WASHINGTON, D.C. (Reuters) – U.S. agricultural business giants said that working to create sustainable production around the world will not only bring food to millions of starving people, but it’s ultimately a lucrative source of revenue for their companies.
“I wouldn’t want to hide that at all. Definitely (it’s a business opportunity),” said Sam Allen, chief executive of Deere & Co.
“If we don’t create a sustainable solution, then the health of the farmer down the road deteriorates … and that’s not good for us.”
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Deere, along with Archer Daniels Midland, DuPont and Monsanto, competitors in the agricultural industry, have founded the Global Harvest Initiative with the goal of doubling agricultural output by 2050 to meet rising world demand. They met in Washington recently along with lawmakers, researchers, food hunger experts and other officials.
Business challenges
While expanding output and finding ways to help farmers produce their own food more efficiently is a goal all four companies say will make it easier to work together, the unique partnership will create business challenges that are yet unforeseen.
“Relationships are hard to do when you love somebody. Relationships in the business community are much, much harder,” said Monsanto chief executive officer Hugh Grant. “The challenge I don’t think is going to be blindingly brilliant science but how do you build relationships in a difficult environment.”
Already the four companies spend an estimated $10 million a day on research and development. But they say developing sustainable agriculture production will create hurdles including producing more on nearly the same amount of land and minimizing the environmental impact.
More than one billion people will be chronically hungry this year, the United Nations’ World Food Program estimates, up from 963 million in 2008 when food prices spiked, causing hoarding and riots over food in some nations.
The public outcry has sparked efforts among world leaders to reduce the rate of hunger.
