A proposed model of shared value: Partnership between Agrochemical Seed Producers, Academia Research Facilities, and Regional Farmers. Hopefully, the answer to a more sustainable seed production model.
2. Food Security: A Global Concern
2011
2050
To feed everyone, the world will
need to produce 70% more food
by 2050 • 2 Billion Hectares
of arable land
degraded
• 1 Billion people
undernourished.
PCG: Presidio Consulting Group
4. Seed Industry Business Model
Increased
R & D
Increased
Yields
Increased
Soil
Degradation
Increased
Chemicals
• Unsustainable model of
maximizing yield: classic growth
model.
• Aggressive M & A: 2000 original
producers grow to 5 majors.
• Complex network of regional R &
D partners.
• Pre-competitive agreements to
source and develop products.
PCG: Presidio Consulting Group
5. Industry Risks
Climate Risks
Pesticide &
Herbicide
Resistance
IP Litigation &
Anti-trust
Expiration of IP
& Generics
Top Soil
Degradation
PCG: Presidio Consulting Group
6. ROI: Strategic Opportunities
Growing Profits
While Reducing
Risks
Accelerating
Innovation Through
Market Redesign
Enhancing
Reputation Through
Product Stewardship
Crystalizing Growth
Path With
Sustainability Vision
SUSTAINABLE
VALUE
PCG: Presidio Consulting Group
7. ROI: Tactical Examples
1) Growing profits while
reducing risks.
1) Enhancing reputation
through product stewardship.
2) Crystalizing growth path
through sustainability vision.
3) Accelerating innovation
through market redesign.
• Transfer of research and development.
• Regulatory hedging.
• Regain legitimacy through natural seed.
• Right to operate, increasing market share.
• Redesign business model.
• Biodiversity and polyculture farming.
• Capture disruptive technologies.
• Regional licensing agreements.
PCG: Presidio Consulting Group
8. Best Practices
Norwegian Regional
Electronics
Partnership
• R & D Innovation
• Streamlines Financing
• Creates Shared Value
Guangxi Maize
Research Institute
• Sustainable Farming
• Desirable Seed Traits
• R & D Licensing
Swedish Triple
Helix Model
• Government Mandate
• Strategic Partnership
• Creative Demand
PCG: Presidio Consulting Group
10. Partnership Functions
Academia -------------- Producers
Research grants for shared licensing.
Soil biology and polyculture focus.
Producers -------------- Farmers
Improved product offerings targeting biodiversity.
Natural selection with regional knowledge.
Farmers -------------- Academia
Commercialization of disruptive technologies and efficiencies.
New direction of academic research for public good.
PCG: Presidio Consulting Group
11. Implementation Setup
EXPERT ADVISORY PANEL
Sustainable Silicon Valley, BayBiotech, International Institute for Sustainable Development
STEERING COMMITTEE
Comprised of Lead person per stakeholder group
Farmers
Ken Skarlett
CA Seed Association
NGO
Producers
Jerry Steiner
Monsanto, CSO
Academia
Tom Tomich
PhD, UC Davis
Other Stakeholders
PCG: Presidio Consulting Group
12. Implementation Roadmap
•2 Months
•Buy in
•Planning
•Financing
•2 Months
•Feedback
Mechanisms
•Monitoring
Systems
•Securing
Resources
•2 Months
•Measure
•Hotspots &
Inefficiencies
•6 Months
•Deliverables
•Evaluation
•Verification
Pilot Project 1 Year
PCG: Presidio Consulting Group
Communicate
Fund
Plan
Support
Measure
Monitor
Perform
Evaluate
Audit
13. Conclusions
• Pilot project: one time, low-cost, unregulated approach to
explore a new pathway to sustainable business.
• Successful pilot lays groundwork for broader rollout.
• Innovative, cost effective, sustainable solution capable of scale
and replication.
It is a model of “constructive capitalist’s stepping toward a worthier capitalism,
navigating past the depleted affluence of the industrial age to reach the fertile
shores of a revitalized prosperity.”
-Haque
PCG: Presidio Consulting Group
Climate Change: for every one-degree Celsius increase in temperature, crop yields decrease 10%; 90% of natural disasters in 2010, $130 billion in agricultural losses
Intellectual Property: 1980 Supreme Court ruling that allowed patenting life forms from genetic coding, making it as simple as patenting a new tractor blade – decision opened doors for over 1,800 patents; in 2008 Monsanto and the top players were awarded 255 new patents
Generic Products: In the last decade, 120 active ingredients have lost patent protection, corporations such as Monsanto stand to lose an estimated 30% of market share in seed production, $4 billion in annual revenues.
Topsoil Degradation: Carbon and Nitrogen in topsoil declining since 1930’s, 10% of all energy used in modern farming is dedicated to offsetting the adverse effects of these losses
Research Costs: Seed industry invests 10-15% of sales in R&D