- India's population is projected to grow significantly by 2050, which will increase food demand and likely make India a net food importer.
- Latin America, particularly Brazil, Argentina, Uruguay and Paraguay, represents an opportunity for India to outsource some of its agricultural production due to factors like available land, water resources, infrastructure and political stability.
- Key advantages of Latin America include lower production costs, higher yields, established value chains, proximity to ports and a trade bloc with few trade barriers. This makes it an immediate opportunity for Indian agricultural outsourcing compared to other regions like Africa.
6. World Population Growth, in Billions Number of years to add each billion (year) All of Human History (1800) 130 (1930) 30 (1960) 15 (1975) 12 (1987) 12 (1999) 14 (2013) 14 (2027) 21 (2048) Sources: First and second billion: Population Reference Bureau. Third through ninth billion: United Nations, World Population Prospects: The 2004 Revision (medium scenario), 2005.
28. In Africa, risks of many ‘Singurs’ occuring Source: UN Population Database Population growth (in millions) - 2005 to 2050 2005 2025 2050 Argentina 39 46 51 Brazil 186 214 218 Uruguay 3 4 4 Paraguay 6 8 10 Ethiopia 75 120 174 Kenya 36 58 85 Tanzania 39 67 109 Madagascar 18 28 43 Mozambique 21 32 44 Senegal 57 91 133 Sudan 39 57 76
29. Also less water per capita compared to LatAm Source: Aquastat TARWR/ m3/percapita/year Argentina 20,940 Ethiopia 1,680 Brazil 45,470 Kenya 930 Uruguay 40,420 Tanzania 2,420 Paraguay 55,830 Madagascar 18,830 India 1,750 Mozambique 11,320 Sudan 1,880
30. Latin America is an immediate opportunity Latin America Africa Buy/Lease Land Yes No (lease only) Service Providers (planting/spraying etc.) Yes No Qualified Manpower Yes No Political Risk (low populations, democracies, corruption etc.) Low High Tested high yield crop/seed varieties Yes No
31. Almost “Free land” in Africa: Maintaing a gift elephant is not free Note: Numbers based on median Latin American land conversion rates to convert raw land to agriculture ready land. Africa figures could be higher/
36. Agricultural Land in MERCOSUR (in ‘000 hectares) Land area Agricultural area Arable land and Permanent crops POTENTIAL Argentina 273669 133350 33500 60,000 Brazil 845942 263500 66500 120,000 Paraguay 39730 20400 4400 8,000 Uruguay 17502 14683 1383 4,000 Total 1176843 431933 105783 192000
Will feed more people in next 40 years then all of history
Will feed more people in next 40 years then all of history
Land per capita is shrinking – 1 to 1.5 acres, 0.3 hectares Malincentives Farming is a terrible business – 45% want to quit farming, middle class nightmare Increasing cost of land - $20,000+ acre, 10 to 100 acres, illegal corp farming, land ceiling act
Need some figures for this slide What is land per capita? Cost of average farm Water resources Can add 3 slides here – see the LatAm charts I sent out earlier.
Climate Change – glaciers Damming the Brahmaputra Water table is falling – NASA image, water table
100 million hectares being farmed. 170-200 million hectares can be brought online Soya, - USDA projections Sugar, Oilseeds, Fruits, Dairy, Milk Grow the pie, not compete with Indian farmers, Non zero sum game
Brazil, Argentina, Uruguay – plenty of arable land Closer to India than California Brazil – 3X India pop of U.P., Uttaranchal Argentina - ~India, pop of Delhi, Mumbai, Calcutta Uruguay - ~Karnataka, pop 1/2 Bangalore
Rainfall Land - $200 to $2000 acre Technology Knowledge Creation Talent Free market
US trained agronomists and agriculturists Collaboration with Indian scientists, especially in Africal South-South cooperation
10 to 30 times fresh water as India Mehta Joke, Water, play We could use all the water we can get
Respected profession Specialized providers in the value chain – planting, spraying, harvesting, logistics, management company Ecosystem – universities, research, can compete with best in the world Scale massively Entrepreneur-driven Export driven and world-competitive without subsidies
Respected profession Specialized providers in the value chain – planting, spraying, harvesting, logistics, management company Ecosystem – universities, research, can compete with best in the world Scale massively Entrepreneur-driven Export driven and world-competitive without subsidies
Farmers selling land at high prices should utilize some of the sale proceeds to consider owning shares in a South American farming company that will acquire land and start farming Nestle, Danone, Cargill, Dreyfus, Kraft, Unilever Easier than you think it is.