A cool fruit

Issue 3/2014
The BayWa AG Magazine
A cool fruit
Trading in the most popular fruit, the apple.
Into the future
Why cooperatives are so important
for the economy.
A great sports culture
The US sport basketball
considerably gains popularity
in Europe and Asia.
C
I NOHNATLT
ENTS
E D I TO R I A L
03
EDITORIAL
0 4 JUST A MOMENT
How thousands of apples become
a work of art.
0 6 NEWS
News and events from the company
and the world of BayWa.
IN FOKUS
0 8365 days of cool: the growth of
the world apple market.
08
12 A conversation between apple
growers from New Zealand and
Germany.
MARKETS
14Ups and downs of grain prices –
the underlying facts.
16How operational management makes
wind and solar parks more profitable.
18 INTERVIEW
Why cooperatives are so important
for the economy.
2 0 BEYOND BUSINESS
Basketball has long since been
scoring.
2 2 LAST BUT NOT LEAST
Q&A and cartoon.
Contact/Publication information,
image credits.
Did you spot it? The cover photo shows an apple.
Up close. A Jonagold from Lake Constance,
traded by BayWa.
14
02
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20
12
Dear readers,
Can you remember exactly when you last ate an apple? If the answer is ‘yes’, then
you are right on trend. Demand for apples is increasing around the globe. The
healthy fruit is conquering the world. It is a story of success and just the right lead
for this third issue of our BayWa Magazine 75|60°.
Rising demand in Asia, North Africa and South America on the one hand, and
stagnating sales in Europe and the USA on the other make for plenty of market
movement. For growers and trade groups like BayWa, these developments are
opening up enormous potential. Growers need a great deal of skill, for example
in selecting the right varieties. In addition, barriers to trade are hindering the flow
of goods and are thus diverting the flow of apples. One current example of this
is the Russian embargo. Stories about different markets, tastes and trends show
why the apple really is such a cool fruit, not least for BayWa.
Our magazine is full of fresh topics too. Read how basketball is taking the
world by storm, why the tension is electric for management at wind and solar parks
and why cooperatives are so successful around the globe.
Read on for a crisp mix of international issues. I hope you enjoy this issue.
Prof. Klaus Josef Lutz
CEO of BayWa AG
75 60° 3 / 2 0 1 4
03
JUST A MOMENT
Art from nature
Emma Karp Lundström has created unique works of art using some 35,000 apples for the apple festival in the southern Swedish town of Kivik. This piece shown here measures twelve metres by nine. The autumn Äppelmarknaden is
Europe’s largest apple festival. Lundström conceptualises the pieces in winter and ten people are then employed in
autumn to help the apple design take shape. Each piece takes around 400 hours of work and features up to ten apple
varieties. Emma Karp Lundström takes care to ensure that the artwork remains meaningful as the apples slowly change
colour; a piece of apple art lasts for around four weeks. 04
75 60° 3 / 2 0 1 4
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05
NEWS
Neuschwanstein Castle
is the venue for the début of
the Fendt 1000 Vario.
New fruits,
other countries
The Peruvian table grapes for which BayWa AG
entered into a joint venture with leading South
American fruit producer Unifrutti through its
New Zealand-based subsidiary, Turners & Growers Ltd., are sweet and seedless. The long-term
supply relationship that exists between Turners
& Growers Ltd. and Unifrutti forms the basis of
the joint venture. The New Zealanders have been
receiving South American table grapes through
their subsidiary, Delica Ltd., for more than ten
years, primarily for the Asian markets.
The table grapes were grown in the northern Peruvian region of Piura on close to 60 hectares of land. The next step is for the partners to
develop and cultivate new varieties, mainly to
suit Asian tastes. The first table grapes should be
ready to market by 2015. Turner & Growers Ltd.
The table grapes
were planted in Piura
in northern Peru.
Region
of Piura
LIMA
will be responsible for distribution. The goal of
this collaboration in Peru is to ensure long-term
supply to the Asian markets.
This joint venture is the next step in BayWa
AG’s internationalisation strategy. Along with
apples and kiwis, grapes are yet another addition
to BayWa’s portfolio of dessert fruits. 06
75 60° 3 / 2 0 1 4
BayWa releases figures for first nine months
CONTEST
Energy and building materials continue
to make positive progress –
low grain prices weaken results for
agricultural sector
Test your knowledge and win a FC Bayern
Basketball bag and a hoodie.
Our question:
Take a guess …
What was the average height of
the players in the German
Beko Basketball League during
the 2013/2014 season?
Nine months into the current year, the performance of Munich-based BayWa AG has
been marked by very different developments in the individual segments. Turnover of
the international trade and service group amounted to approximately €11.4 billion by
30 September 2014 (previous year: €12.2 billion). EBIT totalled €74.5 million (previous year: €177.7 million). The huge difference between the two EBIT figures can be
attributed to an unusual factor from the previous year, when accounting profit was
made from the sale of property portfolios. Operational EBIT from the business segments after the first three quarters was €111.4 million (previous year: €133.8 million).
