Who would not know about Denmark and Sweden? Since the blog recently talked about AI and Microsoft, it would make sense if we come down to earth - to trees and pigs, for example.
The writer was given a quick education by a European agricultural economist after he asked the latter to name a couple of agribusiness industries that are world-class. "Pigs and trees," was his response.
"Denmark is among the world's largest pig meat exporters ... Exports of pig meat account for almost half of all agricultural exports and for more than 5 percent of Denmark's total exports. More than 70 percent of Danish pig meat production is exported to other EU countries, and the [rest] to countries outside the EU.
"Danish pig meat is exported to more than 140 countries, and the largest markets in terms of volume are Germany, UK, Poland, China, Japan, Italy, Russia and Sweden.
"For more than 100 years, the production of pigs and pig meat has been a major source of income for Denmark. Approx. 90 percent of the production is exported and is thus essential to the Danish economy and the balance of trade.
"The Danish pig industry is among the world leaders in areas such as breeding, quality, food safety, animal welfare and traceability. This is the reason why Denmark is among the world's largest pig meat exporters.
"Danish pig meat producers observe high standards of animal welfare, and pig farmers constantly strive to improve the welfare of live pigs. Danish pig production is characterized by high food safety standards and good animal health. Environmentally sustainable production methods are key to Danish pig production.
"Around 5,000 pig farms in Denmark produce approx. 28 million pigs annually. Most pigs are slaughtered in co-operative abattoirs ... In addition, a substantial number of live piglets are exported, mainly to Germany. "[ Https://agricultureandfood.dk/danish-agriculture-and-food/danish- pig-meat-industry ]
For comparative purposes, PH swine population per the PSA is 12.78 million, and only 4.66 is commercial, the rest is backyard. But to derive per capita production, let's stay with the total; which means per capita we produce 0.12 versus 4.99 for Denmark. Note the reference to co-operatives. Denmark is home to the cooperative movement; while we Pinoys seem unable to embrace community and the common good.
"Cooperatives have a special place in the Danish culture ... The first cooperative store in Denmark was established in 1866, inspired by the original Rochdale cooperative store in England. The concept quickly spread, first in villages, then in the cities. In 1896 the many cooperative stores were consolidated into a national cooperative organization, which started producing its own labels of basic goods. By 1919 there were close to two thousand cooperative stores, accounting for around 10 percent of all retail sales in Denmark.
"Cooperative stores spread in a similar fashion in many other countries, but what made the cooperative movement particularly important in Denmark was the success of cooperatives in agriculture.
"Technology was an important catalyst for this. The continuous centrifuge process for producing butter was a major improvement in efficiency and quality. But the machinery was expensive and required high volumes, which only the large manors produced at the time.
"In 1882 the first cooperatively owned dairy was established, and it was governed along more or less the same basic guidelines, which were used for all the subsequent production cooperatives.
"In the following decades cooperative dairies spread rapidly, and by 1900 more or less all dairy production in Denmark was through cooperatives. At a national level the cooperatives created shared marketing companies for export, and shared technological research, which was crucial for making Denmark a leading country in dairy production.
"A similar development took place in the meatpacking industry. The first cooperative slaughterhouse was started in 1887. Later came cooperative production and marketing of eggs, chickens, vegetables, fish and fur. Another important development was the large cooperatives for sales of foodstuff and fertilizers.
"A second wave of cooperatives started after World War II to establish shared laundries and freezing houses ... The cooperative model was used for banks, credit unions and insurance companies, and for building societies.
"The late 60s and 70's brought a wave of consolidation in industry. The many small cooperatives were combined and rationalized, leading to a handful of large national and even international companies, which are still among the pillars of the Danish agricultural sector: Arla foods, Danish Crown meat and DLG foodstuff, fertilizer and grain. "[ Http : //we-economy.net/case-stories/the-cooperative-movement.html ]
What about trees?
