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Public Sector Research Priorities
for Sustainable Food Security

Perspectives from Plausible
Scenarios
Gerald C. Nelson, IFPRI and Dominique van der Mensbrugghe, FAO
Food Security Futures 1, Dublin, Ireland, 11 April 2013
Harry S Truman
Give me a one-handed economist! All my economists say, On the
one hand… on the other.

 The future is an uncertain place.
 Plausible scenarios help to bound the uncertainty to
 guide investments and policy decisions.
After a steady decline, progress towards the
           MDG hunger target has stalled
            Millions of hungry people

             1050

                                                               World            Developing world
                       1000
             1000


                        980
              950
                                               931
                                                                          922
                                                                                   898
              900
                                               909                        905
                                                                                                   867   868
                                                                                   885
              850
                                                                                                   852   852

              800
                                              1995-97                                          2007-09         2015

Source: Food and Agriculture Organization of the United Nations (2012).
Regional disparities in progress in reducing
                                 undernourishment are large. Between 1990 and
                                 2011,…
                           350
                                                Increase of 64                    Decrease of 22
                           300
  Million undernourished




                                                million in Sub-                   million in South Asia
                           250                  Saharan Africa
                           200

                           150

                           100

                            50

                             0
                                  Sub-Saharan   South East Asia   South Asia       East Asia    Latin America Other developing
                                     Africa
                                                                  1990/92      2010/12

Source: Food and Agriculture Organization of the United Nations (2012).
What Might the Future
Hold?
Recent findings from FAO and the CGIAR
Participants who determine the future
▪ The private sector
  ▪ Ranging from the smallest of small holder to the largest of global agribusinesses, manages
    resources to meet their own internal imperatives of subsistence, survival and profitability.

▪ The public sector
  ▪ Provides
     ▪ A ‘level playing field’ – the set of formal institutions that all participants are legally obliged to
       adhere, and enforcement
     ▪ Provision of various kinds of public goods that improve the workings of the private sector

▪ Civil society
  ▪ Watches over both the public and private sectors and uses its voice to improve the
    functioning of both.
The sources of food security challenges: drivers
of change
▪ Demand
  ▪ The number of people
  ▪ Their command over financial and physical resources
  ▪ Their dietary desires
  ▪ Their location

▪ Supply
  ▪ The capacity of natural resources, augmented by human actions, to meet these
    demands over an extended period.
FAO AT2050: Cautious optimism for improved food
security, but climate change effects not included
▪ Supply – agricultural production increases by 60 percent between 2006 and 2050
▪ Demand – population growth is more important than income growth
  ▪ Population growth – 39 percent
  ▪ Income growth – 21 percent

▪ Well-being outcome – caloric intake increases at the global level by 12.8 percent
  ▪ 2006 – 2,772 kcal/day/person
  ▪ 2050 – 3,070 kcal/day/person
  ▪ Significantly more in the poorest regions

▪ But including climate change nuances the good news, potentially significantly for
  some regions



Source: Alexandratos and Bruinsma (2012), FAO.
Modest cereal yield improvements
        (kg/ha left-axis, growth percent per annum right-axis)
               5,000                                                                                                               2.5

               4,500

               4,000                                                                                                               2.0

               3,500




                                                                                                                                         Percent per annum
               3,000                                                                                                               1.5
       Kt/ha




               2,500

               2,000                                                                                                               1.0

               1,500

               1,000                                                                                                               0.5

                500

                  0                                                                                                                0.0
                       sub-Saharan   South Asia   Near East & N. Latin America    Developing   World      Developed    East Asia
                          Africa                      Africa                       countries               countries

                                                                   2006    2050     Growth             0.65% p.a. vs. 2% p.a. 1960-2005


Source: Alexandratos and Bruinsma (2012).
Land use change continues in Latin America and
            Sub-Saharan Africa
            (million hectares left-axis, percent change 2005/07 - 2050 right-axis)
                          160                                                                                                                                                               32


                          140                                                                                                                                                               28


                          120                                                                                                                                                               24




