PROMOTING SUSTAINABLE FOOD SECURITY IN ASIA & THE PACIFIC IN : ADB OPERATIONS IN AGRICULTURE & NATURAL RESOURCES

Transcription

1 PROMOTING SUSTAINABLE FOOD SECURITY IN ASIA & THE PACIFIC IN : ADB OPERATIONS IN AGRICULTURE & NATURAL RESOURCES OECD-ASEAN REGIONAL CONFERENCE ON AGRICULTURAL POLICIES TO PROMOTE FOOD SECURITY AND AGRO-FORESTRY PRODUCTIVITY October 2015 Mahfuz Ahmed Asian Development Bank

2 Outline 1. Introduction 2. ADB Food Security Investment and Operations Priorities 3. Business Development and Innovation 4. Partnership and Knowledge Management

3 1. Introduction

4 Food Security in Transforming Asia and the Pacific: Key Challenges Persisting food insecurity despite impressive economic growth Climate change and disaster risks Declining natural resources and degraded environment Population growth and urbanization Demographic shifts and changing labor profile in farming

5 Post-2015 Development Directions Sustainable Development Goals: Goal 2 End hunger, achieve food security and improved nutrition, and promote sustainable agriculture. (Goals 3, 6, 7, 9, 13, 14, 15) Addis Ababa Action Agenda: Commitment to promote better access to financial resources for revitalized and sustainable agriculture in achieving food security and nutrition United Nations Climate Change Conference (Conference of Parties 21): Critical role of agriculture in addressing climate change.

6 History of ADB ANR Operations ADB ANR operations dates back 1967 Innovations on the farm and introduction of new technologies revolutionized food production in DMCs Investment in water and farm to market roads in later years Helped the region achieve food security and set the foundation for ADB DMCs evolving from low income countries to middle income countries

7 ADB Strategy 2020 MTR Food security and related recommendations Make infrastructure more inclusive Emphasize food security and agricultural productivity Promote natural resource management Scale-up support for climate adaptation Strengthen integrated disaster risk management Narrow gender gaps

8 2. ADB Food Security Investment and Operations Priorities

9 ADB Food Security Investment A multi-sector approach Food Security Investment ($2 billion annually) Public Sector Operations Private Sector Operations Agriculture and Natural Resources: Productivity Market Food Safety, Quality, and Nutrition Natural Resources Agribusiness and Value- Chain Financial Intermediary Inclusive Finance and SMEs Cross sectoral: Education Transport Finance, etc.

10 Growing Trend in ADB Agriculture and Natural Resources Operations Sovereign: $1.6 billion $3.2 billion Sovereign: $2.5 billion Non-sovereign: $726 million $6.3 billion Sovereign: $5.7 billion Non-sovereign: $600 million

11 OPANR Priorities Increasing the productivity and reducing pre- and postharvest losses of food Improving market connectivity and value chain linkage Enhancing food safety, quality and nutrition Enhancing management and climate resilience of natural resources

12 ANR Investment Areas to 2020 Core Areas Investment Areas Links with Other Sectors/Themes Productivity Sustainable infrastructure Commercialization and private service delivery Climate-smart agriculture Policy reforms Market Logistics and market infrastructure Agribusiness and value chains ICT and rural-urban-market linkages Policy reforms Food Safety, Quality, and Nutrition Natural Resources Infrastructure for safety and standards Policy, regulation, and capacity Outreach and education Policy reforms Climate resilience Land, soil, forest, river basin management - Water - Energy - Finance - Social - Gender - Climate change - Public-private partnership - Transport - Finance - Health - Social - Gender - Education - Water - Social - Gender - Climate change - Environment

13 3. Business Development and Innovation

14 Strategic Approach PARTNERSHIP SYNERGIES WITH OTHER SECTORS AND THEMES Business Development and Innovation THEMATIC GROUP SECRETARIAT SUPPORT ADB PRIVATE SECTOR OPERATIONS AND REGIONAL DEPARTMENTS

15 Learning from Ongoing Innovation Enhancing productivity crop diversification and smallholder market linkages Delivering sustainable resource use Building climate resilience technology, infrastructure and resource use efficiency Financial inclusion for agribusiness development small and medium enterprise and value chain financing Promoting inclusive business agribusiness value chain and logistics

16 Investment Highlights

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18 Enhancing Productivity (1) Policy Reform and Crop Diversification Nepal: Agriculture Sector Development Program (2016 grant of $50 million) Upgrade of logistics and services Policy reforms to increase competitiveness and promote commercial agriculture Bangladesh: Crop Diversification and Value Chain Infrastructure Development (2018 loan of $200 million) Improved capacity of farmers and enterprises to produce and market safe food and high value products Access to micro finance by farmers and agro-enterprises

