SlideShare uma empresa Scribd logo
1 de 30
Baixar para ler offline
Agriculture for Sustainable
Economic Development: A Global
R&D Initiative to Avoid a Deep and
          Complex Crisis

           Joachim von Braun
                 Director General
   International Food Policy Research Institute


     Charles Valentine Riley Memorial Lecture
       Washington D.C., February 28, 2008
Overview
       1. The world food equation: Out of balance

       2. Unsustainable agriculture: Risks and
          insecurity

       3. Actions needed now: Technology and
          policy change




Joachim von Braun, IFPRI, February 2008
The food and agriculture equation: Changes

    Production                                           Demand
    Land                                                 Income growth
    Water                                                Poverty and inequality
    Inputs & Transport costs                             Consumer behavior
    Workforce                                            Bioenergy
    Climate change                                       Biomass (CO2)
    Agrarian structure
    Technology

                                          Trade and Markets
                                          Information & Standards
                                          Supermarkets

Joachim von Braun, IFPRI, February 2008
The new situation: Surge in prices
      Commodity prices (US$/ton)


       400                      Corn                                                                100
                                Wheat
                                                                                                    80
       300                      Rice
                                Oil (right scale)                                                   60
       200
                                                                                                    40

       100
                                                                                                    20

           0                                                                                        0
        00


                      01


                                     02


                                              03


                                                       04


                                                                05


                                                                          06


                                                                                   07


                                                                                             08
      n-


                    n-


                                   n-


                                            n-


                                                     n-


                                                              n-


                                                                        n-


                                                                                 n-


                                                                                           n-
    Ja


                  Ja


                                 Ja


                                          Ja


                                                   Ja


                                                            Ja


                                                                      Ja


                                                                               Ja


                                                                                         Ja
Joachim von Braun, IFPRI, February 2008                              Source: Data from FAO 2008 and IMF 2008.
Cereals price changes: IFPRI projections
   US$/ton
   300


   200

   100

         0
              2000                        2005                    2010                       2015

                  Rice                    Wheat                Maize                   Soybean

Joachim von Braun, IFPRI, February 2008          Source: M. Rosegrant (prelim. results with IMPACT-WATER)
Income growth: Rising consumption
            Growth (2004-06 per annum)
                    • 9% in Asia, 6% in Africa
                    • 2% in industrialized countries

            Since 2000, global cereal use for:
                    • Food     4%, feed   7%
                    • Industrial purposes   25%

            India, 2000 – 2025 Scenario:
                    • Meat                176%, milk and vegetables                   70%
                    • Grain                27%
                                                   Sources: FAO 2003 and 2007b; Kumar, et al. 2007.
Joachim von Braun, IFPRI, February 2008
Shift towards high-value commodities

             2005/1990 ratios of per capita consumption
                                          India   China   Brazil        Nigeria
      Cereals                              1.0     0.8     1.2            1.0
      Meat                                 1.2     2.4     1.7             1.0
      Milk                                 1.2     3.0     1.2             1.3
      Fish                                 1.2     2.3     0.9             0.8
      Fruits                               1.3     3.5     0.8             1.1
      Vegetables                           1.3     2.9     1.3             1.3

                  Future grain consumption is driven by
               income growth, population growth, and feed
                      for meat and dairy production
Joachim von Braun, IFPRI, February 2008                      Source: Data from FAO 2007.
Drivers of change:
    Globalization of the agri-food business chain
    Agricultural                                         Food




                                                                                             Consumers
       input                                          processors            Food
     industry                             Farms       and traders         retailers


  top 10: $40 bln                     Agricultural   top 10: $409 bln   top 10: $1,091
                                    value added:                             bln
       • Syngenta                    $1,592 bln       • Nestle
       • Monsanto                                     • Cargill         • Wal-Mart
       • Bayer C                     No. of farms:    • ADM             • Carrefour




                                                                                             $4.000 bln
       • BASF AG                      ca. 450 mln                       • Metro G
                                                      • Unilever
       • Dow Agro                                     • Kraft Foods     • Tesco
                                      Size distr.
                                                                        • Seven & I
                                    >100 ha: 0.5%
                                    < 2 ha: 85%


                                                                            Source: von Braun 2008.
Joachim von Braun, IFPRI, February 2008
World cereal production: Not growing enough
    Million tons
                                                                                  Total Million tons

      1,200                                                                                       2,000

         900
                                                                                                  1,600
         600

                                                                                                  1,200
         300


             0                                                                                    800
                    1999        2000      2001   2002   2003   2004     2005    2006    2007*

                 Wheat                    Coarse grains               Rice           Total (right)

                                                                      Source: Data from FAO 2003, 2005-07.
Joachim von Braun, IFPRI, February 2008                               * Forecast.
Agricultural production:
Decreasing share of developed countries
                Agricultural production, % of world total

       Africa
       Brazil
       China
   W Europe
        India
United States

                0         5         10         15           20
                          1984-6      2004-6

