APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Asia-Pacific Economic Cooperation ROAD MAPT ARDS 2020 (V ( 0 2 0 2 S D R WA TO P A M D A O R Y T I R U C E S D O O F C E P A

POLI CY PARTNERSHIP ON FOOD S ECURI TY (PPFS) APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (VERSION 2013) O I S R E ) 3 1 0 2 N

Published by: INDONESIAN AGENCY FOR FOOD SECURITY Asia-Pacific Economic Cooperation B MINISTRY OF AGRICULTURE, 2013 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Policy Partnership on Food Security (PPFS) APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (Version 2013)

iii APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

iv APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Policy Partnership on Food Security (PPFS) APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (Version 2013)

Asia-Pacific Economic Cooperation

Published by: Indonesian Agency for Food Security Ministry of Agriculture, 2013 v APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

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Ministry of Agriculture Republic of Indonesia Foreword

he sharp increase of international food prices in 2008 and in 2011 have increased awareness and refocus of many governments’ attention on agriculture and Tfood security issues. Many experts predicted that increased food price volatility is likely to remain for the foreseeable future, particularly due to more unpredictable weather patterns. The pressure steadily rises as increased competition for alternative uses of land and water resources will further constraint the ability of agricultural production to expand in the future. Population growth and demographic changes, including rapid urbanization, will also put pressure on the global food system.

Achieving food security and eliminating poverty is a cross-border issue where a problem of a country will link to and affect others. Therefore, the establishment of APEC Policy Partnership on Food Security [PPFS], as primary mechanism for APEC economies to address food security issues,is an important step to achieve food security, both at national and regional levels.

As mentioned in APEC PSU report, there are at least five reasons why APEC has important role to play. First, there is still about one quarter of the world’s hungry residing in the region. Second, APEC account for 53 per cent of global cereal production and almost 70 per cent of fish production. Third, APEC consists of major players in global agricultural trade. Fourth, APEC economies are vulnerable to food security risks as experienced by riots during the food price crisis in 2007-08, and finally, APEC region is frequently exposed to natural disaster that temporary disrupt food supply, damage the food production base and reduce people access to food.

Hence, I fully appreciate and welcome this APEC Food Security Road Map Towards 2020 as the region strategic planning in achieving food security of the region, which raising the importance of partnership between government as policy formulator and private sector as food business players. I also highly appreciate the intention of involving small farmers into food value chains not only in improving their knowledge but also their incomes and welfare.Finally, I would like to express my high and sincere gratitude to all PPFS members for their hard work to make this road map is materialized.

Suswono Minister of Agriculture, Republic of Indonesia vii APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Remark

et me begin by welcoming the Policy Partnership on Food Security (PPFS) Roadmap on Food Security towards 2020. I believe this roadmap will pave Lthe way for a more cohesive and integrated collaboration of government and private sectors to implement result-oriented strategies in achieving food security in the region.

I applaud the Chair for his able chairmanship in PPFS 2013, and commend his tireless efforts in realizing this. The role of private sector is the strength of APEC and the establishment of this Road Map is a testament for enhanced partnership in the future. This is really an important step to move forward.

Almost 20 years ago, in 1994, Indonesia hosted and chaired the Asia Pacific Economic Cooperation (APEC) forum leading to an important milestone called the Bogor Declaration and its Bogor Goals that enhance the prospects of an accelerated, balanced and equitable economic growth not only in the Asia-Pacific region, but throughout the world as well.

This year, once again, Indonesia takes the lead of APEC 2013 under the theme “Resilient Asia-Pacific, Engine of Global Growth”. This theme is elaborated into three priorities namely Attaining the Bogor Goals, Achieving Sustainable Growth with Equity and Promoting Connectivity.

The second priority, Achieving Sustainable Growth with Equity, underscores the importance of ensuring quality growth by taking into account social inclusion and environmental sustainability in various areas of cooperation, including food security.

In APEC, the issue of food security was initially raised in 1999 by the private sectors under the APEC Business Advisory Council (ABAC) focused on establishing an APEC food system. Subsequently, the 2008 high food price volatilities reinforced the awareness of the importance of food security in the region, and for the first time in 2010, food security became one of the important agendas discussed in APEC through the successful Ministerial Meeting on Food Security in Niigata, Japan.

In Montana, United States in 2011, the APEC Policy Partnership on Food Security (PPFS) was established as the primary mechanism of APEC economies to address food security concerns. Finally in Kazan, Russia in 2012, the first APEC PPFS Meeting was inaugurated. viii APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Now, in 2013, I believe PPFS has reached a new standard of cooperation in APEC. Achieving food security in the region is one of our utmost efforts in the attainment of sustainable growth with equity. This Road Map will guide future cooperation in APEC to ensure the achievement of food security particularly in providing access to sufficient, safe and nutritious food for all people at all times.

Finally, I commend the work being done by the Indonesian Agency for Food Security representing Indonesia’s contribution in 2013 to APEC and as APEC’s contribution to the global effort in achieving food security.

I thank you.

Yuri O. Thamrin SOM Chair APEC Indonesia 2013/ Director General of Asia Pacific and Africa, Ministry of Foreign Affairs, Republic of Indonesia

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Acknowledgement

he idea of having Policy Partnership on Food Security [PPFS] started in 1999 when APEC leaders endorsed a plan for a unified APEC Food System. Ten Tyears later, in 2009, APEC Business Advisory Council [ABAC] issued a strategic framework for food security which among its recommendations called for the establishment of an on-going mechanism at a high level to ensure the policy and technical cooperation necessary to achieve an integrated food system.

In 2010, APEC Ministers Responsible for Food Security declared that consultation with relevant stakeholders is critical to making sustained progress towards food security goals and instructed Senior Officials to integrate ABAC into APEC’s food security efforts in a more sustainable manner. In 2011, APEC Senior Officials agreed to create a Policy Partnership on Food Security [PPFS]. In Kazan, Russia, in 2012 the meeting agreed to created four Working Groups [WGs] namely [1] WG on Stock- take and Action Plan Towards 2020, [2] WG on Best Practice Sharing, [3] WG on Investment and Infrastructure development, and [4] WG on Enhancing Trade.

In Jakarta, January 2013, the meeting agreed to rename the WGs became [1] WG on Stock-take and Food Security Road Map Towards 2020, [2] WG on Sustainable Development of Agricultural and Fishery Sectors, [3] WG on Facilitation on Investment and Infrastructure, and [4] WG on Enhancing Trade and Markets. The Jakarta meeting also agreed to draft the Food Security Road Map Towards 2020 and Inputs to the Leaders’ Statement on Food Security.

As the followed up the Jakarta meeting,a document called APEC Food Security Road Map was endorsed in Medan Plenary meeting 22-23 June 2013. This Road Map was considered as the strategic plan for APEC economies to achieve food security towards 2020. This document is a living document which might be adjusted in accordance with the dynamic nature of food security in the APEC region. Therefore, this document is called as version 2013. The Medan meeting also agreed that the implementation of the Road Map will be formulated in an operational Business Plan.

The endorsed Road Map covers food security challenges, vision and goals, mission and strategies, while annexes present the compilation of activities proposed by working groups and endorsed in Medan meeting. This book also presents two supporting documents that rich with food security related information, prepared by Japan-PPFS delegation led by Mr. Masaki Sakai of Japan Ministry of Agriculture, Forestry and Fishery [MAFF]. These include food supply and demand condition and food current situation. x APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

This Road Map is a result of collective works. Hence, I would like to express my sincere gratitude to all my PPFS colleagues mentioned below for their hard work, understanding, patience, willingness to share and spirit of togethernessthat make this Road Map completed faster than it is expected.

• The PPFS Vice Chairs, Mr. Pavel V. Skurikhin from Russia, Mr. Han Ji Zhi from China and Mr. Frank Ning Gaoning from ABAC. • Co-chairs of Working Group 1: Mr. Masaki Sakai from Japan, Mr. Rajiv Koshla from The United States of America and Mr. Pavel V. Skurikhin from Russia; Chair of Working Group 2 Mr. Franky Welirang from Indonesia; Chair of Working Group 3Mr. Antyukhin Kirill from Russia; and Chair of Working Group 4 Mr. Tony Nowel from New Zealand. • Great thanks to Mr. Thanawat Sirikul and Ms. Dewi Justicia Meidiwaty of APEC Desk Indonesia for their continuous supports which made PPFS meeting run well in order. • High appreciation to the World Bank Jakarta for valuable technical assistance, especially by providing Mr. Fabrizio Bresciani to share the ideas and Mr. Asep Sjaiful Bahri to work together with PPFS Chair Office team organizing the PPFS events. • Very special thank goes to Chair Office team and APEC Desk Indonesia for their never ending spirit and dedication to make sure everything is done in order.

Finally, I hope this Road Map is useful as a reference for APEC economies’ policy makers in addressing and overseeing all issues related to, and affecting, food security to drive economic growth and prosperity with dignity for people in the region.

Achmad Suryana APEC PPFS Chair 2013 Director General, Agency for Food Security, Ministry of Agriculture, Republic Indonesia

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APEC PPFS 2013 Management

Chair and Vice Chairs • Mr. Achmad Suryana, Indonesia (Chair) • Mr. Pavel V. Skurikhin, Russia (Vice Chair) • Mr. Han Ji Zhi, China (Vice Chair) • Mr. Frank Ning Gaoning (ABAC, China)

Co-chairs Working Group on Stock-take and Food Security Road Map toward 2020 • Mr. Masaki Sakai, Japan • Mr. Raj Koshla, the United States of America • Mr. Pavel V. Skurikhin, Russia

Chair Working Group on Sustainable Development of Agricultural and Fishery Sectors • Mr. Franky Welirang, Indonesia

Chair Working Group on Facilitation on Investment and Infrastructure • Mr. Antyukhin Kirill, Russia

Chair Working Group on Enhancing Trade and Market • Mr. Tony Nowel, New Zealand

Chair Office Team, Indonesia • Mr. Tjuk Eko Hari Basuki • Mr. Suryadi Abdul Munir • Mr. Nasfirman Yul • Mr. Asep Sjaiful Bahri • Ms. Nita Yulianis • Ms. Inti Pertiwi Nashwari • Ms. Dewi Kartika Damayanti • Ms. Murni

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Content

Foreword iv Remark v Acknowledgement vii APEC PPFS 2013 Management ix

APEC FOOD SECURITY ROAD MAP TOWARDS 2020 1 The Challenges 1 The Vision and Goals 2 The Missions 2 The Strategies 3 Plan of Activities towards 2020 5 Appendix. Detailed Activities and Goals 2020 6

ANNEX. COMPILATION OF WORKING GROUP PROPOSED ACTIVITIES 17

SUPPORTING DOCUMENTS 29 1. Food Supply and Demand 29 2. Current Situation 33

xiii APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Photo Session of the PPFS 1st Plenary Meeting, Ritz Carlton Hotel, Jakarta, January 2013

