You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stenovich on Bloomberg Radio. Yeah, so we're going to talk about growing, specifically agriculture. A little bit of background everybody. Our Bloomberg New Economy team, they drawn insights from global leaders innovators along five editorial pillars Finance, Commerce, sustainability, resilience and security. They hold annual events around the world. They're just looking to get to the heart of our
most important issues. And in keeping with that, they have the Catalyst program that they established in twenty twenty one. And this is a simple goal finding people whose innovation's efforts and objectives have a genuine shot at changing the world for better. So they are scientists, they're entrepreneurs, their policymakers from all walks of life, but they all demand recognition. Including our next guest, who is a member of the Bloomberg New Economy Catalyst Class of twenty twenty two, doctor
Annasasia Volkova. She is CEO and co founder of Regrow. She's also included in Fast Companies list of the world's fifty most innovative companies of twenty twenty three. A twenty twenty MIT thirty five hundred thirty five Innovator when a BBC's Top one hundred Women. She's given two TEDx talks about egg technology, remote sensing and sustainable farming. I had to lay it out here because you are just a rock star. She's here in our Bloomberg Interactive Brokers Broker's studio. Welcome, Welcome,
delighted to have you, Carol. You got me blushing cringing so hard during that it was amazing. I know, I know, I'm really sorry, but I think it's important to lay it out because you're getting noticed because of the work you're doing. First of all, welcome and thank you for coming in than you having me and I am a little subjective. You are a blue Catalyst, but they choose really well and really smartly. UM, tell us about regrow and what you are doing. So you know how we
have a climate crisis. Yeah, I've heard good agriculture unfortunately has something to do with it. Opposed to be in an industry that can heal the planet. That seems very odd, isn't it. It's the industry that really works on the land and therefore should probably be good for a climate but in post World War two era, we decided we just need to feed everyone at all costs. We needed to produce so that people would go hungry so wouldn't
get another war. And that was the optimization that we were running, so production right whatever, at all costs production, and we probably did not take the full cost accounting of the planet resources that we were drawing on. And now agriculture contributes about a quarter of all greenhouse gases. Pretty stagrain, isn't it. That's pretty staggering, it is, And I mean, there's so much negative that we could talk
about with the climate crisis. The way you put it before when we were talking is that it's the eleventh hour for humanity, which really struck me. We'll go there. Why why is it the eleventh hour? Well, we are in a bit of a vicious cycle between agriculture contributing to emissions and emissions making climate more volatile, which makes agriculture more uncertain, and the agricultural production more volatile, and
it continues on. So we need to step out of that cycle and truly change the incentives away from profitability or simply production at old cost and production at a true cost, accounting for the planet. Forgive me anastasia. I feel like people are gonna be like, I go to my grocery store. There's plenty of stuff there. I have no problem with this. So help us understand because you're to me saying crisis right, and I've had We've had others who come on and talk about this same thing.
But again, Mattie and I are going to go and we can buy probably whatever we want tonight for now because we're here in the US. Not everyone is as privileged as we are. And every year there's at least two major production regions, whether it's Ukraine or Brazil or Australia, that are experiencing just catastrophic of other events, floods, dry out altogether. That is what, in a way is driving the cost of food up. So clearly everyone's notice we're
paying more even if you can get it now. Because this is one of the biggest economies in the world, it will be driving this demand supply towards us. It may be that we're currently doing it at a bit of an expense of a global sealth. Well, that's such an important piece because even if we do have access to fresh produce, for example, in the US, we're all feeling the financial impact that climate change is having on
our food supply chains and groceries. Friendly is frankly is not what you judge it by because groceries you can have local supply chains and whether it's vertical farms, whether it's someone shipping it across the country. But it's truly the cost of substantial commodities like wheat or availability of sunflower oil. Post Ukrainian crisis has become a major topic in the industry. How are we shipping the production? What
are we going to do about it? Unpacked that somewhere because I do feel like the Ukrainian or the Russian war invasion of Ukraine, which you are Ukrainian, So just because we want to talk to you you a little bit about that, but I think a year ago, all of a sudden, we're like, whoa, we had no idea. What would we call it? The bread basket? Right, and to understand how much was in production? Talked to us a little bit more about that and the thinking of that.
