FAO September 7th 2009 Presentation Jean-Louis DUVAL [FAO consultant] Michael LARINDE [FAO AGPS] The basic concept Using seed as an entry point for increasing incomes for farmers and increased food production SAWIB Concept FAO initiative for Global partnership on seed security A scheme to explain this holistic approach Why SAWIB – “Responding to the Food Crisis”? Why seed and plant varieties could be the support of this holistic approach A framework for the organization A first feedback Results of the survey regarding developed / developing countries relationship SAWIB - June - September 2009 September 11th 2009 3 Driving demand for seed by increasing marketing opportunities to the food industry Doing this through: ◦ Linking with the international seed companies ◦ Linking with the food industry = Linking with the International Agri-Food Network members. FAO serving as a facilitator of the initiative. SAWIB - June - September 2009 September 11th 2009 4 In order to establish a sustainable seed supply and thereby facilitate food security of member countries, the Plant Production and Protection Division (AGP) started an initiative termed “Seed Alliance Without Boundaries (SAWIB)” The seed based initiative will cut across crop production and food industry domains with an holistic approach. SAWIB - June - September 2009 September 11th 2009 5 The objective is to create a forum to bring together stakeholders from the private and public sector of developed and developing seed and food industries for dialog that will facilitate the: a) transfer of technological and entrepreneurial skills for sustainable seed production and distribution; b) linkage of seed sector with farmers or crop producers; and c) linkage of crop producers to crop-value-addition industries. SAWIB - June - September 2009 September 11th 2009 6 Overall, the initiative will facilitate the creation of seed industry that is market-driven and ensure sustainable use of plant genetic resources for food and agriculture. The first public-private-sector dialogue under this initiative took place in February 2009. SAWIB - June - September 2009 September 11th 2009 7 The SAWIB will enhance the synergy of the public-private sectors and comparative advantages of developed and developing countries to facilitate access to innovation and products of biotechnology for the seed industries and effect linkages amongst crop producers, agricultural inputs producers/suppliers, industrial consumers of raw agricultural produce and food industries. The collaboration will be mutually beneficial as it will help in exploiting the agro-ecological potentials of developing countries for off-season seed production of advanced seed industries. Overall, the initiative will facilitate the creation of seed industry that is market-driven in developing countries. SAWIB - June - September 2009 September 11th 2009 8 Scheme of the value chain An holistic approach Agro-Food System Food Security and Market Driven approach through value added supply chain Milk / Dairy / Poultry / ... Super Market Food Retailers Export Market Feed processors Food processors Process potato Tomato past Dry Onion Agro-Dealer Seed + Fert + ... Varieties Private Public Seed Stakeholders Oil crops Sunflower - Ground nut B Apply the concept: The introduction of high-yielding varieties of seeds and the increased use of fertilizers and irrigation are known collectively as the Green Revolution Farmers Food producers True To Type Wheat (bread) & Rice (paddy...) Seed procurement is part of the contract Aggregators (coop) Maize - Sorghum Implementation of production contracts including specification demands C Micro finance + Seed treatment and crop protection A Raw seeds Mother seeds GIPB SAWIB - June - September 2009 Village-based seed multiplication, winter nursery & production September 11th 2009 10 WHY? “Responding to the Food Crisis” Measures, activities and policies to boost agricultural production: ◦ The provision of sufficient quantities of inputs, particularly high-quality seeds and fertilizers, is considered a major priority for coping with the present food crisis. ◦ However, this should be implemented through a comprehensive system approach, coupled with a mediumterm strategy to improve the efficiency of the whole production and marketing chain for inputs, as part of the development of more efficient agricultural systems. (1) Responding to the food crisis: synthesis of medium-term measures proposed in inter-agency assessments. FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS - WORLD FOOD PROGRAMME Rome, 2009 - This report has been supported with funds from the European Union. http://www.fao.org/docrep/011/i0769e/i0769e00.HTM SAWIB - June - September 2009 September 11th 2009 12 Programmes for inputs and related crop production services ◦ Private sector participation in seed