                                                                                                                                                                                                 Percent change 2005/7-2050
                          100                                                                                                                                                               20
       Million hectares




                           80                                                                                                                                                               16


                           60                                                                                                                                                               12


                           40                                                                                                                                                               8


                           20                                                                                                                                                               4


                           0                                                                                                                                                                0
                                     Developing            Latin America       sub-Saharan Africa     Near East & N.            East Asia          South Asia          Developed
                                      countries                                                           Africa                                                       countries

                                Irrigated land change, million hectare (left-axis)   Rain-fed land change, million hectare (left-axis)   Percent change between 2005/07-2050 (right-axis)



Source: Alexandratos and Bruinsma (2012).
Food Security, Farming, and Climate Change to
2050: Key Findings
▪ GDP and population growth result in price increases between 2010 and 2050
▪ Climate change hurts productivity and causes even greater price increases
▪ International trade flows are an important adaptation component




Source: Nelson et al, 2010.
Income and population growth drive prices higher
       (price increase (%), 2010 – 2050, Baseline economy and demography)




Nelson et al, 2010.
Climate change increases prices even more
       (price increase (%), 2010 – 2050, Baseline economy and demography)

                                  Minimum and maximum
                                  effect from four climate
                                          scenarios




Nelson et al, 2010.
Three main messages to policy makers
▪ In low-income countries, sustainable development is a more important priority
  than climate change adaptation today
▪ Prepare today for higher temperatures and changes in precipitation in all sectors
  tomorrow
  ▪ Invest more in capacity to adapt agriculture
  ▪ Keep international trade relatively free from barriers

▪ Collect better data today and tomorrow on existing situation and practices
  ▪ Weather, land cover, water availability, prices, practices
Parsing the future: Plausible scenarios in 2013
▪ What do we know?
  ▪ Population will grow
  ▪ Incomes will increase in many places
  ▪ Temperatures will rise, precipitation patterns will change

▪ But by how much?
  ▪ Use combinations of plausible drivers to generate a range of plausible outcomes

▪ Shared Socioeconomic Pathways (SSPs) from IPCC
  ▪ New IPCC socioeconomic scenarios – population, income, urbanization

▪ Add new IPCC climate scenario – RCP8.5 – most extreme in the new suite of GHG
  emission pathways
The selected scenarios

Scenario   SSP           GCM              Crop model

S1         SSP2          None             Reference yields

S2         SSP3          None             Reference yields

S3         SSP2          IPSL—RCP 8.5     LPJml

S4         SSP2          Hadley—RCP 8.5   LPJml

S5         SSP2          IPSL—RCP 8.5     DSSAT

S6         SSP2          Hadley—RCP 8.5   DSSAT
The per capita income gap remains large in 2050
but is reduced in some scenarios
                   50,000

                   45,000

                   40,000

                   35,000
$2007 per capita




                   30,000

                   25,000
                                                                                                                        2010
                   20,000                                                                                               SSP2
                                                                                                                        SSP3
                   15,000

                   10,000

                    5,000

                       0
                            World   Developing   South Asia E. Europe & Middle East Sub-Saharan   Latin   High Income
                                     East Asia              Central Asia & North       Africa   America &
                                                                           Africa               Caribbean
Temperatures and precipitation increase
             (Absolute changes in annual mean temperature [°C] (top) and annual mean
             precipitation [mm/day] (bottom), 2000-2050)
                          HadGEM-ES2, RCP8.5                         IPSL-CM5A-LR, RCP8.5


 Temperature


    Increases of
    6°C to 8°C in
    northern
    latitudes


 Precipitation
    Drying in
    southeast US
    and northern
    Brazil

Source: Müller, C., & Robertson, R. D. (2013 submitted). Projecting future crop productivity for global economic modeling.
Agricultural Economics.
Rainfed maize yields decline
       (Relative changes in rain fed maize productivity climate scenarios for the RCP8.5
       emission scenario, 2000-2050)
                          HadGEM-ES2, RCP8.5                         IPSL-CM5A-LR, RCP8.5


