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Impacts of improved transportation
infrastructure on agricultural sector in the Congo
                      Basin




           A. Mosnier , P. Havlik, M.
         Obersteiner, K. Aoki, E. Schmid

          International Institute for Applied Systems
            Analysis (IIASA), Laxenburg, Austria
         University of Natural Resources and Applied
           Life Sciences (BOKU), Vienna, Austria



International CIALCA Conference, Kigali, Rwanda, October 24-27
Introduction




           Congo Basin
Cameroon
Congo Republic
Democratic Republic of Congo (DRC)
Central African Republic (CAR)
Gabon
Equatorial Guinea
Introduction

• Mainly subsistence agriculture




                                   • 80% of the territory is
• Food production per capita has     covered by forests =>
  decreased over the last decade     agriculture main driver
  and net imports have increased     of deforestation
Introduction
      • 1/3 of increase in cereal production worldwide has been attributed to
        fertilizer related factors
      • Average fertilizer use in SSA ~8 kg/ha vs. 54 kg/ha in Latin America
        and 80 kg/ha in South Asia.
      • In the Congo Basin, only Cameroon is a significant user of fertilizer
      • Problem of poor transportation infrastructures in the Congo Basin

   Fertilizer use per arable land in 2008
               (kg nutrients/ha)

          Cameroon Congo         DRC    Gabon
Nitrogen    3.37    0.06         0.20    0.07
Phosphate   0.79    0.00         0.04    0.03
Potash      1.30    0.02         0.05    1.35
Total       5.45    0.09         0.29    1.45

 Source: State of the forest 2008 and
 FAOSTAT
Introduction

Literature highlights:

    Positive impact of transportation infrastructure on
     agriculture
    Negative impact of transportation infrastructure on forest
     cover

• What will be the effect of transportation infrastructure
  development on agricultural sector in the Congo Basin?
METHODOLOGY
GLOBIOM: a global, partial equilibrium model
Objective function = Maximization of producer and consumer surplus

   DEMAND              Exogenous drivers
                     Population growth, economic growth
                                                                                                                  28 regions

  Wood products            Food                            Bioenergy

        Process
      PROCESS
Primary wood
   products
                  Crops                                   SUPPLY
                                                              HRU = Altitude & Slope & Soil
                                                                                                            Aggregation in
                                                                                                             larger units
                                                                             Altitude class, Slope class,
                                                                             Soil Class
                                                                                                            (max 200*200
                                        LUC
                                                                  PX5
                                                                                                                 km)
                                                                                                                                         PX5


                                                                 Altitude class (m): 0 – 300, 300 – 600, 600 – 1200, 1200 – 2500 and > 2500;
                                                                 Slope class (deg): 0 – 3, 3 – 6, 6 – 10, 10 – 15, 15 – 30, 30 – 50 and > 50;
                                                                 Soil texture class: coarse, medium, fine, stony and peat;



 Biophysical                                                                                                  Between 10*10
   models            EPIC                                 G4M                                                  km and 50*50
                                                                                                                    km
GLOBIOM: Cropland - EPIC
Processes

   Hydrology                               EPIC
   Weather                                            Evaporation
                                                          and
   Erosion                Rain, Snow,                Transpiration
                           Chemicals
   Carbon sequestration
   Crop growth                                         Subsurface
                                                          Flow
   Crop rotations                          Surface
                                             Flow

   Fertilization
   Tillage                    Below Root
                                  Zone

   Irrigation etc…



                                                                      9
Productivity change
EPIC Major outputs:
• Crop yields, Input Requirements, Environmental effects (e.g.
  soil carbon, )

• For 18 crops (>75% of harvested area)
• And 4 management systems: High input, Low input,
  Irrigated, Subsistence

In GLOBIOM, endogenous yield change through:

• Production increase in more (or less) fertile areas
• Change in management practices
Internal transportation costs
Compute time from a methodology
  developed by Nelson (2006) using
  several GIS datasets

Closest market:
for food crops = city above 300 000
    inhabitants
for cash crops, timber and fertilizers= port

Transportation cost per simulation unit
   (between 10x10 and 50x50km) :
Tc = constant + wage.hours + fuel price.
   fuel consumption.distance + other
   costs. distance

Parameters from literature review
   (Teravaninthorn and Raballand, 2009;
   ILO; GTZ)
SCENARIOS & RESULTS
Baseline
• Period 2000-2030, 10 year-steps (recursive dynamics)

• Demand exogenously driven:
   – By GDP for processed wood
   – By population for fuel wood
   – By both for food = minimum calorie intake p.c. differentiated
     between vegetable and animal calories (FAO, 2006a)
   – Bioenergy use from POLES model (Russ et al., 2007) and
     World Energy Outlook estimates (IEA-2006)

• Fixed crop mix per simulation unit

• No exogenous agricultural productivity growth
Scenario
• Realization of the planned infrastructures after 2010
Scenarios

