Rabobank Report: Holistic approach to farming needed
“Without a holistic approach towards feeding the world, the global agriculture industry’s capacity to keep up with demand will be stretched at the expense of the environment,” states Rabobank analyst, Dirk Jan Kennes. “A strategy that includes resolving structural resource imbalances, optimising F&A supply chain efficiency and reducing waste within the global F&A complex would ease the pressure on agricultural yield improvement and would help align the interests of the different stakeholders.”
Rabobank has identified the over-application of fertilisers and inefficient water usage as critical to a step change shift in farmers’ perception of best practice. Agriculture accounts for 70 percent of global water demand and technologies to optimise irrigation systems will be key to future water conservation. Similarly, an integrated approach is needed to optimise farm inputs to enable farmers to apply at the right time, place and rate; subsequently reducing the environmental impact and initial cost. Technological innovations in both areas are being developed as higher farm input prices incentivise farm input companies to spend more on research and development (R&D).
Every year, an estimated 1 billion tonnes of produce is wasted along global F&A supply chains. In addition to reducing waste, it is crucial that all links in the supply chain work together to solve the food supply problem.
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