ESADA Conference From Development to Investment:
Enabling Commercial Investment through Market-Driven Development
$14 Billion Farmer-Owned Cooperative 1921
> DAIRY FOODS 1924
> ANIMAL NUTRITION 2001
> AGRICULTURAL SERVICES 2007
#1 in butter, deli cheese, refrigerated desserts, dairy-based food service items
#1 feed brand in the U.S. and largest animal nutrition research center
#1 wholesaler of crop production and crop protection products utilizing precision agriculture and world class technology
Three diversified businesses that can be leveraged to develop global markets
> Creating shared value through public-private partnerships
> Growing commercially viable, economically sustainable, food & agriculture systems
> Primarily funded by
> 350 staff worldwide, permanent offices in DC, Minnesota and Nairobi, Kenya
> Currently running 27 programs in 17 countries
> Since 1981, 280 programs and trainings in 80 countries
International Development at Land O’Lakes
> INTERNATIONAL DEVELOPMENT 1981
Primarily funded by:
A leading agribusiness, a leading implementer
Why Creating Shared Value is Strategic
Long Term View: “Competitiveness of a company and the health of the ‘communities’ around it are mutually dependent.”
--Michael Porter, Strategy Author Harvard Business School
Bringing our Fortune 200 Experience Worldwide
1. Empowering cooperatives˃ Example: USAID Global Cooperative
Development Program2. Creating local and multinational
partnerships˃ Example: Yara in East Africa
3. Building AnswerPlots™˃ Example: Jibu Plots in Kenya
4. Introducing Technology to Build Markets˃ Example: Introducing “precision
farming” for smallholders in Zambia, Kenya and Malawi
Applying our experience as a Farm to Market agribusiness around the world
1. Stimulate Market Development˃ AgPrO: the MBA for Cooperatives
2. Introduce Seal-of-Quality Programs˃ Rwanda Seal of Quality
3. Scale up innovations4. Access to affordable finance5. Introduce Technology
˃ WinField Solutions Expertise
Partnering with Donors to Spur Investment
Opportunity
˃ World population to grow from 7.0 billion to9.2 billion by 2050
˃ Global food production will have to increase 70 percent to meet demand
˃ Demand over next 50 years will need to exceed 500-years of history
Source: United Nations Food and Agricultural Organization
Agriculture, agribusiness and the dairy industry offer the greatest growth opportunity of our era
1500 1550 1600 1650 1700 1750 1800 1850 1900 1950 2000 20500.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Source: Graph based on data from Food and Agriculture Organization of the United Nations
Glo
bal F
ood
Dem
and
(Pet
acal
-day
)
Demand will Exceed 500 years of History
Land O’Lakes CEO Chris Policinski calls this “the greatest growth market available.”
Smallholders will play a critical role!
Language mattersThe Importance of Livestock Development
Number of livestock owners in sub-Saharan Africa and South Asia who earn less than $1.25 a day:
There are a nearly 1 billion livestock keepers Source: Bill and Melinda Gates Foundation and ILRI
A Lucrative, Economic Industry
˃ Savable assets˃ Employment across the
value chain˃ Steady, year-round
incomes˃ Nutrition benefits at
household level˃ Local revenue retention
Global demand for animal-sourced products is expected to triple by 2050.
Dairy and Livestock development pulls People Out of Poverty through:
Program examples
Kenya Dairy Sector Competitiveness Program 2008-13> 338,000 farming households> incomes increased 208%> Milk purchased from farmers valued
at US $275 million> Took Business Development Services
Approach – linked supply and demand for inputs and services
> Facilitated access to loans and credit for 60,000 farmers, 40% women
> Over 1,000 firms provided new business services to producers
Dairy and Livestock in Action
Visit our Website: www.idd.landolakes.com
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Follow us on Twitter: @LandOLakesIDD
Contact: [email protected]
Learn More
Thank you!
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