multiplication and distribution is minimal, and the policy and legislation framework does not provide adequate incentives and conditions to foster development of the seed sector. ◦ Access to commercial fertilizer is also constrained by factors that include high costs, lack of commercial supply and distribution outlets, and inadequate participation from the private sector. ◦ For both seeds and fertilizer, insufficient credit facilities and a lack of integration between farm inputs and outputs are major limitations. SAWIB - June - September 2009 September 11th 2009 13 Cross-cutting issues ◦ Capacity building: The need for an agro-food system approach should be more reflected in capacity building programmes, including not only production, but also processing and marketing. ◦ Institution building: In addition to the necessary development of farmers’ organizations, there is also need to increase efforts to identify and implement innovative institutional mechanisms, such as public-private partnerships, particularly for the upstream and downstream sectors. ◦ More attention should be given to the major contribution that improved rural finance can make to the overall development of the agro-food sector. SAWIB - June - September 2009 September 11th 2009 14 The need for global approaches and policy coherence: ◦ At the production level, even when the actions proposed focus on specific inputs such as seeds and fertilizers, it is necessary to adopt a global agricultural system approach that takes account of all physical and human factors, and provides the framework for increased public and private investments in agriculture. ◦ Actions at the production level have to be complemented by actions at the upstream and downstream levels within an overall agro-food perspective encompassing the whole value chain. ◦ A variety of initiatives in Africa aim to develop the seed sector, but coordination and collaboration among actors are very limited. SAWIB - June - September 2009 September 11th 2009 15 The plant variety is the link of the value chain The mission of seed entrepreneur is the demonstration of the value of his varieties. The Variety is the backbone of the value recognition of supply chains It is a major contribution to extension services Seed-men and seed-women are the conductor of the value chain SAWIB - June - September 2009 September 11th 2009 17 Based on the market demand & the food security challenge: ◦ All actors of the value chain will support the use of the plant variety needed: ◦ The identification of value chain will create added value to be shared among members ◦ Creation of rural employment along the value chain SAWIB - June - September 2009 September 11th 2009 18 Framework for the organization and operationalization “Networking” Seed Cy Private Public Agro Dealer Seed Grower Food Processor Aggregator Feed Processor • Linking the actors of the Food Retailer Farm Producer SAWIB NATIONAL PLATFORM Country C value chain • Linking seed companies, agro dealers, processors... • Private and public 1. Seeking for Expertise 2. 3. Linkage Market & Sponsorship Development Seed Cy Private Public Agro Dealer SAWIB INTER NATIONAL PLATFORM • Policy and regulation SAWIB NATIONAL PLATFORM Country A SAWIB NATIONAL PLATFORM Country B Food Processor Aggregator Variety Seed Grower association Feed Processor Food Retailer Farm Producer SAWIB - June - September 2009 September 11th 2009 20 Markets studies will high light appropriate crops and value chains Another model comes from the experience of off-season SAWIB - June - September 2009 September 11th 2009 21 Services (output – activity - objective) ◦ ◦ ◦ ◦ ◦ Identification & management of different value added chains Linkage between parties Identification & linkage of sponsors Facilitate the relationship between parties Organization of expert consultations, training sessions, study tours ◦ Publications; success stories and guidelines, market studies, statistics ◦ Website SAWIB - June - September 2009 September 11th 2009 22 How ◦ Define organization ◦ Finance & “business model” Networking ◦ National, regional & global organizations and companies ◦ Public and private sectors Phases ◦ 1. Obtain the collaboration / agreement of: “International Agri-Food Network’’ members Financing parties ◦ 2. Focus on few easy crops and countries ◦ 3. Further development with other crops and countries. SAWIB - June - September 2009 September 11th 2009 23 From the Supermarket: ◦ No answer From the food-industry ◦ Global brand names: “our processes are protected by company secret”… ◦ Commodities (rice – oil): “interesting approach” From the seed industry ◦ Positive support From the fertilizer industry ◦ “The SAWIB approach is in line with our approach” From the crop protection industry ◦ “How to contribute to SAWIB success” SAWIB - June - September 2009 September 11th 2009 24 