White Paper Examines Role of Agricultural Innovations in Meeting World Food Crisis

Agricultural Innovations Can Ensure Affordability, Supply, Safety and
Sustainability
GREENFIELD, Ind.--(Business Wire)--
Does agriculture need technology to help meet the growing worldwide demand for
safe, nutritious and affordable food? The answer is a resounding "yes,"
according to Jeff Simmons, author of a white paper titled "Technology`s Role in
the 21st Century: Food Economics and Consumer Choice." In his paper, Simmons
provides a comprehensive review of the growing challenge of feeding the world`s
population, including both historical data and projections that underscore the
absolute necessity for new and existing technologies in food production.

"Already, an estimated 963 million people do not have enough to eat, and by
2050, we will need to produce 100 percent more food than we do now," says
Simmons. "We can`t achieve that by merely adding farmland or increasing crop
intensity. But, we can use technology-such as advances in nutrition, disease and
pest control, and livestock management-to increase productivity. Having said
that, it`s imperative that we use only those innovations that have a neutral or
positive effect on the environment; to do otherwise is to sacrifice our
long-term survival in favor of short-term gains."

The consumer perspective

Simmons also examined consumer attitudes about food safety and found that in a
survey conducted by the International Food Information Council in 2008, about
half of the respondents were concerned about "disease and contamination," yet
only 7 percent reported that they worried about agricultural production methods.
Just 1 percent cited biotechnology as a top-of-mind concern. What consumers want
most in their food is high quality and affordability.

As an example, recent polling in the United States, United Kingdom, Germany,
Argentina and China identified taste, quality and price as the top
considerations when choosing food products. Of these, affordability can be
expected to become an increasing concern as the global economy remains in a
state of heightened volatility.

"The question of how food is grown became even more relevant in 2008, when the
entire world saw pressures on food production accelerate as never before," says
Simmons. "As painful as this increased focus is in industrialized nations, it
can be devastating in poor nations where even modest increases in food prices
can mean the difference between sustenance and starvation."

Technological innovation as the solution

Simmons concludes that technology is an important key to meeting the global
demand for food and consumer choice for three reasons. First, technology enables
food producers to provide more high-quality grains and protein sources using
fewer resources. For example, a combination of best-management feeding practices
and efficiency-enhancing feed ingredients enables today`s cattle growers to use
two-thirds less land to produce a pound of beef than it takes to produce a pound
of beef from "all-natural," grass-fed cattle.

Second, technological innovation can help keep food affordable while ensuring
maximum consumer choice - especially in developing nations. While some
countries` well-designed organic systems can provide better yields and profits
than traditional systems, on a global scale, organic foods come with a premium
that many consumers can`t afford.

Finally, technology can help minimize the global environmental impact of
increased food production. For instance, modern beef-production techniques
actually reduce greenhouse gas emissions per pound of beef by 38 percent
compared with "all-natural" production methods, according to a 2007 study by the
Hudson Institute. Moreover, technologies such as livestock feed ingredients can
help significantly reduce animal waste production that threaten vital water
resources, particularly in developing nations where modern pollution-control
standards are not in use.

Creating an ultimate "win"

Simmons contends that an ultimate "win" is possible if societies focus on
creating these five key achievements:

1
Improving the affordability of food by using new and existing
technologies, and optimal productivity practices
2
Increasing the food supply by instituting a vastly improved degree of
cooperation throughout the entire global food chain
3
Ensuring food safety via a combination of technological innovation,
and high-quality standards and systems, along with more worldwide
collaboration
4
Increasing sustainability through highly productive, efficient systems
that simultaneously protect the environment through sensitive,
efficient use of natural resources
5
Producing more biofuels to reduce dependence on fossil fuels while
creating no negative effect on global food supplies

"The consequences of failing to use science-based agricultural technologies and
innovations will be disastrous," says Simmons. "Food producers in industrialized
and developing nations alike require technology to ensure a sustainable supply
of safe, nutritious, affordable grains and animal protein to satisfy the rapidly
growing demand. That is why we all share the responsibility to make sure new
agricultural technologies - as well as those proven safe and effective for
decades - continue to be available."

About Elanco

Elanco is a global innovation-driven company that develops and markets products
to improve animal health and food-animal production in more than 75 countries.
Elanco employs more than 2,300 people worldwide, with offices in more than 40
countries, and is a division of Eli Lilly and Company, a leading global
pharmaceutical corporation. Additional information about Elanco is available at
www.elanco.com.

Elanco
Joan Todd, 317-277-7464
OR
5MetaCom
Susan Miller, 765-620-2007

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