Like you said, it's not necessarily the stuff we go into the grocery stores. It's stuff like that the heart, Yeah, the massive brands that you buy in a grocery store. They all were sourcing from Ukraine, one commodity or the other. Eighty percent of the world sunflower, one of the main drivers behind vegetable oils, is produced in Ukraine. Eleven to fifteen percent of wheat. It's feeding not just Europe that does not have that production region, but also Africa, other
areas in the world. And when you start clogging up the food web that has been very resilient uple until that moment when you start to closing ports or weaponizing food, you really start feeling the impact of how important that production was for us to be In this fluid, ever balancing cycle of what fell resilient. It's going to get more out of hand with climate crisis really kicking in
and wiping out harvests. And looking into your background as someone from Ukraine who had family there as well, can you talk a little bit about how that, combined with your expertise on the climate, has changed your perspective on certainly, And it's definitely a privilege to be sitting with you here and telling the story and drawing the attention to the Russian war on Ukraine. No one expected it, no
one knew it was coming. Yes, it was invasion eight years ago, but it wasn't a full scale invasion, and Ukraine is the definition of resilience amongst nations right now, and hopefully everyone can see that they continue to farm, They continue to literally pick minds and drones out of the fields, to continue to plant or harvest or fertilize crops or whatever they need to do, because they know that's their responsibility for themselves as well as the world.
And I hope that the world will take on a little bit of responsibility for the security of such an important country. What do you think the world is missing when it comes to the war in Ukraine. I guess there's just a lot of misconceptions around. Oh maybe if we empower Ukraine then they will be also able to take back some more territories. They're fighting for their lives, and I think Europe is very vocal about it internally, but there's certainly not yet a critical mass to say,
how do we put a stop to it? President Zelenski tell us, how do we put a stop to it? We will support that plan. Let's go and execute against that plan. Rather than trickling the support in we just results in frankly, more dead children, in Ukraine right now. Yeah,
I just think so much about the ptsdps as well. Like, even if let's say the war ended right now, it's not like everything would go back to normal overnight and the wheat supply would suddenly be back to normal, or the buildings would resurrect themselves, right and people could just easily just go back to the way it was completely And I think even with agricultural crisis land or into the war, and we haven't even started talking about the
energy angle into it. Because agriculture is so connected to the supply of fertilizer that depends on the primary energy sources. It's into the cost in a big way. It feels into the cost and frankly just controls controls the nation's exports, imports, what they buy, how much food security they have. We are not going to be able to see that overnight go back. It's agriculture isn't at least an annual cycle,
if not a multi year cycle. We have about a minute then we're going to come back and continue the conversation. But what do you say to people again who are like, we're fine. You know, people used to talk about too you know, the world's falling and we come back, we bounce back. We're gonna have food, We're gonna be fine. So imagine during those times of civil war in Ukraine that everyone went to school. Sorry, civil war in the
US is what it feels like in Ukraine. Can you possibly imagine that the times would have turned, that there wouldn't be one country with all the states, that someone would be shooting somewhere right now, one hundred people in a minute. What would that feel like? That would feel really odd, bizarre, and you wouldn't put us up to it immediately. That's what it feels like. It's like incredible times.
As we said earlier, we say, I feel like every day over and over very sobering and understandably so we want to get back to when we come back on the other side of this break. You know what your company is doing because you're working to solve the problems, and so we want to get into exactly what you're doing. You want to get back to our guest, as we mentioned, a member of the Bloomberg New Economy Catalyst Class of
twenty twenty two. She is still with US. Doctor Anna Stage of Alcova, CEO and co founder of Regrow still with us in our studio. So we've been talking about your company, tell us specifically about the work you're doing and the impact you're having. Yeah, we talked about your karine. We talked about climate and how do we change the way that we manage agriculture by optimizing for what the planet needs to get from us, not only give us.
That is a question of information and insights and do the right people who are making decisions do they see the true cost accounting? Do they see how farming is taking or giving to the environment. And Regro does just that. We provide insights to large companies all across the agriculture and food supply chain to help them see their so called Scope three emissions or the emissions on the farm and help lower them so they can be part of
creating the better future today. Is it to eat to some extent as stage to have to think about Okay, so you're doing something you need to think about there's actually a dollar value on the cost of how we impact our climate. That's exactly about it that way, that's exactly it like incorporating that cost of externality. So for example, if we're treating soil poorly and we till it a lot.
