Least developeD countries SERIES

N° 20/C, May 2011 Sustainable agriculture and food security in LDCs The most critical issues facing LDCs today are poverty in LDCs increased fivefold from the period 1970-79 to and hunger. These issues related to each other and to 2000-10, resulting in over USD 14 billion losses. Land environmental degradation. use changes, forestry and agriculture account for over LDCs are primarily agricultural economies with nearly 70% of LDC greenhouse gas emissions. 70% of the population engaged in agriculture. The Environmental degradation, low agricultural productivity, vast majority of the poor and food insecure are in rural high post harvest losses, limited connections to areas. Therefore poverty alleviation and food security markets, energy poverty, limited education and non- must start in these areas. agricultural opportunities, hunger and thirst lead millions The outcome of the World Food Summit states that, of desperate people to leave rural areas each year for “food security exists when all people, at all times, have the cities, only to find that life is often no better. physical and economic access to sufficient, safe and To check this vicious circle, rural areas in LDCs must nutritious food that meets their dietary needs and food be revitalized, transforming them into vibrant places preferences for an active and healthy life.” It requires with a clear perspective for families and young people. that food is available locally and that people have the For this we need a fundamental transformation, even a means to acquire it, either by growing it or purchasing revolution, in agriculture. it, throughout the entire year. This revolution should not be based on expensive, Productivity of LDC agriculture is relatively low. Land imported external inputs. Governments spend degradation is a major problem, due to increasing large amounts of their foreign currency reserves population pressure, erosion, water scarcity and on agrochemicals (synthetic fertilizers, pesticides, the breakdown of traditional systems for soil fertility. herbicides, fungicides). LDCs import over 90% of the Farmers have little support from their Governments, agrochemicals used in agriculture. Many of these with African countries spending only 3% of their budget chemicals are dangerous, with pesticides being a on agriculture, disproportionate to the size of the top cause of occupational mortality and morbidity, sector in terms of employment and economic activity. and they are difficult to provide to rural farmers at the Twenty years ago most LDCs dismantled marketing right time. It is problematic that the global seed, agro- boards, extension services and credit support and chemical and biotechnology market is dominated by opened up agricultural markets to subsidized exports few companies, with the four biggest controlling 60% of from developed countries. This decimated agricultural global agro-chemical, a third of seed and almost 40% of biotechnology supply. sectors and most turned from net food exporters to net food importers within a decade - the LDCs food import The prices of oil and agrochemicals are increasing, bill rose from $9 billion in 2002 to $24 billion in 2008. due to the increasing price of fossil fuels, used in agrochemicals, and mineral phosphorous, used International finance organizations and bilateral donors in synthetic fertilizer. The agricultural input index advised several LDCs to set up production and export skyrocketed just before the first food price crisis of capacity for cash crops. While some countries, such 2008. As can be seen in figure 1, the ratio of food prices as Tanzania, have been successful in this regard, this to input prices fell steadily over the 2004-2008 period. focus often distracted political attention and crowded Farmers were not profiting from higher food prices out investment from staple food production and its because their input prices were increasing much faster. supportive infrastructure and institutions. In the light of the above, going down the high-external- In addition, post harvest losses in LDCs are large, with input-dependent, industrial agriculture route places at least one third of food produced being lost before LDCs in a situation of extreme vulnerability. reaching consumers due to spoilage, poor storage and transport facilities. On-site processing of agricultural Figure 1 - Development of the output to input price products is limited by energy poverty; 92% of rural ratio: food versus inputs households in sub-Saharan Africa have no electricity. Environmental degradation contributes to food insecurity. Natural ecosystems provide most of the world’s poor with food, fuel, medicine, building materials and cultural identity. These systems are being systematically degraded and destroyed, and their regenerative and strategic productive capacity jeopardized. Unsustainable land management practices lead to scarcity of water for both drinking and agriculture. The changing climate increases extreme weather events in LDCs (extreme temperature, floods and Source: FAO, The State of Agricultural Commodity Markets 2009: High droughts) and unpredictable changes in weather Food Prices and the Food Crisis - Experience and Lessons Learned, patterns that affect agriculture. Extreme weather events Rome, 2009, p. 35 UNCTAD POLICY BRIEFS UNCTAD UNCTAD riculture. Some are developing organic policies or of sustainableagriculture.Somearedevelopingorganicpoliciesor to LDCsgiveseriousattentionorfundssupportthedevelopment Despite theclearbenefitsfew, if any, LDCGovernmentsordonors world’s certifiedorganicfarmersareinLDCs. higher incomes and improving their food security. One third of the are tappingintothesepremiumpricedexpandingmarkets,earning has tripledinthe past decade,reachingUSD55billionin2009.LDCs expanding rapidly;the global