       DSSAT


  DSSAT
  effects are
  greater than
  LPJmL


       LPJmL




Source: Müller, C., & Robertson, R. D. (2013 submitted). Projecting future crop productivity for global economic modeling.
Agricultural Economics.
What are the consequences?
▪ Prices
▪ Calorie availability
▪ Child malnutrition
Climate change causes price increases
Difference in 2050 (SSP2), climate change to no climate change
(percent)
Consequences for Well-
Being
Average calorie availability and number of malnourished children
In High income countries, neither income nor climate                  SSP3 with no
                                    change scenarios affect average calorie availability                 climate change
                           3,600


                           3,400
Kcals per person per day
                           3,200
                                                                             SSP2 with no
                           3,000
                                                                             climate change
                                                                                                 SSP2 with
                                                                                                 climate change
                           2,800


                           2,600


                           2,400


                           2,200
                                   2010     2015     2020      2025     2030     2035     2040    2045        2050
                               SSP2, no climate change      SSP3, no climate change     SSP2, IPSL, LPJmL
                               SSP2, Hadley, LPJmL          SSP2, IPSL, DSSAT           SSP2, Hadley, DSSAT
In Middle income countries, income growth and climate
                                              change effects are both important                       SSP2 with no
                           3,600                                                                      climate change

                           3,400
Kcals per person per day
                           3,200


                           3,000


                           2,800


                           2,600                                     SSP3 with no             SSP2 with
                                                                     climate change           climate change
                           2,400


                           2,200
                                     2010   2015    2020    2025     2030    2035      2040    2045       2050
                              SSP2, no climate change   SSP3, no climate change     SSP2, IPSL, LPJmL
                              SSP2, Hadley, LPJmL       SSP2, IPSL, DSSAT           SSP2, Hadley, DSSAT
In Low income countries, income growth and climate
                                                change effects are both important
                           3,600


                           3,400
Kcals per person per day
                           3,200
                                                                                          SSP2 with
                           3,000
                                                                       SSP2 with no       climate change
                                                                       climate change

                           2,800


                           2,600               SSP3 with no
                                               climate change
                           2,400


                           2,200
                                     2010      2015    2020    2025    2030      2035   2040     2045    2050
                                   SSP2, no climate change    SSP3, no climate change    SSP2, IPSL, LPJmL
                                   SSP2, Hadley, LPJmL        SSP2, IPSL, DSSAT          SSP2, Hadley, DSSAT
in Middle income developing countries, income growth is most
               important in reducing the number of malnourished children
                                        (million)
110


105


100


 95
                                                                                   SSP3 with no
 90                                                                                climate change

 85


 80


 75


 70


 65
                                 SSP2 with no                        SSP2 with
 60                              climate change                      climate change
      2010        2015    2020        2025        2030        2035         2040   2045    2050

                                 S1    S2    S3          S4    S5     S6
in Low income developing countries, income growth is most
             important in reducing the number of malnourished children
                                      (million)
50




45



                                                                               SSP3 with no
                                                                               climate change
40




35
                                                      SSP2 with no
                                                      climate change


30



                                                                        SSP2 with
25
                                                                        climate change
     2010      2015    2020        2025        2030         2035        2040         2045       2050

                              S1     S2   S3           S4     S5   S6
Price outcomes differ by model
Difference in 2050 (SSP2), climate change to no climate change (percent)
                                                     110              Coarse grains   Oil seeds   Rice   Sugar     Wheat

% change relative to Reference Scenario S1 in 2050
                                                     90


                                                     70


                                                     50


                                                     30


                                                     10


                                                     -10
                                                           S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6

                                                             AIM   ENVISAGE   FARM    GTEM    MAGNET     GCAM    GLOBIOM IMPACT   MAgPIE
What is missing in these scenarios?
▪ Climate change
  ▪ Increasing extreme events
  ▪ Effects of changes in pest pressure

▪ Malnutrition
  ▪ Calorie availability contribution to undernutrition
  ▪ Calorie (and other nutrient) distribution to different groups
  ▪ Modeling overnutrition

