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Presentation fan ifpri us africa forum june 11 2012
1. Click to edit Master title style
Meeting the Food and Nutrition Demands
of an Urbanizing Africa
Shenggen Fan
Director General | International Food Policy Research Institute
Partnership to Cut Hunger and Poverty in Africa
US-Africa Forum
Washington, DC | June 11, 2012
Shenggen Fan, June 2012
2. Key messages
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Increasing incomes, population, and
urbanization are stark realities that face Africa
Demand for more and better food, esp. in
urban areas will continue to rise
Future demand could be met by imports, but
financing rising import bills is a challenge
Smallholder farming can be transformed to
meet the growing food and nutrition demands
Shenggen Fan, June 2012
3. Rising incomes
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GDP, constant prices (%) GDP per capita ($US)
Emerging & Developing economies
10 2,000 Africa
Sub-Saharan Africa
8
1,500
6
US$
4 1,000
2
500
0
0
-2
Source: IMF 2012 Source: UN 2012
Shenggen Fan, June 2012
4. Growingedit Master title style
Click to population and urbanization
Africa’s total, rural, and urban population
2.5
Rural
Larger and more
2.0 Urban
urban population
Total
1.5
Billions
1.0
Demand for more
0.5
and better food
0.0
Source: UN Population Division 2011
Shenggen Fan, June 2012
5. Structural change not contributing to
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overall growth in Africa
Decomposition of productivity growth, 1990-2005
LAC Productivity growth
within sectors
AFRICA
within
ASIA structural
Productivity growth due
HI to structural change
-0.02 -0.01 0 0.01 0.02 0.03 0.04 0.05
McMillian 2012
Shenggen Fan, June 2012
6. Varying per capita food production and
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consumption
Per capita production Per capita consumption
Average Annual growth, 2000-2010 Average Annual growth, 2000-2007
Cereals Cereals
Roots & Tubers Starchy Roots
Pulses Pulses
Vegetables Vegetables
Fruits Fruits
Meat Meat
Fish Fish
Eggs Eggs
Milk Milk
-1.0 0.0 1.0 2.0 0.0 1.0 2.0
Percent Percent
Source: FAO 2012 Source: FAO 2010
Shenggen Fan, June 2012
7. BUT
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Persistent hunger and undernutrition
2011 Global Hunger Index Micronutrient Deficiencies
GHI components: Deficiencies (prevalence) in:
• Proportion of undernourished • Iron
• Prevalence of underweight in children • Vitamin A
• Under-five mortality rate • Zinc
Source: von Grebmer 2011
Shenggen Fan, June 2012 Source: HarvestPlus 2012
8. Small to edit offer opportunities
Click farms Master title style
Can:
use land more efficiently
% of all farms
Farm size (ha) Africa produce cheaper and
<2 80 more nutritious foods
2-10 15 increase own incomes
10-100 3 and productivity
>100 0 promote equity, hunger,
Source: Calculations based on most recent data available from FAO
Agricultural World Census from late 1980s-2000s and poverty reduction
AND average farm size will continue to decline due to
sustained rural population growth
Shenggen Fan, June 2012
9. Productivity can be increased
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Cereal yields, Africa Current & potential crop yields,
Central and West Africa
30 30
Maize
Current
Rice, Paddy
25 25 Potential
Sorghum
20
Hg/ha (billions)
20
15
15
10
10
5
5 0
Source: FAO 2012 Source: Nin-Pratt 2011
Higher productivity of small farms = higher agricultural and
economic growth
Shenggen Fan, June 2012
10. Click to edit Master title style
What needs to be done?
Shenggen Fan, June 2012
11. Click to editsmallholder farming
Transform Master title style
Invest in smallholder-friendly agricultural R&D
and infrastructure
Innovate in financial services, risk-management
mechanisms, and institutional arrangements
Leverage smallholder production for nutrition
and health outcomes
Shenggen Fan, June 2012
12. Increase smallholder productivity
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Improve access to new technologies, high-quality
seeds, fertilizer, and rural infrastructure
More affordable fertilizer → increased usage → higher crop yields
Lower urea port price, transport
Baseline & border crossing costs Maize yield response
Shenggen Fan, June 2012 Source: Guo et al. 2009
13. Promoteedit Master title style
Click to innovations for smallholders
Finance - Kloeppinger-Todd and Sharma 2010
• Modern communication technology e.g. cell phone-based
payment services
• Financial and non-financial service bundles e.g. livestock
health monitoring and credit
Insurance - Vargas Hill and Torero 2009
• Weather index-based insurance
• Microfinance and microinsurance bundles
Institutions - Asenso-Okyere et al. 2008
• Producer cooperatives; contract farming
• Social and rural knowledge networks
Shenggen Fan, June 2012
14. Leverage smallholder farming
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for nutrition and health
Growing demand for high-value, processed, pre-prepared
and fortified foods
Greater attention to food quality and food safety
• Develop more nutritious staple food crop varieties
(biofortification)
• Improve postharvest handling
• Enhance food safety and quality assurance along the
value chain
• e.g. low-cost technology and technical capacity for tackling
nutrition and health risks
Source: Lopriore and Muehlhoff 2003; Hawkes and Ruel 2011; Trench et al. 2011
Shenggen Fan, June 2012
15. Lessonsedit Master title style
Click to from Asia
DOs DON’Ts
Labor intensive urban jobs Weak land rights
Improved education and Food safety challenges
infrastructure for rural migrants
Weak link between
Strengthened agricultural labor agriculture and
productivity through R&D nutrition/health
investment
Unsustainable
Robust rural-urban food supply intensification
chains
Inefficient input subsidies
Vibrant rural nonfarm sector
Large regional inequality
Strong local communities and rural/urban gaps
Shenggen Fan, June 2012