State of Agriculture and Rural Development in 2012

Grahame Dixie March 9th , 2012

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State of Agriculture and Rural Development: Outline

I. Our investments II. Our plan : with some examples Productivity Market linkagesI. New initiates to be aware of

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We achieved a major increase in WBG investment in agriculture…

• The WBG agriculture sector support in FY10-12 reached 69 countries with investment returns of 20-30 percent. - & stared improving from 1987

• Lending projections were met with a 50 percent increase in average lending over the last 3 years.

2000-02 2003-05 2006-08 2010-12 Low case projection

2010-12 High case projection

2010-12 Actual0123456789

Annual average

IFC Agriculture production and markets Other agriculture related investments

US$

bill

ions

2.33.0

4.1

6.2

8.3

7.0

4 4

77% Agricultural projects have a satisfactory outcome, 69% are judged to be likely to have a sustainable outcome

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Five Focal Areas

Reduce risk and vulnerability

Raise agricultural productivity

Link farmers to market &

strengthen value chains

Facilitate agricultural entry, exit & rural non-

farm income

Enhance environmental

services and sustainability

We have an Action Plan:

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Prices: have gone up and again…adding food security of the urban poor along with our rural poverty

Price Index, July 2008 = 100 (Prices through to end January 2011)

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Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-1130

40

50

60

70

80

90

100

110

120

Agricultural Price Index

Source: World Bank

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…with a focus on agricultural productivity – 75% of portfolio. Country results include:

• Technology-breeds: Milk yields have increased by 65 percent among targeted households in Assam (Assam Agricultural Competitiveness project) through adoption of improved breeds

• Water management: productivity doubled among targeted households in rain-fed areas of Rwanda (Rwanda’s Land Husbandry, Water Harvesting, and Hillside Irrigation Program).

• Better management techniques and irrigation water monitoring in Morocco (Oum Er Rbia project), and Iria (Integrated Land and Water Management Project).

• Technology: adoption rates of improved seed varieties 20 percent higher among targeted households in Uganda (Uganda’s NAADS program).

• Milk yields have increased by 65 percent among targeted households in Assam (Assam Agricultural Competitiveness project) through adoption of improved breeds.

Growth rates of yields for major cereals have begun to rise but remain low

1970

1974

1978

1982

1986

1990

1994

1998

2002

2006

2010

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

10-year rolling growth rate of yields in developing countries (%)

Aver

age

anna

l gro

wth

rate

(%)

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Assam project is an example of where

productivity & marketing are brought together

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Linking farmers to markets and strengthening value chains is critical: country results

• Processing: through agriculture, rural enterprise and livelihoods projects, SAR is working with groups of farmers, self-help groups and communities to aggregate product and carry out primary processing and gaining income by taking product further up the value chain.

• Productive alliances: LCR now has 7-8 projects which have forged + 2000 partnerships between agribusiness and farmer groups.

• Value chain competitiveness: EAP, China, Vietnam, PNG are improving competitiveness by working with stakeholders in the value chain.

• Commercialization: AFR has a raft of agriculture commercialization projects – Tanzania, China, Senegal, Burkina-Faso, underpinned by an ESW.

Agriculture, fisheries, and forestry world export shares of low and middle income counties has increased

Low and Middle Income

LAC

ECA

EAP

SSA

27.9

10.0

9.0

6.8

1.0

38.2

18.1

7.2

6.9

3.7

40.6

17.9

7.8

6.3

4.8

2009

2008

2007

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The emergence of Primary Wholesale

Rural MarketsIn Assam

Investment in Growth Centers

Infrastructure, facilities & accessIn return for:Governance Promotion (Market committees)Funding Commitments – O&M & development

An example of a vegetable Commodity Group from Tamil Nadu . Their progression was sharing transport to market town, and then to

extend their marketing to Chennai/Madras. Coupled with improved grading.

PPP Collection center, Mon’gala Land given by private owner, Rs 2.8 ml for building from project. Managed by Cargills. Est. 1,100 tons of purchases for 2012, 1,000 farmers’ benefit, incremental income est. @ Rs 19 ml pa, plus Rs 7 Lakh each for maintenance & education fund from Cargill's.

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Maybe a new tool in the aid tool kit: harnessing the Private Sector skills to deliver agricultural impact

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Initial pilots

Rome Steering Committee Meeting

Oct. 2011

DC Steering Committee

MeetingMar. 2012

Thematic Group DiscussionsSept. 2011

Ideas 40 concepts 6 proposals

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The Agricultural Pull Mechanism

• Bio-fortified vitamin A rich maize, • Micro-on farm grain storage• Aflasafe to reduce aflotoxin in maize• PPR vaccination for small ruminants• Fertilizer

– Deep place of briquettes to reduce fertilizer waste/runoff

– New more efficient production processes,

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…Productivity: global and regional results include

• GAFSP: 8 donors have pledged $1.1 billion to the Global Agriculture and Food Security Program (GAFSP), $612 million has been received and $481 million has been allocated to 12 countries.

• Land Governance: A framework to assess land governance at a country (or sub-national) level based is prepared and is being rolled out in about a dozen more countries in AFR, ECA and LCR.

• Agriculture Innovation Systems – An Investment Sourcebook: An integrated approach to addressing investment in agricultural innovation. Targeted at practitioners, draws on experience of all regions together with external expertise. LAUNCHED TODAY

• Mainstreaming Gender: Multiple knowledge products include e-learning course, Gender In Ag website and Gender in Land Titling Toolkit.

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…Productivity: Global and regional results include

• CGIAR continues its reform process: (i) the formulating a research portfolio consisting of larger CGIAR Research Programs to reduce fragmentation; (ii) promoting partnerships to draw on comparative advantage in research effort; and (iii) better aligned to country needs to improve research relevance.

• Rinderpest: The Bank helped reach a major milestone in livestock disease eradication in 2011, but major risks remain.

• Global Program on Fisheries (PROFISH) is working with NEPAD and the West Africa Regional Fisheries Program (WB IDA) in supporting effective fisheries policy and governance reforms in several West African Countries including Sierra Leone and Ghana.

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Responding to risks and vulnerability: country examples

• GFRP fast-tracking of up to $2 billion of Bank resources• Mobilized $358 million equivalent in donor funding• Reached 47 million people in 40 countries• Policy dialogue with more than 40 countries

• Arab World Initiative for Food Security will be modeled on existing programs, such as the GFRP and the GAFSP, but tailored to the specific needs of the region.

• Zoonotic diseases: livestock mortality rates declined by 29 percent of large ruminants and 21 percent for poultry in Afghanistan (Afghanistan Horticulture and Livestock Productivity Project).

• Agriculture risk management: The Bank is helping client countries develop agriculture sector risk management strategies (e.g. Ghana, Honduras, & Morocco).

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…Responding to risks and vulnerability: global• Bank support to the G-20 examined policy responses

to price volatility in food and agricultural markets.• Agriculture Market Information System (AMIS)

was launched during the French presidency of the G-20 to improve global agricultural market transparency.

• Animal disease: to address the global impacts of emerging and re-emerging diseases of animal origin on public health, we are working with the World Animal Health Organization through the Global Animal Health Initiative and the One Health approach for controlling zoonotic diseases.

• Agriculture and nutrition: ARD co-hosts a new Knowledge Platform with HNP and PRMPR to develop a community of practice around agriculture, food security, and nutrition.

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…Markets: global and regional activities

• Agrifin: Agriculture Finance Support Facility is a $20 million partnership with the Bill and Melinda Gates Foundation supporting replication or scaling-up of profitable rural finance business models and generation of knowledge and learning about these models .

• Commodity supply chain risk assessment have been supported in 10 countries ( cocoa in Ghana, coffee in Vietnam, Uganda and Cameroon, horticulture in Kenya, rice in Guyana, dairy in Uganda, and cotton in Mozambique).

• IFC: Global Index Insurance Facility (Rwanda)• Global Trade Liquidity Program (Nigeria Cocoa Exports)

• Smallholder market access and standards were addressed in an ESW, “Making the Grade: Smallholder Farmers, Emerging Standards, and Development Assistance Programs in Africa. A Research Program Synthesis”.

 

• Global food safety public-private partnership will address the crucial task of strengthening food safety capacity within the developing and emerging markets, as a global public good.

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Facilitating rural non-farm income: country and global

• Livelihoods: the $1 billion India National Rural Livelihoods Project, in addition to agriculture related investments, targets the creation of more than 35 million off-farm jobs.

• Rural Investment Climate: recently completed surveys in Nigeria, Mozambique, Burkina Faso and Yemen highlight issues restricting rural growth.

• ICT in Agriculture e-Sourcebook provides a range of examples on how ICT can enhance rural livelihoods.

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Enhancing environmental services and sustainability: country results

• Soil carbon: an innovative methodology showing how emission reductions are measured and monitored is being developed by BIOCF & AFRICA. The Kenya Agricultural Carbon Project demonstrates cost-effective carbon accounting methods using a ‘farmer self-assessment approach’ where improved agriculture practices are verified by independent third parties.

• Agricultural carbon finance operation under preparation in Tunisia (Sustainable Agricultural Land Management Project)

• Reversing land degradation: support to Ethiopia to reduce land degradation in agricultural landscapes and to improve the agricultural productivity of smallholder farmers; land certificates have been issued to small holder farmer households, with geo-referencing and maps. (Ethiopia, Sustainable Land Management Project)

• Environmental health: the Henan Ecological Livestock Project in China aims at ensuring the adoption of improved environmental health management practices on targeted livestock farms; improve capacity of public institutions to facilitate environmentally sound livestock industry development.

• Ecosystems: reversing the decline of fragile ecosystems (Vietnam Mangrove Forest Project) such as coastal mangrove will help reduce erosion, increase livelihoods of coastal communities who have witnessed a resurgence of aquatic resources (such as crabs and clams).

• Watershed management in rain-fed areas is supported in the Karnataka Watershed Development Project. In the first of three phases, crop yields increased by 15 to 20 percent among targeted farmers.

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…Enhancing environmental services and sustainability: global examples

• Climate-smart agriculture (CSA) will increase sustainable productivity and incomes, resilience and carbon sequestration. Increased south-north collaboration on CSA will enable the international community to build on existing successes and address global challenges. A series of high level political and scientific meetings highlighting the issue are underway.

• Forestry: efforts to better coordinate partnership activities, to increase financing and improve governance and positive impacts of forest sector activities are underway. For example: The Program on Forests (PROFOR) has been successful in raising the profile of landscapes and landscape restoration globally; the Forest Investment Program (FIP) delivers climate investment funds in in 8 pilot countries.

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Looking ahead: updating Agriculture Action Plan 2013-15

• Retain focal areas – we got it right• More emphasis on

– Climate-smart agriculture (opportunities for green growth)

– Integrated landscape approaches– Food security and trade– Partnerships, including private sector