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Third Industrial Revolution Consulting Group<br />

farmer, the shareholders absorb the loss with diminished weekly deliveries of certain foods.<br />

This kind of peer-to-peer sharing of risks and rewards binds all of the shareholders in a common<br />

enterprise. The Internet has been instrumental in connecting farmers and consumers in a<br />

distributed and collaborative approach to organizing the food supply chain. In just a few years,<br />

community supported agriculture has grown from a handful of pilots to nearly three thousand<br />

enterprises serving tens of thousands of families.<br />

The CSA business model particularly appeals to a younger generation that is used to the idea of<br />

collaborating on digital social spaces. Its growing popularity is also a reflection of the increasing<br />

consumer awareness and concern about the need to reduce their ecological footprint. By<br />

eliminating petrochemical fertilizers and pesticides, CO 2 emissions from long-haul food<br />

transport across oceans and continents, and the advertising, marketing, and packaging costs<br />

associated with conventional Second Industrial Revolution food production and distribution<br />

chains, each shareholder comes to live a more sustainable lifestyle.<br />

Finally, new cutting edge developments in the life sciences are opening up vast new<br />

opportunities for the agricultural sector. The fiber industry is introducing new biological based<br />

products as substitutes for petrochemicals in packaging, construction materials, enteric<br />

coatings for pharmaceutical products, and filaments for 3D fabrication and manufacturing,<br />

raising the prospects of additional income generation for farmers, growing specialized fiberbased<br />

materials that can replace petrochemicals in a range of commercial fields, along side<br />

conventional food crops. In the Third Industrial Revolution era, it will be critical to find the<br />

appropriate balance in using agricultural land for both food production and fiber production<br />

that can substitute for petrochemical products.<br />

STATE OF PLAY AND LUXEMBOURG VISION<br />

Luxembourg’s food and agricultural contribution to GDP is approximately 0.3 percent. The gross<br />

value added from the agriculture sector has fluctuated over the past two decades from a high<br />

of €164 million in 2002 to a low of €80 million in 2009. 119<br />

Value Added Production<br />

The chart below indicates the production value from Luxembourg’s agriculture sector. Milk<br />

(26.5%) and forage plants (28.4%) represented more than half of the Luxembourg agriculture<br />

sector’s total value.<br />

119 Source: Service d’Economie rurale, Luxembourg<br />

154

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