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PAAP’s Electronic Newsletter 9 October 2009 Volume 12 Number 20 New Appointments at ASARECA Dr. Sarah L. Mubiru, has been appointed Programme Assistant, Livestock and Fisheries Programme. She has a PhD from Makerere University (Kampala, Uganda) in natural resource management in dairy systems and an MSc in Tropical Pastures from James Cook University (Townsville, Australia). During 2003 - 2006, she was a graduate fellow at the International Livestock Resources Research Institute (ILRI, Nairobi, Kenya) with the market oriented smallholder dairy project team. She has been the team leader - animal nutrition at the National Livestock Resources Research Institute (NaLIRRI), Tororo, Uganda. Her contacts are: [email protected], Tel: +256 414 320422 Mr. Ben Moses Ilakut has been appointed Publication Officer in the Information and Communications Unit of ASARECA. Ilakut has a Bachelors of Arts degree in Mass Communication from Makerere University. He has a vast experience in the media spanning eight years, having worked in The Daily Monitor newspaper, East African Business Week, a regional weekly and The New Vision newspapers as a development writer and editor. His contacts are: [email protected]. Tel: +256 414 322228 Please join PAAP in wishing Sarah and Ben a fruitful tenure at ASARECA CLIMATE CHANGE: IMPACT ON AGRICULTURE AND COSTS OF ADAPTATION The current Food Policy Report by the International Food Policy Research Institute (IFPRI) presents research results that quantify the climate-change impacts mentioned above, assesses the consequences for food security, and estimates the investments that would offset the negative consequences for human well-being. The analysis brings together, for the first time, detailed modeling of crop growth under climate change with insights from an extremely detailed global agriculture model, using two climate scenarios to simulate future climate. The results suggest that agriculture and human well-being will be negatively affected by climate change. 1 Introduction T HE impacts of climate change on agriculture and human well-being include: 1) the biological effects on crop yields; 2) the resulting impacts on outcomes including prices, production, and consumption; and 3) the impacts on per capita calorie consumption and child malnutrition. The biophysical effects of climate change on agriculture induce changes in production and prices, which play out through the economic system as farmers and other market participants adjust autonomously, altering crop mix, input use, production, food demand, food consumption, and trade. 1. The biological effects of climate change on yields Rising temperatures and changes in rainfall patterns have direct effects on crop yields, as well as indirect effects through changes in irrigation water availability. Direct effects on yields: rainfed and irrigated crops In developing countries, yield declines predominate for most crops without carbon dioxide (CO2) fertilization. Irrigated wheat and irrigated rice are especially hard hit. On average, yields in developed countries are affected less than those in developing countries. For a few crops, climate change actually increases developed-country yields. In calculating these projections, the East Asia and Pacific region combines China, which is temperate for the most part, and Southeast Asia, which is tropical. The differential effects of climate change in these two climate zones are concealed. In China, some crops fare reasonably well because higher future temperatures are favorable in locations where current temperatures are at the low end of the crop’s optimal temperature. Yields of important crops in Southeast Asia fall substantially in both scenarios unless CO2 fertilization is effective in farmers’ fields. South Asia is particularly hard hit by climate change. For almost all crops, it is the region with the greatest yield decline. With CO2 fertilization, the yield declines are lower; in many locations, some yield increases occur relative to 2000. However, rainfed maize and irrigated and rainfed wheat still see substantial areas of reduced yields. SubSaharan Africa sees mixed results, with small declines or increases in maize yields and large negative effects on rainfed wheat. The Latin America and Caribbean region also has mixed yield effects, with some crops up slightly and some down. 2 Indirect effects: Irrigated crops Climate change will have a direct impact on water availability for irrigated crops. Internal renewable water (IRW) is the water available from precipitation. Both climate scenarios result in more precipitation over land than would occur with no climate change. Under National Center for Atmospheric Research, NCAR (USA) scenario, all regions experience increased IRW. Under the Commonwealth Scientific and Industrial Research Organization CSIRO (Australia) scenario, the average IRW increase is less than occurs with NCAR, and the Middle East and North Africa and sub-Saharan Africa regions both experience reductions of about 4 percent. In addition to precipitation changes, climate change-induced higher temperatures increase the water requirements of crops. The ratio of water consumption to requirements is called irrigation water supply reliability (IWSR). The smaller the ratio, the greater the water stress on irrigated crop yields. Across the group of developing countries, IWSR improves under the NCAR scenario and worsens under the CSIRO scenario. However, regional differentiation of climate-change effects is important. Irrigation Water Supply Reliability (IWSR) improves slightly for the Latin America and Caribbean region and for the Middle East and North Africa, but worsens slightly for sub-Saharan Africa under both scenarios. For east Asia and the Pacific and for south Asia, reliability increases under the NCAR scenario but declines under the CSIRO scenario. Yield reductions of irrigated crops due to water stress are directly estimated in the hydrology portion of IMPACT, taking into account the growing demand for water outside agriculture as well as agricultural demands. As expected, irrigated yield losses due to water stress are relatively higher under the CSIRO scenario than the NCAR scenario. For example, in east Asia and the Pacific, with no climate change, the combined effects of nonagricultural demand growth and increased irrigated area result in an average 4.8percent decline in irrigated rice yields. Under the NCAR scenario, that decline is only 1.2 percent. However, under the drier CSIRO scenario, the irrigated yield loss from water stress is 6.7 percent. In east Asia and the Pacific, irrigated rice, wheat, and maize yield losses are all large under the CSIRO model. South Asia irrigated yields for all crops would experience large declines under both scenarios. In sub-Saharan Africa, maize yields are less under both models, but the CSIRO effects are especially large. Latin America and the Caribbean yields are relatively unaffected, in part due to the small amount of irrigated production in that region. 3 2. Prices, production, and food consumption Prices With no climate change, world prices for the most important agricultural crops—rice, wheat, maize, and soybeans will increase between 2000 and 2050, driven by population and income growth and biofuels demand. Even with no climate change, the price of rice would rise by 62 percent, maize by 63 percent, soybeans by 72 percent, and wheat by 39 percent. Climate change results in additional price increases—a total of 32 to 37 percent for rice, 52 to 55 percent for maize, 94 to 111 percent for wheat, and 11 to 14 percent for soybeans. If CO2 fertilization is effective in farmers’ fields, these 2050 prices are 10 percent smaller. Livestock are not directly affected by climate change in the IMPACT model, but the effects of higher feed prices caused by climate change pass through to livestock, resulting in higher meat prices. For example, beef prices are 33 percent higher by 2050 with no climate change and 60 percent higher with climate change and no CO2 fertilization of crops. With CO2 fertilization, cropprice increases are less, so the beef price increase is about 1.5 percent less than with no CO2 fertilization. Production The negative effects of climate change on crop production are especially pronounced in subSaharan Africa and south Asia. In south Asia, the climate scenario results in a 14-percent decline in rice production relative to the no–climate-change scenario, a 44- to 49-percent decline in wheat production, and a 9- to 19-percent fall in maize production. In sub-Saharan Africa, the rice, wheat, and maize yield declines with climate change are 15 percent, 34 percent, and 10 percent, respectively. For east Asia and the Pacific, the results are mixed and depend on both the crop and the model used. Rice production declines by around 10 percent, wheat production increases slightly, and maize production declines with the drier CSIRO scenario but increases with the NCAR scenario. Comparing average production changes, developing countries fare worse for all crops under both the CSIRO and NCAR scenarios than do developed countries. Food consumption Agricultural output used for human consumption is determined by the interaction of supply, demand, and the resulting prices with individual preferences and income. Without climate change, rising per capita income results in reduced declines in per capita consumption of cereals in developing countries between 2000 and 2050 and increased meat consumption increases, with the 4 meat increases more than offsetting the decline in cereals. Climate change reduces the growth in meat consumption slightly and causes a more substantial fall in the consumption of cereals. These results are the first indication of the negative welfare effects due to climate change. Both models have similar effects. 3. Per capita calorie consumption and child malnutrition The primary measures used for the effects of climate change on human welfare are the change in calorie availability and the change in the number of malnourished children between 2000 and 2050 without climate change, and in 2050 using the two climate-change scenarios. The declining consumption of cereals translates into similarly large declines in calorie availability as the result of climate change. Without climate change, calorie availability increases throughout the world between 2000 and 2050. The largest increase, of 13.8 percent, is in east Asia and the Pacific, but there are gains for the average consumer in all countries—by 3.7 percent in Latin America, 5.9 percent in sub-Saharan Africa, and 9.7 percent in south Asia. With climate change, however, calorie availability in 2050 is not only lower than the no-climatechange scenario in 2050—it actually declines relative to 2000 levels throughout the world. For the average consumer in a developing country, the decline is 7 percent relative to 2000. With CO2 fertilization, the declines are 3 percent to 7 percent less severe, but are still large relative to the no– climate-change scenario. There is almost no difference in calorie outcome between the two climate scenarios. Costs of adaptation Climate-change adaptation is increasingly on the agenda of researchers, policymakers, and program developers who are aware that climate change is real and threatens to undermine social and ecological sustainability. In agriculture, adaptation efforts focus on implementing measures that help build rural livelihoods that are more resilient to climate variability and disaster. Climate change increases child malnutrition and reduces calorie consumption dramatically. Thus, aggressive agricultural productivity investments are needed to raise calorie consumption enough to offset the negative impacts of climate-change on the health and well-being of children. In order to assess the costs of adaptation alone, it is important to identify agricultural productivity investments that reduce child malnutrition with climate change to no-climate-change levels, holding all other macro changes constant, such as income and population growth. The key messages, point to the importance of improving the productivity of agriculture as a means of meeting the future challenges 5 that climate change represents. The path to the needed agricultural productivity gains varies by region and to some extent, by climate scenario. Conclusion This analysis brings together for the first time detailed modeling of crop growth under climate change with insights from an extremely detailed global agriculture model. The results show that agriculture and human well-being will be negatively affected by climate change. Crop yields will decline, production will be affected, crop and meat prices will increase, and consumption of cereals will fall, leading to reduced calorie intake and increased child malnutrition. These stark results suggest the following policy and program recommendations: Design and implement good overall development policies and programs. Increase investments in agricultural productivity. Reinvigorate national research and extension programs. Improve global data collection, dissemination, and analysis. Make agricultural adaptation a key agenda point within the international climate negotiation process. Recognize that enhanced food security and climate change adaptation go hand in hand. Support community-based adaptation strategies. Increase funding for adaptation programs by at least an additional $7 billion per year. These investments may not guarantee that all the negative consequences of climate change can be overcome. But continuing with a “business-as-usual” approach will almost certainly guarantee disastrous consequences. This Food Policy Report was prepared by: Gerald C. Nelson, Mark W. Rosegrant, Jawoo Koo, Richard Robertson, Timothy Sulser, Tingju Zhu, Claudia Ringler, Siwa Msangi, Amanda Palazzo, Miroslav Batka, Marilia Magalhaes,Rowena Valmonte-Santos, Mandy Ewing, and David Lee. The report is available at: http://www.ifpri.org/sites/default/files/publications/pr21.pdf COMMUNICATION Africa: Clinton - U.S. Stands Ready to Help Expand U.S.-Africa Business Source: America.gov by Charles W. Corey Washington, D.C., October 1 6 The United States stands ready to help Africa expand the U.S.-Africa business relationship, but "let's make sure the governments of Africa are worthy of their people," Secretary of State Hillary Rodham Clinton told the Seventh Biennial U.S.