The PPFS 1st Plenary Meeting, Ritz Carlton Hotel, Jakarta, January 2013 xiv APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Challenges to Achieving Food Security in APEC

chieving food security In supply side, climate change in APEC region is facing and increased competition for Achallenges both in demand alternative use of land and water and supply sides. In demand side, the resources will further constraint the global population which reached 7 ability of agricultural production billion in 2011 is predicted to rise to to expand in the future. Higher 9.3 billion by 2050, with the APEC and more variable temperatures region estimated to have 3 billion and changes in rainfall patterns people, accounting for 32% of associated with climate change the world population at that time. could have severely disruptive effects Such rapid population growth has on agricultural yields. Meanwhile, caused many to questions whether land resources, as measured by there will be enough resources arable land per capita, have declined to meet the expected growth in sharply since 1961 and are projected food demand, especially since the to fall further, from 0.22 hectares in predicted increase in population use per person currently to 0.18 in will require food production to rise 2050. by an estimated 60%. In addition, the global use of agricultural crops Agriculture is an important for biofuels is expected to increase sector in many APEC economies, at an accelerated rate in the future, accounting for 13% of GDP in in line with many governments’ developing APEC. Sustainable policies pursuing clean energy. expansion of production, via the Demographic changes, including adoption on new technologies, rapid urbanization, will also put knowledge and skill as well the pressure on the global food system. modernization of infrastructure, Today, more than 50% of the global will not only help to address food population lives in urban areas – a security issues, but will also allow proportion that is forecast to rise for the potential of the agricultural to 70% by 2050. In addition, diet sector to be realized as an engine of diversification associated with growth. increased income will result in demand growth for agricultural Quoted from:APEC Policy Support products that outstrips the demand Unit, November 2012, “Challenges growth due to an increased to Achieving Food Security in APEC”, population. Singapore

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Apec Food Security Roadmap Towards 2020 (version 2013)

The Challenges 1. Food security has become an increasing concern among many APEC economies due to rising food prices and periods of price volatility. Food security is a multi- dimensional and complex issue consisting of many social, economic, environmental, physical and political factors. The commonly accepted definition of food security is: “Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life”.

2. However, APEC economies are faced with both demand and supply of food security challenges. On the demand side, APEC economies must deal with global population that will reach an estimated 9.3 billion in 2050. Income growth and urbanization resulting in the change in food consumption pattern, in term of variety and quality, and safety, and nutritional issues. Increased demand for food as energy feedstock and for other industrial uses will also become more prominent drivers of increasing demand for food.

3. On the supply side, natural resources constraints will become more stringent in the coming years, adversely impacting crops, fisheries, and aquaculture yields as well as the capacity to expand food production, including capture fishing. Agricultural land per capita is projected to decline from its 2012 level of 0.22 hectares in use per person to 0.18 in 2050, while the proportion of the population living in urban areas is forecasted to rise from 50% to 70%. In addition, increased cycle of adverse weather condition associated with climate change will cause yield declines from some important staple food crops, especially rice, wheat and fish products. Hence, in the absence of any policy intervention, the cost of food could rise substantially as a result of increasing demand and reduced production. Producers will also pass on the higher costs of climate adaptation measures to consumers [APEC PSU, 2012].

4. APEC economies are faced with different food security issues in their agricultural and fisheries sectors as well as in their approaches to address food insecurity due to different characteristics in each member economy. Another important challenge, especially in developing economies how to improve the involvement of the private sector and business entities in strengthening national and global food security.

5. Considering that establishing a comprehensive­ food system-based food security environment in APEC is a complex and long term effort, APEC created the Policy Partnership on Food Security [PPFS]. xvi1 2 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

The Vision and Goal 1. The PPFS vision is “APEC economies that are free from hunger and malnutrition, and contribute to the efforts of improving the living standard of all, especially the poorest and small holder, in an economically, socially and environmentally sustainable manners”.

2. The long term goal of the PPFS, as mentioned in its Term of Reference, is the attainment of a food system structure by 2020, sufficient to provide lasting food security to APEC member economies.

The Missions

1. The PPFS is the primary mechanism for APEC economies to address food security policy concerns and should oversee all issues related to, and affecting food security. The first mission of the PPFS is the development of a food sector that is economically efficient and profitable, socially acceptable, and environmentally sound. The important role of the private sector in achieving food security is fully recognized as a necessity. Hence, public-private partnerships will become the main approach in any APEC PPFS activity.

2. In line with the awareness of the important role of trade in achieving food security, the second PPFS mission, using the spirit of partnership as mentioned in the Niigata Declaration, is to enhance food production and trade, as well as to improve food stocks and safety nets for the poor; considering the level of development and resource endowment in each economy, and the role of trade in stabilizing food prices.

3. With full awareness that most APEC economies are dominated by small scale farmers and small scale fisheries and that poverty and food insecurity are highly correlated, the third mission of the PPFS is to consider how to improve small holders’ income and welfare as well as their competitiveness in producing food, in accordance with the PPFS 2013 theme “Aligning Farmers into the Achievement of Global Food Security”, which was designated by Indonesia as the APEC host economy, is in line with this mission.

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The Strategies

1. Several APEC sub-fora are already working directly on topics relating to food security, including the Committee on Trade and Investment [CTI] and its subgroup the Food Safety Cooperation Forum [FSCF], the Agricultural Technical Cooperation Working Group [ATCWG], the Ocean and Fisheries Working Group [OFWG], and the High Level Policy Dialogue on Agricultural Biotechnology [HPLDAB].

2. Closely linked to other APEC fora, APEC PPFS has three paths or strategies to achieve its goals. They are:

a. Sustainable Development of the Agricultural and Fishery Sectors,

b. Facilitation of Investment and Infrastructure Development, and

c. Enhancing Trade and Markets.

The spirit of mutually beneficial partnership between public and private entities, including farmers, as well as between developed and developing countries will always be firmly held in implementing PPFS activities.

3. The Road Map to achieving the goals of the PPFS should be strategic, result-oriented and comprehensive to achieve the long term goal of setting up a food system structure by 2020 sufficient to provide lasting food security to APEC economies, as instructed by ministers. The Road Map provides guidance for the three PPFS Working Groups [WGs],that were established in line with the three strategic issues mentioned above, to take appropriate measures to strengthen food security. The three WGs are WG on Sustainable Development of the Agriculture and Fishery Sectors, WG on Facilitation of Investment and Infrastructure Development, and WG on Enhancing Trade and Markets.

4. Members of each WG are encouraged to set up an implementation plan which details, in the style of a multiyear business plan, integrating the private sector in very specific ways, including who exactly will do what, when, where and how, and how those actions will be funded.

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5. In Developing Sustainable Agricultural and Fishery Sectors, the APEC PPFS will hold the principle of development that “meets the needs of the present without compromising the ability of future generations to meet their own needs”. Research and development, technology dissemination, management of marine ecosystem and aquaculture, farmer organization empowerment, and sustainable management of natural resources will become the core issues to address.

6. In Facilitating Investment and Infrastructure Development, APEC PPFS will refer to the Principles for Responsible Agricultural Investment, which is being discussed by international fora. This will also include infrastructure development and analyzing impact of Foreign Direct Investment [FDI].

7. In Enhancing Trade and Markets, APEC economies believe that trade can support food security when it improves incomes, improves availability or access to nutritious food, and improve price stability. Therefore, APEC PPFS shall support international trade that increases incomes where the gains from trade can be distributed among players in a more equitable manner and, in such a way that can improve small holders’ income. This is in line with the sub-theme of APEC 2013 “Achieving Sustainable Growth with Equity”. The priority toward 2020 will include trade facilitation in food and agricultural products, and improving governance frameworks.

8. In improving food supply, APEC economies should focus on promoting effective management of the food supply chains, reducing food losses and waste; sharing experience and information on reducing food losses and sharing effective models of food supply chains.

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Plan of Activities Towards 2020

he following are priority activities of each WG agreed to in the APEC PPFS Plenary meeting in January 2013, in Jakarta, Indonesia. Details are presented Tin the appendix. 1. Priority activities of WG on Sustainable Development of the Agricultural and Fishery Sectors a. Promoting research and development and technology dissemination. b. Promoting effective management of marine ecosystems, fisheries, and aquaculture. c. Strengthening farmer’s organizations and cooperation, strengthening resilience of smallholders, promoting the welfare of women in farming, empowering smallholder farmers into the food supply and value chain, and enhancing services and training for small holders. d. Ensuring sustainable management of natural resources such as land and water, enhancing positive externalities and minimizing negative social and environmental externalities of agriculture and fisheries, increasing resilience to natural disasters and global climate change, and providing food safety net, including proper nutrition for vulnerable communities.

2. Priority Activities of WG on Facilitation of Investment and Infrastructure Development a. Promoting investment in agriculture including through promoting the Principles for Responsible Agricultural Investment (PRAI). b. Infrastructure development and analyzing the impacts of Foreign Direct Investment (FDI).

3. Priority activities of WG on Enhancing Trade and Markets

a. Facilitating trade in food and agricultural products. b. Reducing food losses and waste. c. Improving governance frameworks. d. Promoting, studying and sharing of best practices of risk management methods among stakeholders in order to strengthen food security.

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Appendix. Detailed Activities and Goals 2020

WORKING GROUP ON SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL AND FISHERY SECTORS

A. Promoting Research and Development and Technology Dissemination

Promotion of scientific research and development (R&D) and dissemination of technologies is of crucial importance. There is considerable potential for further advances in R&D in the fields of agriculture and aquaculture by means of public and private investment in developing countries.

Goals 2020: 1. Promoting private and public R&D spending in agriculture and fishery.

2. Creating an attractive investment climate to encourage more private sector R&D investment in agriculture and fishery.

3. Promoting interaction between research institutes and innovation centers in APEC economies by means of establishing a regional network of such institutions and centers.

4. Developing effective public technology dissemination systems to enhance capacity- building and promoting agricultural knowledge sharing and transfer, while ensuring that gender-sensitive dissemination systems are created.

5. Promoting effective mechanisms to facilitate voluntary public-private technology transfer, while respecting intellectual property rights.

6. Developing policy environments for the use, regulation and trade of innovative and emerging technologies.

7. Developing technologies for efficient use and sustainable management of agricultural and fishery resources.

8. Developing technologies such as climate-smart agricultural technology to adapt to or mitigate the impact of climate change.

9. Providing open access to publicly funded agricultural relevant data, such as the G8 Open Data initiative. 5 65 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

10. Supporting initiatives to drive sustainable productivity gains, such as the G20 Meeting of Agricultural Chief Scientists whose goals are to identify global research priorities and targets, facilitate collaboration between public and private sector organizations in key areas, and track progress on established goals over time.

11. Conducting an analysis on agricultural and fishery areas and resources under stress and determine means and ways to return its potentials into full recovery or regenerate.

B. Promoting Effective Management of Marine Ecosystems, Fisheries, and Aquaculture

The APEC region accounts for two-thirds of the world’s wild capture fisheries and more than 80% of the total world share in aquaculture production. Population in APEC member economies consumes around 70% of the world’s fish products and fish provides a significant portion of animal protein consumption in the region, especially for low-income, food-deficit economies. For the past 50 years aquaculture has been the fastest growing food production sector in the world, with an annual growth rate of 8,9%. Most of aquaculture production in Asia, or 85%, are small-sized farms.

On the other hand, in recent decades wild fisheries around the world have faced serious problems, namely degradation of the marine and freshwater environments, over-exploitation of marine resources, and illegal, unreported and unregulated (IUU) fishing. These have caused damage to ecosystems and depleted fisheries resources. Related to aquaculture, the lack of effective disease management technology for farmers in developing countries poses a huge risk. Rapid and uncontrolled development of coastal aquaculture also have significant adverse environmental impacts.