▪ Sustainability
  ▪ Definitions
  ▪ Metrics
Priorities for CGIAR and FAO scenario development
and strategic foresight:
Cooperation is key to address missing elements
▪ Cooperative quantitative modeling
  ▪ Linking (and enhancing) partial and general equilibrium modeling
  ▪ Linking (and enhancing) biophysical and socioeconomic modeling

▪ Cooperative use of institutional and outside substantive expertise
  ▪ Actively involve biological experts in scenario development

▪ Sustained cooperation with model intercomparison efforts

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Perspectives on the Future of Food Security

  • 1. Public Sector Research Priorities for Sustainable Food Security Perspectives from Plausible Scenarios Gerald C. Nelson, IFPRI and Dominique van der Mensbrugghe, FAO Food Security Futures 1, Dublin, Ireland, 11 April 2013
  • 2. Harry S Truman Give me a one-handed economist! All my economists say, On the one hand… on the other. The future is an uncertain place. Plausible scenarios help to bound the uncertainty to guide investments and policy decisions.
  • 3. After a steady decline, progress towards the MDG hunger target has stalled Millions of hungry people 1050 World Developing world 1000 1000 980 950 931 922 898 900 909 905 867 868 885 850 852 852 800 1995-97 2007-09 2015 Source: Food and Agriculture Organization of the United Nations (2012).
  • 4. Regional disparities in progress in reducing undernourishment are large. Between 1990 and 2011,… 350 Increase of 64 Decrease of 22 300 Million undernourished million in Sub- million in South Asia 250 Saharan Africa 200 150 100 50 0 Sub-Saharan South East Asia South Asia East Asia Latin America Other developing Africa 1990/92 2010/12 Source: Food and Agriculture Organization of the United Nations (2012).
  • 5. What Might the Future Hold? Recent findings from FAO and the CGIAR
  • 6. Participants who determine the future ▪ The private sector ▪ Ranging from the smallest of small holder to the largest of global agribusinesses, manages resources to meet their own internal imperatives of subsistence, survival and profitability. ▪ The public sector ▪ Provides ▪ A ‘level playing field’ – the set of formal institutions that all participants are legally obliged to adhere, and enforcement ▪ Provision of various kinds of public goods that improve the workings of the private sector ▪ Civil society ▪ Watches over both the public and private sectors and uses its voice to improve the functioning of both.
  • 7. The sources of food security challenges: drivers of change ▪ Demand ▪ The number of people ▪ Their command over financial and physical resources ▪ Their dietary desires ▪ Their location ▪ Supply ▪ The capacity of natural resources, augmented by human actions, to meet these demands over an extended period.
  • 8. FAO AT2050: Cautious optimism for improved food security, but climate change effects not included ▪ Supply – agricultural production increases by 60 percent between 2006 and 2050 ▪ Demand – population growth is more important than income growth ▪ Population growth – 39 percent ▪ Income growth – 21 percent ▪ Well-being outcome – caloric intake increases at the global level by 12.8 percent ▪ 2006 – 2,772 kcal/day/person ▪ 2050 – 3,070 kcal/day/person ▪ Significantly more in the poorest regions ▪ But including climate change nuances the good news, potentially significantly for some regions Source: Alexandratos and Bruinsma (2012), FAO.
  • 9. Modest cereal yield improvements (kg/ha left-axis, growth percent per annum right-axis) 5,000 2.5 4,500 4,000 2.0 3,500 Percent per annum 3,000 1.5 Kt/ha 2,500 2,000 1.0 1,500 1,000 0.5 500 0 0.0 sub-Saharan South Asia Near East & N. Latin America Developing World Developed East Asia Africa Africa countries countries 2006 2050 Growth 0.65% p.a. vs. 2% p.a. 1960-2005 Source: Alexandratos and Bruinsma (2012).