This year’s low prices are, however, reflected in agricultural trade. Affected by strong
harvests for both grain and fruit, and continuously decreasing prices for agricultural
produce, the agricultural sector’s contribution to BayWa’s operating profit has been
noticeably reduced. The further positive development in agricultural equipment, the
energy segment and the building materials segment was unable to completely compensate for the impact on agricultural trade. Above all, international project business
in the area of renewable energy made a significant contribution to group results, as
EBIT for the first three quarters doubled on the previous year. There was also an
increase in results by 30 September 2014 for the building materials segment in comparison to the same time last year.
“I’m certain that we can achieve the same level of results as last year for energy
and building materials, or perhaps even improve on them,” predicts CEO Prof. Klaus
Josef Lutz for the 2014 annual results. However, he explains that BayWa is also facing
many challenges in the final quarter of 2014: Some markets, in particular the grain
trade, have been affected by strong harvests, low prices, and restrained buying and
selling by producers and the industry so far. Achieving the same results as last year for
agriculture would therefore be unrealistic. Yet Lutz also says that this market situation
offers clear opportunities as the quantity of high-quality produce is high. Exploiting the
associated marketing opportunities would likely extend well into next year.
The CEO emphasises the company’s continuous international expansion with
the aim of further increasing market opportunities for BayWa in the agricultural segment, also mentioning the planned reorganisation of the domestic fruit business by
the end of the year. This will allow the domestic fruit business to focus more strongly
on international markets and above all benefit from developing sales channels to Asia.
"Plus, as a first step for serving the southern European markets, opening a Cefetra
subsidiary in Italy is of strategic importance for our aim to become the leading European company in the areas of agricultural trade, distribution and logistics with an international focus,” explains Prof. Klaus Josef Lutz. Write to us by 15 December 2014:
BayWa AG, Redaktion 75|60°,
81918 Munich, Germany
Or send an e-mail to: 7560@baywa.de,
subject: Contest
Début at the fairy-tale castle
Neuschwanstein Castle in Bavaria is one of Europe’s greatest attractions. Up to 6,000
tourists visit each day during the summer. 2013 saw a record number of 1.5 million
visitors. The Castle opened in 1886 and was conceived by Fairy Tale King Ludwig II. It
formed the backdrop for an insight into the future of agricultural engineering. It was
here that the AGCO Group débuted the Fendt 1000 Vario, which is expected to come
onto market in the fourth quarter of 2015. With an engine-power class of up to 500
hp, it is designed as the tractor for the global market.
It tackles tough field work and, with a top speed of almost 60 km/h, it is fully roadworthy. Its début at Neuschwanstein Castle would surely have pleased Ludwig II. He
was fascinated by modern technology and enjoyed travelling in elaborate carriages
and sleighs, although for all that, he had to be content with a little less horsepower. When submitting your entry, please include your telephone
number or e-mail address.
Contest rules: Operator of this contest is BayWa AG, Arabellastrasse 4, 81925 Munich, Germany. The winner will receive an FC
Bayern Basketball bag and a hoodie. The deadline for submissions (date postmarked or date sent by e-mail) is 15 December
2014. Participants must be at least 18 years of age. Participants
are limited to one entry per person. Employees of BayWa AG
and its subsidiaries and holding companies and the families of
these employees may not enter. The winner is determined by
lottery and be informed. Cash payment, exchange or transfer of
prize to a third party is not possible. All decisions are final.
The correct answer to the last contest: Toni Kroos scored two
consecutive goals in a 2014 World Cup match faster than any
other player in history.
The winner is Marc Alexander G. from Düsseldorf.
75 60° 3 / 2 0 1 4
07
IN FOCUS
C
Cool … 365 days a year!
The apple trade now covers all four corners of the world as prosperity
leads to increasing demand. Appetites for the fresh fruit are likely to nearly
double over the next few years, with Asia, North Africa and South America
being the LARGEST GROWTH MARKETS . More and more people are
discovering the great taste of apples, in any season. Trends, figures and
background on a cool fruit.
08
75 60° 3 / 2 0 1 4
hristmas in China? Only with
apples! Christmas Eve is an
exciting time, especially for
young people. An opportunity
to meet up with friends, go
for a bite to eat and exchange gifts: apples
wrapped in brightly coloured cellophane.
Why apples? Because the Mandarin word
for apple (píngguǒ) sounds very similar to
the word for Christmas Eve (píng'ānyè). A
tenuous link perhaps, but fun all the same.
And it is not just in China and not just at
Christmastime. Around the globe and
throughout the year – trade in this healthy
fruit is steaming ahead.
The story about apples in China illustrates how increasing prosperity in many
regions of the world is leading to an enormous appetite for apples. Anyone looking
to draw a map outlining the flow of goods
would have to make revisions on a daily basis.
