Prof Dr. Claudia Sanchez Bajo, Ph.D

University of Winnipeg

19 January 2014

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* Commonly, the concept of food security is defined as including both physical and economic access to food that meets people's dietary needs as well as their food preferences. In many countries, health problems related to dietary excess are an ever increasing threat, In fact, malnutrion and foodborne diarrhea are become double burden.

* Food security is built on three pillars:

1. Food availability: sufficient quantities of food available on a consistent basis.

2. Food access: having sufficient resources to obtain appropriate foods for a nutritious diet.

3. Food use: appropriate use based on knowledge of basic nutrition and care, as well as adequate water and sanitation.

* Source: http://www.who.int/trade/glossary/story028/en/

Food security exists “when all

people at all times have

access to sufficient, safe,

nutritious food to maintain a

healthy and active life,” a

definition from the World

Food Summit in 1996

Food Security in the Current Context

*MDGs had limited success by 2015 against global poverty, including the lack of food security that would help to halve poverty and hunger (MDG1) (Kokotsis, 2011)

*Volatile prices of agricultural commodities (both staple food and representing a significant share of GDP and the largest employer in many LDCs) are the norm in liberalized global commodity markets. (Supachai Panitchpakdi, 2009)

* In 2007 and 2008, volatility prices led to food crises, one of the key factors behind the ‘Arab Spring’. Food insecurity breeds unrest and conflict. (Lagi et al., 2011)

*For all the above reasons, to which rising energy prices, demand for biofuels, climate change, market speculation, changes in dietary patterns, and under-investment in the agricultural sector can be added (McGill 2013), international agriculture agreements are crucial to a country's security at large.

* It is now clear that food security is not a single issue but a complex one needing a comprehensive approach. Community resilience related to food security comes to the fore.

“The price hike in a number of commodities put a heavy burden

on many developing countries that rely on imports of food and

energy commodities, and contributed to food crises in numerous

countries in 2007-2008.

The high cost in terms of human suffering dictates the urgency

of taking action to ensure food security… Since the second half

of 2008, prices have again been falling, which threatens to

jeopardize the development agenda of many exporting

developing countries that are normally dependent on one or two

primary commodities for income.

History shows that periods of high and low price fluctuations are

typical occurrences in commodity markets, whether the long-

term trend is upwards or downwards. “

Source: Statements by Supachai Panitchpakdi, Secretary-

General of UNCTAD (2008-2009), Multi-Year Expert Meeting on

Commodities and Development, Geneva, 6 April 2009

Food security has had an impact at the Doha Round of international trade

negotiations and led to the creation of a specific UN Committee: Concern

about food security has led a group of World Trade Organization (WTO)

member states to recommend that current negotiations on agricultural

agreements allow developing countries to re-evaluate and raise tariffs on key

products to protect national food security and employment. They argue that

WTO agreements, by pushing for the liberalization of crucial markets, are

threatening the food security of whole communities.

The UN has set a High Level Task Force, an international and

intergovernmental platform: the Committee on World Food Security (CFS),

for reviewing policies concerning world food. It is the most inclusive

international and intergovernmental platform for all relevant stakeholders to

work together to ensure food security and nutrition (http://un-

foodsecurity.org/)

This High Level Task Force has produced many documents calling the attention

to the significance and critical role that cooperatives play in food security:

nodes 1366, 1284, 1249, 1341, see Chambo 2009 on Africa, etc.

Cooperatives are not mentioned in McGIll 2013 Conference on Food Security

But the first three priorities recognize that empowerment of small-scale farmers,

cooperation, aggregation and sustainability are key to the solution.

This becomes clear when looking at those working on the terrain: small scale and

family farmers and women, seen in next slides.

“7. Key Messages

Empowering small - scale farmers to address food insecurity can be a complex and

challenging task which requires leadership and cooperation across a wide range of

partners;

there are 500 million smallholder farms, which account for one third of all

humanity if immediate families are included. Smallholder farmers account for 60% of

global agriculture and 80% in developing countries; they also account for half the

world’s undernourished people, and the majority of those living in absolute poverty;

The growth in demand for food, coupled with expanding markets and breakthrough

technology, can be seen as an opportunity for farmers – particularly smallholders

with their currently very low yields and low technology adoption rates. Farmer

empowerment at a large scale requires technologies for sustainable productivity

growth, innovative ideas, social entrepreneurship and methods of aggregation.”

(Source: McGill Conference 2013, Proceedings)

If we look at the UN Comprehensive Framework for Action, 2011, page 12,

cooperatives are not mentioned but they are the most important business model,

both as enterprise and as organization, responding to small farmers needs and

aspirations. Obviously, they are not and should not be the only one.

