CLIMATE CHANGE UNIT Agribusiness in the context of Climate Change. Presented by

Transcription

1 CCU CLIMATE CHANGE UNIT Agribusiness in the context of Climate Change Presented by Climate Change Unit State Department of Agriculture MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERIES Kilimo House, Nairobi KAPAP Agribusiness Promotion Training on Environmental and Social Safeguards for Service Providers Consortia and Implementing Agencies Venue, Date

2 What is Agribusiness? The business of agricultural production, processing or marketing The production, processing and supply of agricultural goods and services The development of agricultural value chains

3 It Includes Agrochemicals and farm input supply Breeding Seed supply Crop production (farming and contract farming) Distribution of inputs and produce Farm machinery Processing of farm produce Wholesale and distribution Marketing and retail sales

4 Opportunities exist in Agribusiness due to Rapid urbanization and increasing demand for processed foods Spatial and temporal variation of world food prices Dominant sector within the economy Large potential to generate export earnings Comparative advantage nationally and regionally Climate change challenges

5 Weather, Climate and Climate Change Weather is the current, local, transient state of the atmosphere (temperature, humidity, atmospheric pressure, wind, precipitation, atmospheric particle count) Climate is the statistical average of weather variables over time Climate Change is a permanent significant change in the long term average of one or more of climate variables, as a result of global warming (basically an increase in temperature)

6 Drivers of Climate Change One of the drivers of climate change is global warming. Global warming is caused by build-up of greenhouse gases The five major greenhouse gases are a) Carbon dioxide (CO 2 ) b) Methane (CH 4 ) c) Nitrous Oxide (N 2 O) d) Perfluoromethane (CF 2 ) e) Sulphur hexaflouride (SF 6 ) Impacts of climate change are noticed in: Spatio-temporal shifts in weather patterns (e.g. rainfall distribution and amounts) The frequency of extreme weather events (e.g. drought and floods)

7 Contributing Sectors

8 Contributing Sectors Globally, agriculture contributes Between 70 and 90 percent of anthropogenic Nitrous Oxide; Between 40 and 50 percent of anthropogenic Methane; and 15 percent of anthropogenic Carbon Dioxide emissions The main sources of agricultural GHGs are Land Clearance for agriculture Nitrogenous Fertilizer Flooded Rice Production Enteric Fermentation in Livestock

9 Contributing Sectors Many agricultural value chain activities give rise to emission of greenhouse gases and hence cause climate change

10 Some contributing factors more human than natural

11 Contribution of Agribusiness to Climate Change 1. Input acquisition [transport, storage] Manufacture of fertilizers Lead to CO 2 and N 2 O emissions (machines) Spillages/Disposal Transport and handling of inputs Contribute to CO 2 and N 2 O emissions (machines) Spillages/Disposal 2. Soil/Land and water management Soil Tillage Operations Land clearing (Release of soil and aboveground C) Turning the soil (Release of soil C) Manure management (Release of manure CH 4 ) Machinery emissions

12 Contribution of Agribusiness to Climate Change Soil erosion issues Soil cover (exposure of soil C and N 2 O emissions) Land degradation (release of soil C and N 2 O) Soil fertility issues Soil Organic Carbon management (Fixation/release of soil C) Fertilizer application (Release of N 2 O) Soil moisture management (Soil microbe activity)

13 Contribution of Agribusiness to Climate Change 3. Crop/Livestock husbandry CROPS: Emissions due to machines in mechanized operations Production inefficiencies due to timing of operations, enterprise choice Imprecise fertilizer application (placement, quantities) Inappropriate ground cover management Improper crop residue management Wastages due to Pre-Harvest, harvest, and postharvest operations

14 Contribution of Agribusiness to Climate Change LIVESTOCK: Inappropriate choice of breed Inappropriate feeds and feeding Poor housing and FYM handing/management Over stocking 4. Pests and disease control (mechanized) 5. Marketing and value addition/processing Processing machine emissions Emissions in the production of packaging materials Emissions due to transportation Wastes due to disposal

15 Some consequences

16 Impacts of Climate Change on Agribusiness 1. Input acquisition (transport/storage) Increased costs of transportation, handling Impassable roads Enhanced perishability (Hot weather) Increased cost of packaging Increased costs of handling and storage Reduced quality of inputs Seed viability Weathering of inputs (caking, spillage..) Damage to the packaging material

