Long-term growth prospects for the global food and beverage sector are extremely promising. By 2050, food demand is predicted to double and consumption of meat, dairy and processed food is expected to increase disproportionately as incomes rise across emerging economies.
But in order to secure the necessary agricultural raw materials to meet future demand, global corporations will need to diversify, reduce waste in their supply chains and support innovation in their supplier portfolio.
Meanwhile, consumers are becoming more discerning. The demand for sustainable, ethically-supported produce is an opportunity for corporations to increase quality-assurance from the seed or pasture, to the grocery shelf.
Smallholders – your future global food chain supply partner
Developing links and partnerships to improve smallholder skills, resources and practices will improve the quality and resilience of your value chain. Already smallholder farmers contribute 70% to global agricultural output. Tomorrow food and beverage supply chains will be increasingly reliant on these farmers to provide the quantity and quality of raw materials. Local sourcing through smallholders also provides opportunities to minimize corporate carbon footprint and production costs as emerging-country market share outgrows that of the developed world.
But small scale agriculture in developing countries may not adhere to Good Agricultural Practice and sanitary and phytosanitary requirements and often falls short of the quality, cost, and delivery standards required by retailers and manufacturers at national, regional and international level to be able to supply into this market. As farm animal welfare increases as a priority concern with consumers, so does the need to ensure that suppliers in developing countries adopt best practice with their livestock.
So how can we help more smallholder farmers and producer groups to develop their skills and competencies to take advantage of the global growth in the food industry to ensure that their commercial needs and their customer demands are met?