2013/SOM3/PPFS/019 Agenda Item: 3 Small-Scale Farming and Food Security Purpose: Information Submitted by: World Bank Second Policy Partnership on Food Security Meeting Medan, Indonesia 22-25 June 2013
Small scale Farming and Food Security APEC Policy Partnership for Food Security 2 nd Plenary Meeting Medan, Indonesia, 22 24 June 2013 Ramesh Sharma FAO Regional Office, Bangkok Outline Brief on food security situation in Asia Pacific/APEC, and issues Role/significance of Smallholder (SH) farming in the region Issues on SH farming and food security 1
Concept of food security different angles A multi dimensional concept so seen variously Hunger/under nourishment (food energy basic, minimum activity in FAO numbers) Triple burden of malnutrition (food energy, micronutrients and overweight/obesity) and also Food (rice) self sufficiency (national food security) (also volatility) Progress on hunger reduction (% of population undernourished, FAO, SOFI 2012) (dashed lines indicate MDG targets for 2015) (AP = East+South+SE Asia) 35 30 Sub Sahran Africa 25 20 15 10 Asia & Pacific 1990 92 1995 97 2000 02 2006 08 2010 12 2015 2
Progress on hunger reduction Still millions under nourished. MDG goal 50% cut WFS goal 50% cut % undernourished # undernourished (miln) 1990 92 2010 12 % change 1990 92 2010 12 % change East Asia 21 12 45 261 167 36 South East Asia 30 11 63 134 65 51 South Asia 27 18 34 327 304 7 Sum of 3 25 14 42 722 536 26 Hunger challenge remains significant much less so in SEA but large in EA and SA In farm policy, are policy makers still focussed on hunger or on other issues? e.g. other 2 elements in the triple burden of malnutrition Increasing rural urban income gaps and income inequalities; and National food security (self sufficiency). 3
Rural Urban income gaps China 3.5 China Urban/rural income ratio 3.0 2.5 2.0 1.5 1.0 1985 1990 1995 2000 2005 2012 Per capita net income (real, 1985 price) Food security... in the context of the 2008 2011 food price crisis 4
National policy responses to food price crisis Food sufficiency and food security in national strategy and policy frameworks Increased investment/outlays Increased interventions in markets Export restrictions Investment in land overseas G20 Ministerial Action Plan (French Presidency 2011) (Focus on short-term excessive volatility) 5 objectives or action areas Investing for productivity Enhancing market transparency Global policy coordination Promoting risk management tools; and Regulating financial markets 5
Issues on smallholder farming in the context of food security/poverty Small versus large Integration in supply chains An example of the debate on small versus largescale farming Prof. Paul Collier, Oxford, Foreign Affairs (November/December 2008) Favouring small farmers is romantic but unhelpful. To ignore large scale commercial agriculture as a force for rural development and enhanced food supply is surely ideological 6
Conclusions of the e debate on Prof Collier http://www.future agricultures.org/en/edebates/big_farms/farm_debate.html Commercial farming, yes; agri business, yes; but it doesn t need to be large farms Support economies of scale where essential (in supply chains, processing, transport and marketing, i. e. with lumpy investments and sophisticated knowhow) But leave farmers to decide on scale of farming Because SH farming is both efficient & multifunctional (positive externalities) Integration of SHs in modern supply chains Happening. and addressed in most policies/plans But at slower pace. because constraints are multiple (multiple market failures) World Bank WDR 2008 Focus D Agribusiness for development Ch 6: Supporting smallholder competitiveness through institutional innovations Ch 7 Innovating through science and technology (food safety etc) 7
Issues in World Devt. Report Chapter 6 (Innovations are taking place and need support) Tenancy rights/flexible land market Innovations in financing/loans for SHs In risk reduction (e.g. weather indexed insurance) In inputs markets (e.g. smart subsidies) Producer organizations, cooperatives, business models (contract farming) Food safety & standards, certification In all cases, solutions to be found through market mechanisms/ppp UN Committee on World Food Security (CFS) Panel of Experts Reports Land tenure and Social protection 2012 in v e stm e n t 2011 Smallholder Sm allscale fisheries/ in v e stm e n ts 2013 aquaculture 2013 8
Concluding remarks SH Agri is efficient & multifunctional & so deserves extra support Do not try to push change but leave to markets for structural transformation SH Agri is also fully compatible with food security (both household level and national) States can do many things to help SFs. e.g. those listed in WB WDR Chapters 6 & 7, with good enabling environment for PPP Thank you very much 9