Bill and Melinda Gates Foundation Agriculture Strategy presentation 26 Sept 2011 at IFAD

Agricultural Development A refreshed strategy Sam Dryden Prabhu Pingali Bill & Melinda Gates Foundation September 26 th , 2011

How We Got Started 1994
FOUNDATION OVERVIEW
2000 2006 Bill and Melinda read an article about rotavirus They officially create the foundation Warren Buffett decides to give Berkshire Hathaway stock

Why Agriculture? October 4, 2011 © 2011 Bill & Melinda Gates Foundation | 75% of world’s the poor live in rural areas and the majority depend on agriculture for thei r livelihoods Agricultural productivity growth is the most direct and efficient lever to reduce rural poverty. Agricultural growth builds self sufficiency for individuals and communities

Agriculture Development Assistance: The Lost Decades October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Net ODA Disbursements to Agriculture (in constant $2009 and as share of DAC donor GNI) Total Net ODA disbursements (in constant $2009)

Poverty and Hunger
Are we even working with the right numbers?
October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Number of undernourished people in developing countries: observed and predicted levels relative to the 1996 World Food Summit target Source: Anti-Hunger Programme (FAO, 2002) 2009 FAO estimate: 1.02 billion

The Foundation’s Contributions
BMGF agricultural commitments have grown faster over 2005-08 than any DAC donor, save Finland ($18m in 2008);
By 2008 it became the 2 nd largest agricultural donor (commitments) to the region.
October 4, 2011 © 2011 Bill & Melinda Gates Foundation | BMGF Commitments to agriculture development in SSA relative to others

By the end of 2010, we committed $1.72 B across our initiatives in agriculture development ** 2010 figures are projections based on 2010 annual plan. (director’s office) 9 FTEs 10 FTEs 11 FTEs 14 FTEs 6 FTEs

Why the need to recalibrate?
Strategy too broad and opaque
Inadequate Segmentation of target population
Weak connection between our public good investments and impact on the ground
Re-calibration of our efforts relative to renewed interest in agriculture and increased aid commitments – GAFSP, FtF, etc.
Need for better integration with country plans, such as CAADP plans, and local partners
October 4, 2011 © 2011 Bill & Melinda Gates Foundation |

Focusing Our Strategy October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Building on the previous work of others Learning from our work to date Input from experts, partners, grantees, donors, farmers, and critics Focus on the staple crops and livestock with the greatest impact on the poor

Source: . © 2010 HarvestChoice f People living on less than $1.25 per day (2005)* *Per 10x10km cell Source: Wood et al 2009. Strategy & Results Framework Background Paper. CGIAR. Number of people below $1.25/day (2005 PPP US$)

Top Tropical SSA Crops by AEZ (Ranked by Area of Production) Source: HarvestChoice 2010

Yield Gaps By AEZ Maize Sorghum Cassava

Low agricultural productivity in Africa is a multi-faceted problem Low investment in research Very limited access to markets Poor policy and regulatory environments Low input usage and yield levels Average cereal yields by region, 1960-2003 mt/ha SSA ROW 4 SSA 101 World Fertilizer use kg/ha arable land, 2002 Nigeria India USA Road access Metres road/capita Agricultural research expenditures, 2000 $13.8 billion ME and N. Africa LATAM SSA Asia-Pacific 100% = $36 billion per year 62% 38% Developed countries Developing countries Of the ~$36 billion spent on agricultural research in 2000, only ~$1.5 billion (~4%) was spent on SSA Source: FAOStat; IFDC; World Bank Net ODA and Subsidies to Domestic Agriculture Producers ( (Avg. 2003-2005) Policies, such as trade and investment, towards the developing world often contradict and counteract official development assistance 4 Developing countries Although these regions have abundant potential (e.g., sunlight, labor, water, knowledge), productivity is low, which represents both a huge need and opportunity.

Continental Investments
Investments in public goods to increase productivity
Focused Geography Investment
… paired with targeted country level delivery systems and policies to realize productivity goals
Our Strategy: A Two-Pronged Approach October 4, 2011 © 2011 Bill & Melinda Gates Foundation | 1 2 Global public goods with highest potential to impact productivity in Sub-Saharan Africa and South Asia Deeper engagement in the regions of Sub-Saharan Africa and South Asia where most farmers live will help increase productivity, creating a ripple effect of self sufficiency across communities

Our Priority Value Chains October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Priority products (staple crops) Sub-Saharan Africa South Asia
Maize
Cassava
Rice
Sorghum
Millet
Yams
Sweet potatoes
Cow peas
Groundnuts
Beans
Rice
Wheat
Maize
Beans
Chick peas
Priority products (livestock) Sub-Saharan Africa South Asia
Cattle
Goats
Sheep
Chickens
Pigs
Dairy
Chicken
Goats

Our framework for achieving the objectives of our strategic initiatives, and the ‘scope’ and ‘scale’ of our strategy ‘ Scope’ is driven by our choice of anchor countries and products, ‘scale’ is driven by our target number of beneficiaries [...]
Research & Development
Crop improvement
Livestock health & improvement
Discovery research
Local adaptation
Agricultural Policy
Country policies
Data & diagnostics
Multilaterals
Trade-offs and synergies
Access & Market Systems
Input delivery
Knowledge exchange
Post-harvest and markets
Regions
Other Areas
Strategic partnerships
Finance
Farmer households
Ramp up to the # of farmer households targeted in our strategy over time
Countries
BMGF’s anchor countries
Other donors’ anchor countries (which we call ‘spillover’ countries)
Other countries
Products
BMGF’s priority crops and livestock
Strategic initiatives Scope Scale Unit costs Total investment over time Average cost per farm 2030 $ 2011 $ per farm # of farms Analysis of strategic choices Total costs ROI / trade-offs Income per farm,$ # of farms Farm-level Global National Maize Rice Ethiopia Mali

Partnerships
We won’t succeed on our own. We rely on partners to carry out the work.
From developed and developing worlds
From public, private and nonprofit sectors

Towards Strategic Alliances
Knowledge transfer from China and Brazil to Africa
GAFSP and other multi-lateral efforts
Aligning better with Rome based food agencies
CGIAR Reform and renewal

Success is possible if we work together
OUR WORK IN CONTEXT

Bill and Melinda Gates Foundation Agriculture Strategy presentation 26 Sept 2011 at IFAD

by IFAD International Fund for Agricultural Development on Oct 04, 2011

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Bill and Melinda Gates Foundation Agriculture Strategy presentation 26 Sept 2011 at IFAD Presentation Transcript

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