The document discusses policies that enable inclusive agribusiness in ASEAN countries. It provides a conceptual framework that identifies different levels of policy enablers, from micro-level enablers specific to agricultural subsectors to macro-level enablers like national and regional policies. The document then examines essential policy enablers at the macro-level, including economic management, structural, social inclusion, and public sector policies. It also discusses governance indicators and trends in the agricultural workforce across ASEAN countries to provide context.

1. Themes Sessions:
Enabling Policies for Inclusive
Business
14:30 – 17:00 h
Roundtable, Inclusive
Agribusiness
23 Sept 2015

2. • Policies as enablers
• “Essential” background
Scope

3. • Which policy domains are most important for creating
direct and indirect incentives for more and more
rewarding smallholder engagement in agricultural
markets?
• What specific examples of policies influencing
inclusive agribusiness can we draw on?
• What instruments do governments have at their
disposal?
• What policy-informing and influencing processes are
relevant for priority domains and instruments?
• What constructive next steps could Grow Asia take to
support policy dialogue and better understanding of
policy issues?
Policies as enablers: Focus questions

4. Enablers for Inclusiveness
Investment Financial
Services
Technology and R&D
Transfer and
Distribution
Infrastructure Physical
and Digital
Connectivity
Business Linkages
Upstream and
downstream links
Labor Capacity Human
Resource Development
Country-specific
Political Environment
Business Climate
Norms, Rules and
Regulations
Land Tenure and
Property Rights
National and Regional
Policies
Immediate
Enablers
Useful
Enablers
Necessary
Conditions
Sufficient
Conditions
Essential
Enablers
Micro Level
Enablers specific to agri-food
sub-sectors
Macro Level
Enablers specific to country
or region
Enablers of Inclusive Agribusiness
Figure 2. Conceptual Framework for the Enablers of Inclusive Agribusiness

5. Scope of supportive policies
Policies which foster social equity and inclusion of
smallholder farmers
Policies which promote market access (“Free
market”)
Policies aimed at investment liberalization
Policies which support good governance
Policies which incentivize companies to include
smallholders
Essential Enablers at macro-level:
Policy

6. A. Economic management
 Macroeconomic policy that is business-friendly
 Fiscal policy
 Debt policy
B. Structural
 Trade
 Financial Sector
 Business regulatory
Essential Enablers at macro-level:
Policy
Types of policies

7. D. Social inclusion / equity
Gender
Equity (public resource)
Building human resources
Social protection
Sustainability of environmental institutions
B. Public sector management & institutions
Property rights (rule based governance)
Quality of budgetary & financial management
Efficiency of revenue mobilization
Quality of public administration
Transparency, accountability & corruption
Essential Enabler at macro-level: Policy
Types of policies

8. Governance indicators: ASEAN

9. Agribusiness models that enable inclusiveness
Supply
Chain
Farming & Food
Production
Processing & Post
Harvest
Distribution, Wholesale
& Retail
Marketing
& Sales
Contract
farming
(Nucleus estate
& Multi partite
schemes ++++
Contract farming
between processing
& manufacturing
firms and small
farmers ++++
Farmer-owned
business links
with agribiz ++
Upstream links
between agribiz
and smallholders +
+++
Land
concession
arrangements +
++
Farmer-owner
businesses &
cooperatives’ links
to agribusiness
firms ++
Agribiz links
with
smallholder
farmers ++++
Downstream links
between agribbiz
and smallholders ++
Management
contracts
(Sharecropping
) ++
“Inclusive”arrangements
forsmallfarmers
(Key: ++++ High adoption; +++ Moderate; ++ Low; + Infrequent)

10. Country Sector / Industry 1990 1995 2000 2005 2010 2011
Brunei Agriculture, hunting,
forestry, fishing 0.97 1.16 1.02 0.95 0.76 0.64
Cambodia Agriculture, hunting,
forestry, fishing 50.12 51.44 37.84 32.40 36.02 36.68
Indonesia Agriculture, hunting,
forestry, fishing 17.55 15.36 15.61 13.13 15.34 14.72
Lao PDR Agriculture, hunting,
forestry, fishing 45.06 41.81 43.48 36.25 29.72 28.37
Malaysia Agriculture, hunting,
forestry, fishing 14.89 12.61 8.45 8.36 10.49 11.99
Myanmar Agriculture, hunting,
forestry, fishing 57.26 59.99 57.24 46.69 36.36 38.24
Philippines Agriculture, hunting,
forestry, fishing 19.14 18.89 13.97 12.66 12.31 12.78
Singapore Agriculture, hunting,
forestry, fishing 0.34 0.16 0.10 0.05 0.03 0.03
Thailand Agriculture, hunting,
forestry, fishing 10.01 9.10 8.52 9.23 10.86 11.63
Vietnam Agriculture, hunting,
forestry, fishing 38.74 27.18 24.53 20.97 20.58 22.02
ASEAN Agriculture, hunting,
forestry, fishing 14.85 13.07 11.54 10.80 12.68 13.08
Source: UNCTAD Stat (2013)
BACKDROP
ASEAN: The Structure of Economy by Industry (in percent to total GDP)

