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3.5 tristan armstrong final usyd s lides 190815

Development partnerships in agriculture: supporting inclusive economic growth, food security and nutrition

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3.5 tristan armstrong final usyd s lides 190815

  1. 1. Tristan Armstrong, Agriculture and Food Branch DFAT tristan.armstrong@dfat.gov.au Aug 2015 Development partnerships in agriculture: supporting inclusive economic growth, food security and nutrition
  2. 2. Context • In 2014-15, Australia provided $5 billion in aid, around $350 million in agriculture, fisheries and rural development. • 2015-16 ? • Bilateral country programs, mostly in SHF focussed AR4D and market development • Multi-donor/global programs, including GAFSP, AgResults, AECF. • NGO’s
  3. 3. Context Aid approach post 2008-9 : – SHF agricultural productivity – Social protection – Nutrition – Largely public-sector support (e.g. GAFSP) Pan-Asia, Pacific, Africa 2013 Change of Government and new policy direction
  4. 4. New era  Reduced aid budget  Reduced geographical focus  Focus on Asia and (2/3 of the world’s 800 million hungry people, child malnutrition up to 40%, rising double burden)  Greater focus on private sector, trade, scale.
  5. 5. Current thinking  Improving food security is a complex systemic issue  No ‘one model’ solution  A mix of interventions from large scale commercial to semi-subsistence are required to achieve food security.  Optimising the productivity of all forms of agriculture.  reducing wastage along the supply chain.
  6. 6. New Strategy for Aid Investments in Agriculture To ‘promote prosperity, reduce poverty and enhance stability’ through contributions to private sector development and human development. – increase contributions to national economic output; – increase incomes of poor people; and – enhance food, nutrition and water security
  7. 7. – catalytic use of aid–leveraging private sector investment to generate change on a wider scale than is possible through ODA funding alone. – Need for better market information – Increased market access and efficient trade – Targeted infrastructure development
  8. 8. How? – Strengthening markets to increase SHF economic participation and address constraints by leveraging private sector investment – Innovating to improve productivity along food and agriculture value chains. – Promoting effective policy, governance and reform to promote inclusive growth and open trade
  9. 9. Current examples 2015 -18 ‘Grow Asia’ partnership with the World Economic Forum and the ASEAN Secretariat OECD ASEAN Trade and Agriculture Policy Analysis AgResults – multi-donor financial ‘pull mechanism’
  10. 10. Grow Asia 2015 -18 ‘Grow Asia’ partnership with the World Economic Forum and the ASEAN Secretariat – increase inclusive agricultural development through new ps investment and better regional cooperation. – Link investors, agribusinesses, government and civil society to increase the scale and impact (in terms of poverty reduction, reduced ag inputs, better NRM & environmental outcomes) across ASEAN countries. – Better linking small-scale farmers in ASEAN economies to larger regional and global markets
  11. 11. Grow Asia Poor small-holder farmer focussed increase incomes by 20% and reduce GHG emissions and other –ve impacts for 10,000,000 SHF’s by 2020 Approach – Enabling policy environment – Access to knowledge – Access to inputs – Access to markets
  12. 12. AgResults $118USD Million Multi-donor Initiative to Implement Pilots that Incentivize High-Impact Agricultural Innovations in Three Areas  Overcome market failures by offering results-based economic incentives (“pull” financing) to promote the uptake of new agricultural technologies and/or practices  Test the effectiveness and efficiency of pull mechanisms in comparison to alternative development approaches Objectives Food Security Through Increased Yield & Post-Harvest Loss Reduction Nutrition Health through Improvements in Livestock Mgmt.
  13. 13. Pull Mechanisms Address Important Social Issues through Performance-Based Funding of Innovative Solutions “Pull” mechanisms incent market-oriented actors to invest in innovation where there are market failures and reward only those who are successful. Contrasts with “push” mechanisms (e.g., grants), which finance solvers to accelerate R&D and lower costs before a product’s success can be determined. Focuses Implementers and inspires risk taking Tap top talent from out-of-discipline perspectives Shine spotlight on problem and opportunity Stimulate private sector investment greater than the prizePay only for results Why Pull Mechanisms?
  14. 14. - 14 - ClientConfidential AgResults Projects Zambia Biofortified Maize Pilot Kenya On-Farm Storage PilotUganda Improved Legume Seeds Pilot Nigeria AflasafeTM Pilot India Newcastle Vaccine Pilot Vietnam GHG Emissions Reduction Pilot Brucellosis Vaccine Pilot (Global) Newcastle Vaccine Myanmar Pilot Pilots in Design Phase Pilots in Implementation Phase
