What is the impact of Covid-19 on the food system? Is the world going to change the food system or are governments trying to go back to normalcy? Berry Marttin, executive member on the board of Rabobank, shares his view.
Covid-19 has led to various effects. In the US the price of corn went down, as people drove less. In New Zealand the price of milk went up as soon as China mastered the crisis. But in general, Marttin says, farmers managed to keep production going. However in emerging countries that depend on food imports "Covid-19 showed us that some of the value chains have not performed as we thought they would perform", Marttin says. "Therefore we should take the opportunity to rethink value chains and go back to the drawing table. It doesn’t make sense for every commodity to have these long value chains." Long value chains entail big environmental costs. That's why Marttin stresses "we have to rethink those long value chains". In some places you'll inevitably need them, but where you don't need them, we'd better refrain from them as much as we can. Especially as the opportunity presents itself. Marttin: "I think there is a willingness now among the public to buy food locally. This willingness is very important, we have to use it."
Rabobank advocates 'nature costing'. Unless we show the real costs - the impact on nature - on products, people won't change their behaviour, Marttin says. "We have to understand the true costs of nature for all of the products we consume. Now the public cannot know how much nature is in a product. Once we put a price on nature, it will make much more sense to explain where and why food is being produced and how it should be distributed."
Are politicians aware that this is a moment to rethink the food system? Marttin is worried by the fact they are programmed to restore normalcy as quickly as possible in order to avoid further economic decline. But instead, we have to create a new normal. "I hope we take the opportunity to create this new normal for food", he says.
To put a price on nature, a whole set criteria needs to be developed and all stakeholders will have to accept them. Who's with Rabobank on the way to its new normal? Marttin: “We as Rabobank are working together with other parties on the idea of a carbon bank. Farmers are like carbon managers. Therefore we have to support our clients to improve their carbon emissions. The moment you put a price on carbon you'll see a change in behaviour among farmers."
Is it it only about CO2? No, it is about much more - CO2, water, nitrogen, biodiversity and soils - and, Martinn stresses "access to proper regulations and proper logistics". It is about creating infrastructures that don't exist yet. It takes time to develop the whole set of design criteria and the logic that integrates them. "That is why we need to go back to the drawing table." On top of that Marttin makes a plea for a smallholder green revolution to feed Africa by about 70%. In his view smallholders can double or triple their current production and stay away from cities making a living in the countryside.
Is it going to happen? We need to organize for getting organized. We need to sit down together and define what we want as mankind and take the outcome to the drawing table.
Watch the interview till the end. Marttin is challenging the IFAMA-community to come up with ideas to do so and to turn nature costing into a real life policy instrument. Changing the way all involved in the food chain operate, from farmers, traders, processors, retailers, policy makers and governments to consuming citizens.
We cannot afford not to do something. The cost of not doing it, is less food production. A lot of leaders in the world are finally realizing thisNature costing
Rabobank advocates 'nature costing'. Unless we show the real costs - the impact on nature - on products, people won't change their behaviour, Marttin says. "We have to understand the true costs of nature for all of the products we consume. Now the public cannot know how much nature is in a product. Once we put a price on nature, it will make much more sense to explain where and why food is being produced and how it should be distributed."
Are politicians aware that this is a moment to rethink the food system? Marttin is worried by the fact they are programmed to restore normalcy as quickly as possible in order to avoid further economic decline. But instead, we have to create a new normal. "I hope we take the opportunity to create this new normal for food", he says.
To put a price on nature, a whole set criteria needs to be developed and all stakeholders will have to accept them. Who's with Rabobank on the way to its new normal? Marttin: “We as Rabobank are working together with other parties on the idea of a carbon bank. Farmers are like carbon managers. Therefore we have to support our clients to improve their carbon emissions. The moment you put a price on carbon you'll see a change in behaviour among farmers."
Is it it only about CO2? No, it is about much more - CO2, water, nitrogen, biodiversity and soils - and, Martinn stresses "access to proper regulations and proper logistics". It is about creating infrastructures that don't exist yet. It takes time to develop the whole set of design criteria and the logic that integrates them. "That is why we need to go back to the drawing table." On top of that Marttin makes a plea for a smallholder green revolution to feed Africa by about 70%. In his view smallholders can double or triple their current production and stay away from cities making a living in the countryside.
Marttin is challenging the IFAMA-community to come up with ideas to do so and to turn nature costing into a real life policy instrument changing the way all involved in the food chain operateThat's quite a different perspective from the industrial farming systems that have evolved in Brasil, Marttin's native country. “Food is very global and at the same time very local. You need to cooperate to make this global food system work. We need to get together and try to create shared value. Understand your common destiny. It is a challenge, but we cannot afford not to do something. The cost of not doing it is less food production. A lot of leaders in the world are finally realizing this. The sense of urgency is there. Nowadays issues like climate, ecology and food are big topics. If we don`t work together with the whole value chain, also with the consumer, it is not going to work. We need to double the food production and reduce the accompanying emissions almost to zero. For this we need to change the way we consume, what we consume and when we consume.”
Is it going to happen? We need to organize for getting organized. We need to sit down together and define what we want as mankind and take the outcome to the drawing table.
Watch the interview till the end. Marttin is challenging the IFAMA-community to come up with ideas to do so and to turn nature costing into a real life policy instrument. Changing the way all involved in the food chain operate, from farmers, traders, processors, retailers, policy makers and governments to consuming citizens.
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I generally agree with Jan Peter that we have a "production problem" in agriculture that clearly needs to change. Unfortunately, the global system of agriculture is nested in a policy framework that has been constructed by the fossil fuel and chemical industries. Consumers as well as farmers are both victims of this paradigm, which has largely been in place for at least 40 years. The actions of Unilever and Nestle are to be applauded, but that hasn't made a dent in the policy discussion. Can the markets overthrow the policies within the necessary timeframe?
Peter van Bodegom - international authority in multidisciplinary modelling of environmental gains and losses - saw this interview and needed to respond. He doesn’t agree with Marttin. Nature costing will let us fall in the same trap as true costing. We'll register the damage, but we need to work on pay backs. “We need nature profiting as well”, Van Bodegom says.
Please, find the interview with Van Bodegom here.
Good to hear that Mr. Marttin has been mandated by Rabobank to focus on African smallholders. (Mostly women, as women make Africa work )
Koppert established Koppert Foundation to that end (Plus some other goals as well). If anyone at Rabobank / Rabobank Foundation is following this thread: How will Berry's novel Rabobank Board mandate be intertwined with Rabobank Foundation? If it will be aligned or intertwined that is.
Is Rabobank perhaps going to operate more as a foundation? ;-)
Of course Dick, that's the only thing that counts. And if the Rabo would be brave, they would lead the discussion in that direction. Unfortunately their earnings are dependent on consumption.
He, Marttin is asking for ideas, well:
The hide away option is: production follows consumption needs.
The reality option is: consumption follows production power.
If you want to do (or discuss) something: change production. Be truly responsable. All other things are just words.
Jan Peter, it would be childish to ask "please define 'absolutely necessary' "But this question isn't: how to agree on what it implies?