The results of the current Apple Report, the
annual report published by the institute run
by respected market analyst Dr A. Desmond
O’Rourke, are proof of this. Experts estimate
that by 2020, demand will have grown by
more than 75 per cent in Asia alone.
“In Europe and the US, however, consumption is stagnating or, in some cases, is
even decreasing,” says Ludwig Theuvsen,
Professor of Agribusiness Administration at
Göttingen University. He and his team are
currently working on another study on the
global apple trade.
The figures show that the markets with
the greatest potential are still those in Asia.
As such, they remain of particular interest to
apple growers, primarily those whose key
markets are stagnating, like in Germany, for
example. Looking beyond the Asian boom,
markets are also growing steadily in other
parts of the world. One example is North
Africa. “Potential that South Africa is already
exploiting,” explains Professor Theuvsen in
his latest research. Up to 40 per cent of
imports – primarily to Egypt – currently
75 60° 3 / 2 0 1 4
09
IN FOCUS
A MATTER OF TASTE
Apple growers need to have a knack
for selecting varieties and must always
keep an eye on changes in taste.
AP P LES OF DISCORD
One million tonnes of European apples are in
search of new consumers since Russia stopped
importing apples from the European Union, along
with other places, in August. The EU – primarily
Poland – supplied nearly 800,000 tonnes of apples to Russia in 2013, more than 65 per cent of
Russia’s apple imports. According to experts, the
surplus of apples could lead to low-priced offers
competing with quality goods for the first time
ever, which would affect price trends. Conversely,
the empty fruit baskets in Russia mean that other
export nations like New Zealand or Brazil are
having a crack at it.
THE LARGEST APPLE GROWERS
Across the globe, nearly 80 million tonnes of apples
were produced in 2013 – and record harvests are expected this year as well. Experts are expecting an increase of
up to 20 per cent for Europe alone. Production, especially
in Asia, has steadily increased over the past few years.
Other barriers: Currently no imports of German
apples to China; high import tariffs to India.
CHINA: approx. 38 million tonnes
EU: approx. 12 million tonnes
USA: approx. 5 million tonnes
TASTES
Taste preferences around the globe are incredibly varied. While Europeans prefer slightly sour
apples, Asians particularly love sweet fruits.
Source: World Apple Review 2014, Belrose Inc.
come from the Cape. South Africa is increasingly supplying its own continent and,
because of this, has reduced its exports to
places like EU countries by around a quarter.
In doing so, South Africa is also responding to declining demand in Europe, which is
largely due to demographic changes, and is
turning towards new tastes. In North Africa,
for example, they prefer their apples to be
sweet, red and small. The Gala variety is in
demand here. European preferences, however, are quite different. “The top-selling
varieties in the EU as a whole are Golden
Delicious and Granny Smith,” says Winnie
Sonntag, Professor Theuvsen’s research
associate. Her own favourite variety is called
10
75 60° 3 / 2 0 1 4
Elstar, an apple which is very popular in Germany. A two-colour, medium-sized apple
with a slight sourness is favoured here, such
as Elstar and Braeburn.
FRESH MARKETS OFFER POTENTIAL
It is not just South African growers who are
following changing tastes. Stagnation on
one side and boom on the other together
mean that the flow of goods is changing
immensely. For European growers, Asia’s
strong increase in demand offers new
opportunities. The Chinese market has so
far been closed to German apples because
no imports are permitted. The same is true
of Thailand. India holds enormous potential.
However, their import tariffs are currently
still very high. The Southeast Asian countries
are becoming increasingly more interesting.
Here, more and more people are turning
towards a Western lifestyle – which includes
apples.
Overall, the percentage of the German
apple business accounted for by exports
looks set to continue growing. The record
harvest in 2014 across Europe and the
weak development of prices expected to be
associated with this also demonstrate how
important new markets will be. In addition,
Russia’s current apple embargo has drawn
further attention to European export issues
(see box).
Constantly adapting to new tastes and
cultivating new varieties is par for the course.
But growers must be ready to accept risk
and to persevere. After all, switching to
a new variety means waiting three years
before being able to bring in the first harvest.
And this only applies to cultivating established varieties. For entirely new varieties
this could easily take ten years. Because the
taste the grower has settled on could easily
have changed during that time, a wide range
of varieties and a balance of flavours are
needed. Apples that are popular in Asia are
increasingly being included in orchards.
Around the globe, the recipe for success
with apples is the same: good assortment,
consistent quality, 365 days a year, worldwide. Careful decision-making, logistics and
a knack for taste tip the scales towards success. In this way, grower cooperatives are
already well placed through their partnerships with international trade groups. They
not only take care of marketing; they also
bring with them the right capacity for storing,
cooling, packaging and delivering goods to
customers, before the apples reach the shop
shelves. In addition, trade groups are always
focused on global market developments.
Away from the field of business now and
back to Christmas. The most popular Chinese Christmas gift must be sweet, large and
red. Fuji or Jazz apples are favoured here.
