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Dr. David Hughes Emeritus Professor of Food Marketing NBBM 2011 Netherlands- Brasil Business Meet: “Investing in a Joint Future” Concertgebouw Amsterdam Thursday, October 6 th , 2011. Innovation in the Food & Agri Value Chain: Some Comments. August 8 th , 2011.
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Dr. David Hughes Emeritus Professor of Food Marketing NBBM 2011 Netherlands-Brasil Business Meet: “Investing in a Joint Future” Concertgebouw Amsterdam Thursday, October 6th, 2011 Innovation in the Food & Agri Value Chain: Some Comments
Importance of Food in the Consumer Price Index, Selected Countries, 2010
World Population: Who's Going Up and Who’s Going Down? *Latin America & Caribbean Source: UN (population scenario planning)
UK Government Report on The Future of Food and Farming: High Level Conclusions • More food from less. Contain (even constrain) demand for red meat and dairy – i.e. encourage “climate-friendly” diets. Minimise waste. • Climate change initiatives and achieving sustainability in global food system inextricably linked. • Revitalise moves to end hunger – reduce unfair subsidies, focus on rural development. • All policy options must be left open – code for embracing new technology (e.g. GM). • Food security: drive to increase food self-sufficiency at national level rejected by economists and scientists but attractive to politicians and “local food” promoters. London, UK, 2011
Some Value Chain Issues to Watch • Power polarising in value chains – life science companies (e.g. Monsanto, Syngenta) with genetic IP at one end and global retailers with access/knowledge of shoppers at the other • Major fmcg companies strengthen proprietary brands. Brand promises require them to have more secure relationships with ingredient suppliers – sharing values • Closer ties (cross-ownership?) between input suppliers, farmers and commodity selling companies (e.g. ABCD) • Yet, value chain relationships with retailers deteriorate in mature markets as scrap for national and global grocery market share intensifies
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