Global food security risks ARE REAL AND NEAR

food_security_risks

Population growth will drive a significant increase in global demand for agricultural products and Ecuador has an opportunity to provide surplus crops to the global market.  By 2050 the global population is expected to reach 10 billion people, resulting in an estimated 50% increase in demand for AG products.

world_demand_crops

Global suppliers of agricultural products will need large productivity increases and enhancements to their supply chain to reduce the volatility from accelerating climate change. Supply shocks and capacity constraints will be frequent and severe threats in the future – at a macro level strong demand from population growth will be disrupted by climate change and the reduction in land used for agriculture.

labor

labor productivity in ecuador

Over the last 25 years the productivity of a US agricultural worker has nearly tripled from ~$30,000 to ~$85,000 – in Ecuador the productivity has been flat at ~$5,000 – and the country remains in a low productivity trap.

labor force in ecuador

Ecuador has 28% of the labor force participating in agriculture – compared to 2% in the US – the share will decline with economic development – the labor market’s inexpensive and surplus resources will exist for a significant period of time.

labor_increase

Day1AG has a simple strategy to move up and to the right on the curve – and share the value from productivity increases with our employees and the communities we operate in.

design to grow in ecuador

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Ecuador sits along the northern Andes and is squarely located within the planet’s natural growing belt. The country has the infrastructure and political climate to support farming – the official currency is the United States dollar – strategically located close to the Panama Canal – Ecuador is at the center of the shipping highway system – a superior location for exporting agricultural products to the global market.

design_to_grow_ecuador

By 2050 the temperature in Ecuador is forecasted to increase slightly to ~ 71F – the country remains solidly in the warm belt even in a severe forward looking climate change scenario – the sustainable natural resources and varying temperatures at different altitudes add to Ecuador’s future durability – the natural advantages will forge Ecuador as an end state winner in the global agricultural market