Download United Nations Environment Programme - UNEP

COUNTRY PROJECT
Presentations
Integrated Assessment of Trade-Related Policies in
the Agriculture Sector and Biological Diversity
Mauritius
Geneva, 1-3 July 2008
OBJECTIVE OF THE ASSESSMENT
The UNEP Project –
– undertaken by the Ministry of Agro-Industry and
Fisheries,
– implemented by the Agricultural Research and
Extension Unit (AREU).
Mauritius is currently studying the impact of the
reduction of sugar prices as a result of the
changes in the EU trade policy on the agricultural
sector in Mauritius.
Annual
sugar quota - 507,000 t under ACP-EU
Sugar Protocol
net foreign exchange earnings - 300 M USD.
FOCUS OF THE ASSESSMENT
• The dismantling of Sugar Protocol
•Cut (36%) in sugar prices a period of 4 years
• price reduction fully implemented by 2009
•decrease in price from 523.7 Euro/tonne in July to
335.2 Euro in 2009/2010.
• Mauritius will be the most affected by this price cut
specially that sugar account to 17% of foreign
exchange earnings and up to 4.5% of GDP.
• Mauritius is expected to lose 895 M Euro during the 9
years of the implementation of the new Sugar Regime.
FOCUS OF THE ASSESSMENT
Mauritius has developed a MultiAnnual
Adaptation Strategy (MAAS) 2006-2015, which
includes 6 main policy options:
 regrouping of small farmers;
 sustaining difficult areas under sugar cane;
 moving out of sugar cane;
 centralization;
 right sizing of labor force;
 Shift to ethanol production.
FOCUS OF THE ASSESSMENT
Core objectives of the plan:
(1)
(2)
(3)
(4)
(5)
Transformation of the sugar industry into a sugar cane
cluster. (produce several types of sugar i.e. raw, special, and
white sugar; electricity from bagasse and ethanol.
Establishment of a competitive, viable and sustainable sector.
Fulfilment of the trade commitments of the country.
Reduction of the dependency on the import of fossil fuels
generally and on oil in particular.
Continuation of the multifunctional role of sugar and in
particular the support to national environment and social
objectives.
FOCUS OF THE ASSESSMENT
The IA study in Mauritius is reviewing the impacts of some of the
policy options of the MAAS.
Study to focus on both small farmers and corporate sectors so as
to have a real picture of the impact of the EU-sugar reform at
the national level.
3 main interventions of the MAAS to be considered for each
focus group
A. Small farmers

Regrouping of small farmers

Sustaining difficult areas

Moving out of sugar/cane /(diversification or abandon)
B. Corporate sector and large planters
 Centralization
 Right sizing of labor force
 Ethanol Production
CONCEPTUAL FRAMEWORK
-
Main driving force:
EU sugar reform 36% within a period of 4 years.
-
How MAAS policy would affect the agricultural sector and the
target commodity.
Expected changes in biodiversity as a result of price reduction of
sugar. MAAS will also lead to increase efficiency, decrease in cost
of production and competitiveness
-
Describe the likely changes in incentives in the agriculture
sector and in land use.
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Change in Land utilisation, Diversification, Agro forestry
Infrastructure, Integrated Resort Scheme/ Real State Scheme
Abandonment / fragmentation of agricultural areas
Intensification (grouping of farmers)
Sugar cane for other use
Impact on flora & fauna, Soil erosion
CONCEPTUAL FRAMEWORK (cont.)
Impacts on the environment, biodiversity and the
ecosystem services associated with biodiversity
Provisionary

