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Making the most of investing in Latin American Agro-Businesses How to profitably do the right thing in the right place…right now
Success Enablers™
Our passion is produce, our mission is to generate the financial results for our clients that will enable them to prosper and re-invest in their business, community and environment
27%
The World’s Population is growing
+1Billion by 2025!
More people with more purchasing power
$0
$2
$4
$6
$8
$10
$12
$14
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Th
ou
san
ds
GDP PER CAPITA PPP (US$)
The World will need 60% more food by 2050 Where will this extra food come from?
Where is land available?
Where is the fresh water?
The Latin America and Caribbean region posses 1/3 of the world’s fresh water, and that proportion will increase further by 2025
http://www.grida.no/publications/vg/climate/page/3091.aspx
Only Latin America has land AND water
So only Latin America will be a net exporter
TFP: Total Factor Productivity
How can you participate?
• Invest in land for production
• Invest in technologies to increase productivity such as greenhouses
• Leverage underutilized processing capacity
• Vertically integrate growers and go direct to market
Value in the Supply Chain
32%
27% 26%
22%
20%
18%
9%
0%
5%
10%
15%
20%
25%
30%
35%
Peru Argentina Brazil Colombia Mexico Chile OECD
Logistics Costs as % of Product Value
25%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Latin America OECD
% of Production Lost to Waste
Production Waste
There is also great value to be captured by reducing waste and improving efficiencies
• Large grower with available land and access to water • Selling to distributors and wholesalers • Wanting to capture more value via direct channel commercialization • Requiring insights for expansion into non traditional products and markets
Case Study: Large Grower Peru
Our team developed for the Client a comprehensive Roadmap
Vegetable and fruit waste from farm to market is approx. 30-40% Reducing waste can result in almost US$78 million a year saving
More profitability for growers and lower prices for
consumers
Waste Reduction Project Panama
$13.7
$14.7
$49.2 $77.6
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
Central Market Supermarkets Municipal markets,mini markets,
convenience stores,local fairs, and other
Total Waste
Was
te in
U$D
Mill
ion
s
Product Waste in Markets
13
Improper Post
Harvest
Handling
Inadequate
Packaging and
Handling
Fragmented
and Non
Refrigerated
Transportation
State of the Art
Post Harvest
Handling
Storage in
Optimal
Conditions
Refrigerated
Transportation
in Economic
Lots
Vision
No
Tra
ceabili
ty o
r V
isib
ility
Inte
gra
ted
Vis
ibili
ty a
nd T
raceabili
ty
Existing Situation
Appropriate
Cooling and
Storage
Marginal
Commercialization
Transparency and
Hygene Conditions
International
Quality Products
with Traceability,
Adequate Safety
and Hygene
We Crafted a Vision for the Panama Cold Chain System
Weighing and Traceability
On Site Buyers Offices
Consolidation and Shipping
Q.A. and Inspection Controlled Access Processing and Re-Pack
Cooling and Refrigerated Storage
The Team Designed, Spec’d. and Built 4 State of the Art Centers
Saved $5MM in the first year of operation in Onion losses alone!
Breakthrough Solutions’ Ultimate Goal
CREATE BETTER JOBS - REDUCE POVERTY – PROTECT THE FUTURE
Summary
Latin America is poised to become the world’s breadbasket by 2025 It is the only region of the world with available land, water and labor where production can grow faster than population and demand Investing in Latin America farming, infrastructure or logistics businesses presents a great opportunity to diversify sourcing, invest in a socially impactful way and expand year round offering to your customers Investing creates good jobs and opportunities in those communities where the product is grown, helping promote development and reducing urban migration Breakthrough Solutions offers the end to end know how required to help you succeed in your agro-business projects – Would you like us to help you?
Thank You! Any Questions ?