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Farming in the Desert


Helmy Abouleish

True cost accounting, London, UK
6th December, 2013
Transforming the Desert – 36 Years
of SEKEM
The first SEKEM building in 1979

A SEKEM field in 1979

The same building in 2009

The same field in 2009
Ecological agriculture in Egypt

– Compost



- Aiming for the impossible..
Opening ceremony
of the Sinai Project
2008

	 The land before…
…and changing our world.

… and after 18 months.



Integrative value chain & Associations
SEKEM – a Learning, Living
Community
• About 2,000 employees in SEKEM Group and Foundation
• Safe workplaces, respect for the dignity of every employee
• Women empowerment and religious tolerance
SEKEM – Developing Human
Potential

•
•
•
•
•

Kindergarten and school
Medical centre
Vocational training
Community school
Children with special needs

•
•
•

Adult education
Heliopolis Academy for
research and training
Heliopolis University for
Sustainable Development
Holistic
approach to
Sustainable
Development

The Sustainable
Development
Flower

EMERGE 2013, Oxford, UK, 3 November 2013 - Helmy Abouleish
Outlines of the comparative study

• A study to compare the full cost of production (cost/ton)
development of 7 crops grown in Egypt under 2 different
scenarios: “Business as Usual” (BAU) and sustainable farming
practices
• For all 7 crops (corn, cotton, potatoes, rice, sugar beat, sugar
cane, wheat) the full cost of production was calculated for the
period of 10 years





Approach and assumptions


• For simplicity reasons only “hard externalities” such as energy, fertilizer price
developments as well as carbon and water footprint were considered.
• Based on activity data from the Egyptian Ministry of Agriculture and Land
Reclamation (MARL) of the years 2000-2010
• Based on reference data from the FAO, IEA, World bank.
• Every year 1.25-1.8% more synthetic fertilizer needs to be applied in BAU systems to maintain same
yield “Fertilizer Efficiency”
• Average annual carbon sequestration in sustainable systems is 1 ton of carbon per hectar
• Carbon tax of 12.5 US$/tCO2e as per New Zealand taxation system and 0.1 US Cent for 1 m3 of
water as per price suggested by Booz Allen Hamilton consultant.





Results


Consolidated cost of production internalizing the impact of energy, fertilizer & water
price development as well as a carbon tax . Other costs such as pest and disease
control, labour, land rent, seeds were included as well.
Thank you very much for
your attention!


www.sekem.com

Helmy Abouleish
SEKEM Group
P.O. Box 2834 El Horreya
Cairo, Egypt
helmy.abouleish@sekem.com
Ecological agriculture in Egypt 

– Cotton
• 1991: SEKEM convinces the Egyptian government about the benefits
of biodynamic cotton after its success to harvest first biodynamic
cotton crop.
• As a result, the application of pesticides in Egypt was reduced by over
90%.(Decreased from 35000 tonnes per year to 3000 tonnes only)
Transforming the Desert
The first SEKEM building in 1979

The same building in 2013

• 36 years sustainable agriculture at SEKEM
–
–
–
–
–
–
–

20,000 acres (including suppliers)
2,000 jobs
400 small-holder farmers
Over 1 million tons CO2e sequestrated
20-40% water savings
Continuous yield increase
Continuous decrease of inputs

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Helmy Abouleish

  • 1. 
 Farming in the Desert
 Helmy Abouleish True cost accounting, London, UK 6th December, 2013
  • 2. Transforming the Desert – 36 Years of SEKEM The first SEKEM building in 1979 A SEKEM field in 1979 The same building in 2009 The same field in 2009
  • 3. Ecological agriculture in Egypt
 – Compost
  • 4. 
 - Aiming for the impossible.. Opening ceremony of the Sinai Project 2008 The land before…
  • 5. …and changing our world. … and after 18 months.
  • 7. SEKEM – a Learning, Living Community • About 2,000 employees in SEKEM Group and Foundation • Safe workplaces, respect for the dignity of every employee • Women empowerment and religious tolerance
  • 8. SEKEM – Developing Human Potential • • • • • Kindergarten and school Medical centre Vocational training Community school Children with special needs • • • Adult education Heliopolis Academy for research and training Heliopolis University for Sustainable Development
  • 10. Outlines of the comparative study • A study to compare the full cost of production (cost/ton) development of 7 crops grown in Egypt under 2 different scenarios: “Business as Usual” (BAU) and sustainable farming practices • For all 7 crops (corn, cotton, potatoes, rice, sugar beat, sugar cane, wheat) the full cost of production was calculated for the period of 10 years
  • 11. 
 
 Approach and assumptions
 • For simplicity reasons only “hard externalities” such as energy, fertilizer price developments as well as carbon and water footprint were considered. • Based on activity data from the Egyptian Ministry of Agriculture and Land Reclamation (MARL) of the years 2000-2010 • Based on reference data from the FAO, IEA, World bank. • Every year 1.25-1.8% more synthetic fertilizer needs to be applied in BAU systems to maintain same yield “Fertilizer Efficiency” • Average annual carbon sequestration in sustainable systems is 1 ton of carbon per hectar • Carbon tax of 12.5 US$/tCO2e as per New Zealand taxation system and 0.1 US Cent for 1 m3 of water as per price suggested by Booz Allen Hamilton consultant.
  • 12. 
 
 Results
 Consolidated cost of production internalizing the impact of energy, fertilizer & water price development as well as a carbon tax . Other costs such as pest and disease control, labour, land rent, seeds were included as well.
  • 13. Thank you very much for your attention! www.sekem.com Helmy Abouleish SEKEM Group P.O. Box 2834 El Horreya Cairo, Egypt helmy.abouleish@sekem.com
  • 14. Ecological agriculture in Egypt 
 – Cotton • 1991: SEKEM convinces the Egyptian government about the benefits of biodynamic cotton after its success to harvest first biodynamic cotton crop. • As a result, the application of pesticides in Egypt was reduced by over 90%.(Decreased from 35000 tonnes per year to 3000 tonnes only)
  • 15. Transforming the Desert The first SEKEM building in 1979 The same building in 2013 • 36 years sustainable agriculture at SEKEM – – – – – – – 20,000 acres (including suppliers) 2,000 jobs 400 small-holder farmers Over 1 million tons CO2e sequestrated 20-40% water savings Continuous yield increase Continuous decrease of inputs