Celebrating 90 Years - Foreign Policy Association

that it would completely phase out its cereal
farming because, as they suddenly seemed
to have realized, its production was using too
much of their scarce water resources. It is
estimated that by 2025, one-third of the world’s
population, according to Frank Rijsberman of
the International Water Management Institute,
will be affected by water scarcity. He estimates
that we may be looking at losses equivalent
to the combined grain crops of India and the
United States by then. Further, according to
some estimates, by 2050 we will very likely
reach the upper limit of the 12,500 cubic
kilometers of fresh water available worldwide
for annual human consumption.
I am convinced that if we continue on this
path, we will run out of water long before we
run out of fuel. The water problem is solvable.
It requires better policies and more reasonable
pricing. I have often wondered what would
happen if water for golf courses or other nonessential
uses was not just free or subsidized
as it is in Europe or the United States today.
Would biofuel still be produced if water had a
real price? I doubt it. Would existing watersaving
technologies be used more broadly?
Most certainly.
This situation is made by humankind, and
we have to assume responsibility for it. As a
leading food company, Nestlé hopes to be part
of the solution. What are we doing wrong?
First, as is evident, we are speaking out on these
issues whenever we have an opportunity. We
are active and vocal opponents of protectionist
and trade-distorting policies that hurt farmers
in the developing world, and we are opponents
of food crop-based biofuels. We are strong
and enthusiastic advocates for policies that
ensure greater access to, and more responsible
management of, water.
I am convinced that if we continue
on this path, we will run out of
water long before we run out of
fuel. The water problem is solvable.
Second, while we at Nestlé account for
only about 2 percent of the processed food
that the world consumes, we have made it our
mission to help farmers throughout the world,
especially those in developing nations, to
improve the global food supply chain. We are
working directly with over 600,000 farmers,
providing them with technical assistance to
increase production, improve food quality,
and build rural infrastructure. In addition,
through our supply chain and factories, which
are basically huge food preservation kitchens,
we contribute significantly to the reduction
of loss of food once it leaves the farm. In
developing countries, 30 to 50 percent of
food is lost after it leaves the farm because of
insufficient storage, lack of packaging, and poor
transportation. By contrast, the rate is 3 to 5
percent in industrialized countries.
We have been focused particularly on
the dairy industries in Asia, Latin America,
and now Africa. We have provided more than
$30 million in mico-credits to farmers to help
them increase their production capacity and,
by adopting more environmentally sound
practices, their sustainability. We are helping
to develop clean water supplies for dairy
villages in countries such as India and Pakistan,
and we are working with international partners
and nongovernmental organizations on similar
programs in Kenya and South Africa.
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MEETINGS: PRESENTATION BY PETER BRABECK-LETMATHE