19 Enhancing Productivity (2) Sustainable Land and Water Use PRC: Shandong Groundwater Protection Project (2016 loan of $150 million) Groundwater allocation to optimize surface and groundwater usage; increased retention of storm water; and wetlands management for groundwater recharge PRC: Fujian Farmland Sustainable Utilization and Demonstration (2016 loan of $100 million) Modern land management and practices to address degrading soil fertility

20 Delivering Sustainable Resource Use (1) Water Saving Technology PRC: Shanxi Integrated Agricultural Development (2009 loan of $100 million) Water-saving farming technologies, such as drip irrigation Credit to 40,000 farmers and agro-processing enterprises Supply high value agricultural produce that meets food safety and quality standards To date, 39,000 farmers have benefited from significantly increased productivity and farm income Vegetation coverage in the project area has also increased

21 Delivering Sustainable Resource Use (2) Coastal and Marine Resources Management in the Coral Triangle Papua New Guinea: Building Resilience to Climate Change (2015 grant of $24.25 million) Rehabilitation of coral reefs and mangrove forests and establishment of locally managed marine areas Income generation in aquaculture of fish and crustacean Food processing to extend shelf life to improve food security Stabilization of watershed catchment areas

22 Building Climate Resilience Food-Water-Energy Nexus Climate-Friendly Agribusiness Value Chains (2017, Cambodia: $100 million, Lao PDR and Myanmar: $50 million each) Improved critical production and post-harvest infrastructure Reduced energy cost by promoting bio-energy use and sustainable biomass management Targeted agribusiness support services Regional cooperation and integration Potential to receive GCF funding

23 Financial Inclusion for Agribusiness Development (1) SME Financing to Support Agribusiness Sri Lanka: SME Line of Credit Project (2016 loan of $100 million) Auction mechanism Financial training Cluster lending Bangladesh: SME Line of Credit (2015 loan of $200 million) 2/3 of the credit line caters to the smaller companies Cluster lending and promoting backward and forward linkages

24 Financial Inclusion for Agribusiness Development (2) Small Medium Enterprise (SME) financing to support agribusiness PRC: Gansu Featured Agriculture and Financial Services System Development (2015 loan of $100 million) Financial Intermediary (FI) loans to support rural financing for SMEs and farmer cooperatives Capacity building of local banks to enhance their lending to agriculture sector Mongolia: Agriculture and Rural Development Project (Additional Financing) (2015 loan of $50 million) FI loans to support agribusiness with focus on SMEs Support for comprehensive value chain development plans Mongolian brand development and marketing to developed countries

25 Promoting Inclusive Business (1) Smallholder Agribusiness Pakistan: Financial Inclusion and Dairy Growth Facility (2013 partial credit guarantee of up to $35 million) Availing formal credit from a local bank by 6,000 unbanked dairy farmers Disseminating technologies and linking to urban markets India and Cambodia: Spice Value Chain Development (2010 equity of $10 million, loan of $6.5 million, and grant of $5 million) ADB is investing $16.5 million in Akay, an Indian spice company that engages directly with farmers and buyers, opening up income opportunities for poor farmers. Akay Flavours & Aromatics tried a new approach by engaging directly with farmers and buyers, cutting out the middlemen and opening up income opportunities for poor farmers. With headquarters in Cochin, Kerala, the company operates 5 processing plants across the country and exports its spice products to 70 countries.

26 Promoting Inclusive Business (2) Value Chain and Logistics Samoa: Agribusiness Support Project (2014 grant of $5 million) Risk sharing arrangement with two participating commercial banks Business support services to develop value chains for agricultural export PRC: Tedahang Cold Chain Logistics (2012 loan of up to CNY150 million) Large capacity cold chain facility and warehouse and logistics management Expanded shelf life and reduced spoilage of agricultural produce

27 4. Partnership and Knowledge Management

28 Type of Partnerships Partnerships Partners 1. Cofinancing European Union, KfW, Netherlands, Swiss Development Corporation, International Fund for Agricultural Development, Global Agriculture and Food Security Program 2. Knowledge Partnership Food and Agriculture Organization, International Fund for Agricultural Development, International Rice Research Institute, International Food Policy Research Institute, ASEAN Secretariat; OECD and Regional Centers of Excellence 3. Private Sector and Civil Society Private companies and foundations (Syngenta, Rabobank), impact investors (Althelia), civil society organizations (WWF, Oxfam, Asian Farmers Association)

29 Knowledge Management Asia-Pacific Food Security Knowledge Forum (2016) Research collaboration on climate-resilient rice (International Rice Research Institute and DMCs); and value chain financing (International Food Policy Research Institute and DMCs) Expanding knowledge networks and partnerships with private companies and foundations (Syngenta, Rabobank) Engaging in South-South and North-South knowledge and technology transfer

30 Thank you!