Download Agriculture in the Greater Mekong Subregion GMS

Agriculture in the Greater
Mekong Subregion(GMS)
Sununtar Setboonsarng
Southeast Asia Department
Partnering for Smallholders Inclusive Market
Opportunities in the Mekong
Hanoi, 8-9 Dec 2015
Outline of Presentation
• ADB
• GMS Regional Cooperation in
Agriculture
• Agriculture and climate change
• Gender-responsive inclusive
value chain
ADB Operations
Overarching goal: poverty reduction
• Technical Assistance
– Structural reforms
– Knowledge products
– Capacity building
– Project preparation
• Loan and grant to scale up inclusive
and green investments
ADB Operational Plan for
Food Security
• Productivity
• Connectivity
• Quality
• Natural Resource Management
Greater Mekong Subregion Regional
Cooperation Program
Sectors
• Agriculture
• Energy
• Environment
• Human Resource Development
• Tourism
• Trade and Transport
Agriculture Systems
• Productivity at the expense of nutrition,
food safety, biodiversity, …
• High green house gas emission
• Use over 80% of fresh water
• Employ 70% of rural women
Vision for the GMS Agriculture
Sector
The Greater Mekong
Subregion is recognized
globally as the leading
producer of safe food,
using climate-friendly
agricultural practices
and integrated into
global markets through
regional economic
corridors
8
Vision
The Greater Mekong Subregion is recognized
as the leading producer of safe food, using
climate friendly agricultural practices and integrated
into global markets through regional economic corridors.
Pillar 1:
Food Safety
Trade
Modernization
Pillar 2:
Climate
Friendly
Agriculture
Pillar 3:
Bioenergy and
Biomass
Management
Agricultural Research and Development
Private Sector Involvement
Institutional Mechanisms for Regional
Cooperation
Food Safety and Trade
Modernization
Food is Foundation of Life
Micronutrient Deficiencies
• Affect 2 billions people
• Deficiencies in micronutrients (iron,
iodine, vitamin A, folate, zinc, …)
• Cause devastating consequences,
particularly for children below 1000
days
PESTICIDE AND
HERBICIDE
• 5.6 billion pounds
per year (EPA, 2010)
• Less than 0.1% of
pesticides reach
their target pests
• Residues cause
cancer, reproductive
health, etc
ENDOCRINE
DISRUPTORS
Cancer, behavior
alterations or
reproductive
disorders by
endocrine disruptors
from consumption
of pesticide residues
in food
TOXINS IN
BREASTMILK
The breast milk and
tissues of some
Greenland Inuit
could be classified
as poison due to
hazardous waste
residues
SUPER BUGS
IN
LIVESTOCK
Overuse of antibiotics
in healthy animals
create antibioticresistant bacteria,
super bugs
Mycotoxins and Heavy
Metals
• 4.5 billion people are
affected by mycotoxins
contamination
• Alfatoxin in peanuts,
maize, rice, etc are
increasing with global
warming
• Heavy metal: Cadmium,
Lead, Mercury,…
Pillar 1. Building Global Competitiveness by
Promoting Food Safety
• Enhance trade infrastructure
• Harmonize food safety
standards
• Food traceability system
• Capacity building for formal
and informal certification
systems, including PGS
• Promote regional sourcing
for critical mass of green and
pro-poor products
Agriculture and Climate
Change
GHG emissions by sector
Agriculture
Energy
Waste
Industria
l
Processe
s
Solvents
Cambodia
82.74%
14.74%
2.13%
