2. 1 CONFIDENTIAL. This document contains trade secret information. Disclosure, use or reproduction outside Cargill and inside Cargill, to or by those employees who do not have a need to know is prohibited except as authorized by Cargill In writing. (Copyright Cargill, Incorporated 2006. All rights reserved.) International Aspects: Strengthening the International Dimension Ruth Rawling Vice President of Corporate Affairs, Cargill EMEA European Commission DG Enterprise Conference: Promoting the Leadership of the Agro-Food Industry 16 November 2007

3. 2 Understand what the food industry needs: Raw materials constrained, restrictions on imports Competing demands on land use: food, fuel, biodiversity Lack of innovation at farm level Lacks economies of scale/incomplete single market Geographic and transport constraints High labour costs Policies inhibit enterprise No level playing field deal with the threats and challenges create the opportunities

4. 3 Strengthening the International Dimension Partner in a global market Risk Management – Food safety risk management – Intellectual property risk management – Price risk management Capacity Building Education

5. 4 Europe is part of the global food system Largest Food Market Major Importer Oilseeds and vegetable oil Beef Poultry Grain – import and export – Europe on the edge of being net importer Significant Exporter Export of speciality foods key focus But export of products of first processing dwindle – flour, cocoa, oilseeds – move to origin

6. 5 No longer Fortress Europe

7. 6 We need to change the way we think of Europe

8. 7 Europe = Japan ?

9. 8 124 680 162 215 337 72 123 121 108 53 49 85 97 66 59 246 281 726 380 221 134 87 82 177 50 58 190 195 115 84 150 101 Source: GIRA, 2004

10. 9 Sources: ISciences, LLC (processing & visualization); University of New Hampshire & Global Runoff Data Center (annual freswater runoff); Center for International Earth Science Information Network, Columbia University (population); United States Geological Survey (water sheds, rivers), Geoscience Australia (Australian watersheds); ESRI, Inc. (national and state/province boundaries). Global Annual Renewable Freshwater Availability

11. 10 Europe – Partner of Choice

12. 11 Create a global level playing field Global poverty and hunger pose a major human health challenge Europe is part of the solution not only in feeding it’s own population but also in helping the rest of the world Europe’s food industry needs a level playing field to compete most successfully

13. 12 Strengthening the International Dimension Partner in a global market Risk Management – Food safety risk management – Intellectual property risk management – Price risk management Capacity Building Education

14. 13 Photo: D. Harlan

15. 14 “One World - One Health” Animal and human health risks emerge from overlap between domestic animals, wildlife and humans

16. 15 Food Safety Risk Management Focus on real safety risks, not perceived ones. Manage food safety risks globally Disease is the biggest threat – 70% of known pathogens are zoonotic and can travel via food, environment or direct contact Work with Codex, OIE, FAO and WHO Get risk managed in third countries, not just at our borders Compartmentalisation Standards for imported materials - policy priorities such as food safety should be legislated, proliferation of private standards limited

17. 16 Intellectual Property Risk Management FOOD FRAUD

18. 17 Price Risk Management The cure for high prices is high prices Climate change and CAP Reform drive the focus on resource use and trade Diversify sources of supply Land use Greatest swings in price volatility brought about by abrupt changes in government policy Private sector can manage price risk through futures markets but cannot manage government policy swings

19. 18 Strengthening the International Dimension Partner in a global market Risk Management – Food safety risk management – Intellectual property risk management – Price risk management Capacity Building Education

20. 19 Capacity Building Help third countries understand the risk management systems approach to manage own production Recognise the global public good of adequate animal and public health capacity for global disease control Integrate animal, human and wildlife/environmental health communities Provide appropriate technological help, training and price information access Invest in infrastructure Encourage governments to enforce existing legislation on environmental and labour standards on supply chains

21. 20 Strengthening the International Dimension Partner in a global market Risk Management – Food safety risk management – Intellectual property risk management – Price risk management Capacity Building Education

22. 21

23. 22 Marry technology and nature Get back on track following the GMO debate Weigh up the GMO authorisations against  export of science base,  export of livestock industry,  land use  place of food science in universities Let the market sort out the “yuck” factor  Price  Choice -------- Need more food scientists, food innovation clusters, give our own farmers a level playing field in technology

24. 23 Conclusion Europe – a partner of choice in the global food system Part of the global market system Major player in risk management globally Embracing technology – improving our own production and helping others Improving global resource use Promote global markets for high value added foods

25. 24 Europe – Partner of Choice