                                                     Source: FAO 2008.
Cereals: The world eats more than it produces
  Million tons
   700

   600

   500

   400
                                                               Total cereal stocks
   300

   200

   100                                                                           China
        0
                 2000            2001     2002   2003   2004     2005      2006       2007*
                                                         Source: Data from FAO 2003, 2005-07.
Joachim von Braun, IFPRI, February 2008                  * Forecast.
IFPRI biofuel scenarios by 2020

                                                                        Price changes
        Scenario                            Biofuel expansion
                                                                         (% by 2020)

                                                                              corn: +26
                                          Actual plans & assumed
                 1                                                           sugar: +12
                                                 expansions
                                                                          oilseeds: +18

                                                                              corn: +72
                                          Doubling of Scenario 1
                 2                                                           sugar: +27
                                                 expansion
                                                                          oilseeds: +44




Joachim von Braun, IFPRI, February 2008                      Source: IFPRI IMPACT–model projections.
World food equation: Reasons for imbalance

      1. Income growth
      2. Biofuels
      3. Lack of technology to respond
      4. Low stocks
      5. Production shocks
      6. High input and transport costs due to energy price
      7. Population growth



Joachim von Braun, IFPRI, February 2008
Overview
       1. The world food equation: Out of balance

       2. Unsustainable agriculture: Risks and
          insecurity

       3. Actions needed now: Technology and
          policy change




Joachim von Braun, IFPRI, February 2008
Declining productivity growth

                                   6
                                                                                                           maize
  Average annual growth rate (%)




                                   5                                                                       rice
                                                                                                           wheat
                                   4


                                   3

                                   2


                                   1

                                   0
                                       1963   1967   1971   1975   1979   1983   1987   1991    1995     1999     2003

Joachim von Braun, IFPRI, February 2008                                           Source: World Development Report 2008.
Sources of cereal production growth
                 Annual cereal production growth rates, 2000-2050
           2.5

               2
           1.5

               1
           0.5

               0
          -0.5
                            LAC              ESAP          SSA       CWANA            NAE
                                          Area expansion   Yield improvement

Joachim von Braun, IFPRI, February 2008                          Source: IFPRI IMPACT projections 2007.
Competition
   for land
   Field and
   pastures: ~40%
   Forests: ca. 10
   million km2
   (~ 20%)
   Cities, roads:
   2%




Joachim von Braun, IFPRI, February 2008   Foley et al., SCIENCE 309, 2005
Climate change and sustainability

      • Agriculture is part of the problem:
        13.5 % the CO2 of equivalents
        (Transport: 13.1%)

      • Agriculture is part of the solution:
        Biomass; CO2 sequestration

      • CO2 trade: A new agricultural
        commodity market of the future?

Joachim von Braun, IFPRI, February 2008
Agriculture: Other sustainability threats
      Water resources
        Irrigation = 80% of water use in developing
        countries

      Soils
         Overgrazing, deforestation, inappropriate
         agricultural practices

      Biodiversity
         Traditional crops replaced by genetically
         uniform modern varieties


Joachim von Braun, IFPRI, February 2008
970 million people live on less than $1 a day

                                          Subjacent poor
                                          ($.75 cents – $1)
                                          485 million people

                                          Medial poor
                                          ($.50 cents – $.75 cents)
                                          323 million people
                                          Ultra poor
                                          (less than $.50 cents)
                                          162 million people
Joachim von Braun, IFPRI, February 2008              Source: Ahmed, et al. 2007.
GHI: Hunger remains high

      Contribution of components to the Global Hunger Index

                                                       proportion of calorie deficient people
        30
                                                       prevalence of underweight in children

                                                       under-five mortality rate
        20



        10



         0
                       1990 2007          1990 2007    1990 2007      1990 2007        1990 2007
                   Sub-Saharan            South Asia   East Asia &   Middle East &   L. America &
                      Africa                             Pacific       N. Africa       Caribb.




Joachim von Braun, IFPRI, February 2008                                   Source: Wiesmann, et al. 2007.
Bangladesh: Household price effects
         Five-person household living on one dollar-a-day per
         person spends its $5
            $3.00 on food
            $0.50 on household energy
            $1.50 on nonfoods
         A 50% increase in food and energy prices cuts $1.75
         from their expenditures

         Food expenditures will be cut most, and will be
         accompanied by:
            • Reduced diet quality
            • Increased micronutrient malnutrition
            • Delays in wage rate adjustments
Joachim von Braun, IFPRI, February 2008
Security synergies and conflicts

       Food insecurity                    Political security risks

      Rising food prices:
         • The poorest suffer silently, the middle class
           protests and lobbies
         • Mass protests against rising prices

      Decline in building international agriculture
       capacity contributes to insecurity


Joachim von Braun, IFPRI, February 2008
Overview
       1. The world food equation: Out of balance