Goals 2020: 1. Improving fisheries management and sustainable aquaculture practices. a. Increasing the number of APEC economies that ratify, or adhere to, the United Nations Convention on the Law of the Sea (UNCLOS), the United Nations Fish Stocks Agreement (UNFSA),1982; the Food and Agriculture Organization of the United Nations Compliance Agreement, 1993; United Nations Fish Stocks Agreement (UNFSA), 1995; FAO Port State Measures Agreement, 2009.

b. Increasing the number of APEC economies that implement the FAO Code of Conduct for Responsible Fisheries, 1995; FAO four International Plans of Action on Seabirds, Sharks, Fishing Capacity, and IUU fishing, 2001; the Strategy for Improving Information on Status and Trends of Capture Fisheries (Strategy–STF), 2003; and the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security, 2012, c. Combating illegal, unreported and unregulated (IUU) fishing and associated trade and improving fisheries management, 67 8 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

d. Sharing best practices and ensuring capacity building, information exchange and the provision of technical and financial assistance between APEC member economies on combating IUU trade in living marine resources and trade in illegally obtained fish production,

e. Improving traceability of fish and fish products for consumer protection,

f. Encouraging APEC economies to take voluntary measures, as appropriate, regarding certification of sustainable fishery and aquaculture products used directly as foodstuffs and indirectly as feed products, and

g. Identifying the economic and food security benefits of rebuilding overfished stocks and putting in place measures to rebuild such stocks.

2. Reducing excess fishing capacity. a. Identifying mechanisms to better manage fishing capacity, such as through projects that facilitate the sharing experiences of APEC economies in fishing capacity reduction and adjustment, to help ensure a balance between such capacity and long-term resource sustainability, and

b. Aligning the capacity of the world’s fishing fleets with the productivity of their target fish stocks, recognizing the special circumstances, requirements and interest of developing economies and artisanal fishers in developing their fisheries, consistent with the principles of sustainable development and relevant international instruments.

3. Promoting sustainable aquaculture practices. Sharing best practices between APEC member economies in technologies and innovations on disease management, promoting sustainable, environmentally and socially responsible feed production systems, recognizing the special circumstances and requirements of developing economies in aquaculture production.

4. Promoting contributions of sustainable managed small scale fisheries and aquaculture to food security. Creating greater market access for sustainable harvested fish products of small and medium enterprises (SMEs), small-scale fishers, and small scale aquaculture farmers.

5. Increasing investment in fishery human resources through trainings on technical capacity to foster more rapid implementation of best practice fishery management and legislative measures.

6. Improving gender equality in fishery development and ensuring that modernization and efficiency measures in this sector do not discriminate against women. 7 87 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

C. Strengthening Farmer’s Organization and Cooperation, Strengthening Resilience of Smallholders, Promoting the Welfare of Women in Farming, Empowering Smallholder Farmers into the Food Supply and Value Chain, and Enhancing Services and Training for Small Holders.

Small farmers provide around 80% of food consumed in developing regions of Asia. Farmers’ organizations and cooperatives play an important role in providing small farmers need on a wide range of services. These organizations play also a critical role in empowering farmers, including women, by providing training in the various fields, such as on natural resource conservation, as well as providing greater access to information, technologies, and innovations.

Goals 2020: 1. Providing easy and simple access for small holders to agricultural financial sources.

2. Supporting small holder farmers’ participation in agricultural insurance in order to reduce farming risks.

3. Empowering farmers and farmer groups or organizations through agricultural education and training, access to information, and technology transfer.

4. Providing small holder farmers and farmer organizations, including women farmers and traders, equitable access to markets and information on production, supply, demand, and prices of agricultural and fishery products in order for them to effectively participate in the markets.

5. Facilitating agricultural and fishery best practices sharing through training, extension services, and technology transfers.

6. Expanding access of women to local and regional agricultural associations, noting that women’s groups and cooperatives are often the most difficult to form and sustain.

7. Conducting the targeting programs for women in agriculture by using gender- based analysis of programs’ impacts to ensure these women receive maximum benefits from the efforts to achieve sustainable food security.

D. Ensuring Sustainable Management of Natural Resources such as Land and Water; Enhancing Positive Externalities and Minimizing Negative Social and Environmental Externalities of Agriculture and Fishery; Increasing Resilience to Natural Disasters and Global Climate Change; and Providing Food Safety Net, Including Proper Nutrition, for Vulnerable Communities.

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Soil degradation, desertification, accumulation of salts in soils, overuse of chemical fertilizers, pollution of underground water, release of greenhouse gases, the growth of cities; all of these factors have decreased the world’s arable land by 51 million hectares since 1992. Agriculture is also particularly vulnerable to climate change. Many APEC economies are prone to natural disasters. Agriculture has positive externalities such as flood and soil erosion prevention. On the demand side, there is still exist a sizable proportion of population in APEC member economies consumes food and nutrition below daily recommended. Meanwhile proper nutrition consumption is important during early child development, especially during the first 1,000 days. Evidence has shown that optimal nutrition during this time can have a lasting impact on a child’s growth, learning, and future productivity.

Goals 2020: 1. Promoting agricultural production practices that assist in adapting to, and mitigating of the impact of climate change.

2. Promoting sustainable crop diversification and agricultural production practices which contribute to enhancing land conservation while reducing chemical fertilizer dependencies.

3. Developing and introducing effective conservation systems to maintain soil fertility.

4. Developing sustainable agriculture by encouraging the use of environmentally low impact resources such as fertilizers and converting negative externalities of agriculture such as groundwater pollution and greenhouse gas emission to positive externalities of agriculture such as soil sequestration of Green House Gases( GHGs).

5. Facilitating technology transfers and best practices sharing in the area of sustainable management of land and water resources.

6. Using advanced technology to monitor conditions of land and water resources in APEC economies and sharing of data and considering potential links to this goal and the ongoing implementation of the Group of Earth Observation Global Agricultural Monitoring(GEO-GLAM )initiative

7. Increasing public-private investments in the construction of land-reclamation programs in APEC economies.

8. Promoting the sustainable use of natural resources by all people and societies.

9. Developing universal and voluntary guidelines on natural disaster preparedness for farmers and industries.

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10. Facilitating data and information sharing as well as best practices to expand natural disaster preparation and recovery.

13. Building a coherent public-private cooperation system framework in the food and market supply chain for natural disaster management.

14. Facilitating investment for agriculture and fishery infrastructure construction and renovation to prevent and prepare for natural disasters. 15. Improving sustainable irrigation by greater investments in water infrastructure.

16. Promoting technical cooperation in order to improve water resources management in developing countries.

17. Promoting water management and renovation of old facilities for more efficient use of limited water resources.

18. Promoting Participatory Irrigation Management (PIM) and the understanding of multi-functionality of paddy fields and agricultural water in cooperation with the International Network for Water and Ecosystem in Paddy Fields (INWEPF).

19. Identifying policy options and market approaches that give sufficient incentives to farmers, agri-food sector, and consumers to better react to market changes and contribute to enhancing positive externalities such as soil erosion prevention and flood prevention.

20. Identifying food insecure communities and taking targeted steps to overcome the problems, including provision of proper nutrition mainly for pregnant women and children.

WORKING GROUP ON FACILITATION OF INVESTMENT AND INFRASTRUCTURE DEVELOPMENT

a. Promoting Investment in Agriculture Including through Promoting the PRAI (Principles for Responsible Agricultural Investment)

b. Infrastructure Development and Analyzing the Impact of Foreign Direct Investment (FDI)

Low levels of public and private investment in agriculture and infrastructure can lead to low productivity and stagnation of production of many major crops in developing countries. The lack of infrastructure, institution, policies and services facilitating the free flow of goods need to be addressed, such as market access, border administration, telecom and transport infrastructure, and business environment. 1011 12 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Establishing the food supply chain with a cold chain infrastructure, transport and communications infrastructure/services through a strong PPP (Public and Private Partnership) scheme could be strongly effective in reducing food losses and wastes and may also lead to the development of food manufacturing industries which are important for the sustainable economic growth of emerging economies.

Goals 2020: 1. Increasing public investments in agriculture.

2. Creating an attractive business environment to encourage more private sector investments in agriculture.

3. Ensuring a high level of investor protection, including safeguarding and enforcing the rights and claims of investors and protecting robust intellectual property rights including Plant Variety Protection (PVP).

4. Consolidating information on each economy’s regulatory framework for agricultural investment and specific investment information on the Asia-Pacific Information Platform on Food Security (APIP).

5. Sharing good practices of agricultural investments through APIP.

6. Creating lists of prospective infrastructure projects for development using the mechanisms of state-private partnership in the framework of the PPFS.

7. Developing conditions for a functioning, unified transport and logistics network in APEC economies.

8. Reducing post-harvest losses through infrastructure development of food markets and supply chains, including the use of public/private partnerships.

9. Developing a framework of activities/business plans in accordance with the Principles for Responsible Agricultural Investment (PRAI), for APEC economies.

10. Forming a policy/roadmap in the development of the food industry utilizing a cold chain infrastructure and starting several pilot projects for building the cold chain infrastructure in the selected economies through public-private partnerships.

11. Promoting responsible agricultural investments that contribute to food security and nutrition within the framework of the RAI principles which is expected to be endorsed by the UN Committee on World Food Security’s in October 2014.

12. Supporting investment programs aimed at strengthening the food security of APEC economies within a framework of cooperation with international financial institutions (banks, funds, etc.).

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13. Disseminating knowledge on the use of satellites and information technology to enable the use of “precision farming” techniques.

14. Surveying and mapping unused land suitable for production in APEC economies, taking into account the availability of water resources and the impact on biodiversity.

15. Addressing supply chain barriers to trade, such as market access, boarder administration and telecom and transport infrastructure.

WORKING GROUP ON ENHANCING TRADE AND MARKETS

A. Facilitating Trade in Food and Agricultural Products Trade in agricultural products plays a key role in ensuring food security. All trade- related measures need to be in compliance with current WTO commitments.

Goals 2020: 1. Ensuring an affirmation of the pledge to end protectionist measures in trade of agricultural products.

2. Studying the impact of trade-related measures, especially export measures that impact food security.

3. Promoting development of regionally integrated markets.

4. Strengthening confidence in agricultural markets and establishing effective systems of collecting and disseminating market information.

5. Promoting harmonization of standards and adherence to international, science- based standards, i.e. Codex, World Organization for Animal Health (OIE), International Plant Protection Convention (IPPC).

6. Ensuring compliance with the WTO notifications requirement on export restrictions/ prohibitions in order to enhance transparency.

7. Reaffirming our pledge to refrain through the end of 2015 from imposing new export restrictions (Declaration of APEC leaders, 2012).

8. Ensuring effective global data standards for the connectivity of the food supply chain in support of APEC’s existing supply chain objectives and in coordination with the CTI:

a. Reviewing deployment of data standards in the framework of APEC and taking into account the interests of the food industry,

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b. Bringing the benefits of using global data standards to the attention of national food authorities, and

c. Introducing “smart” supply chains with the use of advanced technologies in satellite navigation and intelligent transportation systems.