• The reduction of transportation costs affect:
1) Farm output prices
2) Fertilizer cost

• Scenarios to distinguish these different effects:
INFRA1 = channel 1) only
INFRA2 = channels 1) and 2)

DIFHI = increase of the productivity in the high input system
  by 5% between 2020-2030)
Results
Results
                                          Baseline   INFRA1   INFRA2   DIFHI
              High Input and Irrigated     12.7%     12.7%    19.9%    57.1%
   DRC
              Subsistence- Low input       87.3%     87.3%    80.1%    42.9%
              High Input and Irrigated     8.7%       9.2%    12.7%    48.3%
Congo Basin
              Subsistence- Low input       91.3%     90.8%    87.3%    51.7%
Results
Relative land use change compared to the baseline level by 2030

                         INFRA1    INFRA2    DIFHI
           Cropland       12.9%     17.4%    15.1%
   DRC
           Forests        -4.2%     -4.4%    -3.9%
  Congo    Cropland       3.2%      4.7%     2.2%
  Basin    Forests        -0.4%     -0.4%    0.0%

Average annual C02 emissions from deforestation over 2020-2030 (in
MtCO2)

                      Baseline    INFRA1    INFRA2    DIFHI
           DRC          36          50        51        47
          Congo
          Basin         68          76        76        68
Conclusion
Transportation infrastructure improvement provides incentives:
 to increase agricultural production
 to switch to more intensive systems even if it remains
  limited to 13% of the cropped area in the Congo Basin and
  20% in the DRC by 2030
=> support to further increase efficiency of fertilizer use could
  lead to significant intensification in the region

• However, it is most probably than intensification will not
  impede deforestation increase, especially in dense forests
  area of DRC
=> land tenure definition and implementation with delineation
  of protected area/permanent forests area
Concluding remarks

• Transportation infrastructure could not necessarily lead to
  transportation cost reduction

• Need for continuous efforts to maintain infrastructures in
  good shape

• There are other non-cost factors that play an important role
  for new technology adoption

• Other problems related to increase fertilizer use: higher
  costs in the future, environmental sustainability,…
Thank you !

   For more information :
    www.globiom.org


Contact: mosnier@iiasa.ac.at

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Mosnier - Impacts of improved transportation infrastructure on agricultural sector in the Congo Basin

