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Malthus is Still Wrong

     We Can Feed a World of 9 Billion




Prabhu Pingali
Deputy Director
Agriculture Development

Plenary Presentation to the 7th International Conference of the Asian
Society of Agricultural Economists, held in Hanoi, Vietnam
October 13th, 2011

Views expressed are personal
The spectre of a Malthusian crisis
       The UN’s medium growth scenario has population increasing by 50%
        between 2000 and 2050, from 6 billion to about 9 billion people.

       When coupled with significant nutritional improvements for the 2.1 billion
        people currently living on less than $2/day (World Bank 2008), this
        translates into a very substantial rise in the demand for agricultural
        production.

       FAO estimates the increased demand at 70 percent of current
        production, with a figure nearer 100% in the developing countries
        (Bruinsma 2009).

       At the same time, the growing use of biomass for energy generation has
        introduced an important new source of industrial demand in agricultural
        markets (Energy Information Agency 2010).




    October 23, 2011                                            © 2010 Bill & Melinda Gates Foundation   |
Rising food prices have further
                encouraged Neo-Malthusian
                          thinking




October 23, 2011                      © 2010 Bill & Melinda Gates Foundation   |
We’ve been there before




October 23, 2011                      © 2010 Bill & Melinda Gates Foundation   |
Recent Trends in Developing World Crop
 Productivity Growth
 Production:
    •   Cereal output in developing countries has grown 2.8 percent annually for
        three decades
 Productivity
    •   Yields, not area, were responsible for growth
    •   TFP grew along with yields
                 FAO food production index – total, per hectare, and per capita (1963=100)




Note: Numbers in parentheses are average annual growth rates for 1963–2000 - Estimates based on FAOStats and Hayami (2005)
Source: International Water Management Institute analysis done for the Comprehensive Assessment for Water Management in
Agriculture using the Watersim model, Chapter 2
Growth in food production outpaced growth in population
                 in all regions but Africa
              FAO food production index – total, per hectare, and per capita (1963=100)




Note: Numbers in parentheses are average annual growth rates for 1963–2000 - Estimates based on FAOStats and Hayami (2005)
Source: International Water Management Institute analysis done for the Comprehensive Assessment for Water Management in
Agriculture using the Watersim model, Chapter 2
Evidence on factors contributing to productivity
growth
         100%

          90%                    Ag R&D & extension

          80%
                                 Inputs Delivery - Ag.
          70%
                                 credit/insurance
                                 Inputs Delivery - Fertilizer,
          60%                    pesticide, seed, machinery, etc
                                 Infrastructure - Electricity,
          50%
                                 health/education, telecomm
          40%                    Infrastructure - Irrigation

          30%                    Infrastructure - Rural Roads
          20%
                                 Policies/institutions -
          10%                    Macro/sectoral/legal reforms

           0%




October 23, 2011                   © 2010 Bill & Melinda Gates Foundation   |   7
Looking Ahead: Getting the demand
            side right




October 23, 2011        © 2010 Bill & Melinda Gates Foundation   |
Percent change in monthly per capita cereal consumption
      in rural and urban India: 1993/94 and 2004/05




            Source: NSSO Reports: Household Consumption Expenditure in India
Diets in developing countries will continue to
diversify...




                   Source: FAO, World Agriculture to 2015/2030




October 23, 2011                                                 © 2010 Bill & Melinda Gates Foundation   |
... With rises in income leading to increased
demand for meat and a concomitant rise in feed
Meat consumption more than doubles in East Asia by 2050




Feed demand drives future demand for grains




  October 23, 2011                                        © 2010 Bill & Melinda Gates Foundation   |
Developing countries are spending a growing
share of GDP on food imports
Share of food imports in GDP in developing countries, 1970-2001
Processed and high value products are
increasing in share of food trade




                               Source: Regmi et. al., 2001, USDA
BioFuel demand – the focus is
          shifting away from food grains to
              other sources of biomass




October 23, 2011                  © 2010 Bill & Melinda Gates Foundation   |
Can rising food/feed demand be
accommodated without a significant
increase in the land area cultivated?




October 23, 2011           © 2010 Bill & Melinda Gates Foundation   |
Land expansion vs. intensification
The Global Agro-Ecological Zone (GAEZ) study published in 2002 (Fischer et
al., 2002), combining soil, terrain and climate characteristics with crop
production requirements and various technological levels, estimated that:

• About 30% of the world’s land surface, or 4.2 billion ha is suitable to some
  extent for rainfed agriculture.
• Of this area some 1.7 billion ha are already under cultivation.
• This would leave a gross global balance of 2.5 billion ha of land suitable
  for cultivation.

But this favorable impression must be qualified by a number of considerations

• Other land uses (urban areas, protected areas, forests)
• Uneven geographical distribution
• Biotic, abiotic, socioeconomic and farm management constraints

There are significant opportunities for intensification of land already
under cultivation.

October 23, 2011                                         © 2010 Bill & Melinda Gates Foundation   |
Significant opportunities to boost productivity

                              Cropland distribution and average annual yield




      Source: West. P.C, et al., Nov 2010, “Trading Carbon for Food: Global comparison of carbon stocks vs. crop yields on
      agricultural land”. PNAS, vol. 107, no. 46, 19647

October 23, 2011                                                                             © 2011 Bill & Melinda Gates Foundation   |
Can the physical constraints to
        productivity growth be overcome?




October 23, 2011               © 2010 Bill & Melinda Gates Foundation   |
Land quality: SSA and SA are plagued by severely
 degraded soils
                                                                                                          In Bihar, India soil NPK depletion
                                                                                                          occurs at 80 kg / ha / year3

     Over the last 30 years,
       African soils lost on
   average 22 kg of N, 2.5 kg
   of P, and 15 kg of K per ha
      of cultivated land – an
    annual loss equivalent to
      U.S. $4B in fertilizer.1


    83% of land in SSA is
    problematic for                                                                                      In Bangladesh, declines in soil
    agriculture: 55% is                                                                                  fertility lead to annual losses of
    classified as                                                                                        ~4M tons of cereal production,
    unsustainable for crop                                                                               valued at US ~$566M4
    production, and 28% is
    classified as medium or                       Very degraded soil           Stable soil
    low potential2                                Degraded soil                Without vegetation




           Humans cause erosion at 10 to 15 times faster rates than natural processes.
          Over the past 500M years, soil eroded at an average of one inch per 1,000 years.
                          Today, it takes just 40 years to erode one inch.5
Source: 1. Sanchez 2002; 2. AGRA Soil Health in Africa; 3. R. Lal 2009; 4. Hasan and Alam, 2006; 5. Wilkinson 2004. Map: UNEP
     October 23, 2011                                                                                   © 2010 Bill & Melinda Gates Foundation   |
Soil health is a key enabler of sustained
productivity improvements
          No matter how effectively other conditions are remedied,
          per capita food production in Africa will continue to decrease unless soil
          fertility depletion is effectively addressed. – Sanchez and Jama 2002

         Soil health impacts baseline yields and enhances
                     the effectiveness of inputs




                                                                                       Poor Soil Health




                                                                                    Good Soil Health

                   Maize yield response to various nutrient combinations
Source: S. Zingore 2011
     October 23, 2011                                                      © 2010 Bill & Melinda Gates Foundation   |
The Brazilian Cerrado case highlights how
sustained soil management can recover fertility
                                                                                         With the intensification of production,
                                                                                         Brazil has continued to achieve
                                                                                         increasing yields without significantly
                                                                                         increasing land under cultivation




                                                                           No-till
                                                                        farming on
                                       Intervention




                                                           Lime         over 50% of
                                                                                       Intercropping
                                                      application &    land to leave
                                                                                         of nitrogen-
                                                       acid-tolerant     more crop
                                                                                       fixing legumes
                                                      seed varieties     residue in
                                                                           fields
                                       Constraint




                                                       High soil       Low organic         Low
                                                        acidity          matter          nitrogen

Source: The Economist; Dierolf 2000.
     October 23, 2011                                                                                   © 2010 Bill & Melinda Gates Foundation   |
Water scarcity will be a growing constraint

 Sectoral competition is
  increasing for blue water
  withdrawals for human
  uses

 Direct and indirect
  negative effects have been
  well documented, these
  include:
  • Declining water tables
  • Drainage of wetlands;
  • Nutrient loading of surface
     water and groundwater;
 •   Salinization and waterlogging
     of soils;
 •   Agrochemical contamination;
 •   Siltation of rivers.
Water use can be better managed
                    Water withdrawal and consumption by region




October 23, 2011                                        © 2010 Bill & Melinda Gates Foundation   |
Managing Rainfed Agriculture


    Changing cropping patterns


    Improved tolerance to drought and submergence


    Increased use of hybrids


    Better land & water management practices


October 23, 2011                        © 2010 Bill & Melinda Gates Foundation   |
Climate change adaptation & mitigation
   practices are compatible with sustainable
   intensification

                                  Demand is growing for carbon
    Conservation tillage systems credits but agriculture is only 3%
                                  of market share
    Drought and water
     management practices

    Incentives for moving
     agriculture out of marginal
     areas

    Market mechanisms for
     carbon sequestration

October 23, 2011                                 © 2010 Bill & Melinda Gates Foundation   |
What should we do: Policy Actions
    Keep the focus on agriculture and invest in smallholder
     productivity growth

    Technology, including biotechnology, will be an important part
     of the solution

    Policies (including trade policies) that enable and encourage
     smallholder productivity growth are crucial

    Pay particular attention to stress prone environments

    Invest in a long term strategy for biofuels that does not rely on
     increased use of food grains

October 23, 2011                                   © 2010 Bill & Melinda Gates Foundation   |
Malthus will be proven
                     wrong once again
                       because of our
                     ingenuity and our
                     ability to deal with
                      resource scarcity
                     through technical
                       innovation and
                   focused policy change


October 23, 2011                     © 2010 Bill & Melinda Gates Foundation   |
Thank You




© 2010 Bill & Melinda Gates Foundation. All Rights Reserved.
Bill & Melinda Gates Foundation is a registered trademark in the United States and other countries.

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The global livestock sector: Opportunities and challengesThe global livestock sector: Opportunities and challenges
The global livestock sector: Opportunities and challenges
 

Malthus is still Wrong - we can feed a world of 9 billion

  • 1. Malthus is Still Wrong We Can Feed a World of 9 Billion Prabhu Pingali Deputy Director Agriculture Development Plenary Presentation to the 7th International Conference of the Asian Society of Agricultural Economists, held in Hanoi, Vietnam October 13th, 2011 Views expressed are personal
  • 2. The spectre of a Malthusian crisis  The UN’s medium growth scenario has population increasing by 50% between 2000 and 2050, from 6 billion to about 9 billion people.  When coupled with significant nutritional improvements for the 2.1 billion people currently living on less than $2/day (World Bank 2008), this translates into a very substantial rise in the demand for agricultural production.  FAO estimates the increased demand at 70 percent of current production, with a figure nearer 100% in the developing countries (Bruinsma 2009).  At the same time, the growing use of biomass for energy generation has introduced an important new source of industrial demand in agricultural markets (Energy Information Agency 2010). October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 3. Rising food prices have further encouraged Neo-Malthusian thinking October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 4. We’ve been there before October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 5. Recent Trends in Developing World Crop Productivity Growth  Production: • Cereal output in developing countries has grown 2.8 percent annually for three decades  Productivity • Yields, not area, were responsible for growth • TFP grew along with yields FAO food production index – total, per hectare, and per capita (1963=100) Note: Numbers in parentheses are average annual growth rates for 1963–2000 - Estimates based on FAOStats and Hayami (2005) Source: International Water Management Institute analysis done for the Comprehensive Assessment for Water Management in Agriculture using the Watersim model, Chapter 2
  • 6. Growth in food production outpaced growth in population in all regions but Africa FAO food production index – total, per hectare, and per capita (1963=100) Note: Numbers in parentheses are average annual growth rates for 1963–2000 - Estimates based on FAOStats and Hayami (2005) Source: International Water Management Institute analysis done for the Comprehensive Assessment for Water Management in Agriculture using the Watersim model, Chapter 2
  • 7. Evidence on factors contributing to productivity growth 100% 90% Ag R&D & extension 80% Inputs Delivery - Ag. 70% credit/insurance Inputs Delivery - Fertilizer, 60% pesticide, seed, machinery, etc Infrastructure - Electricity, 50% health/education, telecomm 40% Infrastructure - Irrigation 30% Infrastructure - Rural Roads 20% Policies/institutions - 10% Macro/sectoral/legal reforms 0% October 23, 2011 © 2010 Bill & Melinda Gates Foundation | 7
  • 8. Looking Ahead: Getting the demand side right October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 9. Percent change in monthly per capita cereal consumption in rural and urban India: 1993/94 and 2004/05 Source: NSSO Reports: Household Consumption Expenditure in India
  • 10. Diets in developing countries will continue to diversify... Source: FAO, World Agriculture to 2015/2030 October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 11. ... With rises in income leading to increased demand for meat and a concomitant rise in feed Meat consumption more than doubles in East Asia by 2050 Feed demand drives future demand for grains October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 12. Developing countries are spending a growing share of GDP on food imports Share of food imports in GDP in developing countries, 1970-2001
  • 13. Processed and high value products are increasing in share of food trade Source: Regmi et. al., 2001, USDA