  15. 15. Large post-harvest losses due to spoilage and Larger Grain Borer (LGB). Promote sales of quality on-farm storage devices to smallholder farmers (SHFs). Provide prizes to storage device companies based on volume of storage sold to SHFs. Problem: Solution: Incentive: Reach approximately 480,000 SHFs, create at least 172,000 MT of new storage capacity and generate US$14 million in smallholder benefits. Anticipated Impact: Kenya On-Farm Storage Pilot Overview Year 2 Year 3 Year 4 Year 5Year 1Design Pre-Launch • Maize is grown by 79% of Kenya‘s 8.8 million households. • Overall post-harvest losses in SSA are estimated at US$1.6 billion per year; about 13.5% of the total value of grain production ($11 billion). These losses further limits the overall supply of nutrients available to the SSA population, particularly for smallholder farmers. • The Pilot aims to significantly minimize crop losses and enable smallholders to store maize throughout the year for food security and price speculation. • It is estimated that the enhanced technology would reduce losses by 10-15% • This technology avoids the use of storage pesticides which have an impact on nutrition and health Pilot Highlights
  16. 16. Nigeria AflasafeTM Pilot Overview Maize toxicity due to Aflatoxin from Aspergillus fungus that causes stunting and carcinogenic effects. Cultivate Aflatoxin-free maize using AflasafeTM bio control product. Provide per unit premium to out growers to incentivize production of AflasafeTM -treated maize among smallholders. Problem: Solution: Incentive: • Participating farmers obtained 13.2% over the prevailing market price. • Aflatoxin concentration averaged less than 2 ng/g in 99% of maize grain lots harvested from AflasafeTM treated fields; well below the 20 ng/g US acceptable limits and 4 ng/g European limits • Initial yields showed more than twice the normal yield of 1.5 tons per hectare due to use of improved seeds, fertilizers and crop management practices • Year 1 initial verification results show that 98.3% of samples from AflasafeTM treated fields met the minimum threshold • In current Year 2, a total of 25 Implementers are working with 10,000 farmers • 35,000 farmers are anticipated by Year 5. They are expected to sell 200,000 tons of high-AflasafeTM maize, roughly 3% of Nigeria’s total maize production, and keep roughly 60,000 tons for their own consumption Pilot Highlights Year 2 Year 3 Year 4Year 1Design Pre-Launch Incentivize a total production of around 480,000 metric tons (MT) of high-AflasafeTM maize and deliver health benefits to around 70,000 smallholder family members, not including downstream maize consumers. Anticipated Impact:
  17. 17. Demand uncertainty, barriers to capital constraining production of sufficient appropriate legume seeds. Increase adoption of improved legume seed varieties. Provide Volume Guarantees and End-of-Pilot Prize to incentivize seed companies to increase production and sales of improved legume seeds. Problem: Solution: Incentive: Cumulative 5,396 MT of additional legume seed sold, and up to a 40% increase in legume yields. Participating seed companies and farmers may reach a cumulative benefit of US$2.5 million and US$30.4 million, respectively. Anticipated Impact: Uganda Improved Legume Seeds Pilot Overview Year 2 Year 3 Year 4 Year 5Year 1Design Pre-Launch • While African agricultural output has grown, nutritional outcomes continue to be poor. • Legumes are important to local smallholders farmers’ diets, contributing roughly 25 percent of per capita protein intake in Uganda. • The pilot strives to increase the amount of quality non-maize seed available to small holder farmers • Increasing the use of legumes has multiple proven impacts, including improving smallholder farmers’ income, nutrition, and soil health. • Soil health also leads to improved harvest of crops, which generates additional nutritional benefits to consumers. Pilot Highlights
  18. 18. Vitamin A deficiency in > 80% of Africa produces blindness and over 250,000 deaths annually. Biofortified Pro-Vitamin A (PVA) maize provides high Vitamin A content from a natural source. Provide prizes to milling companies for introducing and selling commercial volumes of PVA maize. Problem: Solution: Incentive: Pilot Highlights Produce over 60,000 MT/year of biofortified PVA maize meal by the fourth year. Consumers receive an additional 124μg of Vitamin A per day, 24% of their average requirement. Anticipated Impact: Zambia Biofortified Maize Pilot Overview Year 2 Year 3 Year 4 Year 5Year 1Design Pre-Launch • Maize represents over 80% of the diet in Zambia • Significant Vit A deficiency exists in the country • Three bio fortified orange maize hybrids are used with beta carotene levels from 4.7 ppm to 7.8ppm and these levels will be increased over time • Greater than 90% of maize is produced by SHF who also keep the PVA maize for their home consumption • Natural sources of Vit A from biofortified maize self regulates and avoids toxicity issues
  19. 19. Tristan Armstrong, Agriculture and Food Branch DFAT tristan.armstrong@dfat.gov.au Aug 2015 Thanks

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