Challenges, Issues and Strategies for the Future - Summary from Group Deliberations
Challenges, Issues and Strategies for the Future Summary from Group DeliberationsDavid NyameinoCereal Growers AssociationKenya
Talk does not cook riceChinese proverbA Promise is a Cloud – Fulfillment is RainArabian Proverb
Rising food and wheat prices have two implications++ Africa wheat production is becoming profitable in many areas and could contribute to food security, income generation and reducing import bills--- Urban social unrest in Africa due to high price increases of staples food more likely
Global Food Security Food Prices and Social UnrestRed dashed vertical lines correspond to beginning dates of “food riots”and protests associated with overall death toll reported in parentheses
Trends in wheat import bills for Africa 1961-2010151050 1960 1970 1980 1990 2000 2010 Year Source: Prepared by authors based on FAOSTAT database.
Area under wheat in Africa (million ha), 1961 - 2010 Tunisia South Africa Morocco Ethiopia Egypt Algeria
Wheat production in Africa (million tons), 1961 - 2010 Ethiopia South Africa Morocco Egypt Algeria
Trends in wheat yield for different regions in Africa (1961-2010) 32.5 21.5 1 .5 1960 1970 1980 1990 2000 2010 Year Eastern Africa Middle Africa Northern Africa Southern Africa Western Africa Source: Prepared by authors based on FAOSTAT database.
- Wheat is mainly imported or produced on large scale farms (excl. Ethiopia) - Current situation does not generate rural-urban synergies on large scaleN. Mason, MSU, Addis Ababa, Oct 8, 2012
The time of cheap food is over!Professor Tim Lang, professor of Food Policy at LondonCity University: "Most analysts think the long drop infood prices, of affordability, is over. We are now in anew world, a world of new fundamentals, not just badweather this year but a long-term squeeze."
What are the issues for Africa? Develop adapted technologies and varieties for smallholder s Make affordable inputs available Build effective and sustainable wheat seed systems Increase productivity among smallholders Make wheat extension systems more effective and efficient Make wheat more competitive and profitable Make wheat value chains work more effectively Foster regional co-operation Develop policies that foster wheat industry
Wheat market issues Market participation increases with adoption of new varieties Farmers lack market information on value chain opportunities Domestic prices are often negatively affected downwards by subsidized imports and unpredictable Govt interventions There is no clear policy on price support or price stabilization to protect domestic producers and consumers Grain quality needs to be addressed
It is very easy to state where we need “more” More investment in research and development … More research infrastructure … More variety development … More agricultural extensions & extension staff More capacity building of research & extension … More affordable inputs … More quality assurance in seed, fertilizers, ag. chemicals, machinery More farmer associations and farmer training … More machinery and small farm implements … More storage … More awareness and support …
This meeting thought about what we could do differently We want to take collective action and work with/through centers of excellency We want to focus our investment and reach farmers in areas where wheat has the greatest profitability We want to find approaches that makes wheat a profitable (cash) crop for more smallholders We want to stimulate and support private sector investment for improved input availability, … Accelerate information transfer through extension and mobile phones
Key strategies are/Focus for investment should be on - 11. Develop wheat value chains into distinct geographic areas/ hubs with greatest profitability2. In those areas/hubs, provide affordable credit and inputs, information, know-how, mechanization, organization and marketing in a comprehensive manner3. In those areas, hubs involve smallholders that want to enter into profitable wheat production4. Close the on-farm productivity gaps with existing wheat producers => Farm productivity can be enhanced (average yield in Africa 2 t/ha; global average 3t/ha)
Key strategies are/Focus for investment should be on - 2 Land consolidation and farmer aggregation for – Economies of scale – Appropriate mechanization through local entreprenuers – Post harvest losses / storage – “Fair” value chain and reduced transaction costs Investigate and address industry concerns as they relate to storage, processing and grain quality
Key strategies are/Focus for investment should be on - 3 Effectively use the national, regional and international capacities/centers of excellence and exploit economies of scale – Strengthen strategic research at centers of excellence that serve a minimum area of 500,000 ha / a minimum production volume of 1 million tons – Adaptive research at national level Establish an Africa wide concept for interaction among wheat research institutes
What can policy makers do? Put wheat on the agenda Africa’s Ministers of Agriculture Trade Meeting on 1-2 November, 2012. Include wheat in strategic plans / fund allocation of donor / national governments to strengthen / develop wheat industry in Africa Support approaches that reduce land fragmentation Ensure that capital is being built among farmer, the private sector, research
Policy issues – More specific Create space for public-private sector partnership and competitive private sector in the entire value chain Promote private sector extension Strengthen extension efforts to replace out-dated varieties Provide limited time input subsidies to stimulate adoption of higher yielding varieties and agronomic practices Target women and small-scale farmers in extension education Protect domestic producers by better timing of food aid and imports Provide price stabilization and price support for local producers Invest in rural infrastructure (including roads and irrigation) and market information systems
Opportunity for Investment FundingUS$ 2 levy on every ton of wheat imported Imports are known – collection easy AU recommended to invest 10% of GDP in Agric R&D Allocation of funds decided by wheat stakeholder committee (from farmers to processing industry)US$ 2 = 0.5% of the import bill = $ 80 million>> Available for wheat industry development
“Quote for Wheat in Africa” If you want to walk fast – go alone If you want to go far – go togetherWe need partnerships in the value chain