       2. Unsustainable agriculture: Risks and
          insecurity

       3. Actions needed now: Technology and
          policy change




Joachim von Braun, IFPRI, February 2008
Agriculture to address poverty
         in the Critical Square

Governance                 Economic
& Conflicts                 Growth




Innovation                 Productivity
& Capacity               (in agriculture)
Why invest in agriculture?
      Agricultural growth is more pro-poor
                     Projected Poverty Rate in Ethiopia
                     (Both with 5% of GDP annual growth)
44

42

40

38

36

34

32

30

28
            Ag-led grow th          Nag-led grow th   Base run
26
     2003     2005           2007            2009     2011       2013         2015


                                                                        Source: IFPRI, 2007
Global public agricultural R&D
                                1981          2000
                          $15.2 billion*   $23.0 billion*
            100%                                            Middle East-North Africa

                                                            Latin America-Caribbean
              80%
                                                            Other Asia-Pacific

                                                            India
              60%
                                                            China

              40%                                           Sub-Saharan Africa

                                                            Developed
              20%


                0%
                                                                            Source: Pardey, 2006
Joachim von Braun, IFPRI, February 2008                             * in 2000 international prices
Policy responses NOT to choose

      • Export stops (“starving your neighbor”)
      • Food subsidies for vocal middle class
      • Maintaining outdated production controls
      • Continued public underinvestment in
        agriculture productivity increases
      • Exclusion of agriculture from climate change
        mitigation strategies



Joachim von Braun, IFPRI, February 2008
Five milestones for the roadmap
      1. Global political attention at the highest levels
      2. Specific policy action to protect the poorest
         from excessively high food prices
      3. Major investments in services, rural
         infrastructure and input supply and finance for
         small farmers
      4. A global R&D initiative for accelerated
         agricultural productivity
      5. Enhanced collaboration of old and new key
         global agricultural players

Joachim von Braun, IFPRI, February 2008
A global initiative
      Accelerated investment in agricultural
      productivity now:
             •       makes economic sense
             •       is pro-poor and good ethics
             •       enhances sustainability
             •       serves security




Joachim von Braun, IFPRI, February 2008

Mais conteúdo relacionado

Mais procurados

Trends and driving forces in livestock production and trade in Sub Saharan Af...
Trends and driving forces in livestock production and trade in Sub Saharan Af...Trends and driving forces in livestock production and trade in Sub Saharan Af...
Trends and driving forces in livestock production and trade in Sub Saharan Af...ILRI
 
Indonesia’S Agriculture Sector Development
Indonesia’S Agriculture Sector DevelopmentIndonesia’S Agriculture Sector Development
Indonesia’S Agriculture Sector Developmentedunetwork
 
Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...
Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...
Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...Joachim von Braun
 
20 lilyan fulginiti
20   lilyan fulginiti20   lilyan fulginiti
20 lilyan fulginitijillbrown14
 
Weather Catastrophes In China 1980–2010
Weather Catastrophes In China 1980–2010Weather Catastrophes In China 1980–2010
Weather Catastrophes In China 1980–2010douglasruml
 
A spatial analysis: creating similarity domains for targeted research sites i...
A spatial analysis: creating similarity domains for targeted research sites i...A spatial analysis: creating similarity domains for targeted research sites i...
A spatial analysis: creating similarity domains for targeted research sites i...Joanna Hicks
 

Mais procurados (12)

Balancing Supply Chain Risk & Capitalisation 2012
Balancing Supply Chain Risk & Capitalisation 2012Balancing Supply Chain Risk & Capitalisation 2012
Balancing Supply Chain Risk & Capitalisation 2012
 
Trends and driving forces in livestock production and trade in Sub Saharan Af...
Trends and driving forces in livestock production and trade in Sub Saharan Af...Trends and driving forces in livestock production and trade in Sub Saharan Af...
Trends and driving forces in livestock production and trade in Sub Saharan Af...
 
4Q07 presentation
4Q07 presentation4Q07 presentation
4Q07 presentation
 
Indonesia’S Agriculture Sector Development
Indonesia’S Agriculture Sector DevelopmentIndonesia’S Agriculture Sector Development
Indonesia’S Agriculture Sector Development
 
Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...
Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...
Overcoming the World Food and Agriculture Crisis through Policy Change and Sc...
 
20 lilyan fulginiti
20   lilyan fulginiti20   lilyan fulginiti
20 lilyan fulginiti
 
Weather Catastrophes In China 1980–2010
Weather Catastrophes In China 1980–2010Weather Catastrophes In China 1980–2010
Weather Catastrophes In China 1980–2010
 
Towards a more diversified cropping system
Towards a more diversified cropping systemTowards a more diversified cropping system
Towards a more diversified cropping system
 
Apre 1 t03
Apre 1 t03Apre 1 t03
Apre 1 t03
 
Changing Donor Priorities and Strategies for Agricultural R&D in Developing C...
Changing Donor Priorities and Strategies for Agricultural R&D in Developing C...Changing Donor Priorities and Strategies for Agricultural R&D in Developing C...
Changing Donor Priorities and Strategies for Agricultural R&D in Developing C...
 
