3FOOD

Third Industrial Revolution Consulting Group
The food sector is beginning to turn its attention to the challenge. Replacing petrochemical
farming practices with organic ecological based farming practices is spreading across Europe
and even in Luxembourg. Approximately 4,000 hectares of land in Luxembourg are currently
being used for organic agriculture (this includes arable land, grassland, wineyards, fruit and
vegtables).
The total retail sales of organic food are approximately €75 million annually (a large part of this
turnover is still covered by imports from other EU-countries and beyond). Consumer demand is
pushing the transformation. An increasing number of Luxembourgers are willing to pay
premium prices for organic and sustainable foods.
Farmers are also joining together in the creation of electricity cooperatives and beginning to
install solar, wind, and biogas energy technologies, creating a second business as micro power
generators.
Changes in consumer dietary preferences are forcing a rethinking of farm practices. For
example, intensive rearing of cattle and, to a lesser extent pigs, requires massive amounts of
energy and is the most inefficient means of providing food in the agricultural system. It takes up
to eight pounds of feed to create a pound of beef, making intensive cattle production and
related animal husbandry practices even more inefficient than automobile transportation. A
younger generation in Europe is beginning to wean itself off of a heavily meat-oriented diet and
is consuming more fruits and vegetables.
Community Supported Agriculture (CSA) is a good example of the impact that new TIR business
models are having on how food is grown and distributed. A century of petrochemical- based
agriculture, in tandem with other technological innovations, spawned a vast increase in
productivity and a corresponding reduction in the number of small farms. Now, a new
generation of family farmers is turning the tables by connecting directly with households to sell
their produce. Community Supported Agriculture began in Europe and Japan in the 1960s and
spread to America in the mid-1980s. Shareholders – usually urban households – pledge a fixed
amount of money before the growing season to cover the farmer’s yearly expenses. In return,
they receive a share of the farmer’s crop throughout the growing season. The share usually
consists of a box of fruits and vegetables delivered to their door (or to a designated drop-off
site) as soon as they ripen, providing a stream of fresh, local produce throughout the growing
season.
The farms, for the most part, engage in ecological agriculture practices and utilize natural and
organic farming methods. Because community supported agriculture is a joint venture based on
shared risks between farmers and consumers, the latter benefit from a robust harvest and
suffer the consequences of a bad one. If inclement weather or other misfortunes befall the
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