Africa’s potential to be
 the world food basket
   World Future Society Conference
                  Cape Town 2010
THE “GOING HOME” SHIFT…
Talk will be divided in 3 broad categories
– that we can all relate to:
SEX
DRUGS
ROCK & ROLL
UN GLOBAL POPULATION
               SCENARIO
     REGION       2007 (MILLION)        2050          % CHANGE
• World               6,671        9,191 (can be as    + 38 %
                                    high as 10,600
• Africa               965              1,998          +107 %
• Asia                4,030             5,266          + 31 %
• South America        572               769           + 34 %
• North America        339               445           + 31 %
• Europe               731               664            - 9%
Global Shift in Consumption
• Rapid Urbanization
• Reduction of poverty
    • < $2day – basic carb intake not met
    • $2-$10 – more protein is consumed
    • >$10 – demand shifts to more value added products
• World Bank forecast
  – People earning > $16 000year
    • Current 352 M
    • 2,1 Billion by 2050
    • 7 X increase in protein eaters
• Increased protein
  consumption largest driver
  of demand in coming
  decades
• Production of 1kg protein
  on average requires 4 kg
  grain
• 7 X increase in protein will
  cause a 7 X 4 increase in
  grain consumption = 28 X
  increase grain demand.
Food demand is estimated to
      double by 2050
DRUGS
•    To meet global demand increase will require a “second
    green revolution”
•   Challenge
     – 37% population increase
     – 28 X more feed grain
•   Only 12% of global agricultural land not being utilized
    (rainforests excluded)
•   Africa – holds bulk of this unutilized land
•   Agriculture uses 70% of world water resources
•   GM holds greatest potential to solve(resistance exists)
Utilize unutilized resources
            first.
Rock & Roll
Africa at a Glance


COUNTRY          Total      Arable    Arable      Irrigated   % Arable    Renewable
               Area km²      Land    Area km²     area Km²    irrigated   Water km³
South Africa   1,214,470    12.1%    146,950.87    14,980      10.19%        50

  Angola       1,246,700     2.7%     33,037.5      800        2.42%         187

   DRC         2,267,048     2.9%    64,837.57       110        0.17        1283



Africa (Sub-   14,690,589    8.2%    1,198,411     49,340      4.12%
  Sahara)
Africa’s irrigation Potential
• South Africa has some of the lowest renewable
  water resources in Africa
• Yet it uses it very well.
• South Africa as benchmark to calculate
  “theoretical irrigation potential” of Sub-Sahara
  Africa
• Potential = 561 326.51 km² of additional irrigation
  possible
• Not including areas where irrigation is not
  necessary
Africa holds the key to
solving any future global food
             crisis
     Land            Water
Why is Africa not taking its
   rightful place as global food
             producer ?
• Subsistence farming –
  deeply rooted in culture
• Political instability &
  corruption (Perceived risk)
• Lack of Infrastructure
• Economies of scale –
  creating critical mass in
  low margin environment
• Funding
• Land ownership
Poverty Reduction
• Africa faces the
  biggest poverty
  challenge of all
  continents
• 107% increase in
  population
• Agriculture by default
  deals with poverty at
  its root.
• Food security major
  risk
The world is interested in
         Africa
A very scarce resource
• “We think now is an
  excellent point of entry
  for taking a long term
  position in agriculture
  – Lord Jacob
  Rothschild, Fortune
  Magazine.
• Korea – Madagascar
• America - Sudan
5 Strategic Action Points
• A realization of the magnitude of the crisis
  facing world – specifically Africa
• Infrastructure challenges
• Funding mechanism to deal with perceived
  risk vs. long term investment.
• Gaining critical mass in global commercial
  agriculture
• Cohesive execution of an African
  agricultural policy
South Africa’s role in an
    African green revolution.
• South African farmers are on par with their
  counterparts in the USA, Chile & Israel.
• Adverse climate  limited water resources
• Furthest from international markets
• Provide valuable knowledge into Africa
• “Our strategy is to support farmers in a
  larger African context – in line with our
  business expansion goals.” The Thinker,
  March 2010. Minister Tina Joemat
  Pettersson
Africa holds the key to solving
 any future global food crisis