Import Substitution
 Reduction in import of fuel
 Increase in water demand
 Reduction in fertiliser import
Cultural
 Historical and cultural heritage
 Conservation of valued species
 Recreation and eco tourism value
Regulating
 Control of erosion &
sedimentation
 Regulate pest and pathogen
 Increase in infiltration rate
 Habitat for beneficial organism
 Water purification and waste
treatment
CONCEPTUAL FRAMEWORK (cont.)
Human Well-being and Poverty
Reduction
 Farmer’s income livelihood
 Food security
 Life style around village and
sugar estates
 Unemployment
 Social problem (e.g. alcoholism)
 Re-skilling
 New job opportunities (IRS)
 Gender issue
Trade Agreements and other
Influences on Agriculture
EU
Sugar Regime, Reform in Economy,
MAAS for sugar sector
Price and market of sugar
Trade Agreements and other Influences on
Agriculture
-SIE ACT
- Non-sugar sector plan
- EPA and bilateral / Regional Trade
Agreement
-Negotiations with WTO to consider sugar
as sensitive product or as a tropical product
-Trade agreement with Brazil
- SADC initiative for seed security
Local policies
- NBSAP, - Democratisation of land
- Energy policy, - Integrated Resort
Scheme policy - Food Security
- Diversification (food and livestock)
- Cross Border Initiative
- Increasing oil price & biofuel policy
CONCEPTUAL FRAMEWORK (cont.)
Reviewed and validated conceptual framework
Human Well-being and Poverty Reduction
Farmer’s income livelihood
Food security
Life style around village and sugar estates
Unemployment
Social problem (e.g alcoholism)
Re-skilling
New job opportunities (IRS)
Gender issue
Biodiversity & Ecosystem Services
Provisionary: Import Substitution
Reduction in import of fuel
Increase in water demand
Reduction in fertiliser import
Regulating: Control of erosion & sedimentation
Regulate pest and pathogen
Increase in infiltration rate
Habitat for beneficial organism
Water purification and waste treatment
Cultural: Historical and cultural heritage
Conservation of valued species
Recreation and eco tourism value
Trade Agreements and other
Influences on Agriculture
EU Sugar Regime, Reform in Economy, MAAS for sugar sector
Price and market of sugar
Trade Agreements and other Influences on Agriculture
-SIE ACT
- Non-sugar sector plan
- EPA and bilateral / Regional Trade Agreement
-Negotiations with WTO to consider sugar as sensitive product or as a
tropical product
-Trade agreement with Brazil
- SADC initiative for seed security
Local policies
- NBSAP, - Democratisation of land
- Energy policy, - Integrated Resort Scheme policy - Food Security
- Diversification (food and livestock)
- Cross Border Initiative
- Increasing oil price & biofuel policy
Agricultural activities and Change in land tenure
and use
Change in Land utilization
Diversification, IRS, Agro forestry,
Infrastructure, Real State Scheme
Abandonment / fragmentation of agricultural
areas
Intensification (grouping of farmers)
Sugar cane for other use
Impact on flora & fauna
Soil erosion
METHODOLOGY
The baseline for the analysis of impacts
Relevant documents related to trade, biodiversity and sugar related
policies before reform have been compiled.
Baseline data available as sugarcane has been the backbone of the
Economy for over 4 decades. Data collected for the study would be
analysed, assessed and compared with the baseline data
The main economic, social and environmental indicators used to
measure the impacts
Economic Indicators: Value of land, Yield, Cost of production / inputs
required, Revenue to farmers, Change in land Tenure, Irrigation
Social Indicators:
Group level: Management skill of farmers, Status of farmer, Social
values, Group behaviour/Involvement, Group level evolution,
Entrepreneur skill
METHODOLOGY (cont.)
Household level: Family labour, Social values, rate of alcoholism,
Occupation, Change in activities and leisure time of farmers
Community /society level: labour
Environment/Biodiversity Indicators:
Biotic factors: Cane variety, Weed flora, Pest and diseases, Fauna,
Aquatic fauna in coastal zones
Abiotic factors: Soil compaction/ texture, Drains at block level,
Topography and soil erosion, Water ways and rivers, Burning / green
harvesting, Inputs (Use of fertiliser /chemicals), Pesticide disposal
taken care by group
Institutional impacts
Need to review role of FSC Sugar Estates role vis-a-vis farmers as a
service provider, Role of Cooperatives, Role of MSIRI, Role of other
service providers
METHODOLOGY (cont.)
Policy scenarios Used
Small Planters:
Growers with small size holdings will be subjected to:

continue with sugarcane under new conditions management
and cultural practices (regrouping);