Since taking over Turners & Growers Ltd. and
Apollo Apples Ltd., BayWa AG has become one
of the world’s leading fruit merchants, accounting for 35 per cent of New Zealand apple exports
(The effectiveness of the take-over is subject to
the approval by the Overseas Investment Office
of New Zealand). Additional sales opportunities
are opening up for German fruit on the international growth markets through the existing sales
structures of both partners, primarily in Asia. In
Germany, BayWa is one of the leading providers
of pome fruit for food retail, and has a strong
partnership with the Württemberg Raiffeisen
Fruit Cooperative (Württembergische Obstgenossenschaft Raiffeisen eG) in the apple
growing regions of Lake Constance and the
Neckar.
75 60° 3 / 2 0 1 4
11
IN FOCUS
EXCHANGE OF
EXPERIENCES
Jazz meets Elstar
Wendy and John Evans, Stefan
and Maria Haas (from left) in the
apple orchard in Kressbronn.
WEN DY AN D JOHN EVAN S were visiting MARIA AN D STEFAN HAAS at
Lake Constance. The apple producers from New Zealand were taking a look at
how fruit is grown at the other side of the world. And overall, whether you’re in
Kress­bronn or Hawke’s Bay, the standards, opportunities and risks are largely
the same. A discussion on varieties, tastes and markets from southern Germany
to New Zealand.
BayWa Magazine: From Lake Constance to Hawke’s
Bay – a bright outlook for tasty fruits?
John Evans: It’s truly an exciting time. Demand is booming
and will rise even more as prosperity increases in many
countries around the world. And the population is continuing to grow. So there are huge opportunities for growth for
producers like us.
Wendy Evans: We really must buy more land before we’re
too old, John!
Stefan Haas: The trend in the market can essentially be
summed up by one simple formula: more prosperity, more
apples.
Maria Haas: And people’s willingness to pay more for quality also increases.
So as an apple producer it’s hard to put
a foot wrong?
John Evans: Oh, it’s not that easy. The sharp increase in
demand – particularly in Asia – also brings with it potential
pitfalls. Only those who are willing to take risks and have a
knack for regional tastes will succeed. Asia, for instance,
people’s preference tends to be for sweeter products. The
Jazz apple is a major player there. So we switched some of
our crops, bought new land and planted Jazz – about seven
years ago now. It was a gamble that thankfully paid off for us.
Wendy Evans: Do the basics well, there are immense
opportunities.
12
75 60° 3 / 2 0 1 4
Who traditionally buys Jazz apples?
John Evans: We traditionally supplied Jazz to Europe and
North America and most recently Asia which has experienced strong growth.
Stefan Haas: For us, the export side of things still doesn’t
play such a large role. But we do of course also take risks
when deciding on new varieties. We’ve previously exported
to Russia, for example, where demand for Golden Delicious
was extremely high. This is not possible at the moment, of
course. Apart from that, most of our apples stay right here
in Germany, which is still our most important market.
„We really must buy
more land before
we’re too old, John!“
W E N D Y E VA N S
R J FLOWERS LTD
OBSTHOF HAAS
Hawke's Bay,
New Zealand
Kressbronn,
Germany
Size of operation
80 hectares (34 apples,
31 pears , 15 of kiwifruit)
40 hectares (27.5 of apples, 4 of red currants,
10 of sour cherries)
Employees
20 permanent employees
25-40 seasonal workers
20-25 seasonal workers
In business since
1962
1973
Size of harvest in
2013 (apples)
1,620 t, class 1
approx. 900 t
Wendy Evans: We call it a fruit salad when someone
grows too many varieties. It’s about having a balance
and a good mix to spread the risks.
We’ve talked about Jazz and Golden Delicious.
How many varieties do you need to grow to be
successful?
Stefan Haas: Five to six is enough. But in any case it’s
important to keep the harvest season as long as possible to minimise storage and market risks. We start
with Elstar right at the beginning of September and go
through to Jonagold – a winter apple variety – in late
October. Issues such as storage and overall logistics are
still extremely important. We have to store apples for a
long time so that we can supply them all year round for
example.
Maria Haas: Logistically it doesn’t work if all the varieties ripen at the same time. And it’s much easier to
discontinue those that are not selling so well if we are
growing a number of varieties.
John Evans: New Zealand is a small country that relies
on exports, this means pick, pack and ship for us – we
don’t have long storage periods. We also think that six
varieties is enough. Otherwise we wouldn’t be able to
meet our customers’ demand for large volumes. Plus
processing and marketing costs are increasing. Diversification spreads risk for us.
How do you know when to plant which apples?
After all, a tree like that doesn’t bear fruit right
away, does it?
John Evans: It’s quite complicated. And there’s always
some risk involved. A known variety may take up to
three years before it can be harvested for the first time.
For entirely new varieties, we’re talking a minimum of
a ten years. A successful apple producer should have a
balance of flavours in their range from sweet to tart.