marketforcertifiedorganicproducts Markets for products produced in a sustainable manner are for self-sustaining growth. energy, brings new life to rural communities and creates conditions effect, inparticularwhencombinedwithlocallydeployedrenewable incomes andfoodsecurityinthe whole community. Thiscatalytic multiplier effect on the local economybycreatingjobsandimproving to external price shocks. Using local resources also has a positive expensive importedexternalinputsreducesLDC’svulnerability Relying onlocallyavailable regenerative resources insteadof improve the situation ofthe poorest. shift towards agroecologyasawayto boost food production and regions by using ecological methods, and calls for a fundamental scale farmerscandoublefoodproductionwithin10yearsincritical The UNSpecialRapporteur ontheRighttoFood reportsthatsmall- farming communities—human,social,natural,financialandphysical. endures asit is based on strengthening the five types of capital in production increasedyieldsby116%.Moreoverthepositiveimpact 114 casesinAfricarevealedthatashifttowardsorganicagriculture livelihoods inLDCs.For example, aUNEP-UNCTAD analysisof that sustainable agriculture improves foodsupply, nutrition and Research bythe UN andnumerousotherbodiesdemonstrates traditional knowledgeandculture. at very high rates, andwith them goesthe associated wealth of traditional varietiesaredisappearingfromfarmers’fieldsworldwide and agriculturalpractices,theassociatedknowledge.These development ofindigenousvarieties,welladaptedtolocalconditions on buildingago-ecologicalsystems, promotesthe use and further floods andstorms.Moreoversustainableagriculture,withitsfocus resilience toclimaticshockssuchashighertemperatures, droughts, agricultural practices,andincreasessoilwaterretention and Building strongsoilsandimprovingsoilfertilityiskeyto sustainable systems, preventingerosion,andwaterharvesting. green manures,nutrient recycling, integratinglivestockintofarming inter-cropping, agro-forestry, biologicalpest control measures, agriculture practicesincludecomposting,mulching,croprotations, agriculture, agroecologyandregenerativeagriculture.Sustainable Sustainable agriculture includesecologicalagriculture,organic relationships andagoodqualityoflife. and science to benefit the shared environment and promote fair use ofinputswith adverse effects.Itcombinestradition,innovation biodiversity andcyclesadaptedto local conditions,rather thanthe of soils,ecosystemsandpeople.Itreliesonecologicalprocesses, Sustainable agricultureisaproductionsystem thatsustainsthe health not chemical intensification ofagriculturalproduction. LDCs strengths:sustainable agriculture. It focuses onecologicaland But there isanother way-onethat buildsuponandgivesvalueto +41 22 917 5828–[email protected] –www.unctad.org • • • •  • •  •  •  •  •  •  •  Therefore the best investment is to: •  •  •  are spent is evenmoreimportant.Thefocusshouldbeon: least doubletheeffectasgrowthinother sectors.Howthesefunds alleviation, andthusfoodsecurity, GDPgrowthinagriculturehasat policies. Funds toagricultureshouldincreasemanifold.For poverty There isanurgent needforafundamental shiftinnationalanddonor crop yieldsdoubleandagrochemicalusedecreaseby95%. prevention ofsoilerosionandwaterharvesting.Thisregionhasseen in sustainableagriculturetechniques,particularlycomposting, government inTigray, Ethiopia,whichprovidesextensionservices away agro-chemical inputs. One notable exception is the regional fact, thesustainableagriculturesectoristaxedbysubsidizingorgiving programmes (e.g.Uganda,Tanzania) butmostprovidenosupport.In security, farmers’livelihoodsandruraldevelopment. developing countries to use effective instruments to promote food sustainable agriculture.Thisshouldincludemorepolicyspacefor by reformedinternationaltradepoliciesthat trulysupport National support measures for sustainable agriculture supplemented as including strengtheningofwomen’slandrights,remainstopical. systems tenure and management important policy issues related to enhanced soil fertility. Land reform, land in stability Recognize Combine sustainable agriculture production with renewable energy. electrification, andbybringingprocessingclosertotheharvestarea. and roads storage, improved through losses harvest post Minimize other procurement programmes. transport, communicationandmarketingGovernment and sharing, local andothermarkets,improvingphysicalinfra-structure for to access knowledge with agriculture sustainable practicing for farmers Reward groups creating production planning,jointmarketingandproblem-solving. in farmers Support knowledge andexperience. sustainable field schools, supporting and building upon the strength of farmers’ on base knowledge agricultural practicesthroughparticipatoryresearchandfarmer the disseminate and Develop with sustainable agriculture. the in actors value chainandpolicymakerstoshareknowledgeexperiences other farmers, for platforms and incentives Provide improve and practices agriculture related extensionsystems. sustainable in public farmers Train of effectiveness and sustainable agricultureinparticular. share the expenditure for agriculturaldevelopment in general andfor increase for Significantly e.g. subsidies and policies agrochemicals. perverse eliminate and Identify systems, agriculture both productionandmarkets. sustainable of development the Promoting speculation ininternationally tradedagriculturalcommodities. and and protectionfromvolatilitycausedbyfinancialization traditional non-traded, markets. Thisprovidesvariednutritious foodforlocalpopulations staple, of indigenous cropsandlivestockforlocal,domesticregional production Increasing to markets,includinglocalmarkets. the for food world’s hungry)toimprovetheirincomes,foodsecurityandaccess of source main (the farmers small-scale Supporting

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