"The Swedish pulp and paper industry ... Paper products are part of our daily life. Products made of paper are used for a variety of purposes in our everyday life. For mediation of information in newspapers and printed matters, as different forms of packaging, and for hygiene products, just to mention a few. The raw material is virgin fiber from the forest. In addition, a significant amount of recycled fiber from consumers is used as raw material. The production of newsprint in Europe is for example essentially based on recycled fiber. However, since the recycled fiber does not have the strength required for certain types of high-quality paper and as it loses its paper making qualities after a certain number of re-uses, the use of virgin fiber is an integral part of the paper- making process.
"The Swedish pulp and paper industry is export intensive. The forest industry as a whole plays an important part in the Swedish economy. It is also heavily export oriented and makes a significant contribution to Sweden's trade balance. Sweden is the world's second largest exporter of pulp, paper and sawn wood products combined. Of the pulp and paper production, close to 90 percent is exported. As for pulp production, around a quarter of the total consumption of pulp within the EU are manufactured in Sweden.
"The industry's raw material is renewable and recyclable. The activities of the forest industry are based on a renewable material, the growing forest. Provided that forests are managed sustainably, they are able to provide society with an infinite source of carbon-neutral raw material. This gives the industry unique opportunities in times when there is an interest from society to replace fossil-based products with renewable ones to reduce greenhouse gas emissions and mitigate climate change. A lot of research to develop new products out of bio-based materials, such as wood from the forest, is on-going, and the Swedish forest industry has elaborated a vision to act as a driving force in the development of a so-called bio-based economy up till 2035. " [https://www.skogssverige.se/en/the-pulp-and-paper-industry ]
In his conversation with the economist, the writer learned that European countries have their versions of the USAID model. And one question that continues to challenge donor nations is: What else beyond money must constitute foreign aid? Think of the refugee crisis and how Western nations today have their hands full - and gave the nationalists reason to protect and isolate their countries.
And in response, European nations are sending teams to Africa, for instance, to encourage and inspire the locals to traverse the road from poverty to prosperity - so that they do not look at themselves as refugees who must seek shelter in foreign lands. While we Pinoys view the OFW phenomenon as a positive because to us it is about jobs ... Pretty shortsighted, in the grand scheme of things.
The European economist also believes that his university must partner with the private sector in their efforts in Africa. For example, business people can show local MSMEs how to scale up their enterprises.
Take the Danish success in their pig agribusiness and why cooperatives have a special place in their culture. And think community and the common good, to appreciate the power of cooperatives. Conversely, why did PH land reform fail? It is diametrically opposed to the cooperative ethos. Because shortsightedness like a coin has two sides: (a) political patronage and (b) a culture of corruption cum impunity; and undermines and defeats reform efforts.
In sum, small pig growers like small farmers are not destined to be poor. The key is economies of scale, which is what cooperatives can achieve. Similarly, denuded forest is not destiny, it is shortsightedness that comes from a lack of foresight.
As the blog has discussed, our being the regional laggard is beyond poverty. It is about development. It is beyond jobs and a consumption economy. It is about an industrial economy that has attained a virtuous circle as in an ecosystem which wealthy nations like Denmark and Sweden have demonstrated. And PH underperformance is now magnified by countries like Cambodia, Ethiopia, Laos, Myanmar, and others. These once poor nations - like the Asian Tigers - are poised to leave us in the dust too.
Gising bayan!
"Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it. "[We are ruled by Rizal's 'tyrants of tomorrow,' Editorial, The Manila Times, 29th Dec 2015]
" Now I know why Paul dared to speak of 'the curse of the law' (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant. "[Faith and Science, Open to Change, Richard Rohr's Daily Meditation, 23rd Oct 2017]
"As a major component for the education and reorientation of our people, mainstream media - their reporters, writers, photographers, columnists and editors - have an obligation to this country. . . "[Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]
"National prosperity is created, not inherited. It does not grow out of a country's natural endowments, its labor pool, its interest rates, or its currency's value, as classical economics insists. . . A nation's competitiveness depends on the capacity of its industry to innovate and upgrade. "[The Competitive Advantage of Nations, Michael E. Porter , Harvard Business Review, March-April 1990]
"Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. "[William Pollard, 1911-1989, physicist-priest, Manhattan Project]
"Development [is informed by a people's] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership. . . "[Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]
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