Stefan Haas: You can easily achieve a good mix of
flavours if you are always planting new varieties. After
ten to twelve years, the tree stock has to be changed, so
that’s when we’ll plant a new variety because demand
will have changed by then. At the moment we’re planting more Galas for example.
Wendy Evans: Planning for the long term is particularly important so we have to keep an eye on changing
demand. Consistent quality is also key to success. People who buy a certain apple ultimately expect it to taste
the same every time. It’s good for business when you
love what you do. 75 60° 3 / 2 0 1 4
13
MARKETS
B
A call for
transparency
Record high in 2008, four-year low in 2014. Grain prices
can fluctuate widely. And they always have. Why is the
RELATION SHIP BETWEEN SUP P LY AN D DEMAN D so
complicated here, and what developments are currently
affecting the marketplace?
14
75 60° 3 / 2 0 1 4
etter information on grain stocks
would even out the ups and downs
on the market much more readily than market regulations,” says Prof. Dr.
Stefan Tangermann, agricultural economist
and President of the Göttingen Academy
of Sciences and Humanities. He welcomes
efforts by the OECD (Organisation for Economic Co-operation and Development)
and the FAO (Food and Agriculture Organization of the United Nations) to encourage
greater transparency with regard to global
grain stocks. Stocks in China are of particular interest here, as Chinese demand for
imported grain and soya beans depends on
these. Although China has been considered
more of an export nation in the past, today
a large amount is imported. In the 2013/14
financial year, some 70 million tonnes of soya
beans alone (two thirds of global trade) went
to China.
If globally available stocks fall because
demand for grain exceeds supply, this can
have a significant impact on prices – as
happened in 2007/2008 when global harvests were very low. But in addition to conventional changes in supply and demand, a
multitude of other factors have contributed
to the increase in the price of wheat, barley
and maize. These particularly include megatrends, such as the increasing demand
for foodstuffs due to on-going population
growth; increased demand for meat and
animal feed due to growing prosperity in
developing and emerging nations; and the
use of maize, wheat and rapeseed to produce energy and fuel. Experts estimate there
are about 15 main factors that affect pricing.
These incredibly varied factors cause marked
fluctuations in price on the agricultural markets, meaning that considerable experience
and a high degree of market expertise is
required to be able to make projections. For
example, prices went from an all-time high in
2008 to a low point in 2014, another effect of
record harvests worldwide.
The extent to which speculation leads to
price increases on the agricultural markets
has been the source of intense debate in
recent years. As President of humanitarian organisation Welthungerhilfe Bärbel
Dieckmann states, “Speculation can present an additional risk when there’s a high
degree of price volatility.” According to the
current Global Hunger Index, an annual
publication by Welthungerhilfe, 805 million
people around the world do not currently
have enough to eat. The reasons for this are
manifold: from corruption and poor education in developing countries to after-crop
failures. According to Dieckmann, Welt­
hungerhilfe is not against high prices for
agricultural products in principle “because
agriculture must be profitable.” She con­
tinues, “Neither are we generally against
commodity futures trading.”
Simply put, in commodity futures trading
grain is bought and sold before it has even
been harvested. This brings liquid assets into
markets; opportunities and risks for buyers
and sellers arise from unpredictable elements, such as the weather and economic
conditions. The futures markets also help to
reduce the risks associated with price fluctuations. And if nothing else, the resulting
liquidity is crucial for farmers, allowing them
to continue to grow and invest in grain. BayWa is among the world’s largest agricultural
traders. It focuses on long-term partnerships
with suppliers and customers. In order to be able
to protect farmers against volatile market developments, BayWa offers price models through the
‘Landea’ risk management system, which provides protection from price falls while also taking
into account price rises.
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15
MARKETS
At the ready
Having wind in the rotor blades and sun on the PV modules is
not enough to make WIN D AN D SOLAR PARKS profitable.
The technology has to be in tip-top shape. And that is the job
of an operator. They keep an eye on both the current situation
and the future of technology.
T
he sun and the moon have a rendezvous scheduled for 20 March 2015 –
a partial solar eclipse in Germany – a
rendezvous which is, of course, of interest
to the solar sector as well. When the moon
slides in front of the sun, this could mean an
abrupt loss of power in the electricity grids.
PV systems with a total output of nearly 40
gigawatts are attached to the grid nationwide. Although these systems are not at full
power in the spring, to avoid network disruptions, solar parks could nevertheless be shut
down on 20 March. Network operators can
do this remotely to guarantee the stability
of the grid. Instead, electricity would come
from conventional power stations. Because
everything also depends on the weather,
then tension surrounding 20 March 2015
will certainly be electric. Even when the systems are not producing any energy, operators continue to monitor them closely. They
ensure that the technology is in perfect
working order – and see to it that the systems
operator recovers any lost yield.