Move out of sugarcane to diversification crops;

Move out of sugarcane to forestry;

Move out of sugarcane to Integrated Resort schemes
(IRS/SRS) and infrastructure;

Abandoning of land
METHODOLOGY (cont.)
The methods and tools (quantitative and qualitative) used in
the integrated assessment
The methodology involves:
 Collection of base line data prior to EU reform and MAAS
policies
 Field survey to collect information on
– Farmer Profile, Socio-Economic Information, Field
Profile, Cultural Practices, Biodiversity Information,
Revenue
 Focus Group Study involving meeting with each group for
additional information and to validate survey findings
 Expert presentation and brain storming
 Cost benefit analysis
 Root cause analysis
 Scenario building planning
 Stakeholder consultation
 Risk assessment - probability/impact
ASSESSMENT OF IMPACTS

Environmental dimension of the impact assessment a number of
Strategic Plans are available:
–
–
–
–
Forestry Action Plan,
National Biodiversity Action Plan 2007-2015
National Environment Action Plan 2
Environmental Impact Assessment (EIA) studies for projects on Integrated
Resort Schemes, morcellement for residential purposes,
– Strategic Environmental Assessment for the Multi-annual Adaptation Strategy
for the Mauritian Sugarcane cluster (2006-2015)

Social and economic dimension of the assessment
– a number of analyses would be carried out (gender assessment, cost benefit
analysis). Choice of methods is governed by the cost, timely availability of data
and availability of resource persons.

Collection of baseline data with two main focus (small planters and the corporate
sector). Potential scenarios have been developed.

Collection of field data is under way especially for the small planters regrouping.
Some preliminary data is available and preliminary analysis is being undertaken.
ASSESSMENT OF IMPACTS (cont.)
A. Small Farmers Group Focus
Policy option 1: Regrouping of Small Farmers
Regrouping targets some 27000 small growers occupying around
12,000 ha of land, of which 8000 ha are classified as difficult areas.
The impact on the social, economy and environment aspects in
being observed depending on the degree of preparedness of sites.
Changes brought about by regrouping:
–removal of rocks and rock pile, leveling, removal of boundaries,
extensive mechanical land preparation
–planting of new cane Variety 1400/86 in dual row for higher
machinery efficiency and for faster cane growth
–reduction in weed infestation.
Impact of regrouping
Better cane yield, no possibility for interline cropping; no physical
field boundaries; replacement of grown, group approach favoured
among farmers and increase their willingness to share
ASSESSMENT OF IMPACTS (cont.)
Policy Option 2: Sustaining difficult areas or moving
out of sugar cane
Difficult areas under sugar cane have the following characteristics:
1. Either the degree of rockiness is fairly high and intensive
where even moderate derocking is uneconomical or the
slope of the land under cane is steep;
2. Mechanization even partial is difficult;
3. Yields are fairly low;
4. Cane cultivation costs are high;
5. The very rocky areas are found in the drier parts of the
country;
6. They are most exposed to the adverse impact of drought
and cyclones;
7. They are cultivated mostly by small planters and by those
leasing land from larger estates;
8. Conversion into residential units and commercial sale is
very difficult.
ASSESSMENT OF IMPACTS (cont.)
(a)
Incentives expected to small planters through regrouping
for the maintenance of 2000 Ha in these difficult areas (a
production potential of at least 12 000t of sugar i.e.
equivalent to the US quota).
Expected Effects - Soil erosion from less stable land-use:
sedimentation/eutrophication in downstream reservoirs or
lagoons, negative impact on water supplies and also on
aquatic biodiversity in downstream rivers, reservoirs and
lagoons. The impact significant on the coral reef, where
sedimentation would have a particularly severe impact. The
future of some 2500 fishermen engaged in coastal fishing
could also be seriously affected.
The regrouping exercise: better cultural practices and
varieties introduced better land preparation and better
irrigation facilities
ASSESSMENT OF IMPACTS (cont.)
(b) 3000 ha to be converted to food crop /fruit production, cultivation of high fibre
cane or energy crop, reforestation or eco-tourism and Integrated Resort Scheme
project
The following approach is being adopted:
(i) The cultivation of crops including fruit trees that have a positive effect on land
conservation;
(ii) The cultivation of high fibre cane or energy crops once identified and found to be
commercially viable and sustainable;
(iii) Reforestation;
(iv) The development of eco-tourism and IRS projects.
( c ) The Ex-tea land (2500 ha) unsuitable for sugarcane – is to be converted to other
crops species adapted to super humid zone or livestock
The agricultural alternatives have not been studied yet in any detail. Options
proposed for part of the land in the superhumid zone include:
Mixed cropping of vegetables and fruit production. None of them has been validated
yet. And on a very small-scale, there is the additional option of
Protected culture of selected flowers, ornamentals and vegetables.
ASSESSMENT OF IMPACTS (cont.)
Policy Option 3: Moving out of sugar cane
Some of the non-agricultural options include:
 urban and property development,
 ecotourism and
 productive forestry
Restrictions imposed by planning and environmental considerations.
Forestry may not be economically attractive for farmer.
Mauritian economy places a lot of hope on the tourism sector.
Ecotourism or IRS projects are to be environment friendly and
facilitate job creation.