  • 14. BioFuel demand – the focus is shifting away from food grains to other sources of biomass October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 15. Can rising food/feed demand be accommodated without a significant increase in the land area cultivated? October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 16. Land expansion vs. intensification The Global Agro-Ecological Zone (GAEZ) study published in 2002 (Fischer et al., 2002), combining soil, terrain and climate characteristics with crop production requirements and various technological levels, estimated that: • About 30% of the world’s land surface, or 4.2 billion ha is suitable to some extent for rainfed agriculture. • Of this area some 1.7 billion ha are already under cultivation. • This would leave a gross global balance of 2.5 billion ha of land suitable for cultivation. But this favorable impression must be qualified by a number of considerations • Other land uses (urban areas, protected areas, forests) • Uneven geographical distribution • Biotic, abiotic, socioeconomic and farm management constraints There are significant opportunities for intensification of land already under cultivation. October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 17. Significant opportunities to boost productivity Cropland distribution and average annual yield Source: West. P.C, et al., Nov 2010, “Trading Carbon for Food: Global comparison of carbon stocks vs. crop yields on agricultural land”. PNAS, vol. 107, no. 46, 19647 October 23, 2011 © 2011 Bill & Melinda Gates Foundation |
  • 18. Can the physical constraints to productivity growth be overcome? October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 19. Land quality: SSA and SA are plagued by severely degraded soils In Bihar, India soil NPK depletion occurs at 80 kg / ha / year3 Over the last 30 years, African soils lost on average 22 kg of N, 2.5 kg of P, and 15 kg of K per ha of cultivated land – an annual loss equivalent to U.S. $4B in fertilizer.1 83% of land in SSA is problematic for In Bangladesh, declines in soil agriculture: 55% is fertility lead to annual losses of classified as ~4M tons of cereal production, unsustainable for crop valued at US ~$566M4 production, and 28% is classified as medium or Very degraded soil Stable soil low potential2 Degraded soil Without vegetation Humans cause erosion at 10 to 15 times faster rates than natural processes. Over the past 500M years, soil eroded at an average of one inch per 1,000 years. Today, it takes just 40 years to erode one inch.5 Source: 1. Sanchez 2002; 2. AGRA Soil Health in Africa; 3. R. Lal 2009; 4. Hasan and Alam, 2006; 5. Wilkinson 2004. Map: UNEP October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 20. Soil health is a key enabler of sustained productivity improvements No matter how effectively other conditions are remedied, per capita food production in Africa will continue to decrease unless soil fertility depletion is effectively addressed. – Sanchez and Jama 2002 Soil health impacts baseline yields and enhances the effectiveness of inputs Poor Soil Health Good Soil Health Maize yield response to various nutrient combinations Source: S. Zingore 2011 October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 21. The Brazilian Cerrado case highlights how sustained soil management can recover fertility With the intensification of production, Brazil has continued to achieve increasing yields without significantly increasing land under cultivation No-till farming on Intervention Lime over 50% of Intercropping application & land to leave of nitrogen- acid-tolerant more crop fixing legumes seed varieties residue in fields Constraint High soil Low organic Low acidity matter nitrogen Source: The Economist; Dierolf 2000. October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 22. Water scarcity will be a growing constraint  Sectoral competition is increasing for blue water withdrawals for human uses  Direct and indirect negative effects have been well documented, these include: • Declining water tables • Drainage of wetlands; • Nutrient loading of surface water and groundwater; • Salinization and waterlogging of soils; • Agrochemical contamination; • Siltation of rivers.
  • 23. Water use can be better managed Water withdrawal and consumption by region October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 24. Managing Rainfed Agriculture  Changing cropping patterns  Improved tolerance to drought and submergence  Increased use of hybrids  Better land & water management practices October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 25. Climate change adaptation & mitigation practices are compatible with sustainable intensification Demand is growing for carbon  Conservation tillage systems credits but agriculture is only 3% of market share  Drought and water management practices  Incentives for moving agriculture out of marginal areas  Market mechanisms for carbon sequestration October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 26. What should we do: Policy Actions  Keep the focus on agriculture and invest in smallholder productivity growth  Technology, including biotechnology, will be an important part of the solution  Policies (including trade policies) that enable and encourage smallholder productivity growth are crucial  Pay particular attention to stress prone environments  Invest in a long term strategy for biofuels that does not rely on increased use of food grains October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 27. Malthus will be proven wrong once again because of our ingenuity and our ability to deal with resource scarcity through technical innovation and focused policy change October 23, 2011 © 2010 Bill & Melinda Gates Foundation |
  • 28. Thank You © 2010 Bill & Melinda Gates Foundation. All Rights Reserved. Bill & Melinda Gates Foundation is a registered trademark in the United States and other countries.