Food crisis and agriculture


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  • A lot of land goes into producing products that could be considered unnecessary or excessive in their production (e.g. tobacco, sugar, beef, biofuels, urbanization, etc). Some 80% of the world’s production is consumed by the wealthiest 20% of the world suggesting an inequality in resource use due to social, economic and political reasons, and perhaps less because of Malthusian concerns about population sizes outstripping resource availability in most cases. Furthermore, while many go hungry an equally large number are considered obese.
  • Government Agricultural Policies: Thus, many of the non-staple crops that had assured variety, mostly legumes, were abandoned, reducing the nutritional value for household consumption.
  • To a certain extent, crop destruction has been intensified by wildlife, for example, birds.
  • People move into fishing areas from drought-stricken communal lands.
  • Food crisis and agriculture

    1. 1. Food Crisis and AgricultureSaraswati Anindita, Hera’a Nasim, Benedicta Abiti
    2. 2. International Grain MarketBasic Facts• For maize, rice, soybean and wheat• Dominance of the US grain markets • Maize market (60%), Wheat (25%), Soybean (after Argentina and Brazil) • Rice market: Thai prices – Depreciation of US dollar – Biofuels – Build-up of dollar reserves in other countries• High degree of competition• Seasonality and inelastic supply and demand functions • Single annual harvest • Multiple harvest in other producing countriesFood Crisis and Agriculture July 24, 2012 2
    3. 3. Grain Market Price Variation • The nature of this crisis is not how expensive prices are relative to their historical trend, but how quickly they have risen, together with the related problem of behavioral adjustments by consumers and producers.Food Crisis and Agriculture July 24, 2012 3
    4. 4. Historical Food Crises• 2011 East Africa Drought – Ethiopia, Djibouti, Somalia, Kenya• 2010 Sahel Famine – Sudan, Niger, Nigeria, Cameroon, etc• 2007-2008 World Food Price Crisis• 2005-2006 Niger Food Crisis• 1972-1976 Food CrisisFood Crisis and Agriculture July 24, 2012 4
    5. 5. 2008 Food Crisis2005-2008•Global food prices: 83% rise – 45% increased only during 9 monthsAs of March 2008 priceincrease compared to 2007•Wheat: 130%•Soy: 87%•Rice: 74%•Maize: 31% (Institute for Food and Development Policy, 2008) Food Crisis and Agriculture July 24, 2012 5
    6. 6. 2008 Food Crisis (Cont’d)• Over the last 20 years:• Food production rise: 2% pa• Population growth decrease: 1.14%• Record grain harvest in 2007 “More than enough food to feed everyone, at least 1.5 times current demand” Food Crisis and Agriculture July 24, 2012 6
    7. 7. Immediate Causes • Drought in major wheat- • A lot of land goes into producing countries in producing products that 2005-2006 could be considered • Low grain reserves unnecessary or excessive in their production (e.g., • High oil prices cocoa, tobacco, • Doubling per capita meat sugarcane, cotton, etc) consumption in some developing countries • Some 80% of the world’s production is consumed • Diversion of 5% of world’s by the wealthiest 20% of cereal to agrofuels the world suggesting an – US government claims: 3% inequality in resource – World Bank report: 75%Food Crisis and Agriculture July 24, 2012 7
    8. 8. Fundamental Causes• Corporate monopolization of world food system• Unfair trade agreements between domineering richer nations and companies with poor countries depending on agriculture• Unfair trade barriers and support mechanism adjustments• Encouragement on the developing countries to produce cash crops export – Leading to more land clearance, worsening land quality, fertilizer use, reduction in diversity of crops and related ecosystem• Unconstructive types of food “aid” (when it is not emergency relief); “dumping” free, subsidized, cheap food below market prices• Grain hoarding by seed companies in world’s grain trade Food Crisis and Agriculture July 24, 2012 8
    9. 9. Case study- Zambia Published by: Diakonisches Werk der EKD e.V.for “Brot für die Welt” and Diakonie Katastrophenhilfe March 2012
    10. 10. Zambia• The total population of Zambia is approx. 10.3 million.• The studies were carried out in Eastern and Southern Provinces.• Population density in the Eastern Province is 19 people per of about 1,496,000.• Population density of 15 per and a total population of around 1.3 million, of which 85 percentAgriculture July 24, 2012 Food Crisis and are rurally based. 10
    11. 11. Southern Province• The main crops grown in the Southern Province are cereals (maize, sorghum and millet), legumes, oil crops (groundnuts and cotton) and tubers such as sweet potatoes.• More than 75 percent of interviewed households cropped maize.Food Crisis and Agriculture July 24, 2012 11
    12. 12. Eastern Province• Agricultural activities tend to vary in intensity according to the landscape, i.e. there are distinct differences between valley and plateau systems.• The Plateau System can be described as a food surplus region.• Main cash crops grown are hybrid maize, sunflower, groundnuts, tobacco, paprika and cotton; and assorted vegetables, rice, bananas and fruit grown on river bank gardens.• Subsistence crops include local maize, sorghum, finger millet, cassava and beans. Vegetables and fruits are mainly Agriculture Julyin 2012 Food Crisis and grown 24, gardens. 12