  • 10. Land use change continues in Latin America and Sub-Saharan Africa (million hectares left-axis, percent change 2005/07 - 2050 right-axis) 160 32 140 28 120 24 Percent change 2005/7-2050 100 20 Million hectares 80 16 60 12 40 8 20 4 0 0 Developing Latin America sub-Saharan Africa Near East & N. East Asia South Asia Developed countries Africa countries Irrigated land change, million hectare (left-axis) Rain-fed land change, million hectare (left-axis) Percent change between 2005/07-2050 (right-axis) Source: Alexandratos and Bruinsma (2012).
  • 11. Food Security, Farming, and Climate Change to 2050: Key Findings ▪ GDP and population growth result in price increases between 2010 and 2050 ▪ Climate change hurts productivity and causes even greater price increases ▪ International trade flows are an important adaptation component Source: Nelson et al, 2010.
  • 12. Income and population growth drive prices higher (price increase (%), 2010 – 2050, Baseline economy and demography) Nelson et al, 2010.
  • 13. Climate change increases prices even more (price increase (%), 2010 – 2050, Baseline economy and demography) Minimum and maximum effect from four climate scenarios Nelson et al, 2010.
  • 14. Three main messages to policy makers ▪ In low-income countries, sustainable development is a more important priority than climate change adaptation today ▪ Prepare today for higher temperatures and changes in precipitation in all sectors tomorrow ▪ Invest more in capacity to adapt agriculture ▪ Keep international trade relatively free from barriers ▪ Collect better data today and tomorrow on existing situation and practices ▪ Weather, land cover, water availability, prices, practices
  • 15. Parsing the future: Plausible scenarios in 2013 ▪ What do we know? ▪ Population will grow ▪ Incomes will increase in many places ▪ Temperatures will rise, precipitation patterns will change ▪ But by how much? ▪ Use combinations of plausible drivers to generate a range of plausible outcomes ▪ Shared Socioeconomic Pathways (SSPs) from IPCC ▪ New IPCC socioeconomic scenarios – population, income, urbanization ▪ Add new IPCC climate scenario – RCP8.5 – most extreme in the new suite of GHG emission pathways
  • 16. The selected scenarios Scenario SSP GCM Crop model S1 SSP2 None Reference yields S2 SSP3 None Reference yields S3 SSP2 IPSL—RCP 8.5 LPJml S4 SSP2 Hadley—RCP 8.5 LPJml S5 SSP2 IPSL—RCP 8.5 DSSAT S6 SSP2 Hadley—RCP 8.5 DSSAT
  • 17. The per capita income gap remains large in 2050 but is reduced in some scenarios 50,000 45,000 40,000 35,000 $2007 per capita 30,000 25,000 2010 20,000 SSP2 SSP3 15,000 10,000 5,000 0 World Developing South Asia E. Europe & Middle East Sub-Saharan Latin High Income East Asia Central Asia & North Africa America & Africa Caribbean
  • 18. Temperatures and precipitation increase (Absolute changes in annual mean temperature [°C] (top) and annual mean precipitation [mm/day] (bottom), 2000-2050) HadGEM-ES2, RCP8.5 IPSL-CM5A-LR, RCP8.5 Temperature Increases of 6°C to 8°C in northern latitudes Precipitation Drying in southeast US and northern Brazil Source: Müller, C., & Robertson, R. D. (2013 submitted). Projecting future crop productivity for global economic modeling. Agricultural Economics.
  • 19. Rainfed maize yields decline (Relative changes in rain fed maize productivity climate scenarios for the RCP8.5 emission scenario, 2000-2050) HadGEM-ES2, RCP8.5 IPSL-CM5A-LR, RCP8.5 DSSAT DSSAT effects are greater than LPJmL LPJmL Source: Müller, C., & Robertson, R. D. (2013 submitted). Projecting future crop productivity for global economic modeling. Agricultural Economics.
  • 20. What are the consequences? ▪ Prices ▪ Calorie availability ▪ Child malnutrition
  • 21. Climate change causes price increases Difference in 2050 (SSP2), climate change to no climate change (percent)
  • 22. Consequences for Well- Being Average calorie availability and number of malnourished children
