Contributions to African agricultural growth by transnational corporations Brussels, June 26 th 2012 Dr. Martin Märkl
Apr 01, 2015
Contributions to African agricultural growth by transnational corporations
Brussels, June 26th 2012
Dr. Martin Märkl
Performance of cereal production in Sub-Sahara
0
500
World
1961 1967 1973 1979 1985 1991 2003
South Asia
Sub-Sahara Africa
Source: FAO, 2006
1997
All Developing
1,000
1,500
2,000
2,500
3,000
3,500
Africa is far from being sufficient to match the demand of a growing population (1961–2003)
Page 2 • Dr. Martin Märkl • Brussels• June 26th , 2012
Investments in agriculture to leverage rural development and food security
Increased investment in agriculture in Africa
• Investment in agriculture will be most efficient when it promotes income-generating opportunities for farmers: evolution of ‘agripreneur’
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• Donor spending on agriculture and rural development has increased in recent years
• A large and increasing share is still devoted to short-term food aid interventions
• Eight (out of 45) countries reached target of 10 %of total public expenditure on agriculture in 2009
• Dr. Martin Märkl • Brussels• June 26th , 2012
Sustainable intensification of agriculture requires an holistic approach
Key elements for a sustainable intensification of agriculture
• Rise in agricultural productivity on arable land already in production
• in sub-Saharan Africa only 22 percent ofpotentially arable land is under cultivation*
• Resource efficiency: water, soil, agricultural inputs
• Reduction of pre- and post-harvest losses; need for innovation to address logisticsas well as resistance issues
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* FAO, 2012, 100 days to Rio +20, 100 facts
• Dr. Martin Märkl • Brussels• June 26th , 2012
Sustainable intensification of agriculture requires an holistic approach
Key elements for a sustainable intensification of agriculture
• Investment into the seed sector, promotion of hybrid seed dissemination
• Increase in mechanization to address labor shortage
• Enhanced education in science to ensure talented employees of the future
• Higher investments in agriculture in emerging markets, despite higher volatility of commodity markets
• Better coordination of public and private investments in agriculture
Page 5 • Dr. Martin Märkl • Brussels• June 26th , 2012
Data from FAO 2007
Yie
ld (
t/ha
)
China
IndiaOthers
Indonesia
Egypt
USA
Japan
Vietnam
Bangladesh
Thailand
Myanmar
Philippines
Brazil
Pakistan
Production (in million tonnes)20 40 60 80 100 120 160140 180 200
Investment into the seed market is a key driver for agricultural productivity
55% of acreage in hybrid rice
3% of acreage in hybrid rice
The potential of seed technology towards a sustainable intensification of agriculture: hybrid rice
Production (in million tonnes)
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Rice Average Yield (4.2 t/ha)
• Dr. Martin Märkl • Brussels• June 26th , 2012
• Sustainable Economic Opportunities • Ibrahim Index for Sustainable Economic Opportunities
• Basic Market Characteristics • Agricultural GDP Growth • Maturity of IP Laws and enforcement• Level of domestic agricultural
spending
• Geopolitical factors • level of trade barriers
• Infrastructure, irrigation & soil management
• km of rail road tracks per area in use
• irrigated land per area in use
• Productivity on the farm • fertilizer use intensity
Criteria driving the market attractiveness for private sector investments in agriculture
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Metrics (selection)Market driver
• Dr. Martin Märkl • Brussels• June 26th , 2012
West Central Africa expansion in Ivory Coast, Senegal, Mali and Burkina Faso mainly in cotton, rice and corn
East Africa expansion into Ethiopia and Tanzania, e.g. with cereals and rice, laterwith sugarcane & cotton
Southern African push of innovation also in Malawi and Zambia; further growth potential in Angola, Mozambique and Zimbabwe
Cooperation with GIZ, BMGF, IFC (still in exploration phase)
Bayer has a well established market position to be expanded further into selected markets
MA
ALG
TU
N
Mali
SN
TG
GH
Nigeria
BECI
BF
CMSierra Leone
Egypt
Ethiopia
Kenya
Tansania
Moz
ambi
que
Malaw
iZimbabwe
ZambiaAngola
Liberia
South A
fricaOpportunity
Exploration
Minor Markets
Core Business
Page 8 • Dr. Martin Märkl • Brussels• June 26th , 2012
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Metrics (selection)Market driver
• Dr. Martin Märkl • Brussels• June 26th , 2012
Grow Africa is a partnership platform
that seeks to accelerate investments and transformative change in African agriculture
based on national agricultural priorities and in support of the Comprehensive African Agricultural Development Programme (CAADP)
Grow Africa has a catalytic role:
•Increases private-sector investments
•Enables multi-stakeholder partnerships
•Expands knowledge and awareness of best practices and existing initiatives
Participating countries:
Burkina Faso, Ethiopia, Ghana, Kenya, Mozambique, Rwanda, Tanzania
Page 10 • Dr. Martin Märkl • Brussels• June 26th , 2012
Small scale farmers are the back-bone of African Agriculture
• The public and private sector need to jointly generate business opportunities for small scale farmers and to facilitate a fair distribution of risks and benefits along the value chain
• Moving from a government controlled system financed by donors towards a system which encourages private sector investments
The productivity gap of small scale farmers offers the biggest opportunity for agriculture in Africa
Page 11 • Dr. Martin Märkl • Brussels• June 26th , 2012
Thank you very much for your kind attention