COP29: Future-proofing Food Production via a Proven Business Case

300% more food, 80% water saved, higher profitability for the farmer

The urgency to transform the agri-food systems is clear from discussions and negotiations at COP and previous climate conferences. Now, there’s a proven business case for it. 

At COP29, Spowdi presented a proven business case resulting in 300% more food, 80% water saved and higher profitability for the small-hold farmer. Here are the highlights from the transforming food systems discussion “A Proven Business Case. 300% More Food” held at the Swedish Pavilion during COP29 in Baku. 

The situation as we know it: 

Despite being key players in the efforts to create a climate resilient food production system and increase food security, small-hold farmers rarely have access to innovative technologies or finance that will help them transform their farming to become more sustainable, resilient and profitable. While pilot projects generate initial interest, they often end up where they start – another pilot project.  

The discussion centered around the urgency to focus on scaling already existing and proven solutions to avoid getting stuck in a never-ending loop of pilot projects. This is clearer than ever, given that the FAO and UN have predicted that, by 2050, global food production will need to increase by 50% and the water demand is projected to be 20-30% higher in comparison to 2017. 

Changing our outlook to generate measurable Impact – A commercially viable, proven business case. 

Through a commercially viable business model, we can create value for every stakeholder throughout the agri-food value chain, starting with the small-hold farmer. When small-hold farmers, who produce one-third of our global food, can access innovative technologies, they can transform from subsistence living to becoming economically independent entrepreneurs. In turn, their increased productivity and profitability can then be used to reinvest in their own business or pay back any loan used for the initial investment. This also has a positive impact on communities at large, as livelihoods and financial independence in the area increases. 

For this to happen, Impact Enablers; technology providers, implementing organisation and financial and governance institutions, must come together to kickstart the transformation. Even though technology providers have created the innovative solutions needed, small-hold farmers are often unaware that such innovations exist. Implementing organizations play a crucial role in distributing such technologies to the farmers, as they have the grassroots knowledge, trust, and presence needed in order to reach even the most rural of them. Further, another obstacle which small-hold farmers often face are financial barriers, since they may not have the financial ability to make the initial investment. Hence, they need support from governance and financial institutions in the form of a financial kickstart. These kickstarts enable farmer collectives to start their journey toward becoming profitable, resilient, and sustainable food producers, an important step in transforming the food production system. 

“There is a lack of financing at the end of the value chain, which is the farmer. So, how can we make this happen on a bigger scale? I have been focusing the last two years on figuring out a smarter way of financing a business opportunity, in relation to how we historically have financed these kinds of projects. And for me, it’s not a project that starts, does something, and stops. We are trying to establish an initiative, a never-ending story that should be standing on its own two feet”, says Spowdi’s CEO Henrik Johansson. 

At COP29, Spowdi’s interactive session “A Proven Business Case: 300% more food, 80% less water and no CO2” called upon every stakeholder to do their part and kickstart the transformation needed to future-proof the global food production system. The session had speakers that represented various key stakeholders in the transformation toward a food production system that is fit for the future. Apart from Spowdi’s CEO Henrik Johansson and Executive Board Member Jakob Kiefer, these included Richard Colback, International Finance Corporation; Sneha Shinde, BAIF; and Dr. Lidwine Meffo, The Smiling Foundation and United Nations advisor. 

Watch the highlights of the session here.

COP29 was labelled as the “finance COP” and the takeaway was clear – If we are to achieve real impact globally, it is time to be bold and scale now. The focus on risk and fear of project failure should be replaced with innovative thinking, actions and rewards. Collaboration and immediate action are essential to kickstart a future where the global food system becomes climate resilient, sustainable, and profitable; all the way from the end to the very beginning of the agri-food value chain. 

Spowdi’s Smart Farming Initiative is underway in India, Bangladesh, Kenya and soon in South Africa and multiple other African countries. If you would like to be a part of future-proofing global food production via a commercial model for small-hold farming, get in touch with Spowdi at partnership@spowdi.com.