Agricultural Development and Food Security in OIC Member Countries: Opportunities for Cooperation
Outline Agriculture Resources (Population, Land and Water) Agriculture Productivity (Land and Labor) Food Production and Trade (Undernourishment) Major Challenges and Constraints Promoting Intra OIC Investment in Agriculture Sector Policy Recommendations and Project Proposals
Rural and Agricultural Population Percent 55 50 45 40 Urban and Rural Population.3.8 50.4 53.7 54.2 49.6 46 45 Urban Rural OIC Developing Countries World 53.7% of the total population in OIC countries are living in rural areas, compared to 54.2% in the developing countries and 49.6% at global level. Percen nt 60 40 20 0 Agriculture Population 42.3 49.0 42.2 36.2 43.9 38.0 2000 2010 OIC Developing Countries World In 2010, 36.2% of the total population in OIC countries engaged in agriculture, compared to 43.9% in developing countries and 38.0% at global level. This figure decreased from a level of 42.3% in 2000. At the individual country level, morethan 50% of the total population in 18 OIC countries are still engaged in agriculture activities
Land Use in Agriculture, 2009 Agricultural Area Million Hectares % of Land Area Cultivated Area Arable Land Permanent Crops Million Hectares % of Agr. Area Million Hectares % of Agr. Area Permanent Pasture Million Hectares % of Agr. Area OIC Countries 1415 44.5 292 20.7 53.7 3.8 1069 75.77 Developing Countries 3842 38.6 1042 27.1 130 3.4 2670 69.6 World 4889 37.6 1381 28.3 152 3.1 3356 68.7 44.5% of total land area in OIC countries is agricultural land compared to 38.6% in developing countries and 37.6% at world level Yet, 20.7% of agricultural land in OIC countries is arable land compared to 27.1% in developing countries and 28.3% at world level This is due to the fact that 75.7% of agricultural land in OIC countries is permanent pasture 38% 3.8% of agricultural land in OIC countries is permanent crops compared to 3.4% in developing countries and 3.1% at world level
Water Resources,2008 Average Precipitation in Depth (mm/yr) IRWR (km 3 /yr) ERWR (km 3 /yr) TRWR (km 3 /yr) TRWR per Capita (m 3 /yr) Dependency Ratio (%) OIC Countries 47,209 5,308 2,354 7,672 4,759 30.8 World 209,159 42,517 11,854 54,372 7,974 21.8 OIC as % of: World 22.6 12.5 19.9 14.1 Average precipitation in depth in OIC countries is only 22.6% of the world average OICcountries account foronly 14.1% of the world TRWR Dependency on ERWR is 30.8% in OIC region compared to 21.8% in the world 23 OIC Countries suffering water stress, (TRWR/capita 1700 m 3 /year) 18 of them suffering water scarcity (TRWR/capita 1000m 3 /year) 13 of them suffering absolute water scarcity (TRWR/capita 500m 3 /year)
Water Use in Agriculture, 2008 Total Water Withdrawal Agricultural Water Withdrawal km 3 /yr % of IRWR % of TRWR km 3 /yr % of Total Withdrawal % of TRWR OIC Countries 943 17.8 12.3 820 86.9 10.7 World 3,906 9.2 7.2 2,743 70.2 5.1 OIC as % of: World 24.1 29.9 Water withdrawal reached almost 18% of IRWR in OIC countries compared to 9% in theworld. (If 25%» pressure on water resources) Mainly due to over exploitation, 28OIC countries are suffering pressure on theirwater resources About 87% of the total water withdrawal in OIC countries goes to agriculture compared to 70% in the world Agricultural water withdrawal accounts for 10.7% of TRWR compared to 5% in the world
Irrigation Techniques in OIC, 2008 Although 27% of total arable land is equipped with irrigation in OIC region, this ratio was lower than 5% in 22 OIC countries 91.1 Surface Irrigation Sprinkler Irrigation Localized Irrigation Others 4.3 1.8 28 2.8 91% of irrigation is done with surface irrigation technique whereas only 1.8% with Localized irrigation and 2.8% with Sprinkle irrigation which are the most efficient and water saving irrigation techniques
Agriculture Productivity, 2000 2009 Production pe er hectare (tons) 3.5 3.1 2.7 23 2.3 1.9 1.5 2.6 1.8 Agriculture Land Productivity Average land productivity in OIC 3.2 Countries was only 2.3 tons per hectare compared to the world average and the average of the developing countries of 3.2 tons per hectare 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 OIC Total Developing Countries World 2.3 per labor (US$) Production 750 650 550 450 350 Agriculture Labor Productivity 681 571 401 407 509 51 5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Average agricultural labor productivity in OIC Countries recorded at US$ 509 compared to the world average of US$ 681 and the average of the developing countries of US$515 OIC Total Developing Countries World
