Agriculture in the Greater Mekong Subregion(GMS) Sununtar Setboonsarng Southeast Asia Department Partnering for Smallholders Inclusive Market Opportunities in the Mekong Hanoi, 8-9 Dec 2015
Outline of Presentation ADB GMS Regional Cooperation in Agriculture Agriculture and climate change Gender-responsive inclusive value chain
ADB Operations Overarching goal: poverty reduction Technical Assistance Structural reforms Knowledge products Capacity building Project preparation Loan and grant to scale up inclusive and green investments
ADB Operational Plan for Food Security Productivity Connectivity Quality Natural Resource Management
Greater Mekong Subregion Regional Cooperation Program Sectors Agriculture Energy Environment Human Resource Development Tourism Trade and Transport
Agriculture Systems Productivity at the expense of nutrition, food safety, biodiversity, High green house gas emission Use over 80% of fresh water Employ 70% of rural women
Vision for the GMS Agriculture Sector The Greater Mekong Subregion is recognized globally as the leading producer of safe food, using climate-friendly agricultural practices and integrated into global markets through regional economic corridors 8
Vision The Greater Mekong Subregion is recognized as the leading producer of safe food, using climate friendly agricultural practices and integrated into global markets through regional economic corridors. Pillar 1: Food Safety Trade Modernization Pillar 2: Climate Friendly Agriculture Pillar 3: Bioenergy and Biomass Management Agricultural Research and Development Private Sector Involvement Institutional Mechanisms for Regional Cooperation
Food Safety and Trade Modernization
Food is Foundation of Life
Micronutrient Deficiencies Affect 2 billions people Deficiencies in micronutrients (iron, iodine, vitamin A, folate, zinc, ) Cause devastating consequences, particularly for children below 1000 days
PESTICIDE AND HERBICIDE 5.6 billion pounds per year (EPA, 2010) Less than 0.1% of pesticides reach their target pests Residues cause cancer, reproductive health, etc
ENDOCRINE DISRUPTORS Cancer, behavior alterations or reproductive disorders by endocrine disruptors from consumption of pesticide residues in food
TOXINS IN BREASTMILK The breast milk and tissues of some Greenland Inuit could be classified as poison due to hazardous waste residues
SUPER BUGS IN LIVESTOCK Overuse of antibiotics in healthy animals create antibioticresistant bacteria, super bugs
Mycotoxins and Heavy Metals 4.5 billion people are affected by mycotoxins contamination Alfatoxin in peanuts, maize, rice, etc are increasing with global warming Heavy metal: Cadmium, Lead, Mercury,
Pillar 1. Building Global Competitiveness by Promoting Food Safety Enhance trade infrastructure Harmonize food safety standards Food traceability system Capacity building for formal and informal certification systems, including PGS Promote regional sourcing for critical mass of green and pro-poor products
Agriculture and Climate Change
GHG emissions by sector Agriculture Energy Waste Industria l Processe s Solvents Cambodia 82.74% 14.74% 2.13% 0.39% 0.00% Lao PDR 86.26% 11.68% 1.51% 0.54% 0.00% Indonesia 13.24% 50.68% 28.38% 7.70% 0.00% Malaysia 3.05% 76.01% 13.63% 7.31% 0.00% Myanmar 69.13% 21.40% 8.14% 1.32% 0.02% Philippines 32.84% 49.61% 7.03% 10.51% 0.00% Thailand 21.89% 67.26% 3.93% 6.91% 0.00% Viet Nam 47.93% 38.86% 5.84% 7.37% 0.00% Source: UN Framework Convention on Climate Change (UNFCCC) GHG emission profiles for non-annex I Parties
Green House Gas Contribution of Agriculture Sector 14% Production 35% Forestry Burning of biomass >50% Transport Agro-chemicals
Heat-Trapping Ability Carbon dioxide is baseline GHG One unit of CO2 = 1 Methane is 23 times of CO2* Nitrous oxide is 298 times of CO2* Black carbon is 10,000 times of CO2 *100-year Global Warming Potential (GWP) based on IPCC Assessment Report 2007 (AR4)
World Carbon Reservoirs Carbon 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Sizes of World Carbon Reservoirs 476 billion tons of Carbon in Soil has been released Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve
Refill Soil Reservoir Carbon 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Sizes of World Carbon Reservoirs Forests Atmosphere Soil Fossil Fuel Reservoirs Reserve
Soil carbon sequestration Transferring CO 2 into soils as organic matter (compost) and/or biochar Enhances soil fertility, aeration, microbiota, Improve water retention and purify water
Soil Organic Matter Flood and drought resilience 1% = 170,000 liters of water/ha Reduce soil toxicity Increases micronutrient Mitigates and sequester GHG Electron micrograph of soil humus
Biochar for Carbon Sequestration Biochar (charcoal from biomass) is produced by baking biomass at about 320-700ºC under low or no oxygen (pyrolysis) The combustion process releases gas or oil as clean renewable energy. Biochar remains stable in soils for hundreds to thousands of years. FAO (2009)
Effects of Biochar
Pillar 2: Promote Climate-friendly Agriculture and Natural Resource Management Reward farmers for ecosystem/climate services i.e. market access for climate-friendly products Climate-risk management system i.e. drought monitoring system, regional weather-based index risk insurance Transboundary diseases and invasive species
Agriculture, Energy, and Biomass Management
Biomass residues Abundant biomass residues in the GMS include: rice husk and rice straw, sugarcane and maize crop residues, crude palm oil waste, wood waste, and animal manure are currently underutilized.