11. Top Agri-Food Players in ASEAN

12. 1 Demographics –
Population growth,
Urbanization,
Growing middle class (increased income)
Declining & ageing farmer population
2 Diet changes
3 Declining performance of agriculture
4 Environmental degradation/ Loss of land and water resources
5 Climate change
6 Increase in oil prices/biofuel expansion
7 Rapid transformation of supply chains
8 ASEAN Economic Community 2015
9 Urban and Peri-Urban Agriculture (UPA)
10 Biotechnology
11 Farmers as Entrepreneurs (away from subsistence)
Change agents in the agriculture-food security landscape

13. Country Urban population, % of total
population
1990 2000 2012
Brunei 68.6 71.2 76.0 (2011)
Cambodia - 16.0 22.0
Indonesia 30.9 42.1 49.8 (2010)
Lao PDR 15.4 22.0 34.2 (2011)
Malaysia 51.1 (1991) 62.0 72.4
Myanmar 24.8 29.1 30.8
Philippines 51.9 (1993) 48.0 48.9 (2011)
Singapore 100.0 100.0 100.0
Thailand 18.0 31.1 45.1
Vietnam 19.5 24.2 31.9
Urbanization
Source: ADB Key Indicators for Asia and the Pacific. 2013
Asia by 2050 will be >54% urban;
ASEAN > 50% in 2013
Asia by 2050 will be >54% urban;
ASEAN > 50% in 2013

14. Index 1
DUPONT-Economist Intelligence Unit,
Global Food Security Index
Quality & Safety
•Diet diversification
•Nutritional standards
•Micronutrient availability
•Protein quality
•Food safety
Availability
•Sufficiency of supply
•Public expenditure on agricultural R&D
•Agricultural infrastructure
•Volatility of agricultural production
•Political stability risk
•Corruption
•Urban absorption capacity
•Food loss
Affordability
•Food consumption as % of household expenditure
•% population under poverty line
•GDP per capita @PPP
•Agriculture import tariffs
•Food safety net programmes
•Access to financing for farmers
“Objective is to measure which countries are most and least vulnerable to
food insecurity.”

15. Economist Intelligence Unit, Global Food Security Index
Country Rank GFSI Score Country Rank GFSI Score
USA 1 89.3 Indonesia 74 46.7
New Zealand 13 82.8 India 68 50.9
Australia 9 83.8 Myanmar 78 44.0
Singapore 2 88.2 Pakistan 77 45.7
Japan 21 77.4 Bangladesh 89 37.4
S. Korea 24 74.8 Nepal 85 40.5
Malaysia 34 69.0 Cambodia 96 34.6
China 42 64.2
Thailand 52 62.0
Sri Lanka 63 53.7 Canada 7 84.1
Vietnam 65 53.4 Brazil 36 67.4
Philippines 72 49.4 Argentina 37 67.1
Congo (DR) 105 30.1
“Objective is to measure which countries are
most and least vulnerable to food insecurity.”
2014
May 2015

16. Index 2: The “Rice Bowl Index” (RBI)
SYNGENTA & FRONTIER STRATEGY GROUP

17. RICE BOWL INDEX: Full Year Update 2012-2013
Countries with relatively high Robustness (Score >50): Australia, Japan,
New Zealand, Taiwan

18. Hungry people as an indicator of food insecurity
FAO 2014: State of Food Insecurity in the World 2013
1 in 10 people in
ASEAN is hungry!
How food secure are we?

19. Regional Programmes
ASEAN
– ASEAN Integrated Food Security (AIFS) Framework
– Strategic Plan of Action on Food Security in the ASEAN
Region (SPA-FS)
– ASEAN Plus Three Emergency Rice Reserve (APTERR)
– ASEAN Food Security Information System (AFSIS)
– ASEAN Multi-sectoral Framework on Climate Change:
Agriculture and Forestry towards Food Security (AFCC)
– ASEAN+3 Comprehensive Strategy on Food Security and
Bioenergy Development (APTCS-FSBD) Framework
– Strategic Plan of Action on Food and Energy Security (SPA-
FES)