CRUCIAL TO THE PROJECT PHASE
Specialised companies take on the technical
and commercial management of numerous solar and wind plants. An operational
management assignment can come from
industrial enterprises, public utilities, citizen-funded projects or institutional in­ves­
tors. “Operational management contracts
are incredibly significant, even during the
project phase, and are considered when
securing funding for wind energy projects.
Both investors and insurers expect the input
of a professional operational management
team,” says Martina Beese, a lawyer for
the firm Engemann & Partner in Lippstadt,
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75 60° 3 / 2 0 1 4
North Rhine-Westphalia, which specialises
in renewable energies.
From the project phase to operation. All
the information concerning a park converges
with the operator – software provides continual technical updates, and operators stay
in constant contact with on-site employees
by phone. The operator manages the technical teams. Technicians who, for example, always keep an eye on whether a solar
park’s inverters are bearing up to wind and
weather and are doing their job dependably.
Trend research is also part of operational
management: are there tuning options for
the rotor blades that would increase the
park’s performance? In order for the wind or
solar park to gain as much economic head
wind as possible, it is not just the technology that must always be at the ready. Commercial operational management involves
everything from contracts and taxes to guarantees and the like.
Though the sun won’t be sending a bill,
it certainly will make 20 March 2015 very
tense indeed. Systems operators, operational managers and energy providers will
learn something new – which will also hold
them in good stead for 21 August 2017, when
there will be a total solar eclipse in parts of
the US. The technical and commercial management of
wind and solar operations is a firm part of BayWa
r.e. renewable energy GmbH’s range of services.
With a control centre that can be contacted
around the clock and on-site technicians at project locations, BayWa r.e. serves wind parks, solar
parks and distribution stations around the globe
with an installed capacity exceeding one gigawatt. In autumn, BayWa r.e.’s quality management system for technical operational
manage­ment was certified under ISO 9001:2008
by TÜV SÜD, a technical service corporation.
75 60° 3 / 2 0 1 4
17
INTERVIEW
Back
to the future
Simply put, a cooperative is an association with
an unlimited number of members who pursue a
specific economic, social or cultural purpose together. The most striking feature of cooperatives
has always been their different value systems,
which are shaped by the country in which they
are based and its history. The International
Co-operative Alliance (ICA) represents approximately 800 million cooperative members
worldwide.
BayWa was founded in 1923 as a public limited
company, but it has always had close ties to the
cooperative sector right from the start and continues to do so to this day, for example through
its ownership structure and the make-up of its
supervisory committees. Today, 60 percent of
BayWa shares are held by cooperatives.
Cooperatives are undergoing a renaissance. Members are both
customers and owners of their own company. With this dual function,
they also determine the company’s direction. This is unique. Why are
cooperatives so important and what makes them so attractive today?
BayWa CEO P ROF. KLAUS JOSEF LUTZ shares his thoughts on
statements about cooperatives around the world.
STATEMENT: Feeding the world is
only possible with cooperatives …
“The fact is that agricultural cooperatives are
traditionally an important link in the value
creation chain – in many countries, cooperatives play a crucial role in the agricultural
sector. For example, cooperatives in Brazil
market some 70 per cent of grain production, and in Finland more than 90 per cent of
dairy products are marketed by cooperatives.
Helping people to help themselves is at the
heart of the cooperative concept. So when
it comes to establishing effective marketing structures in developing and emerging
economies, cooperatives have a particularly
important and forward-looking role to play.”
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75 60° 3 / 2 0 1 4
STATEMENT: A global economy
needs cooperatives …
“Independence movements, such as those
we are currently seeing in Scotland or Cata­
lonia, as well as those that flare up time and
again, such as in Quebec, are in part associated with feelings of economic powerlessness that many people have in the face
of countless unclear global developments.
Cooperatives are no silver bullet. But they
give each individual the opportunity to influence local conditions and, in doing so, help
shape the mosaic of global events.”
STATEMENT: Cooperatives have a
bright future …
“Start by looking at the past: Anyone studying
the development of cooperatives in different
countries is embarking on an exciting journey
through each country’s economic and social
history. And the exciting developments are
set to continue. Basic needs, such as food,
energy supplies and shelter, are today often
met by cooperative solutions – let’s take citizen-funded solar power plants, for example,
which I find very interesting and important
as an example of energy transition rooted in
society. BayWa r.e. renewable energy GmbH
is also active in this area.”
STATEMENT: Cooperatives are
undervalued …
“Put it like this: Cooperatives are a significant
economic and social force in many countries
– public perception is certainly not in line
with this. I was quite surprised, for example,
that 25 per cent of Americans belong to a
cooperative. In Germany, too, around one
quarter of people belong to a cooperative
group. A small example of the global integration of cooperatives: Sunkist, a well-known
soft drinks brand in Germany, traces back
to Sunkist Growers, a cooperative founded
in California in 1893. The purpose of this
cooperative was to market citrus fruits and
award product licences. And BayWa’s work
in the fruit sector, for instance at Lake Constance, would be absolutely inconceivable
without cooperatives.”
