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Global Food Security Challenges and Opportunities

Global Food Security Challenges and Opportunities. Shenggen Fan Director General International Food Policy Research Institute. University of Nebraska-Lincoln’s Interdisciplinary Research Initiative in Food, Water, and Energy Resources Policy Event, Nebraska, April 13, 2011 . Key messages.

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Global Food Security Challenges and Opportunities

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  1. Global Food Security Challenges and Opportunities Shenggen FanDirector General International Food Policy Research Institute University of Nebraska-Lincoln’s Interdisciplinary Research Initiative in Food, Water, and Energy Resources Policy Event, Nebraska, April 13, 2011

  2. Key messages • Food security challenges remain large • A development agenda with greater support for food security is needed • The role of policy research is crucial

  3. Food security challenges remain large

  4. The goal of halving hunger is off-track Number of hungry people, 1990-2015 946 584 Source: Fan 2010

  5. Challenges to global food security • Food price volatility • Energy/Biofuels • Population growth and demographic changes • Land and water constraints • Climate change

  6. Food price hikes and volatility Global hikes since June 2010 • Maize: 90% • Wheat: 82% High domestic food inflation • China: 10% (Jan. 2011, y-o-y) • India: 11% (Feb. 2011, y-o-y) • Driven by non-staples Volatility due to • Natural disasters • Panic purchases • Trade restrictions, etc. Source: FAO 2011

  7. High and volatile food prices increase food insecurity Self-reported food insecurity in Sub-Saharan Africa Source: Headey 2011

  8. Rapidly growing population and demographic change World population reaches 9 billion by 2050 • All growth to come from urban areas • Most growth to come from developing countries Source: FAO 2009. Larger and more urban population will demand more and better food

  9. Rising energy prices influence food security • Rising energy prices cause food prices to increase, rather than the reverse (Heady and Fan 2010) • Rising energy prices make biofuels more profitable, rather than agricultural production more expensive (Abbott, Hurt, and Tyner 2008) Source: Data from IMF 2011

  10. Biofuel boom World ethanol and biodiesel production • Biofuel production to more than double from 2007-09 to 2019 (OECD-FAO 2010) • Biofuel demand to grow four-fold between 2008 and 2035 (IEA 2010) • Biofuels support to rise • 2009: $20 bn • From 2010 to 2020: $45 bn • From 2011 to 2035: $65 bn Source: Data from Earth Policy Institute 2011

  11. Food-fuel competition(e.g. U.S.maize) Source: Data from Earth Policy Institute 2011 Source: Data from USDA 2011; Headey 2011

  12. Biofuels will impact food security(2020, compared to baseline) Changes in calorie availability (%) Price changes (%) Source: Rosegrant et al. 2008 Changes in number of malnourished children (‘000s)

  13. Growing land constraints Arable land per capita (ha in use per person) Source: Bruinsma 2009 Global extent of soils with low nutrient capital reserves Source: Ahamed et al 2006

  14. Severe water constraints With “business as usual,” high water stress by 2050 puts at risk: • 52% of global population • 49% of global grain production • 45% of global GDP Source: Veolia Water and IFPRI 2011

  15. Climate change will push up food prices World food price increases under various scenarios, 2010–2050 (% change from 2010) Source: Nelson et al. 2010

  16. A development agenda with greater support for food security is needed

  17. Address food price volatility • Promote effective policies and technology investments to minimize food-fuel competition • Support transparent, fair, and open global trade to enhance efficiency of global agricultural markets • Create global, physical, shared grain reserve to address food price crises • Establish an international working group to monitor world food situation and catalyze action

  18. Invest in agriculture and smallholder productivity Source: Data from IFPRI SPEED database Improve access to quality seeds, fertilizer, financial and extension services, crop insurance, new technologies, rural infrastructure

