Improving Commodity Supply Chains for Greater Regional and Global Food Security
The opening session on the second day of WEDF 2012 was moderated by Mr Dalton Tanonaka, of Metro TV, Indonesia, who reminded delegates that today is World Food Day, and declared that ensuring food security for their populations was a major issue for all countries. It is a complex problem that links with many other issues, including climate change, water and land use, population growth, energy security, migration and urbanization. Trade is at the heart of the food security issue, but cannot by itself provide all the answer to the challenges facing the agricultural sector.
Ms Emma Hippolyte, Minister for Commerce, Business Development, Investment and Consumer Affairs of St Lucia, described the food security situation in the small Caribbean island, which had seen a decline in agriculture from 5.6% of GDP in 2000 to just 1.4% last year. Loss of markets for key export crops such as banana and sugar following WTO rulings that preferential trade agreements were non-compliant had resulted in increased unemployment, from 13.5% in 2001 to 16.8% currently, with youth unemployment as high as 24%. The government believes that sustainable agriculture is still a viable option and is implementing a strategy to modernize the sector and attract young people back to agriculture, she said. This involves linking to regional development efforts, endorsing projects to increase competitiveness of the sector, and strengthening the institutional framework. A disaster risk reduction programme has been put in place, including disease management, and particular attention is being paid to food security, which means access to proper nutrition for all.
Mr Harry Hanawi, Vice Chairman of the Permanent Committee on Food Security of the Indonesian Chamber of Commerce and Industry, described the situation in Indonesia, a country of some 240 million people, compared to St Lucia’s 170,000. He said that despite its size, Indonesia still imported considerable quantities of strategic food crops, and its main challenge is to improve the yields achieved in the production of staple crops. The government believes food security can be achieved through good agricultural practices, he said. If the country can increase crop yields and strengthen its own production it will be able to support neighbouring countries, as well as accommodate imports of corn and livestock.
Mr Gavin Gibson, the Executive Vice President and acting Executive Director of the Australia-based International Pulse Trades and Industries Confederation, said that increasing trade in high-protein pulses like peas, beans, lentils and chickpeas, as well as crop yields in developing countries could make an important contrition to food security. He noted the paradox that half the population of India subsists on less than half the recommended food consumption, while rich countries are suffering from health problems related to overconsumption of food, such as heart disease, diabetes and obesity, and are wasting significant quantities of food. Crop research and improvements in infrastructure in developing countries could create new income opportunities. He also referred to the need to reduce post-harvest losses, which account for some 10% to 15% in Canada and Australia even in a good year. Mr Gibson asked delegates to support his organization’s bid for 2016 to be declared the International Year of Pulses, to raise awareness and celebrate the role of pulses in feeding the world.
Mr Chandra Hartono Jokowidjaja, Marketing Director of Ponglarp Co. Ltd of Thailand, described the process of procuring rice for export in Thailand. He explained there were three routes: direct procurement from mills, procurement through brokers, and procurement from the government, either through open or closed tender, or by direct negotiation. He explained the sensitivities connected to the sales of government stocks, accumulated to protect prices. News of a tender could drive down prices for farmers, which is why there is a move towards sales by direct negotiation. He said it was the Thai government’s policy to persuade young people to return to agriculture, and that research is needed to improve seed quality and yields, which are among the lowest in Asia. He described the difficulty of reconciling the need to ensure good prices for farmers, and at the same time affordable prices for consumers.
Ms Valentine Rugwabiza, the Deputy Director General of the World Trade Organization (WTO), said that while trade was not sufficient to deliver food security, it is indispensable in relation the accessibility and affordability of food. Agricultural policies are crucial in facilitating the role of trade in linking supply and demand. The more obstacles to trade that exist, the more difficult it is to make food available and affordable. Trade restrictions, as applied by some countries during the 2008 food price crisis, resulted in serious consequences for importing countries, with food riots in some parts of Africa. The second key element for food security was trade facilitation, which concerns regulations in place at borders. Are these transparent? Is there sufficient information? Are regulations changed without consultation? All of these elements affect prices, and delays can lead to wastage, since food is perishable. She noted that 30% of all food produced in the world is wasted. The third element is capacity, particularly important in relation to food safety standards, which can be an impediment to food trade. It is important to ensure that standards applied are justified and indeed related to consumer safety, and not just disguised barriers to trade. The fourth element is finance as access to affordable trade finance in the agriculture sector can become a barrier.
In response to a question, Ms Rugwabiza added that a further important element to facilitate trade between developing countries was the availability of information on stocks and crops. In Africa, many food security issues could be resolved through more trade between food surplus and food deficit countries, but this is not happening because traditional barriers remain and it is still very expensive to import from a neighbour. She noted that Africa has 60% of the world’s available arable land, but is a net food importer, although 30 years ago the continent was a net food exporter. This was partially due to lack of investment in agriculture.