0.39%
0.00%
Lao PDR
86.26%
11.68%
1.51%
0.54%
0.00%
Indonesia
13.24%
50.68%
28.38%
7.70%
0.00%
Malaysia
3.05%
76.01%
13.63%
7.31%
0.00%
Myanmar
69.13%
21.40%
8.14%
1.32%
0.02%
Philippines
32.84%
49.61%
7.03%
10.51%
0.00%
Thailand
21.89%
67.26%
3.93%
6.91%
0.00%
Viet Nam
47.93%
38.86%
5.84%
7.37%
0.00%
Source: UN Framework Convention on Climate Change
(UNFCCC) GHG emission profiles for non-Annex I Parties
Green House Gas Contribution of
Agriculture Sector
≈
14%
≈
Production
Forestry
35%
Burning of biomass
≈
Transport
Agro-chemicals
>50%
Heat-Trapping Ability
• Carbon dioxide is baseline GHG
–One unit of CO2 = 1
• Methane is 23 times of CO2*
• Nitrous oxide is 298 times of CO2*
• Black carbon is 10,000 times of CO2
*100-year Global Warming Potential (GWP)
based on IPCC Assessment Report 2007 (AR4)
World Carbon Reservoirs
Sizes of World Carbon Reservoirs
5000
4500
4000
Carbon
3500
3000
476 billion tons of Carbon in
Soil has been released
2500
2000
1500
1000
500
0
Forests
Atmosphere
Reservoirs
Soil
Fossil Fuel
Reserve
Refill Soil Reservoir
Sizes of World Carbon Reservoirs
5000
4500
4000
Carbon
3500
3000
2500
2000
1500
1000
500
0
Forests
Atmosphere
Reservoirs
Soil
Fossil Fuel
Reserve
Soil carbon sequestration
• Transferring CO2 into soils as
organic matter (compost)
and/or biochar
• Enhances soil fertility, aeration,
microbiota,
• Improve water retention and
purify water
Soil Organic Matter
• Flood and drought
resilience
• 1% = 170,000
liters of water/ha
• Reduce soil toxicity
• Increases
micronutrient
• Mitigates and
sequester GHG
Electron micrograph of
soil humus
Biochar for Carbon Sequestration
• Biochar (charcoal from biomass) is
produced by baking biomass at about
320-700ºC under low or no oxygen
(pyrolysis)
• The combustion process releases gas
or oil as clean renewable energy.
• Biochar remains stable in soils for
hundreds to thousands of years.
FAO (2009)
Effects of Biochar
Pillar 2: Promote Climate-friendly Agriculture and
Natural Resource Management
• Reward farmers for
ecosystem/climate services
i.e. market access for
climate-friendly products
• Climate-risk management
system i.e. drought
monitoring system, regional
weather-based index risk
insurance
• Transboundary diseases
and invasive species
Agriculture, Energy, and
Biomass Management
Biomass residues
Abundant biomass
residues in the GMS
include: rice husk and
rice straw, sugarcane and
maize crop residues,
crude palm oil waste,
wood waste, and animal
manure are currently
underutilized.
Black Carbon Sources
• Burning of agricultural waste
and traditional cook stoves
emitting smoke, soot,
and carbon dioxide
http://en.wikipedia.org/wiki/Cook_stove
• It takes an average of 7 to 10 calories
of energy input to produce one
calorie of food.
Pillar 3: Promote Agriculture as Leader in
Providing Rural Renewable Energy
• Regional standard, legal
and regulatory framework
for biomass and
bioenergy
• Promote biomass
management for
bioenergy and food
security
• Promote FDI of ecofriendly supply chain for
3Ps: People, Planet, Profit
Structure of Arable Land
3%
Intensive
agriculture
Bypassed
by Green
Revolution
Year round Irrigated
9%
Double Irrigated
14%
Single Irrigated
74%
Rain- fed
Source: International Water Management Institute, GIAM
Which Way to Go?
