What Innovations for Food and Nutrition Security in a Bioeconomy Age? Joachim von Braun Center for Development Research (ZEF) University of Bonn A Jülich Lecture, June 28th, 2013 Joachim von Braun, ZEF, 2013 The Roots of Innovation 1. Scarcity of factors (factor prices, e.g. land) 2. Creativity and experimenting (incl. of farmers) 3. (Science) Education and other public policy for science Institutional Innovation & Technological Innovation Joachim von Braun, ZEF, 2013 Overview 1. Toward “green economy“ with “bioeconomy“ 2. The problems in the “World Food and Nutrition Equation“ 3. Technical and institutional innovations for ending hunger and undernutrition 4. Policy actions and redesign for international science policy Joachim von Braun, ZEF, 2013 Zero Carbon Emissions CO2 Green Economy Bioeconomy Landwirtschaft Sustainable Production Residues Biomass Products Joachim von Braun, ZEF, 2013 Ecological Footprints Zero Waste Bioeconomy (biobasierte Wirtschaft) is… …the knowledge-based production and utilization of biological resources for products, production processes, and services in the economic system. It‘s raw materials stem from biomass and bio-chemical processes 5 Joachim von Braun, ZEF, 2013 Bioeconomy: Products and Science Domains Nahrungsmittelsicherheit © Eugen Lehle © Antje Schröter / PIXELIO Rest-/Abfallstoffe © Rosel Eckstein / PIXELIO Rest-/Abfallstoffe © Jens Bredehorn / PIXELIO Gesundheit Ernährungssicherung © Marco Barnebeck / PIXELIO Energieversorgung Biodiversität Rohstoffversorgung Source: adapted from EU Commission (2006) Joachim von Braun, ZEF, 2013 The four drivers of the Bioeconomy 1. 2. 3. 4. Increased prices of resources Climate change and energy policy Innovation opportunities Changed preferences of people Joachim von Braun, ZEF, 2013 Overview 1. Toward “green economy“ with “bioeconomy“ 2. The problems in the “World Food and Nutrition Equation“ 3. Technical and institutional innovations for ending hunger and undernutrition 4. Policy actions and redesign for international science policy Joachim von Braun, ZEF, 2013 The Equation of World Food and Agriculture in the Bioeconomy Age Supply = Land Water Inputs & Transport costs Workforce Climate change Farm size structure Technology Demand Income growth Poverty and inequality Consumer behavior Bioenergy Biomass (CO2) Prices, Markets & Trade Prices and speculation International trade Supermarkets Joachim von Braun, ZEF, 2013 Multiple World Food and Nutrition Problems Problems Numbers of people Consequences Hunger (Under-Nutrition, calories) ca. 0,9 Mrd. acute deficiency, political conflicts Hidden Hunger (deficiencies of Micro-Nutrients, vitamines, iron etc.) ca. 2 Mrd. diseases, reduced productivity Children‘s under-nutrition (the first 1000 days) Obesity and resulting chronic diseases Joachim von Braun, ZEF, 2013 ca. 165 Mio. ca. 1 Mrd. stunting, reduced physical, kognitiv development. 3,1 Mio. death p.a. high costs of public health Quellen: The Lancet 6/2013, FAO 2013 Different time subscripts „t“ are relevant for different nutrition problems • Long-term (decade/year): nutritional status (stunting); water-, land-use; climate, technology; polit. change; investments • Medium-term (months): nutrient deficiencies (Cal., micro-nutrients, weight loss); weather, grain stocks • Short-term (weeks, days): nutrition shocks in early childhood; Infections, trade shocks, shocks in financial markets Joachim von Braun, ZEF, 2013 Progress in reduction of hunger and child under nutrition Hunger world wide: 1990/92: 1000 Millions (19% of world population) 2010/12: 868 Millions (13% of world population) Children in Developing countries 1990: 40% -- 2011: 26% Ending hunger 2030 should be a goal Joachim von Braun, ZEF, 2013 : Land, Soils, and Water Joachim von Braun, ZEF, 2013 Total arable land is limited • Climate change, urbanization and degradation affect arable land • Protection of forests imposes further environmental limits Global Arable Land (Mio ha) 1420 1400 1380 1360 1340 1320 1300 1280 1260 1240 1220 Joachim von Braun, ZEF, 2013 Source: FAOSTAT Land shortage and land degradation constrain production 42% of the poor live in degraded areas Joachim von Braun, ZEF, 2013 Source: Bai et al., 2008. Investment in land (sales and long term lease) Joachim von Braun, ZEF, 2013 Source: Land Matrix Homepage (accessed May 6, 2012) Data: Land Matrix Project, April 2012 Prices Joachim von Braun, ZEF, 2013 $/ metric ton Structural and Climate Change Impacts on Prices 2050 450 2000 400 2050 No climate change 2050 NCAR No CF 350 300 250 200 150 100 50 0 Rice Joachim von Braun, ZEF, 2013 Wheat Maize Soybeans Source: Nelson et al. (IFPRI) 2009. Food price crises 2008 and 2011: New price levels, volatility, extreme spikes 1000 Reispreis $/t Weizenpreis $/t Globaler Getreidepreisindex 900 800 700 250,0 200,0 600 500 150,0 400 Index Preis in $ pro Tonne 300,0 100,0 300 200 50,0 100 0 1/2000 8/2000 3/2001 10/2001 5/2002 12/2002 7/2003 2/2004 9/2004 4/2005 11/2005 6/2006 1/2007 8/2007 3/2008 10/2008 5/2009 12/2009 7/2010 2/2011 9/2011 4/2012 0,0 Joachim von Braun, ZEF, 2013 Quelle: FAO, FAO Giews. 