Natural products back to the future

Post on 12-Jun-2015

585 views 0 download

Tags:

description

Natural products are going back to the future - new value chain paradigms.

transcript

Natural products are going back to the future

Mohd. Murray HunterUniversity Malaysia Perlis

6th Malaysian International Agro-Bio Conference 2010

The Biotechnology Pyramid

Genomics

Fermentation

Micro-propagation

Mutagenesis

Thermodynamic Processes

Green Biotechnology Reframed

Disciplines

White Biotechnology

Red Biotechnology

Micro-organisms

Organic Products

Wind drift

Farm/Plantation

Soil Floor

Sub-Soil

Fertilisers, herbicides, insecticides

Leaf & organic decompositions

Sub-terrainium water

Sun

Climate & Weather

Cultivation

Propagation

Processing

EconomicProducts

Runoffs Surface water

Wastes Chemical residuals

Some wastes

recycled

Watershed runoffs onto farm/plantation

Atmosphere

Nitrogen, gasses, etc

Lakes Rivers Canals Oceans

Daylight hours UV radiation Temperature Humidity Rainfall

Conducive weather, or floods, droughts, etc

Regional Eco-System A Farm/Plantation as a System

Other Farms

Insects and pests

Genetic Biodiversity

Soil Surface

Rainfall (Moisture Source)

Organic Materials Phosphorous (P)

Sulfur (S)

Nitrogen (N)

Nitrogen fixing bacteria In root system

Water (H2O)

Mineral Based Materials (Amphibole & Feldspar)

Calcium (Ca)

Potassium (K)

Magnesium (Mg)

Iron (Fe)

Carbon (C) Oxygen (O2) Hydrogen (H) Through

air in pores

Production Processes

Farm size & layout

Organisation & methods

Propagation

Cultivation

Processing

Marketing

Climate

Weather Rainfall Wind

Sunshine UV radiation Temperature

Humidity

Conducive weather Or

Floods, droughts, etc

Physical Environment

Soil Topography Atmosphere

Natural flora & fauna habitat Urbanisation

Suitability of conditions Pollution (air, land & water)

Labour sources Water resources

(create hinterland where farm part of)

Human Habitisation

Knowledge Suppliers & contractors

Pollution Attitudes and concerns

Resource inputs, fertilizers, herbicides, insecticides, machinery, research capabilities

Positive Inputs Water

Sunshine Nitrogen

Agricultural inputs Fertilizers etc Knowledge

Labour

Negative Inputs

Adverse physical conditions

Pests & diseases Pollution

Heavy metals

Business Environment

Markets Finance

Trade environment

Customers Financing &

various kinds of capital

Competition Low prices

Changing demand patterns

Government Infrastructure Regulation Taxes & subsidies

Trade environment

Research

Negative Outputs

Runoffs, wastes, carbon

Some recycling back to system

Positive Outputs

Products

Revenue flow back to system

An Agricultural Enterprise as a System

Green/Biological/Natural Minimum interventionalist

Linear/Industrial/Chemical Wild Harvest

Biodynamic Farming

Organic Farming

Chemical Free

Reduced Pesticide

Low Input

Sustainable Minimum Till

Conventional

High Input Chemical Intensive

Natural Farming

Traditional Farming

Biological Farming

THE OPERATION OF ORGANIC PHILOSOPHY (Fundamental Principals and Practices)

Objectives Soil Health & Fertility

Pest & Disease Management

Weed Management

Eco-system Biodiversity

Sustainability

Crop Rotation

Green Manure

Animal Manure

Cover Crops

Intercropping

Farmscape

Composting

Mulching

Buffers

Crop Rotation

Green Manure

Animal Manure

Cover Crops

Intercropping

Bio-control

Farmscape

Buffers

Crop Rotation

Green Manure

Animal Manure

Cover Crops

Mineral

supplements

Natural Fertilizers

Mulching

Composting

Tillage

Intercropping

Bio-control

Farmscape

Buffers

Crop Rotation

Green Manure

Cover Crops

Composting

Intercropping

Crop Diversity

Bio-control

Natural Pesticides

Sanitation

Tillage

Farmscape

Fire

Buffers

Crop Rotation

Cover Crops

Intercropping

Mulching

Flame Control

Natural Herbicide

Integrity

Buffers

Records

Certification

Improvement

Practices

Foundations

Site Selection

Conversion

Habitat Creation

Planning

Approximate Size of the World Organic Market 2008 (USD Billion) Fruit &

Vegetables, 12.9, 35%

Meat and Poultry, 1.5,

4%Dairy, 3.6, 10%

Bread & Grains, 4.5,

12%

Beverages, 3.6, 10%

Cosmetics, 6.5, 18%

Processed Foods, 3.9,

11%

Community Products

The Buy Local Movement

Carbon Miles

Ethical Products

Aveda The Body Shop

Sureco Hain Celestial

GroupEst. Sales USD120million

(1996)[58]USD619mil

(2006)

USD1.5Billion (2006)[59]

USD40Mil [60]

USD738Mil [61] (2006)

LocationEstablished 1978 1976 1999 1926Products Personal Care Personal Care Herbs Organic food

and cosmetics

Basic Philosophy To sustain the environment and

give back to communities

Social humanitarianism activism on many issues

Halal & Toyyibaan

Free of artificial

ingredients, Kosher foods

Ethics YesGreen Yes YesNatural Yes Yes YesOrganic Yes Yes YesCommunity Yes Yes

CulturalReligious/Spiritual Yes YesMode of Distribution Direct

Marketing/SalonRetail and e-Commerce

Direct Marketing

General distribution

Owner Estée Lauder Companies Inc.

