Innovation Priorities for Productivity Increases in Organic South Asia Dr. Shaikh Tanveer Hossain

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1 Innovation Priorities for Productivity Increases in Organic South Asia Dr. Shaikh Tanveer Hossain Vice-President, IFOAM Organics Asia Program Officer, Agriculture Dept., APO

2 Innovation a new idea, device, or method. adopted from other cultures/societies Innovation can be viewed as the application of better solutions that meet new requirements, or existing market needs. Innovation happens when someone improves on or makes a significant contribution to something that has already been invented. Steve Jobs was an innovator. Invention is the creation of a product or introduction of a process for the first time Thomas Edison was an inventor. Productivity Simple concept by nature defined as a ratio between output and input. It may be measured physically, monetarily, or both, such as number of tractors produced per worker or a crop yield per hectare of land.

3 Agricultural Features in South Asia 1.6 billion people, 2.4% of the World s land area and 17% of World population Agriculture important for livelihood security of more than 50% population.

4 Agriculture Profile of SA Countries Name of Country Popula1on (Rural) Total Area Lands Use Farm Size Agri Contribu1on to GDP Agri Employment % of total popn (2014) Annual growth rate (%) ( ) (million ha) in 2012 Arable (million ha) Permanent crops (million ha) (Average) (ha) (2000) (%) (2012) (Ref. WB) Bangladesh Bhutan* India Nepal Pakistan Sri Lanka Japan South Korea (%) (2014) Data Source : FAOSTAT and World Bank ; *RNR Statistics,Bhutan

5 Challenges of SA Agriculture Growing numbers of smallholders Water, labor and energy shortage Yield gaps Resource weaknesses Climate change Weak public-private partnership Policy mismatches

6 SA Economies and Agriculture

7 Total Factor Productivity Growth (%) Country TFP growth ( ) Bangladesh 0.5 India 2.4 Pakistan 1.3 Sri Lanka 2.6 Japan 0.4 South Korea 1.7 China 4.4 Source: APO Productivity data book 2014

8 Agricultural Productivity Indicators in SA (2008) Countries Labour productivity in Ag (2000 constant USD) Land productivity of Ag (2000 constant USD per ha) Fertilizer use (kg/ ha) No. of tractors per 1000 ag workers Agriculture TFP growth rates (%) ( )* Bangladesh India Nepal Pakistan Sri Lanka Japan (2007) (2007) South Korea Source: APO, 2013 and *Burki, A. 2015

9 Change in agricultural output, inputs and TFP in Asia Region Growth in Agri. output TFP growth Share of TFP in output growth Growth in Agri. output TFP growth Share of TFP in output growth Growth in Agri. output TFP growth Share of TFP in output growth Developed Asia (Japan, Korea, Taiwan, Singapore) North East Asia, developing (China, N. Korea, Mongolia) South East Asia (Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philip, Thailand, Vietnam, etc.) South Asia: (Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka) % % % % % % % % % % % Asia, except West Asia % % % World % % % Source: Calculated from Fuglie (2012) Produc1vity growth and technology capital in the global agricultural economy. In K. Fuglie, S.L. Wang and V.E. Ball, eds. Produc'vity Growth in Agriculture: An Interna'onal Perspec've, CAB Interna1onal, Wallingford, UK

10 Change in agricultural output, inputs and TFP in South Asia Country Output growth TFP growth Share of TFP in output growth Output growth TFP growth Share of TFP in output growth Afghanistan Nega1ve Bangladesh Nega1ve Bhutan India Nepal Nega1ve Pakistan Sri Lanka Asia, except West Asia World Source: Fuglie, K. (2012) Produc1vity growth and technology capital in the global agricultural economy. In K. Fuglie, S.L. Wang and V.E. Ball, eds. Produc'vity Growth in Agriculture: An Interna'onal Perspec've, CAB Interna1onal, Wallingford, UK.

11 Major and HVCs in SA countries Production of Major Food Grains (m tons) Production of HVCs (m tons)

12 Productivity (rice and milk) Country Rice, paddy-(t/ha) Milk (kg/cow) Bangladesh India Nepal Pakistan Sri Lanka Japan South Korea Source: APO, 2013

13 Productivity in South Asia Agricultural productivity can possible to increase innovation can be contribute to increase the productivity sector prioritization is important

14 Key issues of innovations in SA Resource analysis and mapping Commodity selection (particular country/or area) Market analysis and development Review the success technologies and case stories

15 Productivity factors Yield and Income

16 Factors Affecting Agricultural TFP and its Growth Innovation (new technology and knowledge) R&D investment Extension Business innovation in farming practice and management Human capital Education, training Demographic changes Social factors (e.g. attitude, retaining young people in the rural community) Natural resource management Climatic changes Changes in soil and water availability Pests, diseases, weeds Public infrastructure Transport IT and communication Market competition market access Finance Access to financial resources

17 A framework for agricultural productivity Agricultural producdvity growth Macroeconomic condi'ons Farm- level factors An innova(ve opera(ng environment Inves1ng in R&D External factors Enablers Policy approaches Building human capital Developing infrastructure IncenDves Sharpen price incen1ves Improve opera1ng flexibility

18 Organic Farming in SA Country Agriculture land (ha) Aquaculture land (ha) Bangladesh Bhutan 6156 Wild collection (ha) India Nepal Pakistan Sri Lanka Bangladesh is 2 nd in the organic aquaculture in the world followed by Vietnam India is 3 rd in the wild collection followed by Finland and Zambia FiBL & IFOAM : The World of Organic Agriculture 2014

19 Figure: Conceptual relationship between traditional (organic by default), sustainable agriculture, organic agriculture and certified organic agriculture in the context of all agriculture. 19

20 Innovation and organic agriculture Sectors: Livestock and aquaculture, hor1culture, medicinal plants, agro- processing, bio- fuels, fibers, forest products Drivers: Opening up of world markets, trade, new technology, urbaniza1on, industrializa1on of the food chain Features: Diversity, small niche sectors but dynamic. Reaches the poor through employment. Knowledge- intensive Challenges: Requires con1nuous knowledge- intensive innova1on to compare and cope in rapidly changing condi1ons and knowledge diffusion model development

21 Organic Agricultural Development Sustainable Organic Agricultural Development Technology Entrepreneurs Capital Func1on of innova1on- oriented monitoring & evalua1on in a rural innova1on systems Infrastructure Organic Market

22 Organic farming and agricultural productivity Organic farming can enhance the agricultural productivity- - sustainable agriculture uses less external off-farm inputs (e.g. purchased fertilizers) and more of locally available natural resources - crop rotation - integrated farming - Multiple cropping, crop diversification and cropping intensity - Intercropping, relay cropping, mixed cropping - Cover cropping - organic fertilizer - Bio-pesticide - using livestock - management of natural resources, such as biodiversity, soil, water - waste utilization and management 22

23 Main challenge: increased productivity of agriculture in a sustainable manner From focus on increased productivity alone To holistic integration of Natural Ressource Management with food and nutritional security

24 New Innovation Paradigm Innova1on capacity characterized by networks or systems to mobilize knowledge and use it new ways. Diversity of innova1on arrangements- - Research- intensive for innova1on process with high technological content (quality seed ) - Peer- intensive for innova1on process with high organiza1onal and design content (knowledge diffusion prac1ce) - User- intensive for innova1on process to match products with consumer niches (natural resource management) Ref: Learning Innova1on Knowledge Policy- relevant Recourses for Rural Innova1on

25 Reducing bottlenecks to link farmers to markets

26 Value Chain Development Tradi1onal Marke1ng Systems Value Chain Marke1ng Systems hhp://

27 CASE INNOVATION-1 Organic Rice Duck Farming USD/ha Location Cropping season Bheramara, Kushtia Iswardi, Pabna Boro T. Aman 2010 T. Aman 2010 Boro Farming system Rice-Duck Sole rice Rice-Duck Sole rice Rice-Duck Sole rice Rice-Duck Sole rice Gross return Total Variable Gross margin Net Margin of rice-duck over sole rice

28 Integrated Rice Duck Farming Philippines

29 CASE INNOVATION- 2 Bangladesh Sajjaduzzaman et al., 2005 Hossain, 2013

30 APO and Activities 30

31 APO and Activities What Is the APO? The APO is a regional intergovernmental organization with a mission to contribute to the sustainable socioeconomic development of Asia and the Pacific through enhancing productivity. The APO was established in The APO is nonpolitical, nonprofit, and nondiscriminatory. 31

32 APO s Mission, Vision and SDs 32

33 APO Strategic Directions Approved at the 53rd GBM

34 Five Key Roles of the APO Think Thank Clearinghouse for Productivity Information Serving its member countries Catalyst Institution Builder Regional Adviser 34

35 Membership 20 member economies Bangladesh (1982) Cambodia (2004) Republic of China (1961) Fiji (1984) Hong Kong (1963) India (1961) Indonesia (1968) Islamic Republic of Iran (1965) Japan (1961) Republic of Korea (1961) Lao PDR (2002) Malaysia (1983) Mongolia (1992) Nepal (1961) Pakistan (1961) Philippines (1961) Singapore (1969) Sri Lanka (1966) Thailand (1961) Vietnam (1996) 35

36 Structure Governing Body Workshop Mee1ng of Heads of NPOs Secretariat Secretary- General Administra1on & Finance Department Industry Department Research & Planning Department Agriculture Department 36

37 Types of projects Multi-country Projects Individual country Projects Research Conferences/Forums Observational Study Missions Workshops Training courses Digital Learning Observational Study Missions Technical Expert Services Development of Demonstration Companies/ Organizations Bilateral Cooperation Between NPOs Institutional Strengthening of NPOs National Follow-up Programs 37

38 APO Programs for Improving Productivity, Sustainability and Competitiveness of the Agriculture and Food Sector Sustainable Management of Agriculture Resources and Technology SMART Program Food Quality and Safety Management - FQS Program Agribusiness Competitiveness Enhancement ACE Program Rural Enterprise and Agriculture Revitalization - REAR Program

39 Role of APO in Agriculture and Food Sector Increased Production/ Productivity/ Competitiveness/ Food Security Farmers income More Products for Export Market/ Increasing Export Revenues / More jobs created APO facilitates transfer of knowledge, best practices and information in the supply chain Adopt improved techno, practices etc. Adopt product certifications- GAP GMP, ISO, etc. Sets product standards, ISO, GMP, GAP,HACCP Demands Product Qlty., Food Safety, Price, Qtty. Farmers Food Processors GOs/NGOs Academics, NPO Consultants Assemblers/ Exporters Importers/ Distributors Retailers Customers/ Consumers APO Enhances capacity /capability for efficient production, processing and marketing

40 Acknowledgement Asian Productivity Organization (APO) IFOAM Organics Asia 40

41 Contact: E- mail: tokyo.org ; tanveer107@yahoo.com Cell