-Africa Business Summit October 1. In a keynote address, Clinton said Africa has enormous potential, and that increasing the U.S.Africa business relationship requires good governance. "I remain convinced that no place holds the opportunities of the future like Africa does," she said. "But that does not mean that we can just expect it to happen. We have to work together." Clinton said: "We want to look back after the Obama administration and be able to say, 'We made a difference in Africa and we can see the results.' This is not only because it is the right thing to do and the smart thing to do," she told her audience. "It is very personal to President Obama. He considers himself a son of Africa because of his father's lineage. He and I talk about how we want to see positive changes, changes that we all know can be made given the intelligence, and the work ethic, and the extraordinary abilities of the people of Africa. So let's make sure that the governments of Africa are worthy of their people." Clinton referred to her trip in August to seven African nations, underscoring the important place Africa holds with the Obama administration and the American people. "It is truly a high-level commitment from the entire administration because we start from a premise that the future of Africa matters to our own progress and prosperity. The Obama administration has strategies to help spur economic development in Africa and create conditions that will help improve the lives of the African people, which is to us, how you really measure success. "We are eager to move beyond stereotypes," she said, "which paint Africa as a land of poverty, disease, conflict and not much else. We will continue to lay a new foundation for a new kind of engagement with Africa," she pledged, "one that is built on shared responsibility and shared opportunity and on partnerships that produce measurable, lasting results." Clinton told her audience of American and African entrepreneurs, investors, officials and diplomats that "it is time to change the narrative" about Africa. For too long, she said, "Africa has been viewed as a charity case instead of a continent capable of becoming a global economic engine of the 21st century. So it is time to change the narrative. It is time to understand that strengthened trade policies will enable African businesses to tap more effectively into existing markets and create new ones." African nations can use technology and innovation to leapfrog early stages of development and become more quickly integrated into the global marketplace, she said. She also said that reform of Africa's agricultural sector is essential to its future growth and prosperity, and that investing in people, and especially women, will enable Africa to move toward the sustainable future everyone is hoping for. 7 "We have a big agenda and we have a very positive vision," she said, warning that "none of this can happen without responsible African leadership, without good government and transparency and accountability, without acceptance of the rule of law, without environmental stewardship and the effective management of resources, without respect for human rights, without an end to corruption as a cancer which eats away at the entrepreneurial spirits and hopes of millions of people." Clinton told her audience that the United States is committed to working with Africa to overcome these challenges, and she highlighted some recent success stories, praising Rwanda and the level of economic development now under way there, which, she said, is "directly traceable to the sound policies that the [Kagame] government has implanted" there. Clinton's August trip took her to Kenya, South Africa, Angola, the Democratic Republic of the Congo, Nigeria, Liberia and Cape Verde. She said that in each country she visited she saw examples of activities that are already paying dividends, from agriculture to business to the health sector. "So across Africa, we know that there are opportunities to be seized and we know that there are people who will do the hard work, but what we have to do is to help create the right conditions." Clinton said the United States is focusing on five key areas to help Africa: first, expanding trade, especially intraregional trade, among African countries by opening up intra-African markets; second, promoting development in agriculture, infrastructure, aviation and other key sectors; third, promoting energy security; fourth, promoting more public-private partnerships; and fifth, promoting good governance, transparency, accountability, adherence to the rule of law and an end to corruption. At least four African heads of state attended the September 29-October 1 summit, sponsored by the Corporate Council on Africa. The summit showcased the latest trade and investment opportunities across Africa through more than 50 industry-specific sessions for more than 1,500 participants. The previous CCA summit was held in Cape Town, South Africa, in 2007. PAAP received this information from Peter Ewell of USAID, he is gratefully acknowledged This newsletter is an attempt to use e-communications to provide to a broad audience within and outside Eastern and Central Africa a mechanism for distribution and exchange of information relevant to agricultural policy issues. This newsletter is being sent to you as PAAP’s stakeholder. We want to respect your privacy and desire not to have your e-mail inbox filled with unwanted correspondence. If you do not want to receive this newsletter please send us a note at <[email protected]>, and we will remove your name from the distribution list. 8