17 Impacts of Climate Change on Agribusiness 2. Soil/Land and water management Enhanced soil erosion (cost of control) Leaching or volatilization of nutrients (reduced nutrient use efficiency) Reduced machine efficiency (increased costs of operation) Increased irrigation cost (high evapotranspiration) Destruction of farm infrastructure and structures

18 Impacts of Climate Change on Agribusiness.. 3. Crop/Livestock husbandry Total enterprise failure Reduced yields due to climate stressors Increased costs to control/manage the stressors 4. Pest and disease control Higher incidences (Increased costs of production) New incidences (New costs of production) Reduced quality of produce (reduced income) Reduced yields (reduced income)

19 Impacts of Climate Change on Agribusiness 5. Marketing and value addition/processing Increased cost of processing, handling, packaging and transportation Reduced quality of product/produce Shorter shelf life of the produce/product Competition from cheap alternative products/produce Market gluts (risks of low prices)

20 How can we reduce the contribution of Agribusiness Enterprises to Climate Change? [Mitigation] 1. Input acquisition (transport/storage) Choose appropriate (climatically suitable) agribusiness enterprise Use locally available inputs 2. Soil/Land and water management Practices that reduce the need to till the soil (Minimum tillage; Conservation Agriculture) Soil erosion control and Soil fertility management Soil Organic Carbon management (Incorporation of crop residue to the soil, Mulching) Precise Fertilizer application Soil moisture management Proper compost and manure management

21 3. Crop/Livestock husbandry CROPS: Mitigation Ensure timeliness of operations, appropriate enterprise choice Precision Fertilizer application (placement, quantities) Proper ground cover management (cover cropping, mulching) Practice residue recycling, crop rotation

22 Mitigation LIVESTOCK: Choose of breeds that are suitable for the area (efficiency) Use feeds with low carbon footprint; and feeding methods that reduce wastage Ensure that the FYM is collected for biogas production and utilization 4. Pest and disease control Disease tolerant/resistant breeds/varieties Integrated disease and pest management

23 Mitigation 5. Marketing and value addition/processing Efficiency in processing machines Consider packaging materials with low carbon footprint Efficiency in transportation Reduction of wastes

24 How can we enhance the resilience of Agribusiness Enterprises to the Impacts of Climate Change? [Adaptation] 1. Input acquisition (transport/storage) Proper enterprise choice (type and variety/breed) Seasonal planning for early input acquisition Proper farm storage

25 Adaptation 2. Soil/Land and water management Seasonal maintenance of soil erosion control structures Appropriate soil erosion control practices Improvement of soil organic matter (mulching, residue recycling, green manuring, FYM/Compost application etc) Soil testing and subsequent ph and nutrient amendments Agroforestry with appropriate tree species In situ water harvesting/water conservation practices Supplementary irrigation

26 Adaptation 3a. Crop husbandry (Good Agronomic Practices) Appropriate spacing/plant population Precise fertilizer placement Proper weed management Proper pests and disease management Intercropping with legumes/ Mixed cropping Drought/Flood/Disease tolerant crops/varieties Drought escaping varieties High yielding varieties Water efficient/nutrient efficient varieties Proper farm records management Index Based Weather Insurance

27 3b. Livestock husbandry (Good Husbandry Practices) Choice of the appropriate livestock breed and type Appropriate housing Appropriate feeding Adaptation Proper breeding and management of the production cycle Pest and disease management Appropriate handling of the animal products Appropriate culling and restocking Proper record management Index Based Weather Insurance

28 Adaptation 4. Marketing and value addition/processing Farm record analysis Market intelligence and surveys Keeping production and marketing costs low Keeping the costs of processing, handling, packaging and transportation low Product diversification Contract farming

29 Challenges to Agribusiness in a 1. Pre-production changing climate Increased temperatures and increased rainfall variability increases the potential use of fertilizer, increasing demand for fertilizer, which increases greenhouse gas emission Increased prevalence of pest, vector and disease incidences also increase demand for agrochemicals, leading to increased emission due to increased production and supply

30 2. Production Increased risk of reduced seed viability especially for some legumes Increased risk of faster reproduction and mobility of insect pests, disease vectors and diseases (shorter lifecycles due to higher temperatures) leading to more rapid build-up of insects and fungi in stored produce Production systems will also be affected by changes in rainfall, humidity, extreme events Changes in temperature, rainfall, humidity and extreme events will affect pre-harvest and post-harvest systems and activities Increased risk of fire due to increased rate of in-field crop drying Increased risk of earlier maturity than expected increasing the risk of market mis-timing