  • 1. Impacts of improved transportation infrastructure on agricultural sector in the Congo Basin A. Mosnier , P. Havlik, M. Obersteiner, K. Aoki, E. Schmid International Institute for Applied Systems Analysis (IIASA), Laxenburg, Austria University of Natural Resources and Applied Life Sciences (BOKU), Vienna, Austria International CIALCA Conference, Kigali, Rwanda, October 24-27
  • 2. Introduction Congo Basin Cameroon Congo Republic Democratic Republic of Congo (DRC) Central African Republic (CAR) Gabon Equatorial Guinea
  • 3. Introduction • Mainly subsistence agriculture • 80% of the territory is • Food production per capita has covered by forests => decreased over the last decade agriculture main driver and net imports have increased of deforestation
  • 4. Introduction • 1/3 of increase in cereal production worldwide has been attributed to fertilizer related factors • Average fertilizer use in SSA ~8 kg/ha vs. 54 kg/ha in Latin America and 80 kg/ha in South Asia. • In the Congo Basin, only Cameroon is a significant user of fertilizer • Problem of poor transportation infrastructures in the Congo Basin Fertilizer use per arable land in 2008 (kg nutrients/ha) Cameroon Congo DRC Gabon Nitrogen 3.37 0.06 0.20 0.07 Phosphate 0.79 0.00 0.04 0.03 Potash 1.30 0.02 0.05 1.35 Total 5.45 0.09 0.29 1.45 Source: State of the forest 2008 and FAOSTAT
  • 5. Introduction Literature highlights:  Positive impact of transportation infrastructure on agriculture  Negative impact of transportation infrastructure on forest cover • What will be the effect of transportation infrastructure development on agricultural sector in the Congo Basin?
  • 7. GLOBIOM: a global, partial equilibrium model Objective function = Maximization of producer and consumer surplus DEMAND Exogenous drivers Population growth, economic growth 28 regions Wood products Food Bioenergy Process PROCESS Primary wood products Crops SUPPLY HRU = Altitude & Slope & Soil Aggregation in larger units Altitude class, Slope class, Soil Class (max 200*200 LUC PX5 km) PX5 Altitude class (m): 0 – 300, 300 – 600, 600 – 1200, 1200 – 2500 and > 2500; Slope class (deg): 0 – 3, 3 – 6, 6 – 10, 10 – 15, 15 – 30, 30 – 50 and > 50; Soil texture class: coarse, medium, fine, stony and peat; Biophysical Between 10*10 models EPIC G4M km and 50*50 km
  • 8.
  • 9. GLOBIOM: Cropland - EPIC Processes  Hydrology EPIC  Weather Evaporation and  Erosion Rain, Snow, Transpiration Chemicals  Carbon sequestration  Crop growth Subsurface Flow  Crop rotations Surface Flow  Fertilization  Tillage Below Root Zone  Irrigation etc… 9
  • 10. Productivity change EPIC Major outputs: • Crop yields, Input Requirements, Environmental effects (e.g. soil carbon, ) • For 18 crops (>75% of harvested area) • And 4 management systems: High input, Low input, Irrigated, Subsistence In GLOBIOM, endogenous yield change through: • Production increase in more (or less) fertile areas • Change in management practices
  • 11. Internal transportation costs Compute time from a methodology developed by Nelson (2006) using several GIS datasets Closest market: for food crops = city above 300 000 inhabitants for cash crops, timber and fertilizers= port Transportation cost per simulation unit (between 10x10 and 50x50km) : Tc = constant + wage.hours + fuel price. fuel consumption.distance + other costs. distance Parameters from literature review (Teravaninthorn and Raballand, 2009; ILO; GTZ)
  • 13. Baseline • Period 2000-2030, 10 year-steps (recursive dynamics) • Demand exogenously driven: – By GDP for processed wood – By population for fuel wood – By both for food = minimum calorie intake p.c. differentiated between vegetable and animal calories (FAO, 2006a) – Bioenergy use from POLES model (Russ et al., 2007) and World Energy Outlook estimates (IEA-2006) • Fixed crop mix per simulation unit • No exogenous agricultural productivity growth
  • 14. Scenario • Realization of the planned infrastructures after 2010
  • 15. Scenarios • The reduction of transportation costs affect: 1) Farm output prices 2) Fertilizer cost • Scenarios to distinguish these different effects: INFRA1 = channel 1) only INFRA2 = channels 1) and 2) DIFHI = increase of the productivity in the high input system by 5% between 2020-2030)
  • 17. Results Baseline INFRA1 INFRA2 DIFHI High Input and Irrigated 12.7% 12.7% 19.9% 57.1% DRC Subsistence- Low input 87.3% 87.3% 80.1% 42.9% High Input and Irrigated 8.7% 9.2% 12.7% 48.3% Congo Basin Subsistence- Low input 91.3% 90.8% 87.3% 51.7%
  • 18. Results Relative land use change compared to the baseline level by 2030 INFRA1 INFRA2 DIFHI Cropland 12.9% 17.4% 15.1% DRC Forests -4.2% -4.4% -3.9% Congo Cropland 3.2% 4.7% 2.2% Basin Forests -0.4% -0.4% 0.0% Average annual C02 emissions from deforestation over 2020-2030 (in MtCO2) Baseline INFRA1 INFRA2 DIFHI DRC 36 50 51 47 Congo Basin 68 76 76 68
  • 19. Conclusion Transportation infrastructure improvement provides incentives:  to increase agricultural production  to switch to more intensive systems even if it remains limited to 13% of the cropped area in the Congo Basin and 20% in the DRC by 2030 => support to further increase efficiency of fertilizer use could lead to significant intensification in the region • However, it is most probably than intensification will not impede deforestation increase, especially in dense forests area of DRC => land tenure definition and implementation with delineation of protected area/permanent forests area
  • 20. Concluding remarks • Transportation infrastructure could not necessarily lead to transportation cost reduction • Need for continuous efforts to maintain infrastructures in good shape • There are other non-cost factors that play an important role for new technology adoption • Other problems related to increase fertilizer use: higher costs in the future, environmental sustainability,…
  • 21. Thank you ! For more information : www.globiom.org Contact: mosnier@iiasa.ac.at

Editor's Notes

  1. The difference between potential yield and observed yield is particularly high in the Congo Basin. This is particularly striking when comparing the yield of agricultural products in the Congo Basin with those in other tropical regions. In the Congo Basin, the last two decades were characterized by drastic cuts in governments’ budgets following the fall in commodity price at the end of the 80s and the debt crisis. From independence to the beginning of the 90s, the marketing of cash crops was subject to heavy state involvement through control of producer prices, distribution of free or largely subsidized fertilizers and fungicides, and exports of the products. The government discontinued the service with the liberalization of the marketing sector and many farmers abandoned their farms or replaced the trees by food crop (Duguma et al., 2008; MagnagnaNguema, 2005). The devaluation of the CFA currency in 1994 improved the competitiveness of exported products but at the same time increased the costs of imported inputs as seeds and fertilizers.
  2. The ultimate decision depends on whether farmers believe they will make more money with the fertilizer than with alternative uses of the available cash. Alternatives: fattening an animal, nonfarm activities or land clearing for land expansion. Relative profitability is important. Commercial agriculture is a sine qua non for fertilizers. The few insights we have into what works in SSA come mainly from the cotton sector: vertically coordinated schemes where input, output and credit markets are linked. As concerns for environment increase, more attention to fertilizer’s environmental benefits and potential inconveniences once high levels of use are attained (soil acidification, water pollution) will be needed.