A spatial analysis: creating similarity domains for targeted research sites i...
A spatial analysis: creating similarity domains for targeted research sites i...A spatial analysis: creating similarity domains for targeted research sites i...
A spatial analysis: creating similarity domains for targeted research sites i...
 
Adapting Water Management Practice to the Double Exposure of Climate Change a...
Adapting Water Management Practice to the Double Exposure of Climate Change a...Adapting Water Management Practice to the Double Exposure of Climate Change a...
Adapting Water Management Practice to the Double Exposure of Climate Change a...
 

Semelhante a Agriculture for Sustainable Economic Development: A Global R&D Initiative to Avoid a Deep and Complex Crisis

Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...guest9970726
 
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...essp2
 
People, the planet and sustainable livestock
People, the planet and sustainable livestockPeople, the planet and sustainable livestock
People, the planet and sustainable livestockILRI
 
John Michael Staatz - Agricultural price volatility: causes, impacts & policy...
John Michael Staatz - Agricultural price volatility: causes, impacts & policy...John Michael Staatz - Agricultural price volatility: causes, impacts & policy...
John Michael Staatz - Agricultural price volatility: causes, impacts & policy...Global Risk Forum GRFDavos
 
Hungry for Change - Wayne Jones
Hungry for Change - Wayne JonesHungry for Change - Wayne Jones
Hungry for Change - Wayne Jonescropprotection
 
The production and consumption of livestock products in developing countries:...
The production and consumption of livestock products in developing countries:...The production and consumption of livestock products in developing countries:...
The production and consumption of livestock products in developing countries:...ILRI
 
The World Food Crisis: Political and Economic Consequences and Needed Actions
The World Food Crisis: Political and Economic Consequences and Needed ActionsThe World Food Crisis: Political and Economic Consequences and Needed Actions
The World Food Crisis: Political and Economic Consequences and Needed ActionsJoachim von Braun
 
monsanto 02-14-06a
monsanto 02-14-06amonsanto 02-14-06a
monsanto 02-14-06afinance28
 
Globalization,Rural Sector Transformation, and Poverty
Globalization,Rural Sector Transformation, and PovertyGlobalization,Rural Sector Transformation, and Poverty
Globalization,Rural Sector Transformation, and PovertyJoachim von Braun
 
Presentation fan ifpri us africa forum june 11 2012
Presentation fan ifpri us africa forum june 11 2012Presentation fan ifpri us africa forum june 11 2012
Presentation fan ifpri us africa forum june 11 2012Anna V. Resurreccion
 
Dairy Industry (Apr 2010)
Dairy Industry (Apr 2010)Dairy Industry (Apr 2010)
Dairy Industry (Apr 2010)Uruguay XXI
 
Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010minasinvest
 
Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010investinuruguay
 
Food Security in the 21st Century: Actions for Better Governance, Market Fun...
Food Security in the 21st Century:  Actions for Better Governance, Market Fun...Food Security in the 21st Century:  Actions for Better Governance, Market Fun...
Food Security in the 21st Century: Actions for Better Governance, Market Fun...Joachim von Braun
 

Semelhante a Agriculture for Sustainable Economic Development: A Global R&D Initiative to Avoid a Deep and Complex Crisis (20)

Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
 
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
Food Prices, Consumption and Nutrition in Ethiopia:Implications of Recent Pri...
 
People, the planet and sustainable livestock
People, the planet and sustainable livestockPeople, the planet and sustainable livestock
People, the planet and sustainable livestock
 
2 van der Mensbrugghe- Insights from global model intercomparisons
2 van der Mensbrugghe- Insights from global model intercomparisons2 van der Mensbrugghe- Insights from global model intercomparisons
2 van der Mensbrugghe- Insights from global model intercomparisons
 
The World Food Situation
The World Food SituationThe World Food Situation
The World Food Situation
 
John Michael Staatz - Agricultural price volatility: causes, impacts & policy...
John Michael Staatz - Agricultural price volatility: causes, impacts & policy...John Michael Staatz - Agricultural price volatility: causes, impacts & policy...
John Michael Staatz - Agricultural price volatility: causes, impacts & policy...
 
Hungry for Change - Wayne Jones
Hungry for Change - Wayne JonesHungry for Change - Wayne Jones
Hungry for Change - Wayne Jones
 
The production and consumption of livestock products in developing countries:...
The production and consumption of livestock products in developing countries:...The production and consumption of livestock products in developing countries:...
The production and consumption of livestock products in developing countries:...
 