STATEMENT: Cooperatives can
prevent financial crises …
“Cooperatives alone are certainly not ca­pable of holding back a financial crisis. But
with principles such as joint liability, personal accountability and self-administration,
they are a firm foundation for any economy.
Cooperative banks run strong primary customer and deposit operations, tending to
provide finance to stable business mo­dels.
And after the 2008 financial crisis, the co­
operative approach is playing a greater
role in all sectors. Many people lost faith in
the economy and in banking as a result of
the financial crisis. Commercial enterprises,
just like banks, must fight to regain this trust
every day by operating in a trustworthy manner. And BayWa is also taking this obligation
very seriously, placing core values such as
trust and solidity front and centre.”
Prof. Klaus Josef Lutz has
served as Chairman of the
Board at BayWa AG since
2008. He is fascinated by the
cooperative concept. In 2011,
he and Prof. Dr. Berthold Eichwald released the book
‘Erfolgsmodell Genossen­
schaften’ (Cooperatives – a successful model),
published by Deutscher Genossenschafts-Verlag
eG, Wiesbaden. Chapter summaries in English
are provided.
STATEMENT: The energy transition
can only succeed with cooperatives …
“The Club of Rome already placed environmental protection on the global agenda
more than 40 years ago. Since then, a lot has
happened concerning climate and environment protection issues on the one hand, but
on the other, far too little has been done. To
succeed in making a quantum leap, we don’t
just need large projects in the renewable
energy sector, we also need the commitment
of each individual. Getting involved directly
as an entrepreneur in an energy cooperative
is a good way to do this.”
75 60° 3 / 2 0 1 4
19
B EYO N D T H E H O R I ZO N
60 %
of pro players in the
German league are
from overseas.
46 %
of pro players in the
FIBA leagues come
from overseas.
INTERNATIONAL
SQUADS
The 16 national leagues under the
umbrella of up the FIBA (International Basketball Federation) have
an incredibly international outlook. An average of 46 per cent of
players came from overseas in the
2013/14 season. In six national
leagues, more foreign players than
native players dribble and shoot.
In Germany, Italy and Spain, professional players with foreign
passports numbered more than 60
per cent.
Source: FIBA – International Basketball Migration Report 2014.
FULL OF ENERGY
Dribbling
worldwide
Basketball is still an American sport, but it has
long since taken hold in Asia and Europe –
including the powerful branding and economic
potential that goes with it. SPORT, SUSP EN SE, SPON SORING! A look at the centre
circle and the free-throw line.
20
75 60° 3 / 2 0 1 4
The events that take place on the
basketball court are captivating
more and more spectators.
K
iss, kiss, kiss! This is the chant heard
when the Obama family visits the
basketball arena. And the kiss
Barack Obama gives his wife is shown on the
big screen. The ‘Kiss Cam’ is a popular element of entertainment in US basketball. And
soon it will be seen worldwide. The American
National Basketball Association (NBA) has
successfully dribbled its way to Beijing and
Shanghai, for example. China is the largest
foreign market for the US basketball league.
In 2012, NBA China turned over US$150 million. An NBA centre covering 130,000m2 is
currently being built near Beijing, complete
with courts, a fitness centre, a merchandise
shop and restaurant. The NBA is one of the
most popular brands in China today. The
NBA has also dribbled its way to India and
South Korea, where it supports development
programmes in schools.
As the export of basketball forges ahead,
in US cities like Boston and Baltimore, football (or soccer) continues to grow in popularity. The aim is to strengthen the power of
European football brands in the US, placing
greater emphasis on the globalisation of this
professional club sport. And when that is the
plan, setting up a branch in the Big Apple
is not a bad idea. This summer, FC Bayern
Munich’s operations unit opened an office in
Manhattan to sound their advertising horn.
FC Bayern Muenchen LLC is the first foray
of a Bundesliga club into America, right on
Lexington Avenue. Back home in Munich,
the professional footballers can often be
found at the basketball arena – watching
the home games of FC Bayern Basketball.
FC Bayern is no longer only associated with
shooting for goal but also with scoring baskets. The Bavarian metropolis is home to the
current German champions in football and
basketball, and in both disciplines it has high
ambitions for the European competitions.
Just like in Munich, Spanish cities known for
their football such as Barcelona and Madrid
also have successful basketball clubs, and
expanding the large clubs as sport brands
continues. The 2014 men’s Basketball World
Cup, in which 24 teams competed, was
hosted by Spain – where basketball enjoys
the highest popularity in Europe. Under a
resolution passed by FIBA, the International
Basketball Federation, 32 teams will take
part in the World Cup from 2019 onwards
– a further indication of the sport’s increasing global significance. Incidentally, the US
men’s and women’s teams are currently the
world basketball champions.