1900 – 2008: since 1990s new Financialisation of Agricultural Commodity Markets Wheat price and Financial Krises Joachim von Braun, ZEF, 2013 Sources: J. von Braun, 2012, Data: BCDI index Reinhart und Rogoff (2009), Wheat price BLS 2008, Godo 2001, NBER 2008, OECD 2005, U.S. Census Bureau 2008, und United Nations 1999 Which prices drive food prices (and vice versa)? • • • • • • input prices land price labor wages water price (costs) energy price financial asset (commodities) Food prices All these prices are more interlinked And volatility is a disincentive for investment Joachim von Braun, ZEF, 2013 Overview 1. Toward “green economy“ with “bioeconomy“ 2. The problems in the “World Food and Nutrition Equation“ 3. Technical and institutional innovations for ending hunger and undernutrition 4. Policy actions and redesign for international science policy Joachim von Braun, ZEF, 2013 The What and How of Innovations for Food and Nutrition Security What: • Producing more and better with less: sustainable intensification • Efficiency along all value chains / the value web • Nutrition and health systems effeciveness How: • Innovation systems strengthening • Incentives for results and finance • Science land scape build-up Joachim von Braun, ZEF, 2013 Expected Global Agric. Production Growth 2.1% 2003-12 auf 1,5% 2013-22 % Joachim von Braun, ZEF, 2013 Quelle: OECD – FAO Agriculture Outlook 2013 Innovation feeds the world Sources of productivity growth in world agriculture Beitrag von TFP Inputintensivierung Bewässerung Anbauflächenerweiterung Joachim von Braun, ZEF, 2013 Source: IFPRI, 2012 Global Policy Report, 2013. Examples of technology innovations • Plant breeding for micro-nutrient quality (Biofortifikation) Biomass quantity Climate-smart (drought and temperature-resistance) Disease resistance Nutrient efficent crops Livestock production innovations (feeding, breeding, etc.) • Mechanisation for precision • • • • • Joachim von Braun, ZEF, 2013 Examples of institutional innovations • Frame work conditions for innovation (IPprotection, access to genetic resources accross borders) • Innovative incentive systems (combining enhanced funding of basic research with results oriented awards and innovation prizes) • Venture Capital (for projects and start-ups) • Public- private cooperations (platforms) Joachim von Braun, ZEF, 2013 Linkages between Technological and Institutional Innovations • Technological innovations address primarily the availability of food and micronutrients • Institutional innovations are necessary to ensure the up-take of new technologies and to address the issues of access, utilization and stability in the FNS equation Joachim von Braun, ZEF, 2013 Producing more with less and without adversely affecting the environment Joachim von Braun, ZEF, 2013 Overview 1. Toward “green economy“ with “bioeconomy“ 2. The problems in the “World Food and Nutrition Equation“ 3. Technical and institutional innovations for ending hunger and undernutrition 4. Policy actions and redesign for international science policy Joachim von Braun, ZEF, 2013 Strategic food and nutrition security agenda 1. Risk prevention: Promotion of agriculture productivity across value chains to address risks on supply side. 2. Risk management: Facilitation of reduced market volatility and spikes with appropriate stocks, more trade openness, appropriate regulation, and international cooperation. 3. Social protection: productive safety nets, cash transfers; expanded action for nutrition security of children. 4. Insurance systems: insurance of crops, peoples health and disabilities, public insurance mechanisms for catastrophic events (e.g. regional droughts) Joachim von Braun, ZEF, 2013 New Science Policy Joachim von Braun, ZEF, 2013 Top 10 Countries‘ Public Agricultural R&D Expenditures: not enough and not connected enough Joachim von Braun, ZEF, 2013 Quelle: Pardey, Beddow, The Chicago Council, 2013 Bioeconomy Age: new policy initiatives 2010-13 Australia Bioenergy – Strategic Plan 2012–2015 Brasil Biotechnology Development Policy (2007) Danmark Agreement on Green Growth (2009) Germany Nationale Forschungsstrategie BioÖkonomie 2030 (2010) EU-Commission A Bioeconomy for Europe (2012) Finnland National Resource Strategy and Sust. Bio-Economy (2011) Ireland Delivering our Green Potential (2012) Canada Biorefining Conversions Network (2009) Malaysia Bioeconomy Initiative and National Biomass Strategy (2011) Netherlands Biobased Economy 2010–2015 Russia Bioindustry and Bioresources – BioTech 2030 (2012) Sweden Research and Innovation Strategy for Bio-based Econ. (2011) UK UK Bioenergy Strategy (2011) USA National Bioeconomy Blueprint (2012) 34 Joachim von Braun, ZEF, 2013 Priorities of the Bioeconomy Council of German Government 2013-15 1) R&D : • Bioeconomic competitiveness • Fostering technology and institutional innovations • Natural resources production and protection strategies • Consumer benefits and health • Environment and Natur 2) Improving framework conditions, reduced innovation hurdles 3) Public Information and Dialogue 4) Inter-disciplinary science education and next generation researchers [see Eckpunktepapier 30.4.2013] 35 Joachim von Braun, ZEF, 2013 A call for re-design of the international Ag., Food and Nutrition Science System: • The challenges of agricultural development and food and nutrition security require a strong mechanism for science and research based assessment as a permanent institutional arrangement for the coming decades. • A global body tasked with this could be mapped along the lines of the Intergovernmental Panel on Climate Change (IPCC), but avoiding its pitfalls from the outset. • An independent global research platform that facilitates the peer reviewed assessments on agriculture, food and nutrition is needed for delivering evidence based analyses for action with foresight. Joachim von Braun, ZEF, 2013