31 3. Pre-harvest and post-harvest Increased rate of homestead crop drying due to increase in temperature, increasing the risk of earlier pest infestation This increases the need to re-winnow, re-sort and re-treat grain midway through storage period Increased risk of fungal rot and mycotoxin contamination of stored products Expanded pest, vector and disease territories e.g. to higher altitudes or previously cooler areas Decreases and/or increases in efficacy of active ingredients of some grain protectants

32 4. Transportation Weather affects transportation, and extreme weather events affect transportation extremely, depending on the frequency, severity, and seasonality of the extreme weather events Highly sophisticated, low-inventory food chains that work to a just-in-time mode of delivery are highly susceptible to disruption by weather Increased disruption of transportation and distribution owing to increased incidences of extreme weather events, such as floods, may affect transportation schedules and distort market forces Increased transportation logistics ( food miles ) makes a large direct contribution to increased GHG emissions

33 5. Processing Increased GHG emissions from food processing including CO 2 (from combustion in cookers, boilers, and furnaces) and CH 4 and N 2 O (from wastewater systems) Increased GHG emissions via energy use associated particularly with cooking and refrigeration during food preparation (processing, cooking, and storage)

34 6. Marketing, sales and consumption Consumer behavior is affected by weather variables, such as temperature, sunlight and rainfall Patterns of food consumption can be expected to respond to future trends in temperature and precipitation Extreme weather events will be a more frequent determinant of food purchase and consumption, either by limiting consumers access to food or by determining food preferences

35 Opportunities for Agribusiness in Adaptation and Mitigation to Climate Change Opportunities for businesses that both create value and address climate change exist in design, adaptation, prototyping, testing, manufacture, sales/distribution and after sales service for a wide range of relevant climate technologies

36 Renewable Energy Bio energy Biodigesters (Biogas) Fuel wood - Energy saving stoves Solar energy Solar lamps, solar driers Hydro energy - Hydrums

37 Tillage and Planting Equipment for minimum tillage/conservation agriculture such as subsoilers, shallow weeders, herbicide (knapsack) sprayers Drought-tolerant seed and planting material Precision planters such as jab planter Right type of fertilizers Right type of agrochemicals

38 Greenhouses Hydroponics Treadle pumps Drip irrigation kits Water Management

39 Post-harvest Management Manual Grain shellers Solar Grain Driers Equipment for grain storage such as sisal sacks, metal or plastic drums, bins, metal silos, Equipment for processing/value addition such as potato/cassava chippers Transportation services Storage services

40 Crop Insurance Insurance products such as drought insurance, frost insurance, flood insurance, pest/disease insurance Weather Index based crop insurance Yield Index based crop insurance

41 Going Forward Finance Provide Agribusiness entrepreneurs with a range of competitive financial offerings, ranging from proof-of-concept matching grants, seed capital investments and syndication of larger financing Business Advisory Provide training and mentorship in technical, business and management skills as well as competencies to turn appropriate technologies into viable businesses

42 Going Forward Enabling Ecosystem Leverage direct experiences of private agribusiness entrepreneurs to inform relevant government regulations, policies and strategies to encourage profitable local innovation and business Access to Information Gather, package and disseminate information on the highly dynamic agribusiness sector, including the latest technologies and local markets

43 Important Institutions State Department of Agriculture Agricultural Engineering Services Directorate, Kilimo House Crop Management Directorate, Kilimo House Agribusiness and Market Development Directorate, Kilimo House Agriculture Technology Development Centre in Bukura (Kakamega County), Bungoma (Bungoma County), Homa Bay (Homa Bay County), Katumani (Machakos County), Mpeketoni (Lamu County), Mtwapa (Kilifi County), Nakuru (Nakuru County), Ruiru (Kiambu County), Siakago (Meru County) and Siaya (Siaya County) Kenya Climate Innovation Centre Kenya Industrial Research Development Institute Kenya Association of Manufacturers

44 Michael Obora Nelson Gatonye Joab Osumba Michael Okumu Rose Gwaro Climate Change Unit State Department of Agriculture Kilimo House Nairobi