The World Food Crisis: Political and Economic Consequences and Needed Actions
The World Food Crisis: Political and Economic Consequences and Needed ActionsThe World Food Crisis: Political and Economic Consequences and Needed Actions
The World Food Crisis: Political and Economic Consequences and Needed Actions
 
monsanto 02-14-06a
monsanto 02-14-06amonsanto 02-14-06a
monsanto 02-14-06a
 
Access to Venture Capital fund for small enterprises
Access to Venture Capital fund  for small enterprisesAccess to Venture Capital fund  for small enterprises
Access to Venture Capital fund for small enterprises
 
Food and Global Financial Crises: Policy Response of Pakistan
Food and Global Financial Crises: Policy Response of PakistanFood and Global Financial Crises: Policy Response of Pakistan
Food and Global Financial Crises: Policy Response of Pakistan
 
Ensuring Global Food and Nutrition Security: The Role of Europe
Ensuring Global Food and Nutrition Security: The Role of Europe Ensuring Global Food and Nutrition Security: The Role of Europe
Ensuring Global Food and Nutrition Security: The Role of Europe
 
Globalization,Rural Sector Transformation, and Poverty
Globalization,Rural Sector Transformation, and PovertyGlobalization,Rural Sector Transformation, and Poverty
Globalization,Rural Sector Transformation, and Poverty
 
Presentation fan ifpri us africa forum june 11 2012
Presentation fan ifpri us africa forum june 11 2012Presentation fan ifpri us africa forum june 11 2012
Presentation fan ifpri us africa forum june 11 2012
 
Dairy Industry (Apr 2010)
Dairy Industry (Apr 2010)Dairy Industry (Apr 2010)
Dairy Industry (Apr 2010)
 
Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010
 
Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010Dairy industry-uruguay-xxi-april-2010
Dairy industry-uruguay-xxi-april-2010
 
Food Security in the 21st Century: Actions for Better Governance, Market Fun...
Food Security in the 21st Century:  Actions for Better Governance, Market Fun...Food Security in the 21st Century:  Actions for Better Governance, Market Fun...
Food Security in the 21st Century: Actions for Better Governance, Market Fun...
 
Soy crisis
Soy crisis  Soy crisis
Soy crisis
 

Mais de Joachim von Braun

Climate Change and Food Security
Climate Change and Food SecurityClimate Change and Food Security
Climate Change and Food SecurityJoachim von Braun
 
Climate Change, Agriculture, and Food Security
Climate Change, Agriculture, and Food SecurityClimate Change, Agriculture, and Food Security
Climate Change, Agriculture, and Food SecurityJoachim von Braun
 
Access to Food: Safety Nets and Hunger Solutions for the Most Needy
Access to Food: Safety Nets and Hunger Solutions for the Most NeedyAccess to Food: Safety Nets and Hunger Solutions for the Most Needy
Access to Food: Safety Nets and Hunger Solutions for the Most NeedyJoachim von Braun
 
Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...
Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...
Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...Joachim von Braun
 
Commentary: Hunger Reduction with Agricultural R&D and Policy Change
Commentary: Hunger Reduction with  Agricultural R&D and Policy  ChangeCommentary: Hunger Reduction with  Agricultural R&D and Policy  Change
Commentary: Hunger Reduction with Agricultural R&D and Policy ChangeJoachim von Braun
 
Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...
Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...
Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...Joachim von Braun
 
Poverty and Hunger Reduction – a new mix of growth and social protection poli...
Poverty and Hunger Reduction – a new mix of growth and social protection poli...Poverty and Hunger Reduction – a new mix of growth and social protection poli...
Poverty and Hunger Reduction – a new mix of growth and social protection poli...Joachim von Braun
 
Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...
Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...
Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...Joachim von Braun
 
Promises and Challenges When Food Makes Fuel
Promises and Challenges When Food Makes FuelPromises and Challenges When Food Makes Fuel
Promises and Challenges When Food Makes Fuel Joachim von Braun
 
CGIAR Platform on Agriculture and Health
CGIAR Platform on Agriculture and HealthCGIAR Platform on Agriculture and Health
CGIAR Platform on Agriculture and HealthJoachim von Braun
 
FOOD VS. FUEL Impacts of energy price increases on developing countries and t...
FOOD VS. FUEL Impacts of energy price increases on developing countries and t...FOOD VS. FUEL Impacts of energy price increases on developing countries and t...
FOOD VS. FUEL Impacts of energy price increases on developing countries and t...Joachim von Braun
 
Rural-Urban Linkages for Growth, Employment and Poverty Reduction
Rural-Urban Linkages for Growth, Employment and Poverty ReductionRural-Urban Linkages for Growth, Employment and Poverty Reduction
Rural-Urban Linkages for Growth, Employment and Poverty ReductionJoachim von Braun
 
Globalization of the agri-food system and the poor in developing countries Dr...
Globalization of the agri-food system and the poor in developing countriesDr...Globalization of the agri-food system and the poor in developing countriesDr...
Globalization of the agri-food system and the poor in developing countries Dr...Joachim von Braun
 
Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...
Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...
Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...Joachim von Braun
 
