CAPI Presentation Nuffield Forum Ontarios Outstanding Young Farmers - - PowerPoint PPT Presentation

CAPI Presentation

Nuffield Forum Ontario’s Outstanding Young Farmers’ Program March 11, 2013

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Is there a “status quo”? How best cope with change? What are the key drivers of strategy?

• 1. Trade developments

Canada’s deteriorating trade balance in processed food

Becoming a net importer of beef

Canada’s beef trade balance with the US ($value): $1.4 billion (2002) vs. $42 million (2011)

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Exporting lower value / Importing higher value

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In 2011, Cdn beef exports to US averaged $3.74/kg. US beef exports to Canada averaged $6.55/kg.

60% ↑

Value of Canada’s beef exports – by country

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2010

• 2. Population health

• 2. Costs of healthcare

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Diet

2 billion overweight & 1 billion obese

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Environmental pressures

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3 inches

…impacted 450,000 acres of prime California agriculture land

Population growth

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….

Societal & Financial Risk – Moody’s Report

• 3. How we think about “food”

Rising consumer expectations & concerns

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… Transparency is paramount

Challenging what is produced

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McDonald’s Global Sustainability Scorecard

Goals: Sustainable sourcing from: beef, poultry, coffee, palm

• il, fish and fiber

Source 100% Canadian beef & pork Phase out gestation stalls

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Goal: Source 100%

• f its

agricultural raw materials sustainably.

Unilever Sustainable Living Plan 2010

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Walmart

Goals: In Canada: purchase 30%

• f produce locally (when

available) In the US: double the amount of locally grown produce by 2015 Sell certified sustainable fish by end of 2013

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Loblaw Corporate Social Responsibility Summary

Goals: Develop a Canadian sourcing policy 100% seafood sourced from sustainable sources (2013) Source all PC eggs from cage-free operations

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Innovation Centre for U.S. Dairy Sustainability Commitment Progress Report

Goal: Reduce emissions per gallon of milk by 25% by 2020

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Is there a “status quo”? How best cope with change? What are the key drivers of strategy?

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Systems thinking

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From “vision” to “destination” …

2011

Shifting the perspective

Input suppliers Producers Processors Distributors Wholesalers Retailers

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Food system

Ecological systems: water, soil, carbon Academics, scientists, researchers Entrepreneurs; financial services Adjacent sectors: e.g. health, environment Governments (3 levels) Transportation; ports Packaging, equipment, info technology Input suppliers Producers Processors Distributors Wholesalers Retailers (grocery) Restaurants; food services By-products; bio-applications Consumers

Food system

Ecological systems: water, soil, carbon Academics, scientists, researchers Entrepreneurs; financial services Adjacent sectors: e.g. health, environment Governments (3 levels) Transportation; ports Packaging, equipment, info technology Input suppliers Producers Processors Distributors Wholesalers Retailers (grocery) Restaurants; food services By-products; bio-applications

Reliable supply Responsibly- produced food Healthy population

“Metrics” Consumers

New way of thinking…

2012

• 1. Lack of alignment; silos
• 2. No shared long-term strategy
• 3. Too many voices; need for leadership

Increase profitability

• 1. Retailer: needing to differentiate
• 2. Processor: needing to maximize carcass value (diverse markets)
• 3. Feeder & rancher: needing value from attributes in demand

→ The role of “information”

Collaboration

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Blade Farming, UK Canadian Angus Program Ontario Corn Fed Beef Program Meat & Livestock Australia

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Is there a “status quo”? How best cope with change? What are the key drivers of strategy?

Implications for Strategy

Isolating what drives effective strategy

❶ Shared acknowledgement of ‘the burning platform’ ❷ Industry must lead – champions can galvanize action ❸ Collaboration across the supply chain, and among food system players ❹ Common objectives (consumer focus); basis for alignment ❺ Information-sharing: basis to act

Thank you