Agricultural productivity and efficiency measurement Overview of the Global Strategy project
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1 Agricultural productivity and efficiency measurement Overview of the Global Strategy project OECD Network on Agricultural Total Factor Productivity and the Environment (Paris, May 2017) Franck Cachia Statistician, Global Strategy FAO, Rome
2 Contents 1 - The Global Strategy 2 - Productivity and efficiency: rationale 3 - Challenges in developing countries 4 - Objectives, approach and activities 5 - Next steps and timeline
3 Contents 1 - The Global Strategy 2 - Productivity and efficiency: rationale 3 - Challenges in developing countries 4 - Objectives, approach and activities 5 - Next steps and timeline
4 1 The Global Strategy The Global Strategy to improve agricultural and rural statistics is a global initiative aiming at improving the availability, quality and use of agricultural/rural data in developing countries It has 3 pillars: 1 Produce a minimum set of core data 2 Better integrate agriculture in National Statistical Systems 3 Improve governance and statistical capacity building 25 Research lines (Productivity & Efficiency is one of them) Methodologies, guidelines, field test results published on:
5 Contents 1 - The Global Strategy 2 - Productivity and efficiency: rationale 3 - Challenges in developing countries 4 - Objectives, approach and activities 5 - Next steps and timeline
6 2 - Productivity and efficiency: rationale Why this renewed interest in agricultural productivity? There is an urgent need to increase productivity in developing countries to: Feed a rising population (especially in less developed regions of Africa and Asia) Better use ever scarcer resources, especially arable land and water Improve livelihoods (food security and/or cash revenues), in countries where agriculture is often the major economic sector Why should efficiency be addressed? Inputs and resources are ever more constrained Efficiency (how well a given set of inputs is used) = one (important) source of productivity gains Research has mostly focused on technological change, not efficiency Efficiency is less well understood and difficult to measure Policy implications of technology or efficiency-driven productivity are different
7 2 - Productivity and efficiency: rationale Sustainable Development Goals (SDGs) Indicator 2.3.1: Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size ; Indicator 2.3.2: Average income of small-scale food producers, by sex and indigenous status ; Indicator 2.4.1: Proportion of agricultural area under productive and sustainable agriculture. Africa (Malabo Declaration, June 2014) In order to end hunger in Africa by 2025, at least a doubling of agricultural productivity is needed compared to current levels Need for clear and comparable measurement frameworks Need to support countries to produce these indicators
8 Contents 1 - The Global Strategy 2 - Productivity and efficiency: rationale 3 - Challenges in developing countries 4 - Objectives, approach and activities 5 - Next steps and timeline
9 3 Challenges in developing countries Measurement issues General lack of data, poor quality, lack of consistency Imprecise measurement of agricultural output (Kelly et al., 1996): o o By-products used for feed, energy, construction, etc. Mixed cropping with 2, 3 or more crops mixed on the same field Complex valuation of inputs and outputs: o o Importance of self-produced inputs (seed, feed, etc.), self-supplied or shared resources (family labour, exchange labour/service, communal land, etc.) Thin/absent markets: for land, labour, certain inputs and outputs Focus on data collection Prioritize gaps/needs Combine/articulate data collection and estimation Provide sustainable solutions (even if from 1 st best)
10 3 Challenges in developing countries Measuring output?
11 3 Challenges in developing countries Institutional and organizational issues Weak statistical infrastructure Low and unstable financial resources Multiplicity of donors, low participation/commitment of national governments (in the less developed countries) Unclear distribution of responsibilities for data collection in agriculture: ministry of agriculture, statistical offices, research organizations, etc. Overlapping and competing data collection activities. Ex: farm surveys + household surveys (LSMS-ISA) + census + ad-hoc studies + Articulation with existing data collection activities Sustainable strategies: compromise btw detail/accuracy/frequency Documentation/Training/Transparency
12 Contents 1 - The Global Strategy 2 - Productivity and efficiency: rationale 3 - Challenges in developing countries 4 - Objectives, approach and activities 5 - Next steps and timeline
13 4 - Objectives, approach and activities Focus / Scope Fill methodological and data gaps regarding productivity and efficiency measurement Linking data requirements to indicators Propose practical ways to measure technical efficiency Propose concrete, sustainable and cost-efficient solutions Emphasis on developing countries (-> data collection) Addressing the needs created by the SDGs (-> indicators)
14 4 - Objectives, approach and activities Objectives Clear and operational definitions of the main concepts Identification of the major data/methodological gaps Identification and description of the main measurement methods Recommendations on What data to collect, how, for what purpose How to construct, interpret and disseminate indicators Product/Activities Literature Review and Gaps Analysis (Feb 2017) Guidelines on agricultural productivity and efficiency measurement (Dec 2017) Field-tests and deskstudies
15 Contents 1 - The Global Strategy 2 - Productivity and efficiency: rationale 3 - Challenges in developing countries 4 - Objectives, approach and activities 5 - Next steps and timeline
16 5 Next steps and timeline Literature Review and Gaps Analysis June 2016 January st Workshop (USDA, Dec. 2016) Guidelines 1 st draft June 2017 Field Tests September nd Workshop (FAO, Oct. 2017) Final Guidelines December 2017
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