Neue Risiken für die Welternährung
Neue Risiken für die WelternährungNeue Risiken für die Welternährung
Neue Risiken für die WelternährungJoachim von Braun
 
Rural Non Farm Employment – getting the jobs done
Rural Non Farm Employment – getting the jobs doneRural Non Farm Employment – getting the jobs done
Rural Non Farm Employment – getting the jobs doneJoachim von Braun
 
The scope for food and agriculture policy research in Central Asia and the Ca...
The scope for food and agriculture policy research in Central Asia and the Ca...The scope for food and agriculture policy research in Central Asia and the Ca...
The scope for food and agriculture policy research in Central Asia and the Ca...Joachim von Braun
 
Information and Communication Technologies for Development and Poverty Reduction
Information and Communication Technologies for Development and Poverty ReductionInformation and Communication Technologies for Development and Poverty Reduction
Information and Communication Technologies for Development and Poverty ReductionJoachim von Braun
 

Mais de Joachim von Braun (20)

Climate Change and Food Security
Climate Change and Food SecurityClimate Change and Food Security
Climate Change and Food Security
 
Climate Change, Agriculture, and Food Security
Climate Change, Agriculture, and Food SecurityClimate Change, Agriculture, and Food Security
Climate Change, Agriculture, and Food Security
 
Food Security Under Stress
Food Security Under StressFood Security Under Stress
Food Security Under Stress
 
Access to Food: Safety Nets and Hunger Solutions for the Most Needy
Access to Food: Safety Nets and Hunger Solutions for the Most NeedyAccess to Food: Safety Nets and Hunger Solutions for the Most Needy
Access to Food: Safety Nets and Hunger Solutions for the Most Needy
 
Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...
Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...
Why Hunger in Asia? Agricultural and Rural Development for Reducing Food Inse...
 
How Secure is Our Food?
How Secure is Our Food?How Secure is Our Food?
How Secure is Our Food?
 
Commentary: Hunger Reduction with Agricultural R&D and Policy Change
Commentary: Hunger Reduction with  Agricultural R&D and Policy  ChangeCommentary: Hunger Reduction with  Agricultural R&D and Policy  Change
Commentary: Hunger Reduction with Agricultural R&D and Policy Change
 
Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...
Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...
Virtual Global Food Reserve Policy to Protect the Poor and Prevent Market Fa...
 
Poverty and Hunger Reduction – a new mix of growth and social protection poli...
Poverty and Hunger Reduction – a new mix of growth and social protection poli...Poverty and Hunger Reduction – a new mix of growth and social protection poli...
Poverty and Hunger Reduction – a new mix of growth and social protection poli...
 
Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...
Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...
Globalization of Food and Agriculture and the Poor: Driving Forces, Consequen...
 
Promises and Challenges When Food Makes Fuel
Promises and Challenges When Food Makes FuelPromises and Challenges When Food Makes Fuel
Promises and Challenges When Food Makes Fuel
 
CGIAR Platform on Agriculture and Health
CGIAR Platform on Agriculture and HealthCGIAR Platform on Agriculture and Health
CGIAR Platform on Agriculture and Health
 
FOOD VS. FUEL Impacts of energy price increases on developing countries and t...
FOOD VS. FUEL Impacts of energy price increases on developing countries and t...FOOD VS. FUEL Impacts of energy price increases on developing countries and t...
FOOD VS. FUEL Impacts of energy price increases on developing countries and t...
 
Rural-Urban Linkages for Growth, Employment and Poverty Reduction
Rural-Urban Linkages for Growth, Employment and Poverty ReductionRural-Urban Linkages for Growth, Employment and Poverty Reduction
Rural-Urban Linkages for Growth, Employment and Poverty Reduction
 
Globalization of the agri-food system and the poor in developing countries Dr...
Globalization of the agri-food system and the poor in developing countriesDr...Globalization of the agri-food system and the poor in developing countriesDr...
Globalization of the agri-food system and the poor in developing countries Dr...
 
Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...
Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...
Emerging Issues in Developing Countries’ Food and Agriculture: Challenges for...
 
Neue Risiken für die Welternährung
Neue Risiken für die WelternährungNeue Risiken für die Welternährung
Neue Risiken für die Welternährung
 
Rural Non Farm Employment – getting the jobs done
Rural Non Farm Employment – getting the jobs doneRural Non Farm Employment – getting the jobs done
Rural Non Farm Employment – getting the jobs done
 
The scope for food and agriculture policy research in Central Asia and the Ca...
The scope for food and agriculture policy research in Central Asia and the Ca...The scope for food and agriculture policy research in Central Asia and the Ca...
The scope for food and agriculture policy research in Central Asia and the Ca...
 
