasing contamination risks
-
1,0
2,0
3,0
4,0
2003-04 2004-05 2005-06 2006-07 2007-08
Spra
y pe
r hec
tare
3,0
4,0
5,0
6,0
7,0
8,0
Lite
rs p
er h
ecta
re
Spray/hectare
Liters/hectare
Venado Tuerto farms: Pesticides application
Rainwater harvesting: reservoirs
Irrigation & Drainage system
Zero grade & controlled level
No Till benefitsImproving soil storage capacity
Promoting infiltration
Crop production strongly relies on technical water management criteria
Irrigated crops
Water excess controlTerraces & leveling
Runoff management
Increasing efficiency in usage
Decreasing erosion risksWater Management
main goals
Exhaustive hydrological assessments are carried out
Oscuro’s reservoirOscuro’s reservoir
Biotechnology offers substantial benefits, while requires assuming costs and impact evaluation
Growing opportunities
Developing opportunities
The goal: to maximize opportunities and minimize risks
Assessing types of soils is the key to zoom in the scale of management
Heterogeneity evaluation
PrecisionAgriculturePrecision
Agriculture
Global Positioning SystemGIS mappingRemote sensorsElectrical conductivityVariable input rate
Yield mapping (GIS-GPS)
Farmworks efficiencyIncreasing operative capacityAchieving planting scheduleHarvesting on time
Less overlaps in fieldsMore precise dosesLess contamination risks
Agrochemical use
Advantages of large scale helping to promote sustainable development
Use of silo bags to storage grains had radically changed logistics in Argentina
AdvantagesAdvantages
Flexibility in locationEasy filling & extractionLow storage cost
Caution aspects: grain quality, uniform filling, even terrain, cleaning conditions, periodic quality survey
Grain moisture & storage risk
Grain moisture & storage risk
Long storage periodsSmall size to be monitoredHelp to manage freight logistics
Sugarcane mechanization is an important technical, social and environmental challengeSugarcane mechanization is an important technical, social and environmental challenge
Especial training
Detailed planning
Higher investment
Technology development
Offering
Environmental sensitiveness
Healthier labor conditions
Improving operative efficiency
Standardization possibility
Demanding
Training team in a region with no agricultural tradition is key to being a low cost producerTraining team in a region with no agricultural tradition is key to being a low cost producer
All local operators and maintenance teams with no previous experience are trained
Trained Approved In Training Theory (hs.) Practice (hs.)
Tractors 178 122 138 96 430Volkswagen Trucks 192 144 190 96 648Volvo Trucks 49 43 65 40 298Mechanized Planting 32 23 26 47 330Harvester 0 0 114 112 390
Total 451 332 533 391 2096
A low maintenance cost is critical to full
mechanization costs
Our operations team is constantly working with advisors form CTC - the Cane Technology Center , equipment manufacturers and other consultants to improve efficiencies at all field operations, the fastest route to low agricultural costs
Training operators and tracking their performance is key to attaining high efficiency
Performance 2008 2009 Gains (%) Target
Harvesters (tons/day) 500 550 10 600Harvester Fuel (lts/ton) 1,25 1,03 17,6 0,95Harvester Losses (Cane %) 7,19 5,73 20,3 4,5Mineral Impurities (%) 1,24 1,22 1,6 1Vegetable Impurities 10,9 7,38 32,3 8Harvester Availability 88 91 3,4 92Operator Absentism (%) 4,55 3,78 16,9 3,5Accidents per month 4 2 50 1
Large scale sustainable farming leads to models with standardization of processesLarge scale sustainable farming leads to models with standardization of processes
Wheat production protocol
“Industrial”vision
“Industrial”vision
Maximized efficiencyReplicable processesImproving Decision Making processContinuous improvementCertifying productive systems
We are certifying ISO 9001 for crop production
processes
Accomplish Legal regulation
Decreasing Social & Environmental operational risks
Improving operative efficiencies
Achieving “Industrial” vision
Main Goals
OHSAS 18001
ISO 14001
ISO 9001
Crop Protocols
Agriculture Best Practices
Imaflora-Rainforest Alliance
Some Standards under development
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Conclusions
Farming as the best option for a Sustainable business
A growing planet where Ecological Demand overshoots Supply
Cropland, grazing land, forest & fishing to produce food, fiber, timber, energy and to absorb wastes.
Source: Living Planet Report, WWF, 2008
Carbon sequestration from No Till
Fossil fuel reduction from No Till
Agrochemical reduction from IPM*
Best land use to decrease extra-land use change
Conservation areas: carbon & biodiversity sinks
Soil protection from erosion
Adequate water management
Sustainable Agriculture
(*) IPM is Integrated Pest Management
Responsible answer comes from Developing Models
► Private sector initiative is essential to develop these models.
► Positive effects can be multiply outside the local area.
Abundant water
Fertile soils
Mild temperature
Land availability
Natural conditionsCutting edge Technology
Mechanization
Management skills
Environmental sensitiveness
Human & Technology
Private land
Food surplus
No trade barriers
Corporate farming
GeopoliticalLow production cost
Cheap land
Good infrastructure
Vertical integration
Economical
South America presents strong advantages on food & renewable sustainable production
South America: Helping to solve Food supply & global
Hunger crisis
South America Strengths
Source: Atlas of Global development, World Bank, 2008
Good quality farmland is globally limited
Adecoagro is performing best alternative on Sustainable AgricultureAdecoagro is performing best alternative on Sustainable Agriculture
Diversification
Vertical integration
Efficient scale
Land use & Best Practices
Sustainable Vision
Constant improvement
Large Scale Sustainable
Farming
Best Farming operator performance
…while simultaneously…
Adecoagro: the best team to put all the pieces
working together