We actually are reducing its resiliency and we are not going to capture as much water the next time we have a flush, flood rain event, anything, and we see the effects on that and for example, Central California, Central Valley compared to if we were actually putting the investment for the long term, we would see the resilience and it would pay off and we would not have the shocks to the yield and agricultural system in the worst
years and the best years. Where are you seeing the most buy in for change from like the farmer all the way to the CEOs of big banks. Yeah, everyone actually is aligned on the mission of this is one planet in Nobody in agriculture and food industry will literally have any businesses if we don't invest in this. What do you say you mean everyone is aligned? They are aligned. Actually they Yes, we need the future, we need resilience,
We need it now. So farmers, the big food companies, farmers their most important agenda is to pass the land and the next generation the company's perpetual planet profits. How are they going to get into that world if they don't invest in it now? Banks alike in a little bit, but they're trying to catch up, but the industry that so clearly has experienced the shocks is working on it together. Can we tell you got an award today? Yes, of course, a UBS award, Yes, for being a global visionary. Okay,
so there you are UBS, big Bank. What kind of conversations were they having in their thoughts because money makes things happen, Yes, and they want to guide their customers, their clients to invest more sustainably, to invest in the solutions to the future that will build the resilience in the portfolio of their customers, in the portfolio of these industries. Massive industries where now rewiring to be optimizing for the
future of the planet, not just profit both. And we were talking about the difference between short term profitability and long term Have you found that discussion to get easier over time getting people? Yeah? Tell us the breakdown of all right, Okay, those who are watching a YouTube and Blueberg originals can see I think her face on the stage's face, or maybe they didn't butt she was like,
a yeah, a little bit skeptical. Skeptical that's a good word. Um, Yes, I think the long term discussion it's very hard to quantify the benefits of long term value of resilience. That is where they sticking point is how about a word for you existence m okay, sorry, yes, yes, yes, that is truly the award the ability for them to continue to exist. But I think in our in the corporate mentalities, what we're seeing is you often need to show this
is the cost benefit. The benefits will come in later on years, in the years to come, decades to come. The companies, frankly that are still held by families do not have any questions to this. They investing their running towards net zero. They have earlier goals twenty twenty five. The public companies are still trying to align in corral the stakeholders. But I think about like, you know, the we talked so much about semiconductors, so important to so
much in our world right now. And you know, whether it's an intel in AMD at TSMC, if they're going to build a new facility, it's a lot of money. It's going to take a while to get there. I mean oil companies where you're doing drilling, a lot of money, a lot of planning. It takes a while. It's the same kind of thinking, the same mindset absolutely, So you provide data information and then what kind of what do your clients and complied possibility. First of all, we help
them understand. So you have global sourcing from older regions in the world, or even local sourcing. Where are your emissions, where a farming practices so good for the planet you don't have to worry about it, and where they need some improvement, and how can you actually participate and incentifize
that improvement. Whether you are a food manufacturing company, a grocery retail, whether you are a trader aggregator, whether you are a farmer yourself, whether your financial institution that's landing to that farmer or even holding the land asset, there is something you should be taken off and adding back into that margin on the farm so they can invest
in sustainability. Can you give us one sweet thought as we get ready to go into a long weekend, have about a minute left of a company or institution that you worked with and what they we did with it? Yes. So,
for example, m kellogg is a wonderful example. They brought sustainable rice products such as their special keys and crispies to the Wilmert shelf through investing on farm into emissions reduction, and they were able to tell that story to consumer so that that mom will be in Walmart this weekend picking something nice, can feel good about that purchase decisions good for the planet. That is such a great example
and also reminds me to ask you quickly. We have like thirty seconds, not just offsets, right actually yeah, yeah, definitely value chain, supply chain action together with all the partners insets, let's reduce what we currently emit. Let's not offset. Yeah, that is such a big I think. I'm so glad you brought that up because it isn't just a baud offsetting. It's actually reducing your impact. We need to work on it together if we are to exist. Come back, let
us know how your work is going. Really glad, A very thoughtful conversation, very relevant in terms of some of the huge issues that are facing our world right now. And say thank you, congratulations on your award. Thank you many many awards exactly at a stage of Akova. She is co founder and chief executive officer of Regro, joining us here in our Bloomberg Interactive Brokers studio. That conversation. If you missed any of it, be sure to check
out our podcast feed. Yeah, the AG space is something that I feel like it's taken a long time to bring about changes, but it's starting. Yeah, and you've been on this beat. I feel like Carol for so long. I can remember prepping for ESG panels by watching interviews that you've done with like the CEO of Ikea talking about sustainability, and it's just I know it's something you've covered a lot and done great work with care about
our world. I don't want to live in the metaverse Exorry, sorry meta I'm want to live in the real world and eat real stuff. Um, you are listening in watching Bloomberg Business Week. This is Bloomberg Radio.