Fertilizers and Tractor Use, 2000 2007 KGs/Hectare 130 120 110 100 90 80 70 60 50 Fertilizer Use per Hectare of Arable Land 2000 2001 2002 2003 2004 2005 2006 2007 OIC Total Developing Countries World On average only 76 KGs of fertilizers were used per hectare of arable land in the OIC countries, compared to 116 KGs in the developing countries and theworldaverageof124 KGs Hectares Arable Land per Tractor 120 110 100 90 80 70 60 50 40 2000 2001 2002 2003 2004 2005 2006 2007 OIC Developing Countries World On average, one tractor is still used in more than 100 hectares of arable land in OIC countries, compared to 73 hectares in the developing countries and the world average of 48 hectares
Food Production Index 2000 2009 135 125 115 105 95 Food Production Index(FPI) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 OIC Developing Countries World 134 129 121 Average FPI for OIC countries showed an upward trend recording a value of 134 in 2009, compared to world average of 121 and average of developing countries of 129 in 2009 Per capita FPI In 2009, OIC average per capita FPI 114 (111) remained slightly higher than 111 110 the world average of 108 and equal to 108 106 that of developing countries of 111 102 98 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 OIC Developing Countries World Yet, at individual country level, the FPI was still below 100 in 25 OIC countries in 2009
Trade in Food, 2000 2009 Billion US$ 150 125 100 75 50 25 0 25 50 24 35 10 0.6 24 35 11 1.2 28 39 10 0.3 32 43 10 0.1 39 50 10 0.8 44 4 55 11 1.2 49 67 65 86 90 122 2 17 7.2 21 1.3 32 2.1 78 100 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Exports Imports Trade Balance 21 1.6 As a group, OIC countries are net importers of food. Food trade deficit in OIC countries has shown an increasing trend from US$ 10.6 billion in 2000 to US$ 21.6 billion in 2009; with the highest deficit recorded in 2008 (US$ 32.1 billion).
Low Income Food Deficit Countries (LIFDCs) 35 OIC countries are classified as LIFDCs. Most of these countries are located in Sub Saharan Africa and the arid regions of West Asia and North Eastern Africa. 16 of OIC LIFDCs are classified by the FAO as Countries in Crisis Requiring External Assistance.
Undernourishment 230 24 220 20.0 18.3 20 illions M 210 200 16.0 16.0 14.8 13.0 16 12 Pe ercent 190 180 198 205 219 216 1990 92 1995 97 2000 02 2005 07 8 4 Total Undernourished People OIC Prevalence of Undernourisment Developing Countries Prevalence of Undernourisment OIC Prevalence of Undernourisment World 216 million undernourished people were living in OIC countries in 2005 07, corresponding to 21% of theworld total undernourished people. Although the average share of undernourished people in total population of OIC countries has been declining since 1990, it was still at a level of 14.8% in 2005 07, 07 a level which is higher than the world average of 13%, but slightly below the average of the developing countries of 16%.
High Prevalence of Undernourishment in 15 OIC Countries 0 10 20 30 40 50 60 Comoros Mozambique Chad Sierra Leone Yemen 31 Tajikistan 30 Togo 30 Djibouti 28 Bangladesh 27 35 38 37 46 Pakistan Guinea Bissau Sudan Cameroon Uganda Niger 22 22 21 21 20 26 1990 1992 2005 2007 Prevalence of undernourishment was still very high in many OIC countries in 2005 07, especially the OIC LIFDCs. It was higher than the world average of 13% in 21 countries. Compared with the level in 1990 02, undernourishment has increased in Comoros, Yemen, Pakistan and Uganda.
Major Challenges and Constraints I Inadequate use of land and water resources, due to the scarcity and inefficient use of water resources and agricultural machinery and technologies. Inadequate land tenure and water rights due to the lack of appropriate p legal rules and regulations frameworks, as well as problems related to crossborder water sharing agreements. Low agriculture productivity and poor access to production inputs and related infrastructure and services.
Major Challenges and Constraints II Concerns on governance, political i l and economic stability, weak institutional capacities and administrative bureaucracy, and inadequate agricultural planning and strategies. Inadequate agricultural investments and limited financial resources and fluctuations in world agricultural commodity prices and other trade difficulties in the international commodity markets. Inadequate economic transformation and structural diversification policies and increasing migration of agriculture labour force from rural to urban areas
Major Challenges and Constraints Yet, despite these constraintsand challenges; Agriculture is still considered as a very important and crucial economic sector in many OIC countrieswith ith highh potential ti tosignificantlyimprovethestateof ifi tl i th t t f food security. 23 OIC countries are figured among the world top 20 producers of major agricultural commodities, varying from cereals to tropical/temperate zone commodities.