20. Structure of ASEAN Cooperation in Food, Agriculture and ForestryStructure of ASEAN Cooperation in Food, Agriculture and Forestry
ASEAN Ministers of Agriculture and Forestry (AMAF)ASEAN Ministers of Agriculture and Forestry (AMAF)
SOM-AMAFSOM-AMAF
AWG on
Halal
Food *
AWG on
Halal
Food *
ASEAN
Food
Security
Reserve
Board *
ASEAN
Food
Security
Reserve
Board *
ASWG on
Agric.
Training
&
Extension
ASWG on
Agric.
Training
&
Extension
ASWG on
Agric.
Coopera-
tives
ASWG on
Agric.
Coopera-
tives
ASWG on
Crops
ASWG on
Crops
ASWG on
Livestock
ASWG on
Livestock
ASWG on
Fisheries
ASWG on
Fisheries
ASEAN
Senior
Officials on
Forestry
(ASOF)
ASEAN
Senior
Officials on
Forestry
(ASOF)
Joint Committee on
ASEAN Coop. & Joint
Approaches in Agric. &
Forest Products
Promotion Scheme
Joint Committee on
ASEAN Coop. & Joint
Approaches in Agric. &
Forest Products
Promotion Scheme
ACEDAC
Board *
ACEDAC
Board *
EWG on
Harmonization
of Phyto-
sanitary
Measures
EWG on
Harmonization
of Phyto-
sanitary
Measures
EWG on
Harmonization
of MRLs of
Pesticides
EWG on
Harmonization
of MRLs of
Pesticides
FCG on
ASEAN-
SEAFDEC
Collaboration
FCG on
ASEAN-
SEAFDEC
Collaboration
AEG on Herbal
and Medicinal
Plants
AEG on Herbal
and Medicinal
Plants
AEG on Forest
Product
Development
AEG on Forest
Product
Development
AEG on
CITES
AEG on
CITES
NFPWG/
Industrial Clubs
Carrageenan
Cocoa
Coconut
Vegetable Oil
Forest Products
Coffee
Tea
Pepper
Peas & Beans
Tapioca
ASEAN Focal
Point on
Veterinary
Product
ASEAN Focal
Point on
Veterinary
Product
ATF on
Codex
ATF on
Codex
Note:
SPS: Sanitary and
Phytosanitary
ARASFF: ASEAN Rapid
Alert System for Food and
Feed
ATF: ASEAN Task Force
AWG: ASEAN Working
Group
ASWG: ASEAN Sectoral
Working Group
EWG: Experts Working
Group
AEG: ASEAN Experts Group
NFPWG: National Focal
Point Working Group
TEG : Technical Experts
Group
AFP : ASEAN Focal Points
ATWG : ASEAN Technical
Working Group
ATF : ASEAN Task Force
SOM : Senior Officer
Meeting
(*) : Supported by a
dedicated secretariat
As of 19 February
2014
AWG
on Pan ASEAN
Timber
Certification
AWG
on Pan ASEAN
Timber
Certification
AEWG on
International
Forest
Policy Process
AEWG on
International
Forest
Policy Process
ATF on
HPAI
ATF on
HPAI
ATWG on
Agric.
Research
&
Develop-
ment
ATWG on
Agric.
Research
&
Develop-
ment
TF on
ASEAN
Standards for
Horticultural
Produce
TF on
ASEAN
Standards for
Horticultural
Produce
ASEAN
AVRDC
Regional
Network
(AARNET)
Steering
Committee *
ASEAN
AVRDC
Regional
Network
(AARNET)
Steering
Committee *
ASEAN
Social Forestry
Network *
ASEAN
Social Forestry
Network *
ATF on
Genetically
Modified
Food
Testing
Network *
ATF on
Genetically
Modified
Food
Testing
Network *
ASEAN Wildlife
Enforcement
Network
(ASEAN WEN)*
ASEAN Wildlife
Enforcement
Network
(ASEAN WEN)*
Tuna
ASEAN
Fisheries
Consultative
Forum *
ASEAN
Fisheries
Consultative
Forum *
EWG
on ASEAN
GAP
EWG
on ASEAN
GAP
ASEAN
Shrimp
Alliance *
ASEAN
Shrimp
Alliance *
ASEAN SPS
Contact
Points
ASEAN SPS
Contact
Points
ACCAHZ
Preparatory
Committee
ACCAHZ
Preparatory
Committee
ad hoc groups:
•ASEAN ad hoc
Veterinary
Epidemiology
Group
•ASEAN ad hoc
Communication
Group for Livestock
•ASEAN Laboratory
Directors Forum
ad hoc groups:
•ASEAN ad hoc
Veterinary
Epidemiology
Group
•ASEAN ad hoc
Communication
Group for Livestock
•ASEAN Laboratory
Directors Forum
ARASFF *ARASFF *
ATF on
Organic
Agriculture
ATF on
Organic
Agriculture