9. Analyzing food market information such as price levels and the impact of price volatility throughout APEC economies.

10. Increasing transparency of the market by means of:

a. Obtaining more accurate data on production, consumption, trade and stocks in APEC region, and

b. Continuing maintenance and upgrading of APIP, creating links between APIP and the G20/AMIS as well as the ASEAN Food Security Information System (AFSIS)

B. Reducing Food Losses and Waste

Loss and waste of food occurs at all stages of the food supply chain because of deficiencies in infrastructure, training, and education and includes actions by farmers, suppliers, and consumers. Data on food loss are very limited and requires greater research.

Goals 2020: 1. Developing unified methodologies to estimate food losses and waste.

2. Identifying major sources of food loss and waste in the distribution channel (farm storage, food harvesting, food processing industries, transportation, retailers, and households), and compiling regional strategies for specific products in both developing and industrialized nations.

3. Introducing a plan for reaching a targeted rate of food loss and waste reduction

4. Facilitating the sharing of best practices in the APEC region.

5. Strengthening food supply chains and reducing food losses in developing economies through public-private partnerships:

a. Providing farmers with necessary technologies and managerial knowledge in handling and storage through improved extension services,

13 1413 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

b. Enhancing investments in modern agricultural machinery and equipment, storage facilities and transportation infrastructure,

c. Facilitating programs that encourage smallholder farmers to organize, diversify and scale up their production and marketing, and

d. Enhancing investments in the food supply chain with cold chain infrastructure in order to develop the food manufacturing industry and help increase revenues for farm producers.

C. Improving Governance Frameworks

A number of separate public agencies deal with the various aspects of food security. A few economies in the APEC region have a centralized agency as a coordinating body which is tasked to deal with food security as a whole. Various communication strategies with stakeholders, including the private sector, are undertaken in APEC economies with regards to food security policies.

Goals 2020: 1. Sharing strategies and experiences among APEC economies regarding their food security policy governance frameworks and their food security communication strategies with the private sector.

2. Determining the best or, at least, better governance framework for food security policy and communication strategies in each APEC economy, for example by establishing policy deliberating council with private sector and civil society membership for the purpose of incorporating external stakeholders’ viewpoints at the policy planning stage; conducting public hearings before important policy decisions are made; establishing policy evaluation council with private sector and civil society membership to objectively evaluate various policy decisions and their implementation.

D. Promoting Studying and Sharing Best Practices in Risk Management Methods among Stakeholders in order to Strengthen Food Security

Transitory food insecurity refers to unpredictable and abrupt occurrences in food production and trade which cause a temporary decline in access to adequate food. Unpredictable threats could be political, technical, demographic, or environmental. For example, the recent world food price hikes in 2007 and 2008 caused food insecurity in many countries and induced various policy actions including introduction of export restrictions, pursuance of self-sufficiency and establishment of food reserves.

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Goals 2020: 1. Evaluating the likelihood and impact of food security threats, with soliciting stakeholder input during the evaluation process.

2. Creating diversified strategies to respond to various potential economic and environmental risks for each of the APEC member economies.

3. Sharing best practices in risk management methods to strengthen food security in APEC economies.

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Photo Session of the PPFS 2nd Plenary Meeting, Medan, 22 June 2013

The Chairman, Vice Chairman, APEC Secretariat and the representatives of the Chair Office at the 16 PPFS 2nd Plenary Meeting, Medan, 22 June 2013 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

The Important Role of Intra-regional Trade in APEC

rade within APEC is extremely while the share of intra-APEC trade in important for its member food and agricultural products is even Teconomies, which absorb a higher. As a region, 72 per cent of all of significant portion of the region’s total APEC’s food and agricultural exports are exports and imports. The share of intra- absorbed by member economies while APEC trade in merchandise reached 67 70 per cent of its imports originate from percent of all total export and imports other economies.

Intensity of intra-APEC food and agricultural goods trade 2010, by member economies [share of total exports and import, in %] No. Economy Export [%] Import [%] 1 Australia 72 64 2 Brunei Darussalam 58 91 3 Canada 77 78 4 Chile 63 23 5 China 72 61 6 Hong Kong China 88 70 7 Indonesia 48 78 8 Japan 90 80 9 Malaysia 53 71 10 Mexico 87 90 11 New Zealand 64 77 12 Papua New Guinea 44 97 13 Peru 44 49 14 Philippines 64 82 15 Korea 90 81 16 Russia 29 17 17 Singapore 74 79 18 Chinese Taipei 90 67 19 Thailand 62 66 20 United States 73 68 21 Viet Nam 58 70 22 APEC 72 70 Quoted from: APEC Policy Support Unit, September 2012, “Food Security Policies in APEC”, Singapore

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Annex COMPILATION OF WORKING GROUPS’ PROPOSED ACTIVItieS

APPENDIX. Compilation of Working Groups’ Proposed Activities I. SUSTAINABLE DEVELOPMENT OF AGRICULTURAL AND FISHERY SECTOR Workstream 1 : Promoting research and development and technology dissemination

a. Economy Objectives Activities b. Due Date c. Lingkage • Optimizing seeding a. Indonesia • Accreditation and management and bio- b. – certification technology c. – • Integrating science and a. – technology into the - b. – supply chain c. –

Workstream 2 : Promoting effective management of marine ecosystem, fisheries, and aquaculture a. Economy Objectives Activities b. Due Date c. Lingkage • Provide data for fishery • Developing APEC Fishery a. Indonesia statistics to make Data center b. 2016 fishery management c. OFWG system. • Promotion of • Countermeasures a. SEAFDEC (Japan sustainable fisheries in against IUU fishing and support) Southeast Asia improvement of catch data b. – collection c. – • Developing and a. – disseminating techniques b. – of stock enhancement and c. – eco-friendly aquaculture 1817 18 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

• Wild-capture fisheries • Establish dialogue with a. Hongkong China specific: Promoting regional inter-governmental b. Sept 2013 effective management and scientific bodies and c. OFWG; CTI-CFF; of marine ecosystems institutions, and connect ISSF; SEAFDEC; and fisheries and with fisheries experts across APFIC; WorldFish raise the profile of APEC region to identify Centre; Asian food security in these where PPFS can add real Fisheries Society discussions value to promoting effective management of marine ecosystems and fisheries and also raise the profile of food security in these initiatives • Cross-cutting issues: • Establish connection with a. Hongkong China Support key issues of expert on gender and/or b. Dec 2013 concern that have yet under related concern and c. – to achieve using PPFS identify appropriate channel network through which to further the discussion in the region among industries and under stakeholder • Aquaculture specific: • Highlight key issues of a. Hongkong China Enhancing the role that concern and showcase b. Dec 2013 industry can play in channels through which c. – improving sustainable to achieve sustainable aquaculture fisheries aquaculture fisheries management management

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Workstream 3 :Strengthening farmers cooperation and resilience of small holders, promoting the welfare of women in farming, empowering small holder farmers into the food supply and value chain, and enhancing services and training for small holders

a. Economy Objectives Activities b. Due Date c. Lingkage • Partnership between • Workshop on integrating a. Indonesia small farmers and small holder farmers and b. 2014 private sector fisheries into supply chains c. ATCWG and • Improving the for sustainability in food Private Sectors productivity and and agriculture*) efficiency of production at on-farm and off-farm • To exchange information • Involvement of farmers in a. Rep­-resentatives and experiences and the APEC-PPFS dialogue of farmers’ to activate cooperation organization among the member in APEC organization economies b. – c. AFGC(Asian Farmers’ Group for Cooperation), WFO(World Farmers’ Organisation), and ICA (International Co- operative Alliance) • Foster core leaders of • Training courses on a. International agricultural cooperatives agricultural cooperatives Co-operative and rural women and marketing Alliance coordinators who and ASEAN support entrepreneurship Secretariat activities by rural women • Information sharing on (supported by marketing and crop Japan) production b. Continuing c. -

2019 20 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

a. Economy Objectives Activities b. Due Date c. Lingkage • Partnership between • Workshop on innovative a. Indonesia small farmers and private financing for farmers Chamber of sector Commerce b. 2015 c. - • Reduce shifting cultivation a. Indonesia and to safe the forest Chamber of through established palm oil Commerce farming b. 2016 c. –

• Certify all palm oil nucleus a. Indonesia companies Chamber of Commerce b. 2015 c. – • Identifying area of • Join ASEAN Pacific a. New Zealand government and private training program for local b. – sectors can cooperate community in the prone c. – with areas • To examine mitigation • Conservation of irrigation/ a. IWMI – and adaptation measures drainage facilities for supported by including water adaptation to climate Japan management technique change b. March 2015 c. – • To renovate of old • Improvement of irrigation a. MRC Japan facilities for more facilities adaptable to Support Project efficient use of water climate change in lower b. March 2014 adapting global climate Mekong basin c. – change • Preparing against the • Establish the support system a. ASEAN large scale disaster in by using earmarked stock supported by emergency aiming at and stockpiled rice (cash) Japan, China, expeditious establishment in order to correspond to Korea with a view to strengthen disaster in emergency b. 2014 food security and c. – eliminating poverty in East Asia • Providing participants • Workshop on disaster a. Japan with further information prevention and b. September of disaster prevention reconstruction 2013 and reconstruction c. –

19 2021 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

a. Economy Objectives Activities b. Due Date c. Lingkage • Understanding small - - farmers can contribute to value chain • Providing participants • Workshop on farmers’ a. Japan with information of market and innovation of b. September farmers’ market and local agriculture 2013 innovation of local c. – agriculture • Strengthening the value • Strengthening the food a. Asian chain in LDC industry in LDC of ASEAN Productivity region through the human Organization resource development (supported by Japan) b. – c. –

Workstream 4 :Ensuring sustainable management of natural resources

a. Economy Objectives Activities b. Due Date c. Lingkage • Providing participants • Workshop on agricultural a. Japan with further externalities and b. September understanding multi-functionalities in 2013 agricultural externalities/ agriculture c. – multi-functionalities • Implementation the project a. Japan (FAOs of the globally important Japan agricultural heritage system support project) b. March 2016 c. –

• Cooperation with the a. INWEPF International Network for member Water and Ecosystem in b. – Paddy Fields c. – • To use water efficiently • Cooperation with the a. INWEPF by promoting International Network for member Participatory Irrigation Water and Ecosystem in b. – Management [PIM] Paddy Fields c. • To use water and land • Rehabilitation and a. USA efficiently – encourage intensification of sub- b. – to use efficient land and system for agriculture c. – 2221 water resource 22 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

a. Economy Objectives Activities b. Due Date c. Lingkage • Land availability • Irrigation network damages - [allocation] for and rehabilitation expansion food crops • To develop sustainable • (consecutively) Promoting a. Thailand agriculture for the local the best practice for local b. 2016 community and farmers community and farmers to c. – maintain soil fertility and conserving biodiversity and ecosystem

Workstream 5 : Others

a. Economy Objectives Activities b. Due Date c. Lingkage • Providing food security • Developing agricultural a. Japan information for planning, statistic information b. – implementation, network – data base, c. AFSIS monitoring and evaluation ACO, EWI – and building in ASEAN region capacities