OIC Countries among the World Top 20 Producers Commodities Cocoa Coffee Cotton Maize Natural Palm Rice Soybean Sugar Rubber Oil Beet Tea Wheat Afghanistan 20 Bangladesh 4 11 Burkina Faso 14 Cameroon 6 14 13 Côte d'ivoire 1 11 8 8 Egypt 12 13 12 15 Gabon 20 Guinea 17 19 Indonesia 2 4 8 2 1 3 10 7 Iran 18 14 10 14 Kazakhstan 18 10 Malaysia 13 3 2 Mozambique 20 18 Nigeria 4 13 10 9 3 18 11 Pakistan 4 18 12 6 Sierra Leone 16 Syria 8 Tajikistan 17 Togo 8 Turkey 7 12 6 5 8 Turkmenistan 9 Uganda 19 12 13 Uzbekistan 6 18
Intra OIC Investment in the Agriculture Sector Agricultural l development and improvingi food security either ih by increasingi agricultural productivity or by bringing more land under cultivation require financial resources...this signifies the importance of appropriate investments t in agriculture sector at the national levell and/or in terms of FDI. But Agriculture oriented projects are perceived as very risky in developing countries..mainly due to weak business and investment climate. Therefore, Improve the investment climate and encourage the Intra OIC investment in agricultural projects by directing more intra OIC FDI to the least developed agricultural based membercountries. Recently, some OIC member countries, particularly GCC members, made huge investments in the agriculture sector of some OIC LDCs. There is need for encouraging and promoting such initiatives.
OIC Countries with High Potential for Intra OIC Agriculture Investment Agricultural Labor Force (% of Total) Burkina Faso Niger Guinea Guinea Bissau Gambia Mozambique Mali Djibouti Uganda Senegal Comoros Chad 92.1 82.9 79.8 79.3 76.0 76.0 74.9 74.0 73.5 70.2 69.4 65.7 Somalia 65.6 Sierra Leone 60.0 Afghanistan 59.7 Togo 53.4 Sudan Mauritania 51.5 50.3 Arable Land (% of Agricultural Land) Gambia Turkey Comoros Iraq TRWR (km 3 /year) Bangladesh 82.7 Indonesia 2,019 Egypt 78.2 1,227 Bangladesh Pakistan 77.7 580 Malaysia Benin 74.2 304 Pakistan Suriname 71.3 286 Nigeria Togo 65.1 286 Cameroon Cameroon Albania 54.9 51.6 51.4 50.8 Maldives 50.0 Burkina Faso 49.3 Uganda 47.3 Nigeria 45.6 Indonesia 44.0 Bangladesh 45.4 Azerbaijan 39.4 Benin 44.3 0 20 40 60 80 100 Senegal Iran 40.5 2010 data 35.5 63.7 60.2 0 20 40 60 80 100 241 232 226 Guyana Turkey Guinea 217 Mozambique 164 160 149 138 122 110 100 100 97 2009 data 86 Gabon Sierra Leone Sudan Iran Suriname Kazakhstan Mali Tajikistan 37 OIC countries (20 of them are LDCs) enjoy jyhigh potential at least in terms of one of agricultural resources (agricultural labor force, arable land and water resources). Iraq Egypt 2008 data 0 500 1000 1500 2000 2500
Policy Recommendations & Project Proposals I At the national level, l efforts should be made to increase agricultural l productivity, particularly in food products, by increasing the arable land area through appropriate national investments and/or through attracting FDI in the agriculture sector. At the OIC cooperation level, efforts should be made to enhance and direct more intra OIC investment in the agriculture sector. An OIC Agricultural Investment Promotion Agency (OIC AIPA) is recommended to be established. An OIC Seed and Crop Improvement Centre (OIC SCIC) is recommended to be established. An OIC Agro Business Fund should be established to encourage investments in food sector and food security programmes.
Policy Recommendations & Project Proposals II An OIC Food Security Program should be initiated i i and developed d for rehabilitation and rebuilding of the agriculture and food sector. The issues of water shortage in the context of food security, public health and sanitation, and access to safe drinking water should be addressed both at the national and OIC cooperation level. Improving business and investment environment at the national level should be considered a high priority with emphasis on the promotion of OIC investors in member countries through introducing specific measures in national regulatory frameworks. An emergency response mechanism should be developed and adopted at both the national and OIC cooperation level.
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