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Introduction
•Why are biofuels important for the rural poor?
•Why is jatropha important for the rural poor
living in drylands?
•What are the problems with jatropha?
Why are biofuels important for the rural poor?
• Almost 2.5 billion people in developing
countries earn their livelihoods from
agriculture
• Of these, 900 million live below the
poverty line
• Agriculture directly employs 1.3 billion
people or 40% of the global labour force
• Yet, agriculture contributes only around
4% of global GDP (some USD 1.6 trillion)
Why are biofuels important for the rural poor?
• Issue 1: If these people stay in agriculture, is this basket large
enough to substantially improve their incomes and lift them out
of poverty?
• Probably not, as commodity prices only increased after the
agricultural basket expanded, with maize being used as a biofuel
feedstock
WHEAT US HRW ($/mt)
RICE INDIC 5% ($/mt)
MAIZE ($/mt)
SOYBEANS ($/mt)
PALM OIL ($/mt)
Commodity prices
3000.00
2000.00
1500.00
1000.00
500.00
Time Period
20
08
20
06
20
04
20
02
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
19
82
19
80
19
78
19
76
19
74
19
72
0.00
19
70
Annual Averages
2500.00
Why are biofuels important for the rural poor?
• Issue 2: Can these people move out of agriculture?
• Even if half the agricultural labour force (650 million)
moves out of agriculture in the next 20 years, can they be
absorbed in other sectors in developing countries?
• It is difficult to foresee
• The US economy of USD 14 trillion has a labour force of
153 million and an unemployment rate of 5%
• The EU economy of USD 16 trillion has a labour force of
222 million and an unemployment rate of 9%
Why are biofuels important for the rural poor?
•It seems that the agricultural basket is small and
unless it is expanded, prospects for reducing
poverty through development of the agricultural
sector only remain bleak
•However, prospects improve when the
agricultural basket is expanded to include
biofuels because the energy market is much
larger, which underscores the importance of
biofuels in alleviating poverty
•However, it widely recognised that this must be
undertaken responsibly, addressing both food
security and environmental concerns
Why is jatropha important for the rural poor living in
drylands?
•Agricultural activities are limited by prevalent
agro-ecological conditions
- Intensive agriculture is difficult
- Livestock: environmental degradation
- Niche products: low demand
•Jatropha offers a potential alternative,
provided certain conditions are met
What are the problems with jatropha?
• Long growing time
• Suitable high oil content, high yielding varieties are not yet
identified
• Agronomy is not well known
• Better adapted varieties that can withstand water and high
temperature stress under drought conditions are required
• Environmental impacts are not well understood
• Need responsible public private partnerships to develop
product and address issues along the value chain
• Biofuel development should not lead to alienation of land
of the poor
A few housekeeping issues
• The agenda is available in the folders
• All moderators are requested to summarise the issues
raised in their respective sessions, which will be handed
over to Judy Siegel as she facilitates the final group
discussion on the 10th
• Since the profiles have already been made available, the
moderators are requested to initiate discussions by just
inviting the speakers when their turns come
• All speakers are requested to finish their presentations
within their allotted times
• All people who wish to ask questions are requested to
keep their queries to 1 minute as this will permit broader
discussion