Germany did not take part in the World
Cup in Spain. Nevertheless, the German
Beko Basketball Bundesliga (Beko BBL) is
on the road to success and has been reporting increasing demand at the box office and
growing revenues for several years. “Spectator numbers in the 2013/14 season were a
good five per cent higher than in the previous
season. And we want to attract even more
people,” says Dirk Kaiser, spokesperson for
Basketball Bundesliga GmbH. Advertising
partners and sponsors are, of course, particularly interested in who is watching the
centre circle and the free-throw line. Simply
put, the audience is young, male and educated. The vast majority have smart phones.
On social media platforms, just as in
real life, the following is true: While more
and more people are getting into football in
the US, it is the appeal of basketball that is
growing elsewhere in the world. And more
and more heads are turning towards the Kiss
Cam. Boosting brand awareness and
activities at an international level are goals that both FC Bayern Basketball (FCBB) and
BayWa are pursuing. BayWa
has been FCBB’s main sponsor since the current
basketball season started in Germany in early
October. BayWa began its sponsorship of the
basketball club in 2011. For updates on FCBB
and BayWa activities, scan the QR code.
75 60° 3 / 2 0 1 4
21
L AST B U T N OT L E AST
Q&A
Apples are an all-round winner. We wanted to know what apples mean
to fashion designer SÔN IA BOGN ER and New Zealand’s ambassador
to Germany ROD HARRIS . Anecdotes and associations conjured up by
this top-seeded healthy fruit.
Hand on heart: in meetings do
you go for sweets or for fruit?
And if the answer is sweets,
how do you keep fit?
I always go for fruit, I love fruit! It’s
a healthy sugar kick! A positive
outlook on life generally keeps
me fit! That plus jogging, cycling,
cross-training or riding – fun
activities that keep you in shape
at the same time.
SÔNIA
BOGNER
Five words that come to
mind when you think about
apples...
-Fsss (when you bite into a sour
green apple)
-Crisp
-Tempting (whenever I see an
apple, I have to have it and eat
it immediately)
- My dog, Luna
-My horse, Campina (both love
apples; Luna always wants to
eat anything Campina gets)
In the neighbour’s garden...
Did you enjoy climbing apple
trees when you were little?
Fashion designer
Given the choice, I’d rather go for
fruit. I love outdoor exercise; I like
walking, hiking, cycling or
fly-fishing.
ROD HARRIS
New Zealand’s Ambassador in Berlin
Apples are sweet, juicy, nutritious, fresh and wholesome!
If Sir Isaac Newton
and Wilhelm Tell had been
brothers, gravity would
never have been discovered.
No. There was no space for gardens in my hometown of Rio on
the Copacabana, especially not
for apple trees. I spent more time
at the beach instead...!
Yes! As a child I conducted 'raids'
with friends on the neighbour's
apple orchard…
IMAGE CREDITS
CONTACT/PUBLICATION INFORMATION
ACTIVE WORLDWIDE
Cover: Conny Kurz; p. 2: Conny Kurz, heller &
partner/Hans-Günther Kaufmann, BayWa AG,
Julian Glonnegger; p. 3: Wolf Heider-Sawall;
p. 4/5: www.emmas.se /Emma Karp Lundström;
p. 6/7: vectorstock/sateda, Werksfoto AGCO
Fendt, FCB Basketball; p. 8/9: Conny Kurz;
p. 10/11: Richard Brimer Photography; p. 13:
heller & partner/Hans-Günther Kaufmann;
p. 14/15: BayWa AG; p. 16/17: Markus Hass,
Aufwind Nuevas Energias Spanien; p. 18: 4creations.de, iStockphoto/doubtfulneddy, Simon
Koy; p. 19: Richard Brimer Photography, BayWa
AG, meraner-hauser.com, Thomas Dashuber;
p. 20: Julian Glonnegger; p. 21: Getty Images/Tar
Heel Rob; p. 22: Private, Ministry of Foreign Affairs and Trade, New Zealand; p. 23: Cartoonstock.com/Ron Morgan
Publisher, coordination and content:
BayWa is an international trading company and
active in nearly every corner of the globe.
75|60°, the new BayWa magazine, intends to
connect the geographical space between the
latitudes of 75° north and 60° south, which
represent the area in which BayWa can be active.
BayWa AG
PR/Corporate Communications
Arabellastrasse 4
81925 Munich, Germany
Telephone: +49 89 9222 - 3651
Concept, copy and design:
verberei, Munich
75 60° 3 / 2 0 1 4
equator
www.verberei.de
If you no longer wish to receive BayWa magazine
or would like to receive an extra copy, please
contact our Customer ­Service Centre
by telephone at: +49 851 75634 - 390 or
by e-mail: ­7560@baywa.de
You can also read BayWa magazine online at
www.baywa.com
22
75°
www.baywa.com
60°
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By purchasing FSC® products, we ­support responsible
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Forest ­Stewardship Council®.
75 60° 3 / 2 0 1 4
23
BayWa AG
Arabellastrasse 4
81925 Munich
Germany