II. FACILITATION ON INVESTMENT AND INFRASTRUCTURE DEVELOPMENT

Workstream1: Promoting investment in agriculture including through promoting the PRAI [Principles for Responsible Agricultural Investment]

a. Economy Objectives Activities b. Due Date c. Lingkage • Increasing public • Engaging the private sector a. USA, Japan, investment in agriculture on sharing best practices Russia, • Creating an attractive to foster a favorable Indonesia, business environment to environment to attract Vietnam encourage more private domestic and foreign private b. 2020 sector investments in investment in agriculture. c. – agriculture For example, Cargill or • Ensuring a high level another corporation could of investor protection, make a presentation with a including safeguarding country such as Vietnam on and enforcing the the benefits of developing rights and claims of Commercial Business park to investors and protecting attract foreign and domestic intellectual property investment rights. 21 2223 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

a. Economy Objectives Activities b. Due Date c. Lingkage • Developing a framework • Seminar on the PRAI on July a. Japan of activities/business 2, 2013 – the outcomes b. Done in July plans in accordance with will contribute to the 2013 the PRAI, for specific ongoing consultation at the c. – APEC economies Committee on World Food Security [CFS] in Rome, which is mandated to take into account the PRAI • Promoting responsible a. Japan agricultural investment that b. Done in July contribute to food security 2013 and nutrition within the c. – framework of the PRAI principles • Consolidating • Providing accurate and a. Japan information on each accessible information b. 2020 economy’s regulatory system and data base of c. – framework for agriculture agricultural investment and specific investment • Sharing good practices a. Japan information in APIP of agricultural investment b. 2020 through APIP c. –

• Supporting investment • To create an opportunity for a. USA – Russia programs aimed at financial and development b. 2020 strengthening food organizations to inform the c. – security of APEC economies of their existing economies within programs to strengthen a framework of food security cooperation with international financial institutions [banks, funds, micro-finance institutions, etc]

2423 24 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Workstream 2 : Infrastructure Development and PPP and Analyzing negative impact of Foreign Direct Investment [FDI]

a. Economy Objectives Activities b. Due Date c. Lingkage • Creating list of • Creation of cold chain a. Japan, USA, prospective infrastructure infrastructure consortium Indonesia, China, projects for development to share experience Russia with use of mechanism of and guidance on the b. 2013/2014 state-private partnership development of an c. – in the framework of the environment to foster the PPFS creation of a cold chain infrastructure and related industries • Forming a policy/road • Creation of a cold chain a. Japan map in the development infrastructure consortium b. 2014 of the food industry c. – utilizing a cold chain • Setting up Steering a. Japan, Russia, infrastructure and starting Committee US, China several pilot projects b. 2015 for building the cold c. – chain infrastructure in • Launching several pilot a. Japan, Russia, the selected economies projects US, China, through public-private Indonesia partnership b. 2016/2020 c. – • Elaborating approaches to • Developing infrastructure in a. Russia improving the operation the Far East region of Russia b. 2016 of food supply chains - Russia plans to construct c. – including through a grain terminal in Port development of modern Zarubino in the Far East supply chain – value chain • Developing measures to a. Russia, Japan attract targeted investments b. 2020 into food markets c. – infrastructure and their logistical support • Developing conditions • Sharing the best practice a. Indonesia for a functioning, unified and challenges on ongoing b. 2020 transport and logistics public infrastructure c. – network in the framework projects – Jakarta of APEC economies Metropolitan Priority Area (MPA)

23 2425 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

a. Economy Objectives Activities b. Due Date c. Lingkage • Reducing post- • Sharing the best practice a. Japan, Indonesia, harvest losses and challenges on post- Chinese Taipei, through infrastructure harvest losses – Inviting New Zealand development of food companies such as b. 2013-2020 markets and supply Grain Pro to share their c. – chains, including the experience and innovative use of public – private products that are being partnership used to reduce post-harvest losses in an economical manner • Carrying out joint a. USA research project to share b. 2020 approaches and tools for c. – post-harvest handling • Disseminating knowledge • The International Rice a. USA, Indonesia, on the use of satellites Research Institute [IRRI] Philippines and information is working with the b. 2020 technology to enable government of the c. – the use of “precision Philippines and Allianz farming” techniques Insurance to use highly detailed satellite images to significantly cut the cost of selling crop protection in even the most remote corners of the world. The aim of this project is to make insurance more affordable and more accessible t farmers working on small plots of land. These actors could share their experiences with the economies at a future meeting • Surveying and mapping a. Russia unused land suitable b. 2020 for production in APEC c. – economies, taking into account the availability of the water resources and impact on biodiversity

2625 26 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

III. ENHANCING TRADE AND MARKETS

Workstream 1 : Non-tariff barriers to trade/enhancing market access

a. Economy Objectives Activities b. Due Date c. Lingkage • Member economies • Set up monitoring a. New Zealand to are cognizant of the and reporting draft frameworks for need, and take action process within discussiion at PPFSII to support regional ETCWG for private Medan 2013 food security through sector notification on b. For discussion in promoting policies that non-tariff barriers to Medan support food trade food products c. FAO food security • Business within the works, RIO+20 ‘The APEC region work future we Want’; collaboratively to identify G20: International and address trade Organisations barriers that limit access paper1(Improving to food trade policies); APEC : Market Access Group, Policy Support Unit; WTO and OECD monitoring reports; USC Marshall School reports to ABAC • Develop principles a. New Zealand for the application to prepare a of measures to papersynthesising achieve food security principles already and support trade existing and identify consistent with any gaps the ambitions of b. Defer to 2013-2014 the WTO Doha c. – Round for a rule- based, inclusive trade environment including imports and export [– 2014] • Assess the impact a. Rob Scolary Australia of trade-related to present at PPFS II measures on the Medan Plenary) attainment of food b. For discussion in PPFS security II Medan Plenary c. – Prepare report back a. PPFS Chair 2013 to the PPFS Plenary b. Done in July 2013 forsubmission to (PPFS Medan Plenary) 25 SOM c. – 2627 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Workstream 2 : Effective global data standards to enhance food trade

a. Economy Objectives Activities b. Due Date c. Lingkage • The cost of trading • Review ABAC/GS1 a. WG Chair in products across APEC proposal for deployment association region is reduced of data standards in APEC, with GS1 ensure it reflects food b. Done in July industry concerns and 2013 (PPFS promote through PPFS Medan Plenary) c. ABAC proposal to APEC/ CTI on global data standards; GS1; APEC: SCSC, SCCP • Business certainty is • Draw ABAC/GS1 proposal a. PPFS members increased to the attention of b. Done in July national food authorities 2013 (PPFS Medan Plenary) c. ABAC proposal to APEC/ CTI on global data standards; GS1; APEC: SCSC, SCCP

Workstream 3 : Enhancing supply chain connectivity for food

a. Economy Objectives Activities b. Due Date c. Lingkage • Efficient and safe • Review APEC Supply a. TBC distribution system Chain Connectivity b. 2013-14 throughout the supply Framework Action Plan to c. APEC: chain ensure food trade issues SCSC;SCCP • Surety of supply are covered • Economic development • Ensure appropriate a. WG Chair/GS1 [opportunity to linkages are created b. Ongoing participate in trade and between ABAC/GS1 c. – manufacturing] proposal for data standards within APEC and the APEC Supply Chain Connectivity Framework Action Plan 2827 28 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Workstream 4 :Refraining from imposing new export restriction

a. Economy Objectives Activities b. Due Date c. Lingkage • Ensure consistent PPFS • Complete relevant analysis a. TBC messaging backed up by and ensure references in b. Done in analysis of negative impact PPFS statement July 2013 of export restriction (PPFS Medan Plenary) c. WTO commitments; APEC Leaders’ statements

Workstream 5 :Analyzing implications of current high food market prices

a. Economy Objectives Activities b. Due Date c. Lingkage • TBC • TBC TBC

Workstream 6 : Reducing post-harvest loss and promoting food safety

a. Economy Objectives Activities b. Due Date c. Lingkage • Implement practical projects • Monitor progress a. Japan and to address identified with Japan Cold China Taipei problems Chain proposal and b. Review in Chinese Taipei best July 2013 practice public-private (PPFS Medan partnership Plenary) c. TBC

27 2829 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

The Minister of Agriculture, Republic of Indonesia officially opened the PPFS 2nd Plenary Meeting and launched the Expo, Medan, 22 June 2013

Intense discussion of the Working Group 1 Meeting during Break Out Session on the 2nd day of the 30 PPFS 2nd Plenary Meeting, Medan, 23 June 2013 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Photo Session of the PPFS 2nd Management Council Meeting, Kyoto, Japan 2013

PPFS Chair, PPFS Chair Office team and Indonesian Delegation (government and private officials) at thePPFS 2nd Management Council Meeting, Kyoto, Japan 2013 31 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

APEC’s Share on World Main Food Products

PEC region, which consists of of rice, maize, eggs, vegetables and only 21 out of more than 220 fish; more than 40 per cents of world Aeconomies in the world [less production of wheat, soybeans, beef than 10 per cents], play a large role and buffalo meats and fruits; more than in global food supply, accounting for 30 per cents of world production of raw more than half of the world production sugar and milk. APEC and world main food production, 2011 [ton] Production [000 tons] No Food products APEC’s share to world APEC World [%]

1 Wheat 287,327 701,395 41.0

2 Rice 256,239 469,664 54.6

3 Maize 580,168 885,290 65.5

4 Soybeans 106,553 262,038 40.7

5 Raw Sugar 51,834 170,840 30.3 Beef and buffalo 6 28,372 66,334 42.8 meats 7 Milk 225,562 739,363 30.5

8 Eggs 47,179 70,616 66.8

9 Vegetables 694,889 1,090,425 63.7

10 Fruits 258,544 637,576 40.6

11 Captured fish * 54,602 88,604 61.6

12 Aquaculture * 47,439 59,873 79.2

Notes: [*] 2010 data; includes fish, crustaceans, mollusca, etc., excludes aquatic plants. Rice production is rice equivalent, using 0.65 conversion factor paddy to rice. Source: FAOSTAT data [calculated].

32 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

APEC region food production is fruits and aquaculture; Viet Nam was dominated by China and the United rank 2 in aquaculture and rank 3 in rice; State of America. Other economies Thailand was rank 2 in sugar; Mexico that include in the top threeproducers was rank 3 in maize; Canada was rank in 2011were: Russia was rank 2 in 3 in soybeans; Australia was rank 3 in wheat and rank 3 in milk; Indonesia beef; Japan was rank 3 in eggs; Peru was rank 2 in rice and rank 3 in maize, was rank 3 in captured fish.

Top three APEC food producer economies, 2011 No Food Products Rank 1 Rank 2 Rank 3

1 Wheat China [16.7] Russia [8.0] US [7.8]

2 Rice China [28.0] Indonesia [9.1] Viet Nam [5.9] Indonesia & 3 Maize US [35.5] China [21.8] Mexico [2.0] 4 Soybeans US [32.1] China [5.5] Canada [1.6]

5 Raw Sugar China [7.4] Thailand [5.6] US [4.5] Beef and buffalo 6 US [18.1] China [9.0] Australia [3.2] meats 7 Milk US [12.0] China [12.0] Russia [4.3]

8 Eggs China [40.3] US [7.7] Japan [3.5]

9 Vegetables China [51.9] US [3.2] Russia [1.5]

10 Fruits China [21.1] US [4.3] Indonesia [2.7]

11 Captured fish China [17.4] US [4.9] Peru [4.8]

12 Aquaculture China [61.4] Viet Nam [4.5] Indonesia [3.9]

Notes:[…] is per cent share to world production. Source: FAOSTAT data [calculated].