    13. 13. Causes Of Food Shortages• Government Agricultural • Pests and Diseases: Policies: – These include various crop – misguided agricultural policies biased towards and animal pests and maize production. diseases, which have caused a decline in – farmers concentrated on agricultural production. maize production, even in areas with unsuitable soil • Poor Food Storage: texture. – Most rural families rely on – shift occurred at the stored food. expense of traditional – High storage losses of up crops that had assured both a greater degree of to 30% are experienced as security against risk of crop a result of storage pests. failure and a higher nutritional value. Food Crisis and Agriculture July 24, 2012 13
    14. 14. Causes Of Food Shortages• Traditional Beliefs and Attitudes: – Some beliefs such as “production of leguminous crops is a woman’s responsibility” reduce the production of crops like groundnuts, as they are not given priority. – Crops are planted and weeded late because the women are expected to do most of the work in the fields in their own time e.g. after working in the main family fields.• Climatic Conditions: – Erratic rainfall, drought and floods, which have a negative impact on agricultural production. Food Crisis and Agriculture July 24, 2012 14
    15. 15. Causes Of Food Shortages• Limited Animal and Draught Power: – Farmers’ food self-sufficiency depends; i. on the hectares they can cultivate, ii. on the yield/ha that is determined by both soil fertility and timeliness of planting. – Cattle, apart from being important as a method of savings and an indicator of status and wealth provide draught power. – This valuable capital resource base has however been reduced in the past due to animal disease outbreaks. Food Crisis and Agriculture July 24, 2012 15
    16. 16. Traditional Coping strategies• When food runs out people sell livestock and brew beer for the local market.• To reduce vulnerability, women often develop non-farming activities such as weaving baskets, mats, and knitting.• Poor crop production during the drought years lead to increased fishing activities especially in the valley area.• Migration also play an important role as a survival strategy.• Households adopt unfamiliar eating habits by gathering wild fruits and vegetables and some of these wild fruits are poisonous. Food Crisis and Agriculture July 24, 2012 16
    17. 17. CASE STUDY - MALAWI
    18. 18. CASE STUDY - MALAWI  Principal food crop and preferred food staple  Contributes over 70% to dietary calories  172 kg per person per year  Since 2005 the Malawi Government has implemented a substantial subsidy on the cost of seeds and fertilizer under a program called the Farm Input Support Programme (FISP)  Food crisis – 2001-2002 (9months) – food famine (354%) – 2005-2006 (10months) – price crisis (218%) – 2007-2009 (9 months) – price spikes (395%)Food Crisis and Agriculture July 24, 2012 18
    19. 19.  Causes – – Overreliance on maize +weaknesses in agric. policy – Decline in agric yield (uneven rainfall in 2000-2002) – Lapses in the governments early warning systems – Distortions in domestic markets – Mismanagement of food reserves (sold reserves without authorization in 2000).  Solutions – – Diversification into other crops – World Bank assisting to revamp food security operationsFood Crisis and Agriculture July 24, 2012 19
    20. 20. WAY FORWARD
    21. 21. WAY FORWARD  World Bank (2009)- – boost its overall support for global agriculture and food to $6 billion from $4 billion – launch risk management tools – crop insurance to protect poor countries and small- holders.  Jeffrey Sachs (2008) Author of "Common Wealth: Economics for a Crowded Planet."Food Crisis and Agriculture July 24, 2012 21
    22. 22.  “Robbing Peter to pay Paul”Food Crisis and Agriculture July 24, 2012 22
    23. 23. Truly help poor countries – without stringsFood Crisis and Agriculture July 24, 2012 23
    24. 24. Food Crisis and Agriculture July 24, 2012 24
    25. 25. Food Crisis and Agriculture July 24, 2012 25
    26. 26.  Report by Henk H. 2012 Food security in sub-Saharan Africa: An explorative study Important conditions to take into account to achieve food security – a healthy and educated population – inclusive growth beneficial for the poor – modernization of agriculture – balancing competing claims for energy, land and water – institutional set-up that stimulates investments in agriculture – environmental sustainability – and Agriculture July 24, 2012Food Crisis political stability and conflict resolution 26
    27. 27. THANK YOU!!Food Crisis and Agriculture July 24, 2012 27
    28. 28. References • IMF Survey, 2008 • International Food Policy Research Institute, 2011 • • Frank Ellis, 2012. %20crisis_Malawi_WD%202012.pdf • Henk H. 2012. Food security in sub-Saharan Africa: An explorative study security-in-sub-saharan-africa-an-explorative-study • • • Crisis and Agriculture July 24, 2012 28