From Scarcity to Solutions 2025

Cargill’s risk management and fertigation system upgradesCase study 13 Cargill is a leading multinational corporation focused on agriculture and food. Leveraging its global agricultural supply chain, Cargill promotes the transition of the agri-food industry towards greener and more sustainable practices. In collaboration with the World Food Programme, Cargill implemented an agricultural risk management project in Songyuan, in China’s Jilin province. Through risk management, fertigation system upgrades and farmer training, the project aimed to enhance farmers’ resilience to climate and market risks while conserving water and reducing fertilizer use. Business model innovations –Reduce disaster risk through fertigation system upgrades: Supported smallholder farmers in adopting fertigation technology through infrastructure development. Demonstrated the benefits of fertigation in saving water, reducing fertilizer use and increasing yields. –Enhance farmers’ ability to manage market risks using financial tools: Piloted the “insurance + futures” product to help farmers hedge against price volatility and weather risk. –Empower farmers through training: Conducted sessions on agricultural risk management, financial literacy and sustainable agricultural technologies. Outcomes –Resource conservation: The fertigation system was implemented across 2,175 hectares, benefiting over 1,000 corn farming households. It achieved a 30.7% reduction in water use, a 24.2% reduction in fertilizer use and a 10% increase in crop yield in 2023. –Improved farmer livelihoods: From 2022-24, the “futures + insurance” income protection scheme paid out over 1.5 million RMB to participating corn farmers. As a result of the scheme’s demonstration effect, the township’s insurance coverage increased from 45% in 2022 to 85% in 2024. –Farmer training: Three in-person training sessions were held, reaching over 500 participants. Lessons learned –Farmer education and acceptance of modern agriculture and risk management knowledge are critical for the successful promotion of sustainable agricultural practices.Source: Cargill materials review. From Scarcity to Solutions: Food-Water Innovation in Asia and the Middle East 32