33 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Supporting Document *) 1. Food Supply and Demand

zz The global population is predicted to reach 9.3 billion in 2050, adding more than 2.3 billion people on the demand side for food. The APEC region is estimated to have 3 billion people, accounting for 32 % of the world’s population at that time. To feed the population, food production will have to increase by 60 % in the world and by 70 % in the developing countries (FAO).

zz Food demand in the APEC region over the past 20 years has been driven by a combination of rapid population growth, a high rate of urbanization, higher income growth, and growing demand for bio-fuels (APEC PSU).

*) This document was prepared by PPFS-Japan Delegation. This document was used as an initial reference in composing a concise APEC Road map on Food Security toward 2020 3429 30 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Higher income growth expands consumption of live stock products, which necessitate a lot more grains.

Food Supply zz Agricultural production has been increasingly constrained as crop yields are not improving as fast as in previous years; public investment has diminished in the long term; and desertification, shortages of fresh water, conversion of farmland to non-food production and the adverse impacts of climate change have increased. (Niigata Declaration)

zz Slowing yield growth in the APEC region is pronounced in important crops such as rice and wheat. Between 1992 and 2010, rice production grew at less than one-third the rate at which it grew during the 1962-1991 period. The yield growth for wheat slowed from 2.6 % per year between 1962 and 1991 to 1.0 % per year between 1992 and 2010 (APEC PSU).

Average annual growth in the production of selected crops in APEC

Wheat Rice Corn Oil Crops % 1962- 1992- 1962- 1992- 1962- 1992- 1962- 1992- 1991 2010 1991 2010 1991 2010 1991 2010 Production 2.5 -1.0 3.3 1.0 2.4 2.7 4.0 4.0 Area -0.1 -2.0 0.8 0.2 0.6 1.0 1.5 1.0 Yield 2.6 1.0 2.5 0.7 1.8 1.7 2.5 3.0

(Source: APEC PSU Challenges to Achieving Food Security in APEC (2012))

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Long-term Projection zzAgricultural commodity prices are projected to remain relatively high over the next decade or so due to tightened food supply and demand both in the OECD-FAO and PRIMAFF, JAPAN long-term projections.

zz OECD-FAO

Agricultural commodity prices

(Source: OECD-FAO Agricultural Outlook 2012-2021)

3631 32 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

zz Policy Research Institute of MAFF Japan

(Source: World Food Supply and Demand. Projections to 2022. Policy Research Institute. Ministry of Agriculture, Forestry and Fisheries.(PRIMAFF)

Note: Nominal price refers to an economic value expressed in current prices including inflation(that is, in units of a currency) in series of years. Real price adjusts nominal value to remove effects of general price-level change over time.The figures by 2012 are actual value whilst the figures from 2013 to 2022 are estimated value.Future nominal price of rice is estimated by using CPI of Thailand and those of other crops are estimated by using CPI of U.S., the gap between the nominal price and the actual price of rice is wider than those of other crops.

31 3237 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

2. Current Situation

1. Sustainable Development of Agricultural and Fishery Sector

1-1. Promoting Research and Development and Technology Dissemination zz Agricultural research and development (R&D) is crucial to increasing production, enhancing quality and safety and reducing food losses. zz Public R&D spending in developed economies has been in a slowdown and that in developing economies still stays at law levels. ~~ The Research Intensity Ratio in 2008 (APEC PSU) (= Public agricultural R&D spending for every USD 100 of agricultural output.) 3.07 0.54

Developed economies Developing economies

Much smaller than recommended ratio of 1%

~~ The focus of agricultural R&D in developed economies has also shifted away from on-farm productivity enhancements towards food safety and quality as well as industrial uses of agricultural commodities. ~~ Stagnating public R&D in developed economies reduces international spillovers from such economies, negatively impacting future gains in productivity growth of both economies. ~~ Developing APEC economies increasing their public agricultural R&D spending is concentrated in just a few large economies and their spending level isn’t as high as that of developed economies.

3833 34 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

zzGiven the trends in declining public R&D spending, it is essential that APEC economies encourage private R&D investment. ~~ Share of private investments to total agricultural R&D spending (APEC PSU)

Developed Developing economies More economies 6% than 50%

~~ There is considerable potential to further build up agricultural R&D capacity through private investments in developing economies. ~~ To create an attractive investment conditions and business environment, improving agricultural infrastructure through ODA is also important. ~~ A high level of investor protection and robust intellectual property rights are important factors. zzIn developing areas, more than a billion people are suffering from extreme poverty and hunger. With regards to the food security in these areas, there are serious issues such as inadequate infrastructure and delay in development of technology which is indispensable for agricultural productivity improvement. zzIn order to tackle the above-mentioned issues, it is necessary to develop the following technologies: 1. Technologies to sustainably manage agricultural resources (e.g. Grass field management technologies to prevent desertification) 2. Technologies to improve the productivity and stabilize crop production in unstable environments such as those in the tropical regions (e.g. Developing varieties which have blast disease resistance and phosphate depletion resistance zzGlobal environmental issues such as climate change and deforestation give a massive impact on agricultural production.

{ Climate change } The IPCC 4th assessment report forecasts that the global temperature may be increased by 0.2 degrees Celsius per decade until 2030. { Deforestation } The forest area has been decreased by 5.2 million hectares every year (average from 2000 to 2010), even though afforestaion has proceeded in some Asian economies.

33 3439 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

zzIn order to tackle the above-mentioned issues, it is necessary to develop the following technologies: 3. Agricultural technologies to counter global warming (e.g. Elucidation of generation/absorption mechanism of GHGs; Forest management methods to reduce deforestation and forest degradation in tropical regions) 4. Technologies for effectively utilizing unused agricultural resources (e.g. Technologies to produce biofuels from unused biomass resources such as logged oil palm trees)

1-2. Promoting Effective Management of Marine Ecosystem, Fisheries, and Aquaculture zz In 2010, people consumed about 128 million tonnes of fish. In the last five decades, world fish food supply has outpaced global population growth, and today fish provides more than 4.3 billion people with about 15 percent of their intake of animal protein. Estimates for 2010 point to fish consumption reaching another new high of 18.6 kg per person. (FAO SOFIA) zz Stimulated by higher demand for fish, world fisheries and aquaculture production is projected to reach about 172 million tonnes in 2021. (FAO SOFIA) zz Some 57% of the world’s marine fishery resources are fully fished, or fished to the maximum sustainable level. Another 30% is overfished, depleted, or recovering from depletion (2009). (FAO SOFIA) zz The sustainable management of marine ecosystems, fisheries and aquaculture, and combating IUU fishing and associated trade is extreme important. (Kazan Declaration) zz For many economies of the APEC region, fisheries and aquaculture are significant components of social and economic wellbeing and contribute significantly to food security. (Kazan Declaration) zz In recent decades, global fishing has faced serious problems - degradation of the marine environment, overexploitation, and IUU fishing have damaged marine ecosystems and depleted fisheries resources. (Kazan Declaration)

1-3. Strengthening Farmer Cooperation and Resilience of Smallholders, Promoting the welfare of women in farming, and Empowering smallholder farmers into Food Supply and Value Chain zz Energy, food and financial crises in recent years seriously affected the livelihood of farmers in APEC economies. ~~ The increasing market volatility of prices, not only of agricultural products but also of agricultural inputs like fertilizer and fuels, has seriously affected all the farmers. 4035 36 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

~~ Global challenges such as climate changes and environmental degradation­ are also affecting farmers and agricultural production. zz Farmers’ organizations and cooperatives play an important role in providing farmers, in particular smallholder farmers, a variety of services such as training in natural resource management as well as better access to information, technologies, innovations etc. ~~ The cooperative system represents a fundamental tool for eradicating hunger and reducing poverty, being a catalyst for socially-inclusive development (jobs and income generation). They also represent a powerful means for supporting marginalized groups, such as youth and women. ~~ The role of the cooperative system is important especially in developing economies. zz International Cooperation between farmers is proceeding especially in times of natural disasters. ~~ Japanese farmers received heartful supports from farmers all over the world when the Great East Japan Earthquake caused a tremendous damage to regional agriculture. zz Globally, there are an estimated 500 million smallholder farms in developing economies, which cultivates most of the agricultural land. (APEC PSU) ~~ Smallholders support two billion people’s diet. Smallholders provide up to 80 percent of food consumed in developing regions of Asia. (FAO, IFAD etc.) zz Smallholders commonly face and suffer from price fluctuations, especially in developing economies. ~~Weak market information systems and poor market integration often result in smallholders making incorrect decisions on what and how much to produce. ~~Lack of adequate technologies and knowledge can lead to unsustainable practices by small holders, which impoverish the natural resource base and, in the longer term, contribute to volatile supply. ~~Initiatives such as the Agricultural Marketing Information System (AMIS, a G20 initiative), which seeks to provide greater transparency in market information system can help reduce market uncertainty. Initiatives such as AMIS could provide value-added, especially if the information is shared broadly with the agricultural sector. zz Much of the private investment comes from the farmers themselves. ~~Smallholders in particular face many challenges in obtaining access to credit since they often have few assets that can be used as collateral. ~~Enhancing access to credit is an essential business condition to promote smallholders’ investment.

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1-4. Ensuring sustainable management of natural resources, enhancing positive externalities of agriculture, increasing resilience to natural disasters and providing for vulnerable communities, focussing on the impact of proper nutrition zz Agriculture and rural area, which have the crucial role in food security, can contribute to other positive externalities such as conserving agricultural land, fostering water resources, preserving landscape and protecting biodiversity. zz These multi-faceted functions of agriculture can be difficult to value but once destroyed, they are irreparable or require a great amount of time and investment to recover. Hence, we need to continue with strenuous efforts to maintain and enhance positive externalities by reinvigorating agriculture and rural area. zz Agricultural activities also has negative externalities such as groundwater depletion and GHG (Green-House Gas)s emission. Especially, agriculture is a major net contributor of GHGs, accounting for about 13% of the total if fuel, fertilizer are included. The intensification of agricultural practices (especially the use of fertilizers) and changes in dietary patterns (in particular increased consumption of meat) are projected to drive up these emissions. Therefore, we need to reduce negative externalities.

Food zz World population will increase to 9.3 billion in 2050. zz World agricultural production will need to increase by some 60 percent (70% in developing economies) from 2005/2007 to 2050. zz Over the past 50 years, land and water management has met rapidly rising demands for food. In particular, input-intensive, mechanized agriculture and irrigation have contributed to rapid increases in production. More than 40 percent of the increase in food production came from irrigated areas. zz Agricultural land per person has reduced dramatically from 0.45 in 1961 to 0.22 ha per person in 2008. (FAO) zz In order to increase agricultural production, the increase of land productivity through the enlargement of irrigated area is necessary.