  19. Promote safety nets that increase productive capacity Ethiopia’s Productive Safety Nets Program (PSNP) • Improved daily/capita caloric acquisition in last 7 days by 10% • Enhanced food security in 2004-06 by 0.36 months • Rise in credit use by 12% points • Increased use of fertilizer by 11% points • Increased use of improved seeds by 5% points Source: Gilligan, Hoddinott, and Taffesse 2009

  20. Promote land productivity improvements • Create awareness of sustainable land management (SLM) practices • Provide technical support for often knowledge-intensive SLM practices • Support generation of innovative SLM practices (e.g. fertilizer micro dosing and packaging, biomass transfer, manure management) • Invest in water storage or distribution to improve irrigation efficiency • Increase finance of irrigation investments, esp. for small farmers Source: Nkonya et al. 2011, forthcoming

  21. Sustainable land management (SLM) practices have win–win outcomes • SLM practices: (evidence from Kenya, Niger, Nigeria, and Uganda) • control soil erosion • increase soil carbon stock • increase crop yields • reduce climate-induced production risks • enhance agricultural productivity and incomes • Examples of SLM practices: irrigation, agroforestry, fertilizers, mulching, crop residues, improved fallow, compost Source: Kato et al. 2010; Nkonya et al. 2011, forthcoming

  22. Promote water productivity improvements • Higher levels of water reuse by all users of water • Improvements and evolution of water technology • Water and wastewater infrastructure improvements • Extension of services to rural and urban poor populations • Greater energy efficiency with increased use of renewable energy Source: Veolia Water and IFPRI 2011

  23. Sustainable water management has high pay-offs Compared to “business as usual,” it can de-risk: >1 bn people ~$17 trillion of GDP >20% of children likely to suffer from malnutrition(with higher investments in rural water supply and sanitation and female secondary education) Source: Veolia Water and IFPRI 2011

  24. Invest in climate change adaptation and mitigation esp. through agriculture Adaptation: e.g. • improved land management • adjustment of planting dates • introduction of new crop varieties Mitigation: e.g. • improved energy efficiency and crop yields • land management techniques to increase carbon storage At least additional US$7 billion agricultural productivity investments are needed annually to offset adverse effects on human well-being Source: IPCC 2007; Nelson et al. 2009

  25. The role of policy research is crucial

  26. Changing global policy landscape • Emerging issues and new actors • High and volatile prices, increasing natural resource stresses, climate change, demographic shifts etc. • Emerging economies, private sector, philanthropic organizations etc. • Emphasis on country-driven and -owned development strategies Increased demand for policy research

  27. Role of policy research • Policy research evolves beyond technology e.g. to macroeconomics, trade, energy, and social protection • Contribution of policy research to poverty and hunger reduction • Direct: Increases investment in food security, agriculture, and rural development and improves resource allocation • Indirect: Creates enabling environment for agricultural technology innovation and adoption in developing countries

  28. Impacts of policy research Vietnam rice marketing and policy research • Influenced timing of changes in rice policies • Generated benefits worth US$45-91 million Bangladesh food-for-education program research • Improved targeting and strengthened capacity • Generated benefits of about US$248 million Evaluation of Mexico’s PROGRESA • Guided program investments and implementation Public investment research • Contributed to public investment strategies in many Asian and African countries

  29. Policy research insights for resource allocation Source: Fan, Mogues, and Benin 2009 Note: “n.e.” indicates not estimated

  30. Examples of policy research needs (1) • Assessing the impacts of high and volatile food prices on poor people (use of household surveys) • Identifying strategic investments in pro-poor agricultural technology development and adoption • Understanding the impacts of biofuels and climate change on agriculture and food security • Identifying more effective strategies to promote sustainable land management for poverty reduction

  31. Examples of policy research needs (2) • Understanding the impacts of global change drivers on current and future availability and accessibility of water resources • Identifying research-based options to address growing water scarcity and water quality challenges • Identifying strategies to build the capacity of small farmers and the rural poor to adapt to climate change • Understanding the linkages between climate change and gender

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