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Are FDI’s by Arab Countries
really needed for food security?
Dr. Henk C. van Latesteijn
The background
Global food requirements in 2050

Countries   Type of growth             ‘Scenarios’               Biomass
                                                                 (109 tons GE)


                                       Current                   7
Poor        Population More food
            growth                     2050: food and feed       12
Middle-     Economic   More feed
income      growth     and feedstock   2050: + 10% of global     17
                                       energy supply
Rich        Biobased   More
            economy    feedstock       2050: + all citizens a    23
                                       European diet

                                               GE = Grain Equivalents
Food security = risk management


     Global trade
 1
     Optimize comparative advantages
     FDI’s
 2
     Expand production base

 3
     Metropolitan agriculture
     Production and access in urban areas
 4   Yield gap closure
     Unlock nature’s potential in rural regions
Global trade: vegetables                             1




                           exports




                           imports


                           Source: worldmapper.org
Global trade: dairy                             1




                      exports




                      imports


                      Source: worldmapper.org
Global FDI’s in Agriculture   2




Source: UNCTAD, 2009
Metropolitan agriculture                                                                  3




                                                                 Sustainable
                                   COMMERCIAL
                                                                Intensification
                                   AGRICULTURE




     Sustainable
     Re-valuation
                                   METROPOLITAN                          Sustainable
                                   AGRICULTURE
                                                                        Diversification



                      ORGANIC &
                    ENVIRONMENTA
                                                     URBAN
                          L
                                                  AGRICULTURE
                    CONSERVATION
                     AGRICULTURE
Metropolitan agriculture and food security   3


   Production




   Access
Improve local productivity              4




YIELD GAP
CLOSURE



Source: Van Ittersum & Rabbinge, 1997
Why technical potentials are not easily realised   4




   Producers maximize profit, not yield
   Less favoured areas have higher input-
    output price ratios
   Closing yield gaps requires research effort
   Depletion of fossil fuels and phosphate
    rock raises input prices

   Supply becomes tight long before
    technical potentials have been exhausted
Global Yield Gap Atlas               4




Source: Boogaard et al. (in prep.)
Lacking Data                         4




Source: Boogaard et al. (in prep.)
Conclusions




   Food security asks for production
    increase
   Different pathways are available
   Food security = risk management
   Don’t put all your eggs in one
    basket
   Invest in different options
Thank you

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5 a vanlatesteijn

  • 1. Are FDI’s by Arab Countries really needed for food security? Dr. Henk C. van Latesteijn
  • 3. Global food requirements in 2050 Countries Type of growth ‘Scenarios’ Biomass (109 tons GE) Current 7 Poor Population More food growth 2050: food and feed 12 Middle- Economic More feed income growth and feedstock 2050: + 10% of global 17 energy supply Rich Biobased More economy feedstock 2050: + all citizens a 23 European diet GE = Grain Equivalents
  • 4. Food security = risk management Global trade 1 Optimize comparative advantages FDI’s 2 Expand production base 3 Metropolitan agriculture Production and access in urban areas 4 Yield gap closure Unlock nature’s potential in rural regions
  • 5. Global trade: vegetables 1 exports imports Source: worldmapper.org
  • 6. Global trade: dairy 1 exports imports Source: worldmapper.org
  • 7. Global FDI’s in Agriculture 2 Source: UNCTAD, 2009
  • 8. Metropolitan agriculture 3 Sustainable COMMERCIAL Intensification AGRICULTURE Sustainable Re-valuation METROPOLITAN Sustainable AGRICULTURE Diversification ORGANIC & ENVIRONMENTA URBAN L AGRICULTURE CONSERVATION AGRICULTURE
  • 9. Metropolitan agriculture and food security 3  Production  Access
  • 10. Improve local productivity 4 YIELD GAP CLOSURE Source: Van Ittersum & Rabbinge, 1997
  • 11. Why technical potentials are not easily realised 4  Producers maximize profit, not yield  Less favoured areas have higher input- output price ratios  Closing yield gaps requires research effort  Depletion of fossil fuels and phosphate rock raises input prices  Supply becomes tight long before technical potentials have been exhausted
  • 12. Global Yield Gap Atlas 4 Source: Boogaard et al. (in prep.)
  • 13. Lacking Data 4 Source: Boogaard et al. (in prep.)
  • 14. Conclusions  Food security asks for production increase  Different pathways are available  Food security = risk management  Don’t put all your eggs in one basket  Invest in different options