Land Resource zz World soil degradation accounts for approximately 15% of the world area. Environmental issues such as desertification and salt accumulation have been occurring. zz Paddy field has multi-functionality such as flood control, sediment control, groundwater recharge and ecosystem. zz Development and implementation of effective systems aimed at the prevention of unfavourable nature disasters and restoring soil fertility, as well 4237 as the regulation of atmosphere parameters. 38 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

zz Creating and strengthening international organizations of producers, including Farmers’ Water Management Association, and promoting Participatory Irrigation Management.’

Water Resource zz The volume of water resource accessible for human beings is limited. zz Agriculture is the biggest user of freshwater, accounting for a global average of 70% of all water withdrawals. Efficient use of agricultural water is necessary. zz Establishing and strengthening of Farmers’ Water Management Association and promoting Participatory Irrigation Management (PIM) are necessary.

International Network for Water and Ecosystem in Paddy Fields (INWEPF) zz INWEPF was established by some paddy countries mainly in Asia-monsoon region and some international organizations such as FAO and IWMI in 2004. zz INWEPF is a network for sustainable paddy farming, and studies about paddy field and ecosystem such as PIM system and multi-functionality of paddy field, which is disseminated to the international society. zz It is important to support the progress of INWEPF activities.

Multi-functionality of paddy farming a. Flood Prevention Soil of a rice paddy or a field with high absorption capability, which is enclosed by levees, can prevent or alleviate flooding by temporarily holding rainwater and releasing the water gradually to downstream areas over a longer period of time.

37 3843 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

b. Soil Erosion Prevention (Prevention of Run-off) Water filled in rice paddies protects the soil from rain and wind and prevents erosion. Fields also have the function to prevent run-off to downstream areas by the ground-covering effect of plants and by the gentle slope of the field.

c. River Flow Stabilization Most of the irrigation water used for rice paddies as well as rainwater permeates underground, part of which will be incorporated in spring water and eventually discharged back into the river, contributing to the stabilization of the river flow.

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d. Groundwater Recharge Most of the irrigation water used for rice paddies as well as rainwater permeates underground and enters the groundwater of the drainage area, which will subsequently be used for household and industrial uses as good quality water.

e. Atmospheric Regulation (Climate Moderation, Atmospheric Purification) Plants cultivated in farmland absorb heat by evapotranspiration, which has an effect of reducing temperature. Particularly in rice paddies, the climate condition is eased by evaporation from the water surface of the paddies (function of climate condition relief). In addition, plants in green areas such as rice paddies and fields not only absorb carbon oxide and release oxygen, but also absorb air pollutants including sulfurous acid gas and nitrogen dioxide (atmospheric purification function).

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Sustainable Development of Agriculture by promoting the Use of Organic Fertilizers zzChemical fertilizer use is rising, particularly in developing countries, to increase farm productivity in response to the increased food demand (Figure 1). zzOveruse of chemical fertilizers harms the environment in terms of groundwater pollution and greenhouse gas emissions (i.e. negative externalities).

zzPrices for chemical fertilizers and their raw materials have been rising(Figure2) in a fear that the world reserves of fertilizer resources, particularly phosphorus and potassium, are going to be depleted. zzThere is a possibility that the chemical fertilizer prices will rise furthermore in response to the increasing crop production. Those rising prices worsen the business conditions of farmers, particularly those of smallholders.

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Strengthening Resilience to Natural Disasters zzAPEC economies are prone to natural disasters which severely affect agricultural sectors. ~~ The Asia-Pacific region experiences over 70 percent of the world’s natural disasters. ~~ Most APEC economies are located in the Pacific Ring of Fire, which is home to over 75 percent of the world’s volcanoes and is the source of 90 percent of the world’s earthquakes.(Niigata Declaration). zzNatural disasters have surfaced as a major food security concern for all APEC economies. (APEC PSU) ~~ By ongoing drought in the United States, Corn production is forecast at 10.8 billion bushels, down 13 per cent from 2011 and the lowest production since 2006 while soybean production is forecast at 2.69 billion bushels, down 12 per cent from last year (USDA, 2012b) ~~ Agricultural output fell by 12 per cent following a severe drought in Russia in 2010. Total grain output was reduced by 31 per cent compared to the previous five-year average. Barley, the principal feed crop, had a 52 per cent fall in output compared to the average of the previous five years.

2. Facilitation on Investment and Infrastructure Development 2-1. Promoting investment in agriculture including through promoting the PRAI, Infrastructure Development and Analyzing negative impacts of FDI

zzInvestments in hard and soft infrastructure and R&D are critically important to increasing agricultural production and productivity. ~~ Investments in food, agriculture and rural development need to increase by 50% in order for food production to meet the expected growth in demand by 2050 (FAO). zzThere has been a low level of investment in the agricultural sector of most developing economies over the past 30 years, resulting in low productivity and stagnant production of many staple crops. ~~ There is wide disparity of agricultural investments within APEC region. (APEC PSU)

Average capital stock per agricultural worker

USD 219,900 USD 1,822 (Industrialized APEC economies) (Developing APEC economies)

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~~ This highlights the need for investment in developing APEC economies ~~ Much of the private investment in the agricultural sector comes from the farmers themselves. They face many challenges in obtaining access to credit since they often have few assets that can be used as collateral. zzODA will no longer be a major source of funding in the region. ~~ Share of agricultural and fisheries sectors to the total ODA commitments also declined (APEC PSU), 9% (1995-96) 5% (2009-10) zzGiven the trends in declining public R&D spending, it is essential that APEC economies encourage private R&D investment. ~~ Share of private investments to total agricultural R&D spending. (APEC PSU)

Developed economies More than 50% Developing economies 6%

~~ There is considerable potential to further build up agricultural R&D capacity through private investments. zzPromoting private sector investments including Foreign Direct Investment (FDI) is critically important to reactivate agricultural investments. ~~ Primary agriculture have not been the most attractive sectors for FDI, accounting for just 5.4% of global FDI inflows during 2008-10. Of this amount, over 90% went to processed agriculture, indicating that much of the FDI is concentrated in the downstream agricultural activities of processing, manufacturing, and retail trade (APEC PSU). ~~ To create an attractive investment conditions and business environment, improving agricultural infrastructure through ODA is also important. ~~ A high level of investor protection and robust intellectual property rights are important factors. Protection of Intellectual Property Rights to strengthen Food Security (Regional Cooperation to Establish Plant Variety Protection Systems) zzVarious types of intellectual property rights play a very important role in every stage of food supply chain starting from farming.

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zzIn particular, impacts of new varieties on productivity growth can be very substantive, as exemplified by remarkable historical increase of rice yield in Japan. Contribution of new varieties to yield growth is near 50%. Contribution of Fertilizer is 20% (3.3/2.7) that of farming machines such as cultivator is 10% (3.6/3.3), and that of Pesticide is 25%(4.6/3.6).

43 4449 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Source: Developed by MAFF based on MAFF-statistics and other sources.

zzGenetic Resources are treasures. Breeding Technology and Investment from Private sector are critically important to create new varieties. If there is no protection for Breeder’s Right, no one pay for R & D. Plant Variety Protection System facilitates private sector’s investment, promotes trade, expands markets and strengthen Food Security.

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Quality of roads and ports zzIt is important to develop internationally harmonized Plant Variety Protection systems. zzHowever, the International Convention for the Protection of New Variety of Plants has been ratified only by few economies in the APEC region and further cooperation in capacity building is necessary.

Infrastructure Development & Public Private Partnership (PPP) zzFor many developing APEC economies, there underinvestment in agricultural infrastructure, resulting in food losses and lower crop yields. zzIn 2009, only half of the total area with the potential for irrigation was actually equipped for irrigation in developing APEC economies (excluding China). (APEC PSU) zzRoads and ports in developing APEC economies are, on average, of poorer quality in comparison with those in industrialized APEC economies, reflected by their lower score in the responses to the Global Economic Forum’s Executive Opinion Survey as to the quality of roads and port infrastructure. zzCold chain infrastructure is commonly recognized as an important solution for the food loss. This infrastructure is consisted of a set of 3 facilities – a cold storage, a primary processing and a public wholesale market. Building the nationwide cold chain would help grow food industry. This could be achieved only through PPP where Public plays a role of policy formation in roadmap, financing & tax system, hygiene system etc and Private shares the operational expertise, technology, food business know-hows etc.

Quality of Quality of roads infrastructure SN 6.5 6.8 HKC 6.3 6.5 CDA 5.9 5.7 JPN 5.9 5.2 ROK 5.8 5.5 USA 5.7 5.6 CT 5.7 5.3 CHL 5.6 5.2 MAS 5.4 5.5 BD 5.2 4.5 Note: 1=extremely AUS 5.1 5.1 underdeveloped THA 5.0 4.6 7=extensive (roads) NZ 4.9 5.5 / well developed MEX 4.5 4.3 (ports) and efficient by PRC 4.4 4.4 international standards. NA 3.4 3.6 PHL 3.4 3.3 (Source: World Economic PE 3.1 3.5 Forum, The Global VN 2.7 3.4 Competitiveness Report 45 RUS 2.3 3.7 2012-2013. ) 4651 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

Promoting the Principles for Responsible Agricultural Investment (PRAI) zzThe IAWG, having been welcomed by G8, G20, and APEC, is now operating pilot projects for research and analysis of the PRAI as well as its pilot use until mid 2013. zzThe IAWG operations are supported by PHRD (Policy and Human Resources Development) fund of the World Bank, FAO’s work to develop a database and policy guidance on agricultural investments (a trust fund project), and a 2013 scheduled APEC’s seminar to share the outcomes of the pilot projects. zzMeasures need to be implemented for agricultural investments in a responsible manner, both for public and private, to avoid negative impacts and to promote their profitable nature. zzMeanwhile, taking PRAI into account, the Committee on World Food Security (CFS) has commenced a consultation process scheduled by 2014 to develop CFS’s principles for responsible agricultural investments (rai principles) to secure broader ownership of them. The process reached to the draft outlines as of February 2013.

Analyzing Negative Implication of Foreign Direct Investment zzGlobal food price hike in 2007-08 triggered large-scale land acquisition events in developing countries especially in Africa and Asia. Those events peaked in 2009, and some of them were reported by the press as “land grabbing” and provoked international concerns. zzFollowing that, the Principles for Responsible Agricultural Investments (PRAI) were elaborated by relevant international agencies in 2010, which aimed at avoiding negative impacts on local communities and providing tripartite benefits to recipient economies, local people including farmers and investors, and the research and analysis of PRAI are ongoing at present. Further, since 2012 FAO’s Committee on World Food Security (CFS) has commenced a consultation process to develop CFS’s principles (rai principles) to secure broader ownership. zzReflecting those international circumstances, outstanding three reports on agricultural investments were published one after another from October 2012 to January 2013 as follows: ~~ Trends and Impacts of Foreign Investment in Developing Country Agriculture (FAO trust fund project) ~~ The State of Food and Agriculture 2012 –Investment in Agriculture for a better future (FAO) ~~ Trends in Foreign Direct Investment in the Agricultural Sector of Developing and Transition Countries

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Berlin Agriculture Ministers’ Summit 2013 Back Ground Study zzSome major findings of those reports are as follows: ~~ In development countries, farmers are by far the largest source of agricultural investment. In order to promote farmers’ investments, public investments into infrastructure which play a catalytic role are important as well as corporate investments which adopt inclusive business models involving farmers. zzWhile Large-scale agricultural land acquisitions may entail some risks to cause denial of access to resources, loss of livelihood, food insecurity, and environmental damage where there is a lack of good governance and clear land tenure rights in host economies, they offer also opportunities in terms of increased production, export earnings, employment and technology transfer. This is why the CFS’s principles for responsible agricultural investment (rai principles) is necessary ~~ There is a need for “patient investment” provided by investors with long- term perspectives in order to ensure that the expected benefits materialize. Therefore a long-term viewpoint is necessary to correctly evaluate individual investments.

