Summary presentation delivered by Mr. David Nyameino at Wheat for Food Security in Africa conference, Oct 9, 2012, Addis Ababa, Ethiopia.

1. Challenges, Issues and Strategies
for the Future
Summary from Group Deliberations
David Nyameino
Cereal Growers Association
Kenya

2. Talk does not cook rice
Chinese proverb
A Promise is a Cloud – Fulfillment is Rain
Arabian Proverb

3. Rising food and wheat prices have two
implications
++ Africa wheat production is becoming profitable
in many areas and could contribute to food
security, income generation and reducing import
bills
--- Urban social unrest in Africa due to high price
increases of staples food more likely

4. Global Food Security
Food Prices and Social Unrest
Red dashed vertical lines correspond to beginning dates of “food riots”
and protests associated with overall death toll reported in parentheses

5. Source: Weigand, US Wheat Associates, 2011

6. Trends in wheat import bills for Africa
1961-2010
15
10
5
0
1960 1970 1980 1990 2000 2010
Year
Source: Prepared by authors based on FAOSTAT database.

7. Area under wheat in Africa (million ha), 1961 - 2010
Tunisia
South Africa
Morocco
Ethiopia
Egypt
Algeria

8. Wheat production in Africa (million tons), 1961 - 2010
Ethiopia
South Africa Morocco
Egypt
Algeria

9. Trends in wheat yield for different regions in Africa
(1961-2010)
3
2.5
2
1.5
1
.5
1960 1970 1980 1990 2000 2010
Year
Eastern Africa Middle Africa
Northern Africa Southern Africa
Western Africa
Source: Prepared by authors based on FAOSTAT database.

10. - Wheat is mainly imported or produced on large
scale farms (excl. Ethiopia)
- Current situation does not generate rural-urban
synergies on large scale
N. Mason, MSU, Addis Ababa, Oct 8, 2012

11. The time of cheap food is over!
Professor Tim Lang, professor of Food Policy at London
City University: "Most analysts think the long drop in
food prices, of affordability, is over. We are now in a
new world, a world of new fundamentals, not just bad
weather this year but a long-term squeeze."

12. What are the issues for Africa?

13. What are the issues for Africa?
 Develop adapted technologies and varieties for smallholder s
 Make affordable inputs available
 Build effective and sustainable wheat seed systems
 Increase productivity among smallholders
 Make wheat extension systems more effective and efficient
 Make wheat more competitive and profitable
 Make wheat value chains work more effectively
 Foster regional co-operation
 Develop policies that foster wheat industry

14. Wheat market issues
 Market participation increases with adoption of new varieties
 Farmers lack market information on value chain opportunities
 Domestic prices are often negatively affected downwards by
subsidized imports and unpredictable Govt interventions
 There is no clear policy on price support or price stabilization
to protect domestic producers and consumers
 Grain quality needs to be addressed

15. It is very easy to state where we need “more”
 More investment in research and development …
 More research infrastructure …
 More variety development …
 More agricultural extensions & extension staff
 More capacity building of research & extension …
 More affordable inputs …
 More quality assurance in seed, fertilizers, ag. chemicals,
machinery
 More farmer associations and farmer training …
 More machinery and small farm implements …
 More storage …
 More awareness and support …

16. This meeting thought about what we could
do differently
 We want to take collective action and work with/through
centers of excellency
 We want to focus our investment and reach farmers in areas
where wheat has the greatest profitability
 We want to find approaches that makes wheat a profitable
(cash) crop for more smallholders
 We want to stimulate and support private sector investment
for improved input availability, …
 Accelerate information transfer through extension and mobile
phones

17. Key Strategies / Investments

18. Key strategies are/Focus for investment should be on - 1
1. Develop wheat value chains into distinct geographic areas/
hubs with greatest profitability
2. In those areas/hubs, provide affordable credit and inputs,
information, know-how, mechanization, organization and
marketing in a comprehensive manner
3. In those areas, hubs involve smallholders that want to enter
into profitable wheat production
4. Close the on-farm productivity gaps with existing wheat
producers => Farm productivity can be enhanced (average
yield in Africa 2 t/ha; global average 3t/ha)

19. Key strategies are/Focus for investment should be on - 2
 Land consolidation and farmer aggregation for
– Economies of scale
– Appropriate mechanization through local entreprenuers
– Post harvest losses / storage
– “Fair” value chain and reduced transaction costs
 Investigate and address industry concerns as they relate to
storage, processing and grain quality

20. Key strategies are/Focus for investment should be on - 3
 Effectively use the national, regional and international
capacities/centers of excellence and exploit economies of scale
– Strengthen strategic research at centers of excellence that serve a
minimum area of 500,000 ha / a minimum production volume of 1
million tons
– Adaptive research at national level
 Establish an Africa wide concept for interaction among wheat
research institutes

21. What can policy makers do?
 Put wheat on the agenda Africa’s Ministers of Agriculture
Trade Meeting on 1-2 November, 2012.
 Include wheat in strategic plans / fund allocation of donor /
national governments to strengthen / develop wheat industry
in Africa
 Support approaches that reduce land fragmentation
 Ensure that capital is being built among farmer, the private
sector, research

22. Policy issues – More specific
 Create space for public-private sector partnership and
competitive private sector in the entire value chain
 Promote private sector extension
 Strengthen extension efforts to replace out-dated varieties
 Provide limited time input subsidies to stimulate adoption of
higher yielding varieties and agronomic practices
 Target women and small-scale farmers in extension education
 Protect domestic producers by better timing of food aid and
imports
 Provide price stabilization and price support for local producers
 Invest in rural infrastructure (including roads and irrigation) and
market information systems

23. Opportunity for Investment Funding
US$ 2 levy on every ton of wheat imported
 Imports are known – collection easy
 AU recommended to invest 10% of GDP in Agric R&D
 Allocation of funds decided by wheat stakeholder committee
(from farmers to processing industry)
US$ 2 = 0.5% of the import bill = $ 80 million
>> Available for wheat industry development

24. “Quote for Wheat in Africa”
If you want to walk fast – go alone
If you want to go far – go together
We need partnerships in the value chain

25. http://wheat.org