The growing demand for food and other agricultural products raises the question of how the sector will manage to expand production and, above all, whether it will be able to do so in a sustainable manner sustainable financing model. The time has come to incorporate climate threats into land use planning and land development, taking into account that strengthening social and ecosystem capital reduces exposure and vulnerability, key components of risk.

This is why one of the global objectives to address the climate crisis is to implement less environmentally aggressive economic methods. As industrial engineer Laura Cubillos explains, in an article , “our model of mass production and mass consumption is testing the physical limits of the planet and threatens the stability of our future. Basic resources such as water, food and Energy are at stake.” 

In this scenario, trends are emerging that pursue the main objective of channeling industrial production towards a sustainable nature. One concept that is being emphasized is the circular bioeconomy. Based on its principles, new productive activities can be developed by using residual biomass (for example, from agricultural and forestry processes) and waste (such as domestic waste).

Keys to understanding the circular bioeconomy

The European Commission notes that the bioeconomy comprises those parts of the economy that use renewable biological resources from land and sea, such as crops, forests, fish, animals and micro-organisms to produce food, materials and energy. It is the integration of the bioeconomy and the circular economy, where sustainability in the use of resources is key.

From the World Economic Forum, says Cubillos, “a new industrial model is proposed that opposes the linear model of resource consumption”, favouring its “restorative use” which does not only consist of recycling, but also in maximising what is already in use, reintegrating the remaining unusable parts for another purpose. With this new economic model, insists the engineer, “consumption could be reduced by up to 32% in 15 years and by 2050 by more than half”.

The portal experts Harvard Business Review They explain that companies that were successful in implementing circular economy policies did so by following these measures: “Implementing modular product architectures, renting instead of selling their products, and expanding the reconditioning of their products.”

All of these measures have and will have a positive impact on the environment in the long term, since by reducing production with direct inputs from natural resources, “dependence on these will decrease, as well as the pollution generated by the production processes of goods and services,” Harvard maintains.

Circular bioeconomy in Latin America

Among the main challenges for the implementation of the circular economy in the region is the management of municipal solid waste, as noted by the ECLAC report on 'Circular economy in Latin America and the Caribbean'. However, the importance of recycling is growing in the region, as is the active role of recyclers and treatment plants for these materials for their reuse and exploitation.

At the productive level, the Circular bioeconomy is generating profound changes in Agriculture. Experts from Make Sure to Live explain the progress made in the region in this area:

• EcuadorClimate-smart livestock farming. The adoption of good livestock farming practices, with financial and technological support from the private sector, has increased producers' yields and incomes, while reducing greenhouse gas emissions and improving soil and biodiversity.
• ChileConservation and sustainable use of the Patagonian steppe for sustainable livestock farming.
• Uruguay. Climate-smart livestock production, land restoration in pastures and sustainable livestock systems. Environmentally sound management of pesticides. Local adaptation of technology, associated with the participation of young, opinion-forming farmers, facilitated the development of effective production alternatives. 
• Argentina. Organic beef certification systems.
• Brazil. Carbon neutral meat label, energy efficiency programme for the resources of the beef supply chain. Sustainable and community-based management of bycatch in trawl fisheries. 
• Mexico. The increase in energy efficiency and the use of organic waste for energy generation in the agroindustry strengthened the productive unit, the working conditions of workers and the environmental health of the surrounding communities. 
• Colombia. Agroclimatic technical roundtables. The development of participatory mechanisms for territorial consultation around agroclimatic information allows producers to make better decisions and reduce their climate risk by accessing timely, relevant recommendations adapted to their context. In addition, the promotion of legality has generated employment and investment in the development of forest communities.

“Argentina has stood out for its large-scale agroecological production. In the southern country  Mixed crop and livestock units can be found with an area of ​​between 50 and 600 hectares," recalls Ensure to Live.  

On the other hand, genetically modified crops (GMOs), including soybeans, corn and cotton, represent almost 100% of the area planted with these crops. The same can be observed in Brazil, where in all cases, the adoption percentages are above 85% of the area planted with each crop (soybeans, 92.3%; cotton, 94%; and corn, 86%).

Seguros SURA has extensive knowledge of the agricultural sector. It has formed a network of experts and allies that leverage the development of applied knowledge to respond to current needs and take advantage of opportunities that may arise. To do this, it carries out a structured observation of the environment, from which it understands the trends that are emerging and that can impact the entire ecosystem from different fronts: regulatory, logistical, market, environmental and technological.

In this way, it provides its clients with support that allows them to anticipate and be prepared for these trends. Likewise, Seguros SURA provides tools that allow monitoring the behavior of historical and predictive climate variables, which support decision-making, to reduce uncertainty and thus seek to manage possible risks or take full advantage of conditions that are favorable for crops.

Operational risks, changes in people's lifestyles, changes in the environment, and emerging risks are all aspects that today's business owners must consider in order to stay relevant.