Renewable <- Fossil fuel based energy -> Nuclear
Organic<- Fossil fuel-based -> GMO
Women Will Feed the World
3%
Year round Irrigated
9%
Double Irrigated
14%
Single Irrigated
74%
Rain- fed
Total Cropland Area= 1,530,079,274 ha
Source: International Water Management Institute, GIAM
Myth about Low OA Yield
Apply Green
Revolution Tech
Agrochemicals
Irrigated
Rainfed
Transition to
Organic
Post Transition
Organic Agriculture(OA)
“comparative advantage of
disadvantage of the poor”
• Relatively un-contaminated land, often not
requiring ‘transition period’ for certification
• Indigenous knowledge of low-external input
agriculture
• Availability of labor
• Minimal need for credit
MDG 1, Target 1: Income Poverty
Because of…
• Growing demand for
safe food in export and
domestic markets
• Price premiums
• Reduced costs of inputs
• Favor smallholders
OA will lead to…
• Higher income
generation for
farmers
Higher profit in Organic
N
Crop
Profit
pvalue
Thailand, 2003
443
Rice
Yes
0.000
Thailand, 2005
243
Rice
Yes
0.723
Thailand, 2005
110
Banana
Yes
0.118
Thailand, 2005
148
Asparagus
Yes
0.119
PRC, 2006
240
Tea
Yes
0.013
PRC, 2006
220
Horticulture
Yes
0.851
Sri Lanka, 2006
200
Tea
Yes
0.250
Cambodia, 2005*
615
Rice
Yes
0.141
Lao PDR, 2005*
368
Rice
Yes
0.030
Country
*Note:
Cambodia and Lao PDR are non- certified organic.
Organic is Pro-Smallholders
Profitability by Farm Size in Thailand (Baht/rai)
Land
All farms
category
CA
farmers
OA
p-value*
farmers
0-5 rai
1,719
1,374
2,432
0.0000
6-10 rai
1,744
1,413
2,076
0.0000
11-20 rai
1,723
1,337
2,021
0.0000
>20 rai
1,646
1,276
1,866
0.0057
Total
1,721
1,369
2,072
0.0000
OA Households Spend Less on Health
Health Expenditure in N and NE Thailand
% of Households
10%
8%
OA
6%
CA
4%
2%
0%
5%
10%
15%
20%
25%
Medical expenditure as a % of HH expenditure
More Nutrients in Crops Grown in
Healthy Soil-Organic Agriculture(OA)
63%
30%
29.3%
Medical
related
27%
C
抗酸化剤
(lettuce, spinach, carrot, potato, apple)
Source: review of 434 studies by New Castle University, 2014
MDG 7: Ensure environmental
sustainability
Because of…
• Careful attention to
soil health, soil
carbon, biodiversity,
germplasm, and
the wider
environment
OA will lead to …
 ecosystems
re-generation
and
environmental
sustainability
Growing Int. Trade of OA
OA
Export
OA for
Domestic Mkt
• OA products overcome new international trade
requirements.
• OA growing at double digits in developed countries
OA and the MDGs
• Direct and well-defined:
MDG 1: profit, income, food security
MDG 3: empowerment of women
MDG 4,5,6: health and sanitation
MDG 7: environment, climate change,
soil, biodiversity, water
MDG8 : partnership in development
• Indirect: MDG2 education
Costs of Achieving the MDGs
Through OA
Cost/person
Existing strategy: invest in
health, water, sanitation*
US$ 633 - 877
Organic agriculture**
US$ 32 - 38
*World Bank , 2002
** Findings from Thailand, Sri Lanka, PRC by ADBI
Multiple-Wins Solution
• Addressing root causes of health, food
safety, nutrition, and environmental crisis
• Mitigating GHG: N20, CH4, and CO2
• Reversing climate change
• Improving water and waste management
• Investing in preventive health
• Promoting women as key player in
inclusive and sustainable growth
Hard Infrastructure
Inclusive Value Chain infrastructure
Public infrastructure:
logistics for smallholders,rural transport,
irrigation, laboratory equipment, …
PPP-type Infrastructure:
post-harvest, market facilities, biofertilizer,
solar drip irrigation, …
Soft Infrastructure
• Institutional contract farming, hospital
meal, school lunch, …
• Alternative certification scheme
(community-based certification, IT
tracability, CCTV, etc
• Green public procurement policies
• R&D, PPP, …
Healthy Soil=Healthy Crops=Healthy People
Free Download
Organic Agriculture and Post -2015
Development Goal
https://openaccess.adb.org/handle/11540/4411
Making Globalization Works better
for the Poor through Contract Farming
https://openaccess.adb.org/bitstream/
handle/11540/5033/making-globalizationwork-better.pdf?sequence=1
Thank you very
much
for your attention