  • 23. In High income countries, neither income nor climate SSP3 with no change scenarios affect average calorie availability climate change 3,600 3,400 Kcals per person per day 3,200 SSP2 with no 3,000 climate change SSP2 with climate change 2,800 2,600 2,400 2,200 2010 2015 2020 2025 2030 2035 2040 2045 2050 SSP2, no climate change SSP3, no climate change SSP2, IPSL, LPJmL SSP2, Hadley, LPJmL SSP2, IPSL, DSSAT SSP2, Hadley, DSSAT
  • 24. In Middle income countries, income growth and climate change effects are both important SSP2 with no 3,600 climate change 3,400 Kcals per person per day 3,200 3,000 2,800 2,600 SSP3 with no SSP2 with climate change climate change 2,400 2,200 2010 2015 2020 2025 2030 2035 2040 2045 2050 SSP2, no climate change SSP3, no climate change SSP2, IPSL, LPJmL SSP2, Hadley, LPJmL SSP2, IPSL, DSSAT SSP2, Hadley, DSSAT
  • 25. In Low income countries, income growth and climate change effects are both important 3,600 3,400 Kcals per person per day 3,200 SSP2 with 3,000 SSP2 with no climate change climate change 2,800 2,600 SSP3 with no climate change 2,400 2,200 2010 2015 2020 2025 2030 2035 2040 2045 2050 SSP2, no climate change SSP3, no climate change SSP2, IPSL, LPJmL SSP2, Hadley, LPJmL SSP2, IPSL, DSSAT SSP2, Hadley, DSSAT
  • 26. in Middle income developing countries, income growth is most important in reducing the number of malnourished children (million) 110 105 100 95 SSP3 with no 90 climate change 85 80 75 70 65 SSP2 with no SSP2 with 60 climate change climate change 2010 2015 2020 2025 2030 2035 2040 2045 2050 S1 S2 S3 S4 S5 S6
  • 27. in Low income developing countries, income growth is most important in reducing the number of malnourished children (million) 50 45 SSP3 with no climate change 40 35 SSP2 with no climate change 30 SSP2 with 25 climate change 2010 2015 2020 2025 2030 2035 2040 2045 2050 S1 S2 S3 S4 S5 S6
  • 28. Price outcomes differ by model Difference in 2050 (SSP2), climate change to no climate change (percent) 110 Coarse grains Oil seeds Rice Sugar Wheat % change relative to Reference Scenario S1 in 2050 90 70 50 30 10 -10 S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6S3S4S5S6 AIM ENVISAGE FARM GTEM MAGNET GCAM GLOBIOM IMPACT MAgPIE
  • 29. What is missing in these scenarios? ▪ Climate change ▪ Increasing extreme events ▪ Effects of changes in pest pressure ▪ Malnutrition ▪ Calorie availability contribution to undernutrition ▪ Calorie (and other nutrient) distribution to different groups ▪ Modeling overnutrition ▪ Sustainability ▪ Definitions ▪ Metrics
  • 30. Priorities for CGIAR and FAO scenario development and strategic foresight: Cooperation is key to address missing elements ▪ Cooperative quantitative modeling ▪ Linking (and enhancing) partial and general equilibrium modeling ▪ Linking (and enhancing) biophysical and socioeconomic modeling ▪ Cooperative use of institutional and outside substantive expertise ▪ Actively involve biological experts in scenario development ▪ Sustained cooperation with model intercomparison efforts

Editor's Notes

  1. Price increases with perfect mitigation and baseline areMaize – 52%Rice – 29%Wheat – 25%
  2. Maize price mean increase is 101 % higher; max is 131, min is 83Rice price mean increase is 55; max is 57, min is 53Wheat price mean increase is 54; max is 66, min is 45All these are for the baseline overall scenario
  3. Absolute changes in annual mean temperature [°C] (top) and annual mean precipitation [mm/day] (bottom) from 1980-2010 to 2035-2065 for the HadGEM-ES2 (left) and IPSL-CM5A-LR (right) models. Temperature changes above 8°C have been cut to facilitate better visibility of differences at lower temperature changes, which is more important for cultivated areas. Grey areas in the bottom depict regions with precipitation changes of less than 50mm/year (0.137mm/day).