3. Enhancing trade and Market 3-1. Facilitating Trade in Food and Agricultural Products zz Agricultural trade plays a key role in achieving food security. To this end, we reconfirmed the value of an open and rules-based multilateral trading system under the framework of the WTO, which provides predictability and stability in agricultural trade. We agreed on the need to sustain the benefits of globalization and open markets, highlighting the crucial importance of encouraging science- based standards, rejecting protectionism and encourag0ing the development of regionally integrated markets.(Kazan Declaration) zz Agricultural trade accounted for 8.3% of the value of global goods trade in 2011, while agricultural exports as a share of the total value of goods exports from APEC economies were 5.8% in 2011. Average MFN tariff rate on agricultural products in the APEC region was 12.3% in 2011 in comparison with 4.7% on non-agricultural products. Agricultural exports of developing economies as a share of total exports are 4.5% lower than those of industrialized economies, 8.0%. (APEC PSU) zz As well as increasing concerns about non-tariff measures such as technical barriers to trade (TBT) and sanitary and phyto-sanitary(SPS) measures. Between 1995 and 2011, 30% of the 317 specific trade concerns raised against a TBT measure were related to an agricultural product, nearly half of which named an APEC economy as the maintaining member. (APEC PSU) zz Trade rules on agriculture are being discussed under the DDA in the WTO. Successful outcome at the 9th Ministerial Conference (MC9) in Dec. 2013 in Bali will be essential for making a breakthrough in the subsequent DDA 47 negotiations including Agriculture negotiations. 4853 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

zz At the same time there is a growing trend toward regional trade agreements, especially plurilateral one compared to bilateral one. zz (There has been a steady increase in the number of developing economies which once were net food exporters but have become turned to net food importers. “Developing APEC economies where strong economic growth since 2000 has strengthened food demand beyond their capacity to expand production, reflected by a substantial increase in their food import bills” from 10 billions USD in 2000 to 40 billions USD in 2010. (APEC PSU) zz As tariffs are reduced as a result of a succession of trade liberalization negotiations, greater attention and importance are being put to Non Tariff Measures (NTMs) including regulatory measures, such as TBT/SPS measures. zz Regarding TBT measures, among 317 concerns raised in the WTO between 1995 and 2011, around 30% of them were related to agricultural product, nearly half of which were maintained by APEC economies. The number of concerns raised on SPS measures have been decreasing since 2002. (WTO World Trade Report 2012, APEC PSU) zz Sufficient Information on NTMs other than TBT/SPS is not available from official resources. zz Bans and other restrictions on the export of food may cause price volatility, especially for economies that rely on imports of staple products. (Kazan Declaration) zz In 2008, when the world food price increases unprecedently, export restriction measures were taken on cereals and other food products, which in turn had detrimental effects on world price. Even social disorder happened in countries outside the APEC region. zz Exporters have a right to apply export restrictions temporarily to prevent/ relieve critical shortages of foodstuffs (Article XI of GATT). If they apply the measures, notification to the WTO in advance is necessary, but this notification rule is not well observed. zz We reaffirm our pledge to refrain through the end of 2014 from imposing new export restrictions. (APEC Leaders’ Declaration, 2012) Ensuring Effective Global Data Standards for Food Supply Chain Connectivity zzAPEC economies have a stated goal of reducing supply chain costs across the region by 10% by 2015. zzThe role that global data standards and interoperability of information systems could play in eliminating supply chain “choke points” that inhibit the flow of information and goods across borders.

Food Price Hikes and Volatility (Including the Analysis of Current High Food Market Price) zz Slowing production growth in the past two decades for agricultural products, against a backdrop of accelerating demand growth, has created a tight 5449 agricultural market globally. 50 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

zzFood price volatility creates unpredictability in the market and poses fundamental food security risks for consumers and public. Volatility also discourages needed investment in agriculture for development due to increased financial risks and uncertainty for producers and traders. zzThe recent price hikes in 2007-08 and again in 2012 highlighted the vulnerability of many economies.

Higher food prices had pushed 130 million to 155 million people into poverty in 2008 and 44 million people in 2011 according to the World Bank estimates. zzAPEC Policy Support Unit identified five major determinants of price hikes and volatility. zz(Source: page10-11,Food Security Policies in APEC, APEC Policy Support Unit, September 2012) 1. Population growth and urbanization in developing economies have added significantly to the demand for food and will continue to do so in the foreseeable future. 2. Agricultural commodity prices are becoming increasingly correlated with oil prices, which negatively impact the cost of fertilizers, transportation and shipping. 3. Many of the world’s agro-ecosystems being used as food production systems are already showing worrying signs of degradation and unsustainability. 4. The world remains vulnerable to food price fluctuations because grain reserves are low and staple grains are exported by just a few economies. zzThere was enhanced transparency in the market with the introduction of Agricultural Market Information System (AMIS) under the Action Plan of G20. Self-Restrains on imposing export restrictions also helped to enhance market 49 transparency and keep stability. 5055 APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (version 2013)

zzSharing more information on food security is necessary to enhance transparency and predictability in the agricultural market. zzThe ABAC portal provides substantive information. The Asia-Pacific Information Platform on Food Security (APIP on Food Security) was launched in March 2012. zzIt was agreed in Kazan Declaration to consider opportunities for cooperation between the APIP on Food Security and the G20/Agricultural Market Information System (AMIS).

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3-2. Reducing Food Losses & Waste zz One-third of food produced for human consumption is lost or wasted globally, which amounts to about 1.3 billion tons per year. (FAO) zz Food is lost or wasted throughout the supply chain, from initial agricultural production down to final household consumption.

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Figure 1.

(Source: FAO Global Food Losses And Food Waste)

zz In medium- and high-income economies food is to a significant extent wasted at the consumption stage, meaning that it is discarded even if it is still suitable for human consumption. For example, foods which are past sell by date are discarded even though they are still edible. zz In low-income economies food is lost mostly during the early and middle stages of the food supply chain; much less food is wasted at the consumer level. Given that many smallholder farmers in developing economies live on the margins of food insecurity, a reduction in food losses could have an immediate and significant impact on their livelihoods. zz There are differences among different agricultural products in terms of where and how much food losses occur in the supply chain(FAO:Figure2,3) zz Data on food losses are extremely limited, and much of what is available is out of date. Furthermore, there is no standardized methodology for measuring food losses across the different agricultural products

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Figure 2.

(Source: FAO Global Food Losses And Food Waste)

Figure 3.

(Source: FAO Global Food Losses And Food Waste)

zzAPEC economies may be interested in the ”Think.Eat.Save.Reduce Your Footprint” initiative which was launched in January 2013 by the Food and Agriculture Organization and the UN Environment Programme. This initiative seeks to reduce food loss and waste along the entire chain of food production and consumption. The website (www.thinkeatsave.org) provides more information.

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Public and Private Partnership on Food Safety and quality zzFood safety is an essential element of food security. zz“Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life”. (World Food Summit, 1996) zzThe global incidence of food borne disease is difficult to estimate, but it has been reported that in 2005 alone 1.8 million people died from diarrheal diseases. A great proportion of these cases can be attributed to contamination of food and drinking water. (WHO 2007)

3-3. Developing Technologies to Control Livestock Diseases and Zoonoses zzSerious livestock diseases and zoonoses, such as foot-and mouth diseases and highly-pathogenic avian influenza not only give economic damages to livestock industries but also cause serious world-level public health problems and create trade barriers in the globalized society. zzStandards should be based on science and internationally recognized standards (i.e. Codex) in order to ensure uniformity and proper management of the problem. zzIn order to tackle the above-mentioned issues, it is necessary to develop the following technologies: 1. Prompt and simple diagnosis technologies for serious livestock diseases such as foot-and-mouth disease and zoonoses such as highly-pathogenic avian influenza. 2. Technologies to prevent occurrence of live stock diseases and zoonoses. 3. Technologies to contain spread of those diseases.

3-4 Improve Governance Frameworks zzA number of separate public agencies deal with the various aspects of food security. ~~ A few economies in the APEC region have a centralized agency as a coordinating body which is tasked to deal with food security as a whole. zzVarious communication strategies with stakeholders including private sectors are undertaken in APEC economies with regard to food security policies. ~~ Typical process is as follows:  Establishing a policy deliberating council whose member includes private sector representatives for the purpose of incorporating external stakeholders’ viewpoints at the policy planning stage;

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 Holding a public hearing and/or accepting public comments before making an important policy decision;  Establishing a policy evaluation council whose member includes private sector representatives in order to objectively evaluate various policy decisions and implementations.

3-5. Communication among Stakeholders in order to strengthen Food Security, by utilizing Risk Management Method zzTwo general types of food insecurity ~~ Chronic food insecurity  Addressed through increases in agricultural production and productivity and poverty reduction.  Chronic food insecurity needs to be dealt at various forums. ~~ Transitory food insecurity  Unpredictable and abrupt occurrences tend to cause a temporary decline in the access to adequate food.

Examples of threats to food security

Demographic/ Political Technical Environment economic 33Wars 33Farming practices 33Population 33Floods growth 33Export restrictions 33Lack of transport 33Droughts 33Increasing 33Trade embargoes 33Contamination demand 33Plant and animal diseases 33Breakdown of 33High world international trade prices 33Extreme weather events 33Government 33Financial crises restrictions 33Pest and diseases 33food inflation 33Regulatory failures 33Unemployment

33Longer supply chain

Source: Prepared from the data from DEFRA “UK Food Security Assessment: Detailed Analysis” (2010)

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zzThe recent world food price hikes in 2007 and 2008 induced various policy actions by various economies. ~~ They include introduction of export restrictions, pursuance of self- sufficiency and establishment of food reserves.

zzIn order to cope with unpredictable occurrences, it is necessary to identify an effective transitory food security strategy by utilizing the risk analysis approach in order to make national policy decisions. ~~ First of all, it is necessary to objectively assess the likelihood and impacts of each threat to food security based on the communication with wide- ranging stakeholders. ~~ It is also necessary to share the assessment of variety of risks over transitory food security among stakeholders. ~~ Finally, it is necessary to establish a diversified strategy which can robustly respond to a variety of risks based upon the above-mentioned assessment and the result of communication with stakeholders.

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Asia-Pacific Economic Cooperation ROAD MAPT ARDS 2020 (V ( 0 2 0 2 S D R WA TO P A M D A O R Y T I R U C E S D O O F C E P A

POLI CY PARTNERSHIP ON FOOD S ECURI TY (PPFS) APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (VERSION 2013) O I S R E ) 3 1 0 2 N

Published by: INDONESIAN AGENCY FOR FOOD SECURITY Asia-Pacific 57 Economic Cooperation 63 MINISTRY OF AGRICULTURE, 2013