“SSUES TO BE HIGHLIGHTED

Smallholders, particularly women, at the center of actions

Increased focus on resilience of household livelihoods

More and better investments

Open and well-functioning markets and trade

PROCESS

Multistakeholder and multisectoral partnerships

Sustained political commitment and good governance

Country leadership with regional support

Accountability for results”

Source: http://un-foodsecurity.org/sites/default/files/SUMMARY_UCFA_EN.pdf

*

* Those who appear to

support cooperatives, when

not coming from within the

cooperative movement or a

social movement, must sign

a public document that they

do not intent now or ever

control the cooperative

business or buy the

member’s land.

*Cooperatives have their own standards, as included in the ILO Recommendation 193

*They must be autonomous from other entities and governments

*But can establish partnerships with others

* In multi-stakeholder coops, one stakeholder can be the local government

In 2012, the UN High Level Task Force did acknowledge cooperatives role in

Food and Nutrition Security, page 2, that had three points on:

1) Governments

2) Stakeholders

3) Social protection schemes

On point 2) « Success also depends on all stakeholders – especially the least

resilient – being able to influence the policy choices that affect their

livelihoods. To this end, it is important to strengthen the capacities of

producer organizations (including cooperatives) and increase their access to

markets and services. “

On point 3) cooperatives and credit unions have been a key factor in

overcoming poverty in Germany, Quebec, etc. This point has not been

considered by the UN.

Source: http://un-

foodsecurity.org/sites/default/files/HLTFSustainableAgricultureFoodSystems.

pdf

Observing the regions with least hunger in the world, and the second

map with the most important agricultural cooperatives in the world,

We can hypothesize that cooperatives form part of systems that are

least related to hunger (except in the case of India)

Map agricultural coops at the International

Summit of Cooperatives in Quebec, 2012

(1) Agricultural cooperatives

“provide small-scale food producers with what may be their best chance to compete in

global markets”

“ cooperatives can help small- and medium-scale farmers and fishermen add value to

their production and gain access to wider markets.”

“Cooperatives follow core values and principles that are critical to doing business in an

equitable manner, that seeks to empower and benefits its members and the community it

is inserted in”.

“Specially relevant in poor rural communities, where joining forces is central to

promoting sustainable local development”.

“Whether in the UK, Brazil, Kenya, Thailand, or Nepal, cooperatives help to generate

employment, boost national economies and reduce poverty. This, in turn, helps to

improve food security.”

The FAO is “committed to fostering the growth of agricultural cooperatives around the

world… to develop approaches, guidelines, methodologies and training tools on

organizational development and policy.”

Source: UN Food and Agriculture Organization’s Director-General, (2012)

(2) Cooperatives also:

Provide credit and insurance, and mutual guarantees

Recreate an entire chain of production and distribution, as Ardelaine

Allow farmers to become primer exporters, as in Holambra in Brazil and Amul with the

milk in India.

Cooperatives promote gender equity in rural areas, as in argan oil women cooperatives in

Morocco.

Are marketing tools that with time can turn into power houses if well managed and

counting with strong members’ control.

Provide with a business model that is sustainable and resilient to crises.

Note however that not all cooperatives may have the same values concerning the

environment, some take a position for fertilizers and pesticides, others for organic

farming and clean energy sources. Some are subsidized (in the North) while others are

not (in the South). Some look to liberalization policies, others support local products and

purchasing.

Examples

Ardelaine in France

recreating a wool chain where wool had no

value

Rebuilding the local economy:

Today with museums, a publishing house, a

social integration enterprise in the urban

area, tourism, a restaurant with local food…

Video in French, at the reception of an award

From Credit Cooperatif

http://vimeo.com/49999103

In rural Morocco, argan oil women cooperatives

are changing gender roles and rights:

“Women have traditionally not gone out to work, but the soaring

demand for Argan oil has changed that.

Dozens of cooperatives across the south west of the country now

produce the profitable oil which is used in cooking and cosmetics,

and it has made many women there the main breadwinners at

home.

Their success is encouraging other women to set up businesses of

their own. Simon Atkinson reports.”

See BBC video at http://www.bbc.co.uk/news/business-16460127

The story of AMUL dairy cooperative in India

Founded by Dr. Verghese Kurien in 1946 in Gujarat, India

Amul started the “white revolution,” that has led India to be

one of the largest milk producer in the world, collecting

milks from 15 million farmers every day from 144,246 village

cooperative societies in India. In April 2013, from the sales

turnover report shows that Amul is about US $3.7 billion1.

1 http://timesofindia.indiatimes.com last access on 21 May

2013

“Operation Flood”(OF) 1970-1996, Amul made possible for dairy farmers to own

and operate milk production in urban areas of India:

1. Improved their financial well-being

2. Contributed to the improvement of the infrastructure of rural areas that

were involved .

3. The success of the Operation Flood management model led to its application

to other commodities, like fruits and vegetables.

By cutting out the need for middlemen in procuring and selling milk:

1. the Amul cooperatives reduce seasonal price variations

2. farmers to enjoy the results of their labor instead of surrendering most of

the profit to corrupt and exploitative middlemen.

3. Became a pro-poor program that made the distribution of incremental

income from milk among rural milk-producing households more equitable.

Women:

Have special incentives to encourage participation of women in governance of

the cooperatives.

In Holland, FloraHolland is the world’s largest auction organization (video

http://www.youtube.com/watch?v=Slf_XNroXS8) , owned by the 5.000

growers of the co-operative, who determine the direction of the

company. Members come together twice a year during the General

Members’ Meeting (ALV).

In Sao Paulo, Brazil, there is an internationally recognized floral

cooperative. The flower sector has seen rapid growth within the last ten

years, with an estimated market value of two billion dollars in the case

of Veiling Holambra‘.

Three Dutch immigrant families started Veiling Holambra as a dairy farm

cooperative in 1948, but did not have much luck in this field. Soon they

began raising flowers. By 1989 Veiling Flores e Plantas was the name

given to this flower cooperative.

In Brazil too, the electronic on site auction is an incredible system that

allows for transparent free pricing : See video in English

http://www.youtube.com/watch?v=TDI2DDwDJ3s

Veiling Holambra and FloraHolland: the power of

innovation and cooperation

Cooperatives thrive

1. where they work in networks,

2. hey have support organizations that share resources (knowledge,

training, research, insurance and mutual guarantees, etc) creating a

system of cross-checks and balances, and last but not least,

3. there is constant education and training, with transparent flows of

information that allows for active participation of members in the

governance of their cooperative , cooperative network, consortia or

group.

4. building multi-stakeholder governance to revive the local economy.

5. There is a clear legal framework that allows for a learning process to

build trust and accountability, avoiding misuse of the business model.

6. Cooperatives have specific governance challenges that need careful

thought and support, as they must be democratic, accountable and

dynamic with a long term vision.

Association of Family Farmers

AFA local members are either a cooperative, association or non-formal group

or cluster of farmers.

Members are of different stage of development – survival stage (advocacy to

secure entitlement of land they till, making the land productive to ensure HH

food security), productivity (SA, productivity enhancement: farm

diversification) and growth stage (they engage in enterprise and participate

in specific industry value chain).

Local member-organizations already in the growth stage – directly engage in

enterprise

training on enterprise and business planning, seed production

technology, biological pesticides. Examples: Indonesia, Philippines

Cooperative in Mindoro (Philippines) doing processing of calamansi to

add value to raw calamansi and seaweeds to optimize profits of farmers and

the cooperative as well.

Processing of paddy rice into milled rice by the Cooperative in API

Members in Indonesia and PAKISAMA in the Philippines

*

*Small scale farmers’

cooperative engaged in

sustainable agriculture

production, processing, and

marketing & distribution

* Local cooperatives extended

technical training support and

production loan/credit to support

members for their production

requirements (capital and inputs)

* Establish processing facilities to add

value to farm produce and sell as

processed product (Mindoro,

PAKISAMA Member)

* Source: AFA, Assoc. of family farmers

*

*Served as consolidators of

farmers’ produce and directly

link to market/marketing

organization who distributed

goods to institutional,

industrial and retail markets

e.g. case of Pecuaria

(Philippines) and Boyolali

(Indonesia)

*Farmers’ group/association

initiated to organize “Savings

and credit group” which

facilitated savings for

emergency needs, building-up

own capital for future

investment opportunities/plan

*Developed Tools for

cooperative

*Source: Idem

Bibliography

Chambo, S A (2009) Agricultural Co-operatives: Role in Food Security and Rural Development, Moshi

University College of Co-operative and Business Studies, Moshi, Tanzania,

https://www.un.org/esa/socdev/egms/docs/2009/cooperatives/Chambo.pdf

Kokotsis (2011) Priorities for Cooperative Action: What the G20 can do for Food Security and Agricultural

Development, G8 and G20 Research Group, Enhancing Development Effectiveness through New Partnerships

ILO R193 - Promotion of Cooperatives Recommendation, 2002 (No. 193)

http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:R193

Lagi,M., Bertrand, K. and Bar-Yam, Y (2011) The Food Crises and Political Instability in North Africa and the

Middle East New England Complex Systems Institute , Cambridge,

http://necsi.edu/research/social/food_crises.pdf

McGill (2013) Conference on Food Security 2013, http://www.mcgill.ca/globalfoodsecurity/

McGill (2013) Conference on Food Security 2013, Proceedings,

http://www.mcgill.ca/globalfoodsecurity/sites/mcgill.ca.globalfoodsecurity/files/mcgill_global_food_securit

y_conference_proceedings_2013.pdf

UN Food and Agriculture Organization’s Director-General, (2012) José Graziano da Silva on Agricultural

cooperatives can help end global hunger, says UN food agency, 2 November 2012, http://www.un-

foodsecurity.org/node/1366

UN Global Food Security, 2012, Food and Nutrition Security for All through Sustainable Agriculture and Food

Systems, Note from the United Nations System High Level Task Force on Global Food Security, March,

http://un-foodsecurity.org/sites/default/files/HLTFSustainableAgricultureFoodSystems.pdf

WHO definition of Food Security at http://www.who.int/trade/glossary/story028/en/