A survey has been realized in 2009 to measure the situation regarding the relationship between developed and developing countries 0. Seed company (Tous) Purpose: Numbers ◦ A view from the seed industry in the relation between developed and developing countries AF, 1 AU, 1 BR, 1 CZ, 1 US, 6 DE, 1 1 122 questionnaires sent 66 answers ◦ ◦ ◦ ◦ VN, 1 Not concerned Company secret I will come back 31 forms fulfilled from 19 countries DK, 1 FI, 1 TK, 3 FR, 5 SE, 1 PT, 1 PL, 1 NL, 1 IN, 2 LB, 1 SAWIB - June - September 2009 IT, 1 DonnéesSeptember 11th 2009 26 Contracting party from developed country Open pollinated 1. ◦ Yes: 14 ◦ Yes: 19 Receiving party from developing country Open pollinated 1. ◦ No: 11 Hybrid 2. No: 5 Hybrid 2. No: 6 Yes: 16 ◦ Yes: 19 No: 2 The exchange seems to be easier for hybrid than OP The [No] explanation for OP are: “Due to very risk of illegal propagation, mainly in non UPOV countries but not only, IP, PVP Laws…” SAWIB - June - September 2009 September 11th 2009 27 Contracting party from developed country Yes: 17 ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ No: 1 Receiving party from developing country Yes: 15 Ag biotech Biotechnology Biotechnology, seed technology under binding agreements Breeding and biotech capabilities Breeding methods Chemistry, crop protection Germplasm Lab techniques machinery Molecular Seeds ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ No: 7 Ag biotech Biotechnology Breeding and biotech capabilities Breeding tissue culture, marker technology Breeding tools Chemistry Herbicide resistance biotech, molecular, primers Molecular Seeds Various Large exchange, same view between contracting and receiving parties SAWIB - June - September 2009 September 11th 2009 28 Contracting party from developed country Yes: 19 ◦ ◦ No: 8 Receiving party from developing country Yes: 12 ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Breeding technology 2 Crop and seed production know how field management field screening plant breeding production processes Quality in production Seed production 3 technology, expertise, IP training ◦ various ◦ ◦ No: 11 ◦ ◦ breeding skills breeding tissue culture, marker technology diseases resistance breeding, healthy oil breeding Seed production technology, expertise, IP ◦ various ◦ SAWIB - June - September 2009 September 11th 2009 29 Contracting party from developed country Hybrid ◦ ◦ ◦ ◦ No: 2 Receiving party from developing country Hybrid ◦ Corn, sunflower, vegetables, flowers Main limiting factors: IP protection, know how, climatic adaptation, too many papers. OP Yes: 4 Yes: 17 No: 9 ◦ Canola, cotton, cereals, beans, forage, ornamentals, soybean, vegetables, flowers Main limiting factors: IP protection and climatic adaptation No: 15 Corn, sunflower, vegetables, flowers Main limiting factors: parent lines protection, to be competitive OP Yes: 8 Yes: 6 No: 16 ◦ Clover, rapeseed, vegetables, alfalfa, flowers ◦ Main limiting factors: IP protection, no demand, not feasible Easier to exchange germplasm in hybrid than producing “on site” due to IP protection and … SAWIB - June - September 2009 September 11th 2009 30 Contracting party from developed country Yes: 8 ◦ ◦ No: 20 Receiving party from developing country Yes: 6 Corn, cotton, sunflower, oilseed, triticale, vegetables Limiting factors: costs, movement of germplasm ◦ ◦ No: 17 Corn, cotton, vegetables, sunflower, rapeseed, flowers Limiting factors: costs, movement of germplasm Same evaluation from developed and developing countries SAWIB - June - September 2009 September 11th 2009 31 Contracting party from developed country Yes: 22 ◦ No: 3 Limiting factors: ability to commit a contract, cost of seed, no sufficient variety protection, mentality of potential partners Receiving party from developing country Yes: 20 ◦ No: 2 Limiting factors: expensive seeds from developed countries Highest rank for [Yes] both side but still some limiting factors to take into account! SAWIB - June - September 2009 September 11th 2009 32 Activity of the companies Breeding: Yes: 23 No: 7 Production: Yes: 27 No: 1 Marketing: Yes: 29 No: 0 Size of the activity 0 to 10 M$: 10 to 50 M$: 50 to 200 M$: More: 6 11 4 8 Major companies have replied to the survey SAWIB - June - September 2009 September 11th 2009 33 Need to be practical and make impact on the ground within the “projects” Each party’s mission is identified and bring their core competencies focused on each project Planning and resources dedicated to success ◦ good clear plan in writing ◦ goals to achieve ◦ stay on track ◦ sort out misunderstanding Coordination to have all parties on board on the same targets and in due time Publicity / aids / communication… Precise timing for development versus business relationship Self sustainability as the ultimate step of the support SAWIB - June - September 2009 September 11th 2009 35