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JBS’s Innovative Producer Financing

Innovative Financing for Small Producers: A Vision for the Future of Food Systems

In a world grappling with environmental crises, economic inequality, and food insecurity, Gilberto Tomazoni, CEO of JBS Global, proposes a forward-thinking solution. Speaking at the Bloomberg New Economy event in São Paulo, Tomazoni emphasized the critical need for innovative financing mechanisms to support small producers. His vision is centered on equipping them with technology and sustainable practices to boost productivity, combat climate change, and secure food supply chains. Tomazoni’s ideas represent a pathway to addressing pressing global challenges by transforming food systems to benefit economies, communities, and the environment.

The Importance of Small Producers in Global Food Security

Small producers, particularly those in developing countries, make up the backbone of the global food supply. However, they often face challenges in accessing the resources necessary to thrive, including financing, technology, and market support. Tomazoni points out the dichotomy of modern agriculture: the need to produce more food for a growing population while conserving resources and mitigating climate change impacts.

Tomazoni believes that creating a resilient food system depends on supporting these small producers. “We have to produce more with less, and therefore, increasing efficiency is the way forward,” he says, adding that technology and innovation must be accessible to small-scale farmers. Such support can enable them to meet the dual challenges of productivity and sustainability, positioning food systems as a solution to global crises.

Innovative Financing Mechanisms: The Key to Sustainable Agriculture

A central element of Tomazoni’s proposal is offering small producers access to innovative financing mechanisms. Traditionally, small farms struggle to secure funding due to high-interest rates, rigid collateral requirements, and limited financial literacy. By offering flexible, affordable financing options, small producers can invest in sustainable agricultural practices, modern equipment, and climate-smart technologies.

Innovative financing might include low-interest loans, grants, or payment schemes based on crop yields or environmental contributions, which Tomazoni terms “payment for environmental services.” This concept rewards producers for maintaining sustainable practices, such as reforestation, soil conservation, and carbon sequestration, which can mitigate climate change and enhance biodiversity. As a result, these producers gain a financial incentive to pursue eco-friendly farming, leading to a more sustainable agricultural landscape.

Bridging the Funding Gap for Climate-Smart Agriculture

Currently, agricultural projects receive minimal climate funding. According to the International Fund for Agricultural Development (IFAD), less than 4% of climate finance goes toward agriculture, with only 1.7% allocated for projects in developing countries. This discrepancy reflects a significant gap in climate funding, one that Tomazoni argues must be addressed to create a lasting impact.

He emphasizes the importance of reallocating resources to support climate-resilient agriculture, particularly for small producers in vulnerable regions. With increased funding, farmers can adopt innovative practices like precision agriculture, drip irrigation, and renewable energy sources, which not only improve productivity but also help reduce emissions. Redirecting investment to climate-smart agriculture, particularly for smaller farms, is crucial for meeting global climate targets and securing the future of food systems.

The Role of Technology in Driving Efficiency and Sustainability

Tomazoni stresses that technology is already transforming agricultural practices in Brazil, proving that it is possible to produce more food while minimizing environmental impact. Precision agriculture, for example, uses data-driven techniques to optimize resource use, reduce waste, and improve crop yields. Digital platforms can enable farmers to monitor soil health, predict weather patterns, and access markets efficiently, leading to better decision-making and profitability.

However, ensuring small producers have access to these technologies remains a challenge. Tomazoni suggests that financing initiatives should encompass funding for technological education, infrastructure, and digital tools. Training programs and subsidies for technological adoption can empower farmers to implement practices that are both sustainable and profitable.

Global Collaboration and Policy Support

Tomazoni’s vision for sustainable food systems extends beyond financing and technology. It requires a collective commitment from governments, international organizations, and the private sector to support small producers. During the Bloomberg New Economy panel, he highlighted the collaborative approach taken by the B20’s Sustainable Food Systems and Agriculture task force. This group, comprising global business leaders, has presented recommendations to the G20 Agriculture Ministers, with 75% of these proposals already accepted.

By securing political and institutional backing, Tomazoni believes these initiatives can gain traction and produce tangible outcomes. He calls upon world leaders to not only adopt these recommendations but also to implement them in ways that create measurable change. Policy support is essential to fostering an environment where sustainable agricultural practices can flourish, especially for smaller producers who lack influence on global policy agendas.

The Potential of Food Systems to Solve Global Challenges

Food systems, according to Tomazoni, hold the potential to address some of the world’s biggest challenges, from hunger and poverty to climate change and inequality. This belief is at the core of his argument that investing in agriculture—particularly through innovative support for small producers—will benefit not only the environment but also global economies and communities.

Tomazoni envisions a future where food systems are a powerful tool in combating food insecurity, creating jobs, and fostering economic resilience in rural areas. By prioritizing efficiency and sustainability in food production, nations can reduce resource strain, lower greenhouse gas emissions, and create more equitable economies. “Investing in food systems is part of the solution to the dilemmas of prosperity,” he states.

Supporting Small Producers in a Competitive Global Market

In the global agricultural market, small producers often struggle to compete with large-scale industrial farms. However, by providing targeted support, these producers can become key players in the push for sustainable, resilient food systems. Initiatives that focus on fair trade, access to markets, and financial security can help level the playing field for small farmers, enabling them to thrive in competitive markets.

Tomazoni’s advocacy for market access includes encouraging local governments and organizations to create favorable conditions for small producers to sell their goods in both local and international markets. Trade policies that prioritize fair prices for small-scale producers can make a substantial impact on their livelihoods and help build a resilient global food supply.

Conclusion: A Roadmap to a Sustainable Future

Gilberto Tomazoni’s call to action for innovative financing and technological support for small producers underscores a broader vision for the future of food systems. By empowering small farmers, Tomazoni argues, the world can make strides toward a more sustainable, productive, and equitable food system that meets the needs of a growing global population while preserving natural resources.

As world leaders and stakeholders look to the future, Tomazoni’s message resonates as both a blueprint and a challenge. Investing in sustainable food systems through financing, policy support, and technological advancement could reshape global agriculture, turning it into a force for environmental conservation, economic growth, and social equity. The journey to a sustainable food system is complex, but with the right resources and commitment, it offers a pathway to addressing some of the most pressing challenges of our time.

In Tomazoni’s words, “Everyone wins.” His vision sets a hopeful tone for the future, highlighting that sustainable agriculture can indeed be a cornerstone in achieving global prosperity.

Leading Innovators in AgriTech: Transforming Agriculture for a Sustainable Future

Agriculture, one of humanity’s most essential industries, is experiencing a transformative technological revolution. Driven by climate change, population growth, and environmental challenges, agri-tech innovators are developing advanced solutions in precision farming, data analytics, robotics, and gene editing. These leaders are not only modernizing agriculture but are also ensuring sustainable food production on a global scale. This article profiles some of the visionaries driving innovation in agri-tech and shares their stories of success, demonstrating their impact on agriculture and the global food supply.

1. Karn Manhas, Founder and CEO of Terramera

Karn Manhas leads the way in sustainable pest management and crop protection with Terramera, a Canadian agri-tech company combining artificial intelligence, machine learning, and biochemistry to create eco-friendly alternatives to synthetic pesticides. Manhas founded Terramera with a vision to reduce dependence on chemical pesticides without compromising crop protection. His innovations have paved the way for plant-based formulations that offer effective pest control, fostering healthier ecosystems and sustainable farming practices.

Story of Success: Terramera’s flagship product, Actigate™, enhances the potency of biological inputs, making natural pesticides more effective. Actigate™ leverages machine learning to analyze plant health data and precisely target pests and diseases, significantly reducing the need for conventional pesticides. This reduction in pesticide use benefits the environment by decreasing harmful runoff into water systems and minimizing adverse effects on beneficial insects like bees.

Manhas’s approach to pest management has not only promoted ecological health but also proven economically beneficial for farmers looking to cut costs without sacrificing productivity. His vision has drawn widespread investment, empowering Terramera to scale its solutions and continue its research. Today, Terramera is recognized as a leader in sustainable agriculture, driven by a goal to reduce synthetic pesticide use by 80% within the next decade.

2. Mike Stern, CEO of The Climate Corporation

Mike Stern heads The Climate Corporation, a subsidiary of Bayer, which employs data science to empower farmers with informed decision-making capabilities. Established in 2006 and later acquired by Monsanto in 2013, The Climate Corporation has become a pioneer in digital agriculture, developing the Climate FieldView™ platform that provides real-time data on soil conditions, crop health, and weather patterns.

Story of Success: The Climate FieldView™ platform has revolutionized the agricultural industry by offering precision farming tools that allow farmers to monitor and manage their fields with unparalleled accuracy. For example, the platform gathers data from satellite images, IoT devices, and field sensors to generate actionable insights that help farmers adjust planting schedules, irrigation, and nutrient distribution. This approach maximizes yields and minimizes resource waste.

One inspiring success story involves a corn farmer in the Midwest who increased his yield by 20% using Climate FieldView™ data. By analyzing soil moisture patterns and refining his irrigation schedule, he was able to reduce water usage while optimizing crop growth. Stern’s leadership has positioned The Climate Corporation as a leading provider of data-driven solutions, empowering farmers to make sustainable choices that enhance productivity.

3. Caleb Harper, Director of the OpenAg Initiative at MIT Media Lab

Caleb Harper, a researcher and tech innovator, directs the OpenAg Initiative at MIT Media Lab. Harper’s work focuses on creating novel farming solutions that can be implemented in various settings, from urban centers to rural areas worldwide. One of his standout projects is the “Food Computer,” a climate-controlled, miniature environment that allows users to grow crops with precise control over humidity, temperature, and nutrient levels.

Story of Success: The Food Computer has enabled urban farming in regions where traditional agriculture is challenging, such as in Dubai. Dubai’s extreme desert climate limits local agriculture, but the controlled environment of the Food Computer has allowed farmers to cultivate leafy greens and herbs indoors, reducing the need for imported produce. Moreover, the technology has led to faster growth rates with less water—a vital benefit in water-scarce regions.

Harper envisions the OpenAg Initiative as a means to democratize agriculture, making farming accessible and sustainable across diverse climates and communities. By developing a system that reduces water and energy use, Harper’s work demonstrates how technology can overcome environmental constraints and provide reliable food sources even in harsh conditions.

4. David Rosenberg, Co-founder and CEO of AeroFarms

David Rosenberg is co-founder and CEO of AeroFarms, a pioneering vertical farming company based in New Jersey. AeroFarms specializes in growing leafy greens indoors using aeroponics, where plant roots are misted with nutrient-rich water. This technique uses 95% less water than traditional farming and eliminates the need for soil, reducing environmental impact.

Story of Success: AeroFarms operates some of the largest indoor vertical farms globally, producing pesticide-free leafy greens for local grocery stores. One of the company’s major achievements is its Newark vertical farm, which produces over 2 million pounds of greens annually. This urban farm not only supplies fresh produce to nearby communities but also generates local employment, reducing the need for extensive food transportation and lowering its carbon footprint.

Rosenberg’s vertical farming model offers a sustainable solution for meeting the food needs of urban populations. By bringing food production closer to consumers and minimizing resource use, AeroFarms showcases how vertical agriculture can contribute to food security in densely populated cities.

5. Kimbal Musk, Co-founder of Square Roots and The Kitchen

Kimbal Musk, brother of tech entrepreneur Elon Musk, is a passionate advocate for sustainable, locally-sourced food systems. He co-founded Square Roots, an urban farming enterprise that uses shipping containers to create modular farms in cities. Musk also established The Kitchen, a restaurant group that emphasizes locally-sourced, sustainable ingredients, furthering his vision for a “real food” movement.

Story of Success: Square Roots has redefined urban farming with a model that can be scaled and adapted in cities around the world. Each Square Roots farm consists of retrofitted shipping containers equipped with hydroponic systems that enable year-round farming in compact spaces. In Brooklyn, New York, Square Roots grows fresh herbs and greens for local restaurants and retailers, maximizing space while minimizing water and resource consumption.

Musk’s efforts through Square Roots and The Kitchen show that sustainable food systems can be profitable, scalable, and community-oriented. His work promotes urban agriculture that reduces reliance on distant supply chains and increases access to fresh, local produce.

6. Louisa Burwood-Taylor, Head of Media at AgFunder

Louisa Burwood-Taylor is Head of Media and Research at AgFunder, a venture capital firm that invests in agri-food tech startups. With a background in agricultural journalism, Burwood-Taylor has become a respected figure in the agri-tech sector, focusing on highlighting startups making strides in sustainable agriculture.

Story of Success: AgFunder has supported numerous successful startups, such as Brightseed, which uses AI to identify plant-based compounds for health benefits, and Iron Ox, a robotics-driven indoor farming company. Burwood-Taylor’s work at AgFunder has helped connect investors with visionary entrepreneurs who are revolutionizing agriculture through technology. Her insights into the industry have established AgFunder as a vital resource for investors, bridging the gap between technology and agriculture.

Burwood-Taylor’s dedication to supporting agri-tech startups has been instrumental in advancing the industry, helping companies scale their innovations and bring transformative solutions to market.

Conclusion: Shaping the Future of Agriculture Through Innovation

The agri-tech leaders highlighted in this article represent the vanguard of agricultural transformation, each contributing unique solutions to the pressing challenges of climate change, food security, and sustainability. From Karn Manhas’s eco-friendly pest management to David Rosenberg’s water-efficient vertical farms, these innovators showcase the transformative power of technology in reshaping agriculture.

As environmental pressures intensify and the global population continues to grow, the contributions of these leaders become increasingly essential. By developing solutions that enhance productivity, conserve resources, and reduce ecological impact, these innovators are building a future where agriculture can meet humanity’s needs sustainably.

Their pioneering efforts inspire hope for a new era of agriculture, one that combines technological ingenuity with ecological responsibility. As they continue to push the boundaries of what’s possible, these agri-tech visionaries are paving the way toward a sustainable food system that benefits communities worldwide.

Source: Futuretech.247.com Leading Innovators in AgriTech: Transforming Agriculture for a Sustainable Future

Ukraine’s Bid to Enter the Chinese Food Market: Implications for Global Food Trade

In an era of fluctuating geopolitical alliances and shifting trade landscapes, Ukraine’s latest move to gain entry into China’s lucrative food market represents a strategic development with wide-reaching implications for global food trade. On October 26, Ukraine’s state food safety authority revealed its intent to secure Beijing’s approval for the export of peas, poultry meat, animal feed, and other agricultural products to China, a nation that is already a primary destination for many Ukrainian agricultural exports. This move highlights Ukraine’s ongoing efforts to broaden its trade footprint in Asia, especially in a period marked by global supply chain disruptions and complex international trade relations. As Ukraine aims to expand its agricultural exports to China, the ripple effects are likely to impact not only Ukraine’s economy but also the global food trade dynamics, affecting supply chains, pricing, and market accessibility on a broader scale.

Ukraine’s Agricultural Powerhouse and Existing Trade Ties

Ukraine has long held a prominent position as one of the world’s largest exporters of essential agricultural products, including grains, vegetable oils, and feed products. With fertile soils and favorable growing conditions, the country has consistently produced substantial amounts of wheat, corn, and other staple commodities that have become crucial in the international agricultural trade market.

Currently, Ukraine exports significant quantities of corn, soybeans, barley, vegetable oil, and sunflower meal to China, catering to the country’s growing demand for animal feed and foodstuffs. The 2023/24 trade season saw Ukraine exporting nearly 4.83 million metric tons of corn and over 702,000 tons of barley to China alone. These exports reinforce Ukraine’s status as a major agricultural supplier to China, but this latest bid to include peas, poultry meat, and animal feed demonstrates Ukraine’s ambitions to diversify its offerings and solidify its standing in the Chinese market.

Why China? The Attractiveness of the Chinese Market for Ukraine

China, with its vast population and rapid urbanization, represents one of the most lucrative food markets in the world. The country has experienced significant growth in food consumption, fueled by rising incomes and a growing middle class. Additionally, China has an increasing demand for high-quality animal feed, which is crucial to supporting its large livestock industry and meeting the dietary needs of its citizens.

For Ukraine, expanding into China is an opportunity to reduce its dependence on Western markets, especially given the disruptions caused by recent conflicts and sanctions. While European countries remain major consumers of Ukrainian exports, the Asia-Pacific region, particularly China, offers Ukraine a stable and expanding customer base. Diversifying export markets also shields Ukraine from potential economic slowdowns or geopolitical shifts in other regions.

Global Food Security and Trade Dynamics

Ukraine’s expansion into the Chinese market has implications that reach beyond the two countries. By increasing agricultural trade with China, Ukraine has the potential to contribute significantly to global food security. Currently, many nations are experiencing food shortages and rising prices due to climate-related disruptions, inflationary pressures, and supply chain challenges.

Moreover, China’s preference for high-volume imports of staple commodities like grains and oilseeds can help stabilize global food prices. When major producers like Ukraine gain larger access to Chinese markets, they add valuable stability to global supply chains. This reduces pressure on smaller markets and can lower the risk of food inflation in regions where rising prices have affected food access.

Trade Relations in a Geopolitical Context

Ukraine’s efforts to gain entry into the Chinese market reflect its strategic pivot in response to recent geopolitical pressures. China, which has maintained relatively stable relations with Ukraine amid the global tension, presents an opportunity for Ukraine to avoid the economic isolation that other markets might pose. The initiative to include peas, poultry, and feed products not only strengthens economic ties but also signals Ukraine’s adaptability to shifting global alliances.

Additionally, this evolving trade relationship offers China an alternative to Western food suppliers. As part of its food security strategy, China has been seeking diversified food sources to avoid over-reliance on a single region or supplier. The collaboration with Ukraine supports China’s strategic goal of reducing vulnerability in its food supply chain and building a diversified portfolio of trade partners.

Economic Benefits for Ukraine

Expanding exports to China offers several economic benefits for Ukraine, which has faced significant challenges due to the conflict with Russia. Revenue from agricultural exports is crucial for Ukraine’s economy, and increased trade with China could provide a stable income source that would support both Ukraine’s economy and its agricultural sector.

The introduction of poultry, peas, and other products to China could lead to investment in Ukraine’s agricultural infrastructure, creating jobs and fostering economic growth. Furthermore, a stable demand from China could encourage Ukrainian farmers to increase their production capacities, supporting rural communities and local economies in the long term.

Challenges and Considerations

While the potential benefits are considerable, Ukraine’s plan to expand exports to China is not without its challenges. Meeting China’s strict quality standards and regulatory requirements will be essential to securing approval. Ukrainian producers will need to adapt to stringent phytosanitary and food safety regulations that are required for export approval, potentially requiring investment in new technologies or certifications.

Moreover, entering the Chinese market may bring risks of dependency. Although diversification helps mitigate economic risks, over-reliance on any single market can make Ukraine’s agricultural sector vulnerable to future disruptions, whether they arise from changes in Chinese policy or economic conditions.

Future Implications for Global Trade Policies

Ukraine’s endeavor to access the Chinese market serves as a notable example of how countries can leverage global trade to enhance resilience amid changing economic and political landscapes. For other agricultural exporters, this could inspire a strategic shift towards alternative markets and away from traditional, often volatile, partners. Moreover, as nations observe Ukraine’s success in navigating market access with China, global trade policies may evolve, promoting more open and flexible trade agreements that allow for quicker market access and stronger bilateral partnerships.

Conclusion: A New Era of Trade for Ukraine and Beyond

Ukraine’s plan to secure China’s approval for new agricultural exports marks a significant step in reshaping global food trade. As Ukraine continues to forge its path in the global agricultural sector, its moves will likely influence food security, trade policies, and economic strategies in the years to come. By increasing its presence in the Chinese market, Ukraine not only fortifies its own economy but also reinforces the global food supply chain.