Black Carbon Sources Burning of agricultural waste and traditional cook stoves emitting smoke, soot, and carbon dioxide http://en.wikipedia.org/wiki/cook_stove
It takes an average of 7 to 10 calories of energy input to produce one calorie of food.
Pillar 3: Promote Agriculture as Leader in Providing Rural Renewable Energy Regional standard, legal and regulatory framework for biomass and bioenergy Promote biomass management for bioenergy and food security Promote FDI of ecofriendly supply chain for 3Ps: People, Planet, Profit
Structure of Arable Land Bypassed by Green Revolution Intensive agriculture 9% 14% 74% 3% Year round Irrigated Double Irrigated Single Irrigated Rain- fed Source: International Water Management Institute, GIAM
Which Way to Go? Renewable <- Fossil fuel based energy -> Nuclear Organic<- Fossil fuel-based -> GMO
Women Will Feed the World 9% 14% 3% Year round Irrigated Double Irrigated Single Irrigated 74% Rain- fed Total Cropland Area= 1,530,079,274 ha Source: International Water Management Institute, GIAM
Myth about Low OA Yield Apply Green Revolution Tech Agrochemicals Transition to Organic Post Transition Irrigated Rainfed
Organic Agriculture(OA) comparative advantage of disadvantage of the poor Relatively un-contaminated land, often not requiring transition period for certification Indigenous knowledge of low-external input agriculture Availability of labor Minimal need for credit
MDG 1, Target 1: Income Poverty Because of Growing demand for safe food in export and domestic markets Price premiums Reduced costs of inputs Favor smallholders OA will lead to Higher income generation for farmers
Higher profit in Organic Country N Crop Profit p- value Thailand, 2003 443 Rice Yes 0.000 Thailand, 2005 243 Rice Yes 0.723 Thailand, 2005 110 Banana Yes 0.118 Thailand, 2005 148 Asparagus Yes 0.119 PRC, 2006 240 Tea Yes 0.013 PRC, 2006 220 Horticulture Yes 0.851 Sri Lanka, 2006 200 Tea Yes 0.250 Cambodia, 2005* 615 Rice Yes 0.141 Lao PDR, 2005* 368 Rice Yes 0.030 *Note: Cambodia and Lao PDR are non- certified organic.
Organic is Pro-Smallholders Profitability by Farm Size in Thailand (Baht/rai) Land category All farms CA farmers OA farmers p-value* 0-5 rai 1,719 1,374 2,432 0.0000 6-10 rai 1,744 1,413 2,076 0.0000 11-20 rai 1,723 1,337 2,021 0.0000 >20 rai 1,646 1,276 1,866 0.0057 Total 1,721 1,369 2,072 0.0000
OA Households Spend Less on Health Health Expenditure in N and NE Thailand 10% % of Households 8% 6% 4% 2% 0% 5% 10% 15% 20% 25% Medical expenditure as a % of HH expenditure OA CA
More Nutrients in Crops Grown in Healthy Soil-Organic Agriculture(OA) 63% 30% 29.3% 27% Medical related C 抗酸化剤 (lettuce, spinach, carrot, potato, apple) Source: review of 434 studies by New Castle University, 2014
MDG 7: Ensure environmental sustainability Because of Careful attention to soil health, soil carbon, biodiversity, germplasm, and the wider environment OA will lead to ecosystems re-generation and environmental sustainability
Growing Int. Trade of OA OA Export OA for Domestic Mkt OA products overcome new international trade requirements. OA growing at double digits in developed countries
OA and the MDGs Direct and well-defined: MDG 1: profit, income, food security MDG 3: empowerment of women MDG 4,5,6: health and sanitation MDG 7: environment, climate change, soil, biodiversity, water MDG8 : partnership in development Indirect: MDG2 education
Costs of Achieving the MDGs Through OA Cost/person Existing strategy: invest in health, water, sanitation* US$ 633-877 Organic agriculture** US$ 32-38 *World Bank, 2002 ** Findings from Thailand, Sri Lanka, PRC by ADBI
Multiple-Wins Solution Addressing root causes of health, food safety, nutrition, and environmental crisis Mitigating GHG: N20, CH4, and CO2 Reversing climate change Improving water and waste management Investing in preventive health Promoting women as key player in inclusive and sustainable growth
Hard Infrastructure Inclusive Value Chain infrastructure Public infrastructure: logistics for smallholders,rural transport, irrigation, laboratory equipment, PPP-type Infrastructure: post-harvest, market facilities, biofertilizer, solar drip irrigation,
Soft Infrastructure Institutional contract farming, hospital meal, school lunch, Alternative certification scheme (community-based certification, IT tracability, CCTV, etc Green public procurement policies R&D, PPP,
Healthy Soil=Healthy Crops=Healthy People
Free Download Organic Agriculture and Post -2015 Development Goal https://openaccess.adb.org/handle/11540/4411 Making Globalization Works better for the Poor through Contract Farming https://openaccess.adb.org/bitstream/ handle/11540/5033/making-globalizationwork-better.pdf?sequence=1
Thank you very much for your attention