Underlying Causes of Poverty in Agriculture CARE Poverty Workshop 16 th June 2010 Dr George Welton
Dec 24, 2015
Underlying Causes of Poverty in Agriculture
CARE Poverty Workshop 16th June 2010
Dr George Welton
The ProblemLow input = Low output
4 Main Causes
• Structural – irrigation, size of land-plots, credit, government policy and funding
• Education – in production, markets, finance• Social – Collective and social action• Markets – imports, closed or hard to access
export markets
Structure• Land-plots– Less than 1 hectare of cