Food Security Challenges Faced by Developing Asian ......Resilience Food Sovereignty Healty, active and productive individual and community Spirit/foundation Performance measure Outcome

Food Security Challenges Faced by Developing Asian Countries and Responses toward 2025:

The Case of Indonesia

*) Former DG of Indonesian Agency for Food Security/Research Professor at Indonesian Agency for Agriculture Research and Development

Presented at International Conference on Asian Food Security (ICAFS) Singapore, 21-22 August 2014

Achmad Suryana *)

I. Current Situation

II. Challenges Toward 2025

III. Policy Alternatives

2

TOPICS OF DISCUSSION

3

INDONESIA

• Energy and protein availability for consumption was higher than the recommended standard requirement.

• Average volume of rice import was less than 3% of total domestic production. Indonesia can be categorized as a food secure country.

Per capita rice consumption has been decreasing: Increase in variety of food consumed toward more balance

nutrition diets.

Increase in demand for protein and vitamin sources: livestock, fish, horticultural products

Increase in demand for imported food: wheat, beef, soybean, non-tropical horticultural products.

Nutrition status of children under 5-year was not significantly improved during the last 10 years.

Number and percentage of poverty has declined slowly since 2000 (2011=11.37%).

I. CURRENT SITUATION

4

Recomended standard requirement for energy 2700 Kcal/cap/day and 57

gr/cap/day)

Source : Agency for Food Security (AFS), Indonesian Food Balance Sheet,

*) Preliminary

**) Estimate

Energy and protein availability for consumption, Indonesia 2010 - 2013

Year Energy

(kcal/cap/day)

Protein

(gram/cap/day)

2010 3801 94,56

2011 3646 93,13

2012* 3737 94,14

2013** 3882 90,56

I. Current Situation... (continue)

Ratio of rice import to domestic

production, Indonesia 1984-2013

5


Source : Indonesian Central Bureau of Statistics (CBS)

0.88

7.26

2.59

-4

-2

0

2

4

6

8

10

12

14

16

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

Source : SUSENAS, CBS calculated by AFS

6

107.71

105.27

104.04

100.05

104.89

102.21

100.80

100.00

97.63

96.30

96.00

98.00

100.00

102.00

104.00

106.00

108.00

2002 2005 2006 2007 2008 2009 2010 2011 2012 2013


Kg/year

Nutrition Status of Children Under 5, Indonesia 2005 - 2013


Stunting

Severe undernourishment

undernourishment

Overnourisment

(%)

7

Source : Ministry of Health, Indonesia

8

Number of poor people and poverty rate, Indonesia 1980 - 2013


Source: CBS

28.07

11.37

0.00

10.00

20.00

30.00

40.002000

2001

20

02

2003

2004

2005

2006

2007

2008

20

09

2010

2011

2012

2013

Number of the poor (million) Poverty rate (%)

Million, (%)

Average dietary energy supply was adequate (>100%).

Rice share in consumption pattern declined but was still as a major food commodity in most Asian countries.

Rice availability/production in ASEAN countries was relatively adequate to support supply and price stability.

Undernourishment has decreased but was not sufficient to achieve hunger reduction goal.

Poverty incidence in Asia has been decreasing slowly and large differences in hunger incidence persisted across regions/countries.

9


ASIA

10

Average dietary energy supply adequacy

Regions*/

Countries

2000-2002

(%)

2008-2010

(%)

2011-213 **

(%)

World 117 120 122

Asia 134 135 135

Eastern Asia 118 124 124

South

Eastern Asia

106 116 121

Southern

Asia

104 106 108

*) Eastern Asia : China, Chinese Taipei, DPR Korea, Mongolia, Republic Korea *) Shouth-Eastern Asia : Cambodia, Indonesia, Lao PDR, Malaysia, Philippines,

Thailand, Viet Nam *) Shouthern Asia : Bangladesh, India, Iran, Nepal, Pakistan, Srilanka **) Projection Source : FAO, 2013


11

Rice production, beginning stock, and domestic utilization, ASEAN 2012

Country Production

(000 ton)

%

P/DU

%

BS/DU

ASEAN 131.713 116,51 20,53

Indonesia 40.287 99,59 7,60

Vietnam 26.738 134,71 18,56

Thailand 25.148 190,85 68,83

Myanmar 18.311 99,37 15,07

Philippines 11.756 90,49 20,25

Cambodia 5.619 170,14 27,63

Lao PDR 2.131 101,23 19,06

Malaysia 1.722 70,62 24,79

Brunai 1,5 4,57 34,92

Singapore - - 15,56

P/DU = Production to Domestic Utilization BS/DU = Beginning Stock to Domestic Utilization Proportion of BS/DU that may guarantee supply and price stability in ASEAN Countries is 20% Source :APTERR Secretariat


12

Prevalence of undernourishment

Regions/

Countries 2000-2002 2008-2010 2011-213 *)

World:

Number (million)

Proportion (%)

906.6

(15.5)

878

(12,9)

842,3

(12,0)

Asia 622.3

(18,3)

585,5

(14,7)

552,0

(13,5)

South – Eastern

Asia**)

113,6

(21,5)

80,5

(13,8)

64,5

(10,7)

China 183,5

(14,0)

174,8

(11,6)

158,0

(11,4)

India 204,7

(22,5)

233,1

(18,9)

213,8

(17,0)

Indonesia 42,8

(19,8)

38,6

(12,8)

22,3

(9,1)

*) Estimate **) Cambodia, Indonesia, Lao PDR, Malaysia, Thailand, Viet Nam Source : FAO, INFP, IFAD. The State of World Food Insecurity in the

World 2013


GLOBAL / ASIA

13

Food security is a multidimensional and complex issue consisting of social-economic, environmental, physical, and political factors

Supply Side Natural resources constraint Competition in land and water use continues due

to economic growth and population increase Increase in the amount of degraded soil and

polluted water Global Climate Change Increase frequency or cycle of adverse weather

condition

II. CHALLENGES TOWARD 2025

14

Large proportion (dominance) of small-scale farming

Subsistence family farming characteristics

Inefficiency in farming activities.

Uneven ownership of resources, technology, and food production/availability across regions/countries.

High proportion of food losses and waste (30% of total food production).

II. Challenges toward.. (continue)

Demand Side

Global population increases especially in Asia, and more than 75% in developing countries

Ever increasing food demand

15

Relatively high rate of income growth in Asian countries

Increase in food demand in term of quantity, quality, safety, and healthy food.

Demand for protein and vitamin sources (livestock, fishery, horticultural products) will increase much faster than those for carbohydrate sources.

Change in demographic structure and urbanization

Change in food consumption pattern (in term of variety, quality, nutrition, and safety)


More women enter labor force

More demand for processed food

Increase demand for food as energy, feedstock and other industrial uses

Create high and more volatile food prices

Yield decline for some important food crops (rice, wheat) and fishery products (due to GCC)

Capacity of food production decrease

Costs of food production increase

Producers will pass on the higher costs of food to consummers

Amount global stock will remain stagnant or decline

Global food price volatility will remain as a threat to sustainable food security

Resultant

In the absense of any policy intervention:

16


World food (energy) consumption (Kcal/person/day)

Source: Alexandratos, 2011

1500

2000

2500

3000

3500

1969/71 1979/81 1990/92 2005-07 2030 2050

Industrial countries Sub-Saharan Africa

Near East-North Africa Latin America & Caribbean

South Asia East Asia

17


South Asia

East Asia

World demand for cereals 1965 to 2030

Source: FAO Data and Projections, 2011

18

II. Challenges Toward.. (continue)

World demand for meat and soy 1961 to 2030

19

Source: FAO Data and Projections, 2011


Dietary changes in developing countries 1964-66 to 2030

20 Source: FAO Data and Projections, 2011


21

● Conversion of agricultural land remain high and uncontrolled (+ 60,000/year).

● Inadequate infrastructure in agriculture/rural areas Damaged irrigation 22.4% (1,5 million Hectare) Limited access to clean water and electricity

● Competition in utilization and increase in degradation of land and water resources

● Impact of global climate change: drought/flood, temperature increase, change in cropping pattern, pests outbreak

INDONESIA

Supply Side


● Agriculture is dominated by small-scale farming 56% (14,6 millions) family farms was less than 0,5 hectares Average holding size of rice farming was less than 0.2 hectares

Total 252 million people (2014) with high growth rate (1.35%) and 56.8% at productive age.

49.5% urban population and projected to increase at faster rate (60% in 2025) due to urbanization and transformation of small towns become cities;

Women participation in labor force: 32.3% of total working age, 36.4% of total employment, and 57.6% works outside agriculture.

Increase demand for processed food and eat “outside home” at faster rate.

Number and percentage of the poor is still high (2013 = 11,37% of total population)

22


Demand Side

Food Security

Food Resilience

Food Sovereignty

Healty, active and

productive individual and

community

Spirit/foundation Performance measure

Outcome

Basic Policy of Indonesia Food Security (Law No. 18 /2012 pertaining Food)

23

III. POLICY ALTERNATIVES

24

Food Sovereignty

● Right of the state and nation to determine its own food policy

● Right of the community to determine their own food system based on local resource potential

Food Resilience ● Ability of the state and nation to produce diversified

food that can secure the food need for all individuals through the use of domestic resources optimally.

Food Security ● Fulfillment of food need at state up to individual level;

● In term of quantity, quality, diversity, safety, nutrition, affordability, and halal/comply with religious, believe and culture.

III. Policy Alternatives (continue)

25

Policy Direction for Sustainable Food Security in Indonesia

1

• From Food Self-sufficiency toward Food Resiliency Implementation of comparative and competitive advantage of local resources principles

2

• From Food Production Increase toward Farmer Income Increase Facilitation to achieve efficiency and competitiveness; farmers’ protection and empowerment

3

• From food consumption in term of quantity fulfillment toward consumption with food diversity, nutrition balance, and safe Promotion of food processing technology, food and nutrition security


26

Goal of Food Security Development


• To increase domestic capacity in food production resiliently 1

• To promote food diversification base on local food sources to support recommended food consumption pattern (diversity, balance nutrition, and safe food)

2

• To provide staple food adequacy for community with affordable prices 3

• To provide enough food for the poor and hungry through distribution of subsidized food. 4

27

Strategy

Food Availability

● Source of food supply are from domestic production and food reserve. In the case food supply is not adequate from those two sources; food may be imported as needed.

Increase production of important foods (in term of economic, social, and politic) by using domestic resources optimally.

Create strong national reserve of staple food at central and local government, and rural community.

Treat import of important foods as the last resort.

● Align small-holder farmers into food supply chain based on mutually benefit partnership.


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● Accelerate technology dissemination and increase farmers’ capacity to adopt proper technology to increase crop yields and efficiency.

● Promote reduction of food losses and waste through food handling and processing technologies application and social campaign


Food Accessibility/affordability

● Enhance and facilitate efficient domestic food trade and market.

● Maintain food supply and price stability through food reserve management and trade policy instruments (domestic and international).

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● Provide adequate food for the poor and hungry by distributing subsidized food.


Food Utilization

● Promote food consumption diversification based on local food sources and food culture/culinary

● Improve community nutrition status through improvement and fortification of certain food nutrition

● Assure food are safe, hygiene, good quality, nutritious, and halal/comply with religious believe and culture.

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APEC – PPFS Food Security Roadmap toward 2020

Main Goal: The attainment of food system structure by 2020, sufficient to provide lasting food security in APEC member economies.

Main Approach: Public – Private Partnership (PPP)


1. Sustainable development of agricultural and fishery sector. Research and development Technology dissemination Sustainable management of natural resources,

marine ecosystem, and aquaculture Farmer capability improvement

Strategy

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2. Facilitation on investment and infrastructure development Principle for Responsible Agricultural Investment

(PRAI) as a guidance

3. Enhancing Trade and Markets Optimizing benefit of international trade to improve

farmers’ income, accessibility to nutritious food, stability of food prices

Promoting distribution of gain from trade more equitable among players, including small-holder farmers.


4. Reducing food losses and waste Promoting effective management of the food supply chain Sharing technology and knowledge on reducing food

losses and waste

5. Improving food safety in nutrition. Ensuring food standards and system that are integrated

across regions to assure food safety, enhance productivity, and reduce barrier to food trade.

Terima kasih/ Thank You

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Food Security Challenges Faced by Developing Asian ......Resilience Food Sovereignty Healty, active and productive individual and community Spirit/foundation Performance measure Outcome

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