Wfs Conference Riel Malan Unlimited Group

  • 1.
    Africa’s potential tobe the world food basket World Future Society Conference Cape Town 2010
  • 2.
    THE “GOING HOME”SHIFT… Talk will be divided in 3 broad categories – that we can all relate to:
  • 3.
  • 4.
  • 5.
  • 6.
    UN GLOBAL POPULATION SCENARIO REGION 2007 (MILLION) 2050 % CHANGE • World 6,671 9,191 (can be as + 38 % high as 10,600 • Africa 965 1,998 +107 % • Asia 4,030 5,266 + 31 % • South America 572 769 + 34 % • North America 339 445 + 31 % • Europe 731 664 - 9%
  • 7.
    Global Shift inConsumption • Rapid Urbanization • Reduction of poverty • < $2day – basic carb intake not met • $2-$10 – more protein is consumed • >$10 – demand shifts to more value added products • World Bank forecast – People earning > $16 000year • Current 352 M • 2,1 Billion by 2050 • 7 X increase in protein eaters
  • 8.
    • Increased protein consumption largest driver of demand in coming decades • Production of 1kg protein on average requires 4 kg grain • 7 X increase in protein will cause a 7 X 4 increase in grain consumption = 28 X increase grain demand.
  • 9.
    Food demand isestimated to double by 2050
  • 10.
    DRUGS • To meet global demand increase will require a “second green revolution” • Challenge – 37% population increase – 28 X more feed grain • Only 12% of global agricultural land not being utilized (rainforests excluded) • Africa – holds bulk of this unutilized land • Agriculture uses 70% of world water resources • GM holds greatest potential to solve(resistance exists)
  • 11.
  • 12.
  • 13.
    Africa at aGlance COUNTRY Total Arable Arable Irrigated % Arable Renewable Area km² Land Area km² area Km² irrigated Water km³ South Africa 1,214,470 12.1% 146,950.87 14,980 10.19% 50 Angola 1,246,700 2.7% 33,037.5 800 2.42% 187 DRC 2,267,048 2.9% 64,837.57 110 0.17 1283 Africa (Sub- 14,690,589 8.2% 1,198,411 49,340 4.12% Sahara)
  • 14.
    Africa’s irrigation Potential •South Africa has some of the lowest renewable water resources in Africa • Yet it uses it very well. • South Africa as benchmark to calculate “theoretical irrigation potential” of Sub-Sahara Africa • Potential = 561 326.51 km² of additional irrigation possible • Not including areas where irrigation is not necessary
  • 15.
    Africa holds thekey to solving any future global food crisis Land Water
  • 16.
    Why is Africanot taking its rightful place as global food producer ? • Subsistence farming – deeply rooted in culture • Political instability & corruption (Perceived risk) • Lack of Infrastructure • Economies of scale – creating critical mass in low margin environment • Funding • Land ownership
  • 17.
    Poverty Reduction • Africafaces the biggest poverty challenge of all continents • 107% increase in population • Agriculture by default deals with poverty at its root. • Food security major risk
  • 18.
    The world isinterested in Africa
  • 19.
    A very scarceresource • “We think now is an excellent point of entry for taking a long term position in agriculture – Lord Jacob Rothschild, Fortune Magazine. • Korea – Madagascar • America - Sudan
  • 20.
    5 Strategic ActionPoints • A realization of the magnitude of the crisis facing world – specifically Africa • Infrastructure challenges • Funding mechanism to deal with perceived risk vs. long term investment. • Gaining critical mass in global commercial agriculture • Cohesive execution of an African agricultural policy
  • 21.
    South Africa’s rolein an African green revolution. • South African farmers are on par with their counterparts in the USA, Chile & Israel. • Adverse climate limited water resources • Furthest from international markets • Provide valuable knowledge into Africa • “Our strategy is to support farmers in a larger African context – in line with our business expansion goals.” The Thinker, March 2010. Minister Tina Joemat Pettersson
  • 22.
    Africa holds thekey to solving any future global food crisis