L’Oreal Private Ownership

Listed company

Halal Products

Toyyibaan & Halal

• This day are (all) things good and pure made lawful unto you. The food of the people of the Book is lawful unto you and yours is lawful unto them. … If anyone rejects Faith, fruitless is his work, and in the Hereafter he will be in the ranks of those who have lost (all spiritual good).

Al-Ma’idah5:5

• O you people! Eat of what is on earth, lawful and good; and do not follow the footsteps of the evil one, for he is to you an avowed enemy.

Al-Baqarah 2:168

• From the land that is clean and good, by the Will of its Cherisher, springs up produce, (rich) after its kind; but from the land that is bad, springs up nothing but that which is niggardly: thus do we explain the Signs by various (symbols) to those who are grateful.

Al-A’raf 7:58

• O ye who believe! Eat of the good things that We have provided for you, and be grateful to God, if it is Him ye worship.

Al-Baqarah 2:172

Markets Where the Islamic Population is the Dominant Group (Ranked by Muslim GDP at Purchasing Price Parity)

Rank Country Total Population

% Musli

m Population

Muslim Populatio

n

Muslim GDP USD

(PPP)

GDP Per Capita

USD (PPP)

1 Turkey 71,892,808 99% 71,173,879

879.12 B 12,900

2 Indonesia 237,512,352 88% 207,000,105

771.075 B

3,725

3 Iran 65,875,224 98% 64,557,719

737.94 10,624

4 Saudi Arabia 28,146,656 100% 28,146,656

564.6 B 23,243

5 Pakistan 172,800,048 97% 167,616,046

397.7 B 2,600

6 Egypt 81,713,520 90% 73,542,168

363.6 B 5,500

7 Algeria 33,769,668 99% 33,431,971

222.5 B 6,500

Markets Where the Islamic Population is a Minority Group(Ranked by Muslim contribution to GDP at Purchasing Price Parity)

Rank Country Total Population

% Muslim Population

Muslim Population

Muslim GDP USD (PPP)

GDP Per Capita USD

(PPP)

1 United States 303,824,640 3.5% 10,633,862 487 B 45,800

2 India 1,147,995,904

13.4% 153,831,451 415.3 B 2,700

3 Russia 140,702,096 10.5% 14,633,017 215.1 B 14,700

4 China 1,330,044,544

3.0% 39,901,336 211.5 B 5,300

5 France 64,057,792 7.5% 4,804,334 159.5 B 33,200

6 Germany 82,369,552 3.7% 3,047,673 104.2 B 34,200

7 Thailand 58,851,357 14.0% 8,239,190 65 B 7,900

The certified halal market is currently

estimated to be worth USD 400

Billion per annum

This represents around 20% of the World

population

Recent reports indicate that halal sales in the US are increasing around 80% per year, where a number of new retail outlets

specializing in halal products are opening up.

A&P, Loblaws, Food Basics and Wal Mart are

allocating space for halal products in their stores

Branding

A Malaysian Paradigm

EU is approximately 30% of the World Market for foodIt has great regulatory influence on the rest of the World

Risk Assessment

Hazard Identification Hazard Characterization Exposure Assessment Risk Characteristics

Risk Management

Risk Evaluation Option Assessment Option Implementation Monitoring and Review

Risk Communication Improve quality of consumer information To facilitate healthier food choice

Declaration of GMO Materials Nutritional Information Eliminate Misinformation Scientifically Substantiate

Claims

General Provisions

Personnel & Facilities

Seeds & Propagation

Materials

Cultivation, Soil & Fertilisation,

Irrigation

Harvest

Primary Processing

Packaging

Storage & Transport

Equipment

Documentation

Self Inspection

Quality Assurance

EurepGAP

The Muslim living as a minority in a non-Islamic society will have a

number of problems identifying what items are halal and haram

(forbidden in Islam), without product certification. For example,

gelatine, lard and tallow can be either in a halal or non-halal,

depending upon their source and method of processing. Cross

contamination is a major problem in stores and particularly

restaurants, where pork is also served.

Toyyibaan would also mean that agriculture must be undertaken

within sustainable practices, and in business, where things

should be done with good intentions.

“He hath subjected to you all that there is in the heavens and all that there is in the earth: All is from Him. Verily, herein are signs for those who reflect.” Al-Jathiyah 45:12

Halal, but is it Toyyibaan?

Haram (Those things prohibited by

Allah in the Al Qu’ran)

HACCP

GMP

Sustainable environment, community

& business

Community Benefit

Toyyibaan

Clean Healthy

Non-exploitive

Traceable

Supply Chain

Ethical

Diversified Halal Farms

Farmers’ marketsCOOP Market

Home Delivery

Gerai Delivery

Restaurant & Hotel Delivery

Many small suppliers that are customer

orientated

From the Muslim consumer standpoint; 1. Products must be produced without any forbidden

ingredients, 2. Products must be proved to be in the interests of the

consumers’ health and wellbeing, 3. Products must be clean and hygienic, have supply chain

integrity, 4. Products must benefit those who produced them, 5. Products must benefit the community they came from

and 6. Products and the materials that make up these

products must be traceable from the origin, to have total confidence.

The halal certification system must be widened to verify these issues

Although widely respected internationally

The present Halal Certification is only related to ingredients and processing environment

Essential Oil Production

Trading

Flavour & Fragrance

Compounding End Product Manufacture Wholesaler Retailer

Consumer

1.0 1.6 2-3.0 (6-9) 2-2.5 (18-24)

Relative and (Absolute) Value Added Through Chain

1.1-1.2 (19.8-28.8)

1.2-1.4 (23.76-40.32)

The Essential Oil Value Chain (Flavour & Fragrance Industry)

The Rural Crisis

Average age of farmers in Malaysia

Simplicity

Local Orientation

Moralistic

Realize the faults of the green revolution

Ethics

Nova Science Publishers

New York

Thank You