The Food Problem - SynergisingFood Supplies and Logistics

Dr Ashraf A. Mahate

Key Points

• The global food problem and famine is not due to the shortage of food on the planet.

• It really stems from the inability to distribute food supplies to problem areas in a timely an sustainable manner.

• What can large multinational food companies do to improve the situation?

• Is there room for SMEs in the food and logistics business.

Is there a global food shortage?

Undernourishment around the world

1990–92 to 2014–16

1990–92 2000–02 2005–07 2010–12 2014–16*

No. % No. % No. % No. % No. %

WORLD 1 010.6 18.6 929.6 14.9 942.3 14.3 820.7 11.8 794.6 10.9DEVELOPED REGIONS 20 21.2 15.4 15.7 14.7DEVELOPING REGIONS 990.7 23.3 908.4 18.2 926.9 17.3 805 14.1 779.9 12.9

Africa 181.7 27.6 210.2 25.4 213 22.7 218.5 20.7 232.5 20Sub-Saharan Africa 175.7 33.2 203.6 30 206 26.5 205.7 24.1 220 23.2

Asia 741.9 23.6 636.5 17.6 665.5 17.3 546.9 13.5 511.7 12.1Latin America and the Caribbean 66.1 14.7 60.4 11.4 47.1 8.4 38.3 6.4 34.3 5.5

Oceania 1 15.7 1.3 16.5 1.3 15.4 1.3 13.5 1.4 14.2

*Data for 2014–16 refer to provisional estimates. Source: FAO.

The changing distribution of hunger in the world

1990–92 and 2014–16

Undernourishment trends: Progress Levels

What causes hunger?

• Poverty trap

• Lack of investment in agriculture

• Climate and weather

• War and displacement

• Unstable markets

• Food wastage

Demand Side Factors

World Population 2000 to 2050

Population Growth by Region

Projections of world average real GDP per capita

Components of change in world crop demand (2004-49)

The Daily Calorie Intake

Food consumption per capita, major commodities (kg/person/year)

Supply Side Factors

World Production

Sources of production growth 2005/07 to 2050

Agricultural Productivity

World cereals, average yield and2005/07 to 2050 harvested area

World production and use, major products (million tonnes)

Food Losses and Wastage

Food losses and waste along thefood chain

FLW per capita in the different world regions

Distribution of FLW along thefood chain

FLW Developing and Developed Countries

Food Trade

Developed and developing country shares of the value of

world agricultural trade

Net agricultural trade of selected developing country groups, 1961-

2010

Net food exporters and net food importers

The Case of Logistics

Food safety and quality control in the food supply chain

Key issues in Global Agro-Logistics Networks

• Cost reduction and increase of reliability/flexibility• Low utilization of means (<50%)• Difficult to get products in and out of megacity centres• Lack of fast and reliable transport networks: sensitive to disturbances

• Food security, food quality and food losses• Ensuring access to local markets and reduce losses (30-40% of food lost!)• Increasing consumer discern towards safe, healthy and quality food

• Request for traceability and sustainability• Many foodmiles/CO2 emissions due to global sourcing• Transparency in food chain “from farm gate to food plate” • Sustainable supply chain strategies (water, carbon, energy footprints)

The Role of MNCs and Globalisation

SUPPLY CHAIN ORGANISATION

SUPPLY CHAIN Services by Large Companies

Sustainability and security of the global food supply chain

The Role of SMEs

What role can SMEs play in Food Logistics?

Challenges to SMEs

• Traceability

• Technology Driven Systems

• Rules and regulations

• Customs Procedures

• Certifications – halal, sustainability, organic etc.

Thank You