Presentation by Dr. Geoffrey C. Mrema FAO.

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Managing Post-harvest Systems
to Enhance Agricultural Productivity
Competitiveness and Markets
in Western and Central Africa
by Dr. Geoffrey C. Mrema
Director
Rural Infrastructure and Agro-industries Division
Food and Agriculture Organization
of the United Nations (FAO)
Effects rise in food prices and financial crisis
 Because of high food prices, the import bill for cereals of
African countries rose substantially by 49 percent in 2008
alone.
 The financial crisis led to a slow down in economic growth
from 6.0% in 2007 to 5.1% percent in 2008.
2
Ratio of Share of Agri-enterprise and Agriculture in GDP
Share in GDP
Agriculture
(1)
Agri-enterprise
(2)
Ratio of
(2) to (1)
Agriculture Based
Countries
0.39
0.22
0.57
Transforming Countries
0.16
0.32
1.98
Urbanized Countries
0.08
0.27
3.32
USA
0.01
0.13
13.00
3
Structural Changes and Agro-industries Development
Empirical data show that:
 In agricultural countries that have
not undergone a structural
transformation, 63% of the value
added in the agri-food system was
created on the farm.
 In the USA, by contrast, farming
accounted for only 7 percent, with
the remaining value being created
by input producers, agro-industries,
transport firms, retailers,
restaurants, and others in the
agribusiness system.
4
Capital Requirements to Overcome Hunger
Cumulative Investments over 44 year period to 2050 in billion US$
ITEM
1. Primary Production (including
mechanization & other power sources)
2. Downstream Support Services
Sub-Saharan Africa
496
(storage; markets & first stage processing)
444
TOTAL
940
Source: Capital Requirements for Agriculture in Developing Countries to 2050, FAO, Rome, 2009
US$ 15 billion/year in additional investment needed
5
Post-harvest Losses (PHL)
 Assuming very conservative estimates of
quantitative PHL of 10% in cereals, 30 percent in
fruits & vegetables and 20% in root & tubers, and
using 2007 production data for the 22
CORAF/WECARD countries, quantitative losses in
the region are:
 5.37 million tonnes of cereals
 2.43 million tonnes of fruits and vegetables and
 27.59 million tonnes of roots and tubers
 This amounts to a total monetary value of US$17.46
billion.
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Regional and Local Market Opportunities
 Demand for agricultural commodities and highvalue products across Africa is expected to grow
from US$ 50 billion in 2000 to US$150 billion in
2030.
 The potential income that farmers could derive at
the farm level from increased trade in domestic
and cross-border markets is expected to grow to
US$30 billion in 2030;
 Developing the necessary market links could
increase rural incomes by up to another $60
billion.
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Population Figures for CORAF/WECARD Countries
 Population of the 22 countries
considered together will increase
from current level of 417 million
to 527 million in 2020 and over
883 million in 2050.
 By 2020, an equal number of the
population will live in rural and
urban areas.
 Beyond 2020, the urban
population is projected to rapidly
outgrow the population in rural
areas.
 By 2050, 67% of the region’s
population will live in urban
areas.
8
Population Centers in West and Central Africa
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Africa in Global Trade and Value Addition
 African countries contribute less than 10% to global value addition.
 Africa’s share in world agricultural trade declined from 15% in the
1960s to 5.4% in the 1980s and 3.2% in 2006.
 Africa’s international trade is dominated by primary commodity
exports - almost 60% of total export value, remaining 40% being
fuels/petroleum.
 Non-fuel primary commodity exports, agricultural products account
for more than 25% of trade revenues
 Intra-African trade barely 10% of Africa’s total agricultural trade.
 Intra-regional exports averaging US$ 3.8 billion between 2000 and
2005 while imports of agricultural commodities from outside Africa
averaged US$ 33 billion.
10
Rice Import Figures
RICE IMPORTS IN SSA AND WCA REGIONS 2005 (in 1000 MT)
Global Rice Imports
SSA Total Imports (% global)
West & Central Africa Region (% global imports)
29,580
11,050
7,756
Benin
710
Cameroon
751
Congo (Bra)
92
Cote d’Ivoire
1160
Gambia
116
Ghana
627
Guinea
158
Liberia
168
Mali
173
Niger
60
Nigeria
1841
Senegal
1319
Sierra Lone
108
Togo
473
Sub-total WCA Region (as a % SSA)
7,756
37.4%
26.4%
70.2%
Source: World Grain Statistics (2007), International Grain Council, London (August 2008)
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Key Intervention Areas
Four main areas of support are
essential for development of postproduction agro-enterprises and
agro-industries:
1. Enabling policies & public goods;
2. Value chain skills & technologies;
3. Post-production institutions &
services;
4. Reinforced financing & risk
mitigation mechanisms
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Enabling policies and provision of public goods






Sector Strategies & Plans;
Legal and Regulatory Frameworks;
Grades & Standards;
Agricultural Mechanization;
Markets & Trade Infrastructure;
National & Regional Trade Policies
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Skills & technologies
 Development of skills &
technologies needed for postproduction segments of
agricultural value chains should
address:
Producer, Commodity & Industry Associations;
Value Chains Facilitation;
Business Development Services
Producer & SME Skills Building;
Technology Development & Transfer;
Vocational, Business & University Training
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Innovative Institutions and Public Services
 Contract Farming & Outgrower Schemes;
 Business Incubators, Hubs
& Clusters;
 Research, Technology &
Agro-Food Parks;
 Product Labeling &
Certification Schemes;
 Commodity Exchanges &
Market Information
15
Finance & Risk Mitigation





Public-Private Partnerships
Loan Guarantees
Investment Funds
Value Chain Finance
Risk Mitigation Products
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HLCD-3A Co-organizers
•
Government of the Federal Republic of Nigeria (Hosts)
•
African Union Commission (AUC)
•
African Development Bank (AfDB)
•
Food and Agriculture Organization of the United Nations (FAO)
•
International Fund for Agricultural Development (IFAD)
•
United Nations Economic Commission for Africa (UNECA)
•
United Nations Industrial Development Organization (UNIDO)
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3ADI Main Objective
To increase private sector
investment flows going into
the agriculture sector in
Africa by mobilizing
resources for agribusiness &
agro-industrial development
from domestic, regional &
international financial
systems
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3ADI - What the Initiative will do?
Specifically the Initiative will:
1. Leverage current attention to agriculture in Africa to accelerate
the development of agribusiness & agro-industries sectors that
ensure value-addition to Africa’s agricultural products;
2. Support a well coordinated effort to share knowledge &
harmonize programmes in ways that capture synergies, avoid
fragmented efforts, & enhance developmental impacts;
3. Support an investment programme that will significantly
increase proportion of agricultural produce in Africa that is
transformed into differentiated high-value products.
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