DECATUR, Ill., Jan. 29 /PRNewswire-FirstCall/ -- Agriculture can help meet growing needs for food, feed, fiber, and clean, renewable fuels, if industry and governments work together to stimulate productivity and improve the infrastructure that connects crops with global markets.
That is the central message Patricia Woertz, Chairman, CEO and President of Archer Daniels Midland Company , will share with global business leaders, government officials and other leading authorities in remarks to the World Economic Forum in Davos, Switzerland, this week. Woertz will participate in the Consumer Industry Governor's private dinner discussion on "A New Vision for Agriculture" on Friday, Jan. 30, and will speak on a public panel, "Unlocking the Food Chain," on Saturday, Jan. 31.
"Those in attendance at Davos may differ on some issues, but we can all agree that agriculture -- a 10,000-year-old human innovation -- must play a vital role in addressing some of our most pressing modern challenges," Woertz says.
Observing that the developing world has lagged far behind developed nations in agricultural productivity, Woertz will call for a comprehensive framework for growth to help narrow the gap. That framework would include policies and programs aimed at supporting best agronomic practices -- including the adoption of efficient, environmentally sound and regionally appropriate farming, irrigation and fertilization methods, as well as the use of advanced seed technology.
The framework would also entail significant new public- and private-sector investments in agricultural infrastructure. "Both sectors must continue developing critical transportation, processing and storage assets to ensure we're able to handle tomorrow's larger crop yields, collect and store food crops and biomass, and continue delivering crops from surplus to deficit regions in a timely and efficient way," she says. Woertz notes that ADM has committed more than $3 billion in recent years to building or expanding its processing plants and to growing its elevator and transportation networks.
In order to demonstrate the large-scale productivity gains that could result under these favorable conditions, Woertz points to calculations derived from a recent global acreage survey.
"Taking into account the fact that growing conditions and other factors vary greatly from place to place, we looked at what would happen if all 15 of the world's top producing nations or regions were able to achieve somewhere between 70 and 80 percent of the best yields on record. The results were illuminating: on lands currently in production, we would see an increase of up to 50 percent in global maize production, growth of up to 52 percent in worldwide wheat production, and an increase of as much as 41 percent in rapeseed production," she says.
She notes that past gains in agricultural productivity support such ambitious targets: between 1981 and 2007, world maize production grew 56 percent, while farmland dedicated to maize grew less than 10 percent. "That's the equivalent of creating 61 million 'virtual hectares' of arable land," Woertz says.
And in the past 10 years, she adds, farmers were able to meet sharp increases in demand for maize, meat and soybeans with just four percent growth in crop area.
"We have perhaps a once-in-a-generation opportunity to usher in a new 'Golden Age' for agricultural growth," Woertz says. "We can't let current conditions derail innovation and investment.
"Both history and our assessment of the vast potential today tell us we can meet the world's growing need for food, fiber and energy in a sustainable way. I believe the world community is up to the challenge and I look forward to advancing this vital work with industry, government and civil society leaders."
About ADM
Every day, the 27,000 people of Archer Daniels Midland Company turn crops into renewable products that meet the demands of a growing world. At more than 230 processing plants, we convert corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical and energy uses. We operate the world's premier crop origination and transportation network, connecting crops and markets in more than 60 countries. Our global headquarters is in Decatur, Illinois, and our net sales for the fiscal year ended June 30, 2008, were $70 billion. For more information about our Company and our products, visit http://www.adm.com/