The possibility of establishing wind farms in part of the areas
moving away from cane is being explored. The Bel Ombre, St Félix,
StAntoine, Gris Gris and Grand Bassin regions are attractive sites.
ASSESSMENT OF IMPACTS (cont.)
B. Corporate Sector Group Focus
Policy option 1: Centralisation
The challenge for the corporate sector is to maintain efforts to improve
yields through mechanization/irrigation, to reduce both production and
management costs and to invest in by-products
The objective of centralisation is to improve the cost competitiveness of the
Mauritian sugar milling sector by:
 Reducing the number of mills from eleven to four.
 Increasing the milling capacity of two important mills FUEL and Savannah
to accommodate additional cane supplies.
 The adequate provision of energy in the form of steam and electricity,
 A reliable and sustainable supply of canes both from large and small
planters,
 The operation of efficient and flexible state of the art installations to
produce different types of sugar and to optimize the use of bagasse,
molasses
ASSESSMENT OF IMPACTS (cont.)
Policy option 2: Right Sizing of Labour Force
The Voluntary Retirement Scheme (VRS) aim at reducing the operating
cost of production of sugar (with objective to reduce labour cost from
56% in 2001 to 30%).
A package to all employees of the sugar industry, opting for an early
retirement:
 Compensation in terms of cash payment as well as land entitlement,
exemption of income tax and land & housing loans at preferential rates.
 A package of support measures implemented, among which, awareness
campaigns, training courses for younger VRS leavers, counseling units,
medical cover schemes, and scholarships awarded to children.
 The provision of reskilling and loan opportunities to facilitate
adaptation. The employees will also participate in empowerment and
welfare schemes being set up by Government.
With the new VRS Schemes under MAAS, it is expected that some
6,000 employees of the sugar cane industry would take advantage of
the offer.

ASSESSMENT OF IMPACTS (cont.)
Policy option 3: Energy Production
Electricity production from bagasse. Bagasse is also a renewable and
environment-friendly source of energy, which provides the dual benefits
of reducing the country’s dependence on imported fuels and saving
foreign exchange.
Thus electricity production from bagasse would be increased by 300
million kWh and 30 million liters of ethanol would be produced from
molasses. The ethanol would be used to blend with gasoline.
Until now, the production of ethanol was constrained by problems
associated with the disposal of vinasse. This issue has been resolved and
vinasse and the treated vinasse will be used as a fertiliser after the
addition of urea and phosphoric acid. The investments estimated for the
ethanol plants incorporate vinasse treatment facilities.
ASSESSMENT OF IMPACTS (cont.)

First National Review Meeting (04 June 2008)
The objectives of the workshop were to apprise the relevant stakeholders of the
status of the country project and to validate the Integrated Assessment
methodologies and relevant indicators.