Information and Communication Technologies for Development and Poverty Reduction
Information and Communication Technologies for Development and Poverty ReductionInformation and Communication Technologies for Development and Poverty Reduction
Information and Communication Technologies for Development and Poverty Reduction
 

Agriculture for Sustainable Economic Development: A Global R&D Initiative to Avoid a Deep and Complex Crisis

  • 1. Agriculture for Sustainable Economic Development: A Global R&D Initiative to Avoid a Deep and Complex Crisis Joachim von Braun Director General International Food Policy Research Institute Charles Valentine Riley Memorial Lecture Washington D.C., February 28, 2008
  • 2. Overview 1. The world food equation: Out of balance 2. Unsustainable agriculture: Risks and insecurity 3. Actions needed now: Technology and policy change Joachim von Braun, IFPRI, February 2008
  • 3. The food and agriculture equation: Changes Production Demand Land Income growth Water Poverty and inequality Inputs & Transport costs Consumer behavior Workforce Bioenergy Climate change Biomass (CO2) Agrarian structure Technology Trade and Markets Information & Standards Supermarkets Joachim von Braun, IFPRI, February 2008
  • 4. The new situation: Surge in prices Commodity prices (US$/ton) 400 Corn 100 Wheat 80 300 Rice Oil (right scale) 60 200 40 100 20 0 0 00 01 02 03 04 05 06 07 08 n- n- n- n- n- n- n- n- n- Ja Ja Ja Ja Ja Ja Ja Ja Ja Joachim von Braun, IFPRI, February 2008 Source: Data from FAO 2008 and IMF 2008.
  • 5. Cereals price changes: IFPRI projections US$/ton 300 200 100 0 2000 2005 2010 2015 Rice Wheat Maize Soybean Joachim von Braun, IFPRI, February 2008 Source: M. Rosegrant (prelim. results with IMPACT-WATER)
  • 6. Income growth: Rising consumption Growth (2004-06 per annum) • 9% in Asia, 6% in Africa • 2% in industrialized countries Since 2000, global cereal use for: • Food 4%, feed 7% • Industrial purposes 25% India, 2000 – 2025 Scenario: • Meat 176%, milk and vegetables 70% • Grain 27% Sources: FAO 2003 and 2007b; Kumar, et al. 2007. Joachim von Braun, IFPRI, February 2008
  • 7. Shift towards high-value commodities 2005/1990 ratios of per capita consumption India China Brazil Nigeria Cereals 1.0 0.8 1.2 1.0 Meat 1.2 2.4 1.7 1.0 Milk 1.2 3.0 1.2 1.3 Fish 1.2 2.3 0.9 0.8 Fruits 1.3 3.5 0.8 1.1 Vegetables 1.3 2.9 1.3 1.3 Future grain consumption is driven by income growth, population growth, and feed for meat and dairy production Joachim von Braun, IFPRI, February 2008 Source: Data from FAO 2007.
  • 8. Drivers of change: Globalization of the agri-food business chain Agricultural Food Consumers input processors Food industry Farms and traders retailers top 10: $40 bln Agricultural top 10: $409 bln top 10: $1,091 value added: bln • Syngenta $1,592 bln • Nestle • Monsanto • Cargill • Wal-Mart • Bayer C No. of farms: • ADM • Carrefour $4.000 bln • BASF AG ca. 450 mln • Metro G • Unilever • Dow Agro • Kraft Foods • Tesco Size distr. • Seven & I >100 ha: 0.5% < 2 ha: 85% Source: von Braun 2008. Joachim von Braun, IFPRI, February 2008
  • 9. World cereal production: Not growing enough Million tons Total Million tons 1,200 2,000 900 1,600 600 1,200 300 0 800 1999 2000 2001 2002 2003 2004 2005 2006 2007* Wheat Coarse grains Rice Total (right) Source: Data from FAO 2003, 2005-07. Joachim von Braun, IFPRI, February 2008 * Forecast.
  • 10. Agricultural production: Decreasing share of developed countries Agricultural production, % of world total Africa Brazil China W Europe India United States 0 5 10 15 20 1984-6 2004-6 Source: FAO 2008.
  • 11. Cereals: The world eats more than it produces Million tons 700 600 500 400 Total cereal stocks 300 200 100 China 0 2000 2001 2002 2003 2004 2005 2006 2007* Source: Data from FAO 2003, 2005-07. Joachim von Braun, IFPRI, February 2008 * Forecast.
  • 12. IFPRI biofuel scenarios by 2020 Price changes Scenario Biofuel expansion (% by 2020) corn: +26 Actual plans & assumed 1 sugar: +12 expansions oilseeds: +18 corn: +72 Doubling of Scenario 1 2 sugar: +27 expansion oilseeds: +44 Joachim von Braun, IFPRI, February 2008 Source: IFPRI IMPACT–model projections.
  • 13. World food equation: Reasons for imbalance 1. Income growth 2. Biofuels 3. Lack of technology to respond 4. Low stocks 5. Production shocks 6. High input and transport costs due to energy price 7. Population growth Joachim von Braun, IFPRI, February 2008
  • 14. Overview 1. The world food equation: Out of balance 2. Unsustainable agriculture: Risks and insecurity 3. Actions needed now: Technology and policy change Joachim von Braun, IFPRI, February 2008
  • 15. Declining productivity growth 6 maize Average annual growth rate (%) 5 rice wheat 4 3 2 1 0 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 Joachim von Braun, IFPRI, February 2008 Source: World Development Report 2008.
  • 16. Sources of cereal production growth Annual cereal production growth rates, 2000-2050 2.5 2 1.5 1 0.5 0 -0.5 LAC ESAP SSA CWANA NAE Area expansion Yield improvement Joachim von Braun, IFPRI, February 2008 Source: IFPRI IMPACT projections 2007.
  • 17. Competition for land Field and pastures: ~40% Forests: ca. 10 million km2 (~ 20%) Cities, roads: 2% Joachim von Braun, IFPRI, February 2008 Foley et al., SCIENCE 309, 2005
  • 18. Climate change and sustainability • Agriculture is part of the problem: 13.5 % the CO2 of equivalents (Transport: 13.1%) • Agriculture is part of the solution: Biomass; CO2 sequestration • CO2 trade: A new agricultural commodity market of the future? Joachim von Braun, IFPRI, February 2008
  • 19. Agriculture: Other sustainability threats Water resources Irrigation = 80% of water use in developing countries Soils Overgrazing, deforestation, inappropriate agricultural practices Biodiversity Traditional crops replaced by genetically uniform modern varieties Joachim von Braun, IFPRI, February 2008
  • 20. 970 million people live on less than $1 a day Subjacent poor ($.75 cents – $1) 485 million people Medial poor ($.50 cents – $.75 cents) 323 million people Ultra poor (less than $.50 cents) 162 million people Joachim von Braun, IFPRI, February 2008 Source: Ahmed, et al. 2007.
  • 21. GHI: Hunger remains high Contribution of components to the Global Hunger Index proportion of calorie deficient people 30 prevalence of underweight in children under-five mortality rate 20 10 0 1990 2007 1990 2007 1990 2007 1990 2007 1990 2007 Sub-Saharan South Asia East Asia & Middle East & L. America & Africa Pacific N. Africa Caribb. Joachim von Braun, IFPRI, February 2008 Source: Wiesmann, et al. 2007.
  • 22. Bangladesh: Household price effects Five-person household living on one dollar-a-day per person spends its $5 $3.00 on food $0.50 on household energy $1.50 on nonfoods A 50% increase in food and energy prices cuts $1.75 from their expenditures Food expenditures will be cut most, and will be accompanied by: • Reduced diet quality • Increased micronutrient malnutrition • Delays in wage rate adjustments Joachim von Braun, IFPRI, February 2008
  • 23. Security synergies and conflicts Food insecurity Political security risks Rising food prices: • The poorest suffer silently, the middle class protests and lobbies • Mass protests against rising prices Decline in building international agriculture capacity contributes to insecurity Joachim von Braun, IFPRI, February 2008
  • 24. Overview 1. The world food equation: Out of balance 2. Unsustainable agriculture: Risks and insecurity 3. Actions needed now: Technology and policy change Joachim von Braun, IFPRI, February 2008
  • 25. Agriculture to address poverty in the Critical Square Governance Economic & Conflicts Growth Innovation Productivity & Capacity (in agriculture)
  • 26. Why invest in agriculture? Agricultural growth is more pro-poor Projected Poverty Rate in Ethiopia (Both with 5% of GDP annual growth) 44 42 40 38 36 34 32 30 28 Ag-led grow th Nag-led grow th Base run 26 2003 2005 2007 2009 2011 2013 2015 Source: IFPRI, 2007
  • 27. Global public agricultural R&D 1981 2000 $15.2 billion* $23.0 billion* 100% Middle East-North Africa Latin America-Caribbean 80% Other Asia-Pacific India 60% China 40% Sub-Saharan Africa Developed 20% 0% Source: Pardey, 2006 Joachim von Braun, IFPRI, February 2008 * in 2000 international prices
  • 28. Policy responses NOT to choose • Export stops (“starving your neighbor”) • Food subsidies for vocal middle class • Maintaining outdated production controls • Continued public underinvestment in agriculture productivity increases • Exclusion of agriculture from climate change mitigation strategies Joachim von Braun, IFPRI, February 2008
  • 29. Five milestones for the roadmap 1. Global political attention at the highest levels 2. Specific policy action to protect the poorest from excessively high food prices 3. Major investments in services, rural infrastructure and input supply and finance for small farmers 4. A global R&D initiative for accelerated agricultural productivity 5. Enhanced collaboration of old and new key global agricultural players Joachim von Braun, IFPRI, February 2008
  • 30. A global initiative Accelerated investment in agricultural productivity now: • makes economic sense • is pro-poor and good ethics • enhances sustainability • serves security Joachim von Braun, IFPRI, February 2008