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Dr. Martin Märkl

Contributions to African agricultural growth by transnational corporations Brussels, June 26 th 2012. Dr. Martin Märkl. Performance of cereal production in Sub-Sahara. Africa is far from being sufficient to match the demand of a growing population (1961–2003). 3,500. World. 3,000.

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Dr. Martin Märkl

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  1. Contributions to African agricultural growth by transnational corporationsBrussels, June 26th 2012 • Dr. Martin Märkl

  2. Performance of cereal production in Sub-Sahara Africa is far from being sufficient to match the demand of a growing population (1961–2003) 3,500 World 3,000 All Developing 2,500 South Asia 2,000 1,500 Sub-Sahara Africa 1,000 500 0 1961 1967 1973 1979 1985 1991 1997 2003 Source: FAO, 2006 • Dr. Martin Märkl • Brussels• June 26th , 2012

  3. Increased investment in agriculture in Africa Investments in agriculture to leverage rural development and food security • Donor spending on agriculture and rural development has increased in recent years • A large and increasing share is still devoted to short-term food aid interventions • Eight (out of 45) countries reached target of 10 %of total public expenditure on agriculture in 2009 • Investment in agriculture will be most efficient when it promotes income-generating opportunities for farmers: evolution of ‘agripreneur’ • Dr. Martin Märkl • Brussels• June 26th , 2012

  4. Sustainable intensification of agriculture requires an holistic approach • Key elements for a sustainable intensification of agriculture • Rise in agricultural productivity on arable land already in production • in sub-Saharan Africa only 22 percent ofpotentially arable land is under cultivation* • Resource efficiency: water, soil, agricultural inputs • Reduction of pre- and post-harvest losses; need for innovation to address logisticsas well as resistance issues * FAO, 2012, 100 days to Rio +20, 100 facts • Dr. Martin Märkl • Brussels• June 26th , 2012

  5. Sustainable intensification of agriculture requires an holistic approach • Key elements for a sustainable intensification of agriculture • Investment into the seed sector, promotion of hybrid seed dissemination • Increase in mechanization to address labor shortage • Enhanced education in science to ensure talented employees of the future • Higher investments in agriculture in emerging markets, despite higher volatility of commodity markets • Better coordination of public and private investments in agriculture • Dr. Martin Märkl • Brussels• June 26th , 2012

  6. Investment into the seed market is a key driver for agricultural productivity The potential of seed technology towards a sustainable intensification of agriculture: hybrid rice Egypt 55% of acreage in hybrid rice USA Japan China Yield (t/ha) Vietnam Indonesia Rice Average Yield (4.2 t/ha) Myanmar Brazil Bangladesh India Philippines Others Thailand Pakistan 3% of acreage in hybrid rice Production (in million tonnes) 20 40 60 80 100 120 140 160 180 200 Production (in million tonnes) Data from FAO 2007 • Dr. Martin Märkl • Brussels• June 26th , 2012

  7. Criteria driving the market attractiveness for private sector investments in agriculture Metrics (selection) Market driver • Dr. Martin Märkl • Brussels• June 26th , 2012

  8. Bayer has a well established market positionto be expanded further into selected markets Egypt TUN MA ALG BF Mali BE Ethiopia CI GH Sierra Leone SN T G CM Liberia Nigeria Kenya Tansania Angola Malawi Zambia Mozambique Minor Markets Exploration Opportunity Zimbabwe South Africa Core Business West Central Africa expansion in Ivory Coast, Senegal, Mali and Burkina Faso mainly in cotton, rice and corn East Africa expansion into Ethiopia and Tanzania, e.g. with cereals and rice, laterwith sugarcane & cotton Southern African push of innovation also in Malawi and Zambia; further growth potential in Angola, Mozambique and Zimbabwe Cooperationwith GIZ, BMGF, IFC (still in exploration phase) • Dr. Martin Märkl • Brussels• June 26th , 2012

  9. Metrics (selection) Market driver • Dr. Martin Märkl • Brussels• June 26th , 2012

  10. Grow Africa is a partnership platform • that seeks to accelerate investments and transformative change in African agriculture • based on national agricultural priorities and in support of the Comprehensive African Agricultural Development Programme(CAADP) • Grow Africa has a catalytic role: • Increases private-sector investments • Enables multi-stakeholder partnerships • Expands knowledge and awareness of best practices and existing initiatives • Participating countries: • Burkina Faso, Ethiopia, Ghana, Kenya, Mozambique, Rwanda, Tanzania • Dr. Martin Märkl • Brussels• June 26th , 2012

  11. The productivity gap of small scale farmers offers the biggest opportunity for agriculture in Africa Small scale farmers are the back-bone of African Agriculture • The public and private sector need to jointly generate business opportunities for small scale farmers and to facilitate a fair distribution of risks and benefits along the value chain • Moving from a government controlled system financed by donors towards a system which encourages private sector investments • Dr. Martin Märkl • Brussels• June 26th , 2012

  12. Thank you very much for your kind attention

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