Proposals
 A better idea of the economic benefits for regrouping, yield data would
have to be collected for at least 5 – 7 years covering one whole crop cycle.
 The ratio of qualitative indicators with respect to qualitative indicators
need to be balanced in order to have measurable and quantifiable
information for analysis.
 The impact on biodiversity is not clearly quantify due to limited information
of biodiversity associated (sugar cane exploited as mono-cropping system
since colonial time).

Some concerns were also raised with respect to: translation of indicators to assess impact
 the value of indicators and comparison with baseline data in order to draw
valid conclusion with reference to environment, social and economic
consideration
 The difficulty to evaluate social and biodiversity indicators as compared to
economic indicators
 Valuation tools for assessment impact on ecosystem services
ASSESSMENT OF IMPACTS (cont.)
The workshop identified and prioritised on possible scenarios for
diversification:
The following economic indicators were recommended for the study of
scenarios under diversification:
 Revenue to the farmer for the 2 most likely crops that is
potato
and onion and compared to revenue from sugar cane
 Areas that have shifted from sugar cane to these crops
 Labor input for diversification as compared to sugar cane
given
that sugar cane is less labor intensive
 Government expenditure in the different options (information of
interest to policy makers) e.g. provision of credit, income support.
 Tax revenue for government.
Following the workshop, the conceptual framework was amended
POLICY RECOMMENDATIONS
No policy recommendation has been formulated yet
(though we already have started discussion)
NEXT STEPS
Updated Time Line for the Study

Jul 2008:
Completion of Data collection exercise and finalization of the
assessment of the integrated methodologies and biodiversity
indicators
 Aug 2008: Workshop to develop integrated national response
Drafting of integrated national policy action plan
 Sep 2008: Feedback from stakeholders on national action plan
Workshop on Sustainable trade in agriculture
 Oct 2008: Workshop on Integrated Assessment and CBD implementation
for NGOs
Preparation of country report
 Nov/Dec 2008: Finalization of country report
Preparation of implementation phase (2nd project phase), including
preparation for the extension of MOUs
January 2009-December 2009:
- Implementation of national action plans
- Submission of final report of the project to UNEP
ACHIEVEMENTS
Main Achievements of the Project

Setting up of a dedicated Core team to implement the project

Relevant stakeholders involved in Project are committed specially at the
level of the technical Committee and has contributed extensively in the
development of the focus of the study, and indicators for the IA.

The Launching workshop organized on 23 April 2007 was conducted by the
Honourable Minister of Agro Industry and Fisheries, hence showing the
commitment of the Government of Mauritius. The launching ceremony was
also covered by the national television and the press.

The active participation of stakeholders during the different workshops has
help the core team for the proper execution of the project specially for
awareness of other ongoing projects and programmes by other institutions,
for the sourcing of baseline data and other relevant information (report,
scientific publication, etc), critically reviewing the status of the project, for
establishing linkages with other organisations and the development of the
conceptual framework

Set up of website – http://www.areu.mu/biodiv for the dissemination of
information to the public and relevant stakeholder
CHALLENGES
Main challenges (up to date)
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Some stakeholders are not ready to participate in the IA and for some it is
difficult to sustain their interest hence the project team is not informed of
other relevant past and ongoing projects and studies related to the current
study.
Capture of some Indicators/Socio-economic data may not be easy as farmers
are dependent on other sources of revenue than sugarcane. Data access and
availability is in some cases as some stakeholders are unwilling to share
information and relevant analysis. Data collection is also highly time
consuming and resource intensive
Difficulty to assess some of the qualitative indicators specially the social and
biodiversity indicators as compared to economic indicators
Valuation tools for assessment impact on ecosystem services
Dynamic changes in International trade policy may lead to confounding
effect in the study specially to establish a clear cause-effect relationship.
The time limitation for the study (2 years) and the complexity to assess
potential impact on biodiversity of the different policies under study.
The impact on biodiversity is not clearly quantify due to limited information
of biodiversity associated with sugar cane (exploited as mono-cropping
system since colonial time)