Prof E.Kulke with Assoc Prof B.Ramasawmy Molaye of the Faculty of Agriculture
Introduction
The lecture was delivered by Professor Elmar Kulke on Tuesday 21 Jan 2025, at the LT2 of the NAC at the University of Mauritius. He is Professor for economic geography at Humboldt-Universität zu Berlin Berlin. This blog post delves deeper into this evolution, exploring the intricate dynamics of global agriculture, its vulnerabilities, and the opportunities it presents.
The journey of our food, from the field to our tables, is a complex and ever-evolving story. The transformation of agriculture from localized systems to global commodity chains has been profound, driven by technological advancements, shifting consumer demands, and the increasing interconnectedness of our world.
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| The talk was attended by various agricultural institutions |
The Transformation from Local to Global: A Detailed Look
Historically, agricultural production was primarily localized. This was characterized as a system where perishable goods were produced in close proximity to markets due to the prohibitive costs of long-distance transport. This meant that intensive farming was concentrated near urban centers, while long-distance trade was limited to durable goods like coffee and cocoa.
However, the 21st century witnessed a monumental shift. The emergence of global agricultural commodity chains fundamentally altered the landscape of food production and distribution. This change was propelled by:
- Drastic Reductions in Transportation Costs: Transportation costs have fallen dramatically, making it economically viable to ship fresh fruits and vegetables across vast distances, even by air. This has enabled the global availability of perishable goods previously limited to local consumption.
- Technological Advancements and Reduced Transaction Costs: The internet and digital communications have revolutionized the way businesses operate. Communication between producers, retailers, and logistics companies has become much easier and more efficient, thereby reducing transaction costs. This also extends to virtual trading systems, as seen in the Aalsmeer flower market.
- The Rise of Third-Party Logistics (3PL): The increasing complexity of global supply chains has led to the emergence of specialized 3PL companies. These entities manage the intricate processes of collecting, storing, processing, and distributing agricultural goods. They play a crucial role in ensuring that products reach consumers in a timely and efficient manner.
Specialized Agricultural Clusters: More Than Just Production
Beyond global supply chains, the development of specialized agricultural clusters represents another key trend in modern agriculture. These clusters are not simply production hubs; they are ecosystems that bring together various stakeholders including research and development, specialized services, distributors and processors. These clusters leverage the following:
- Concentration of Expertise: Clusters allow for the accumulation of specialized knowledge and expertise in a particular area of agricultural production. The 300-year-old apple cluster in Altes Land, Germany is an example, demonstrating how knowledge and expertise accumulate over time.
- Support Industries: Clusters foster the growth of supporting industries such as research and development facilities, specialized services, and processing plants.
- Examples of clusters:
- The cut flower cluster in Lake Naivasha, Kenya, is a significant example, producing 80% of the roses sold in Germany and creating over 50,000 jobs.
- The bean cluster in Mount Kenya uses locally adapted technologies to maintain product quality, including "refrigerators without electricity."
- The apple cluster in Altes Land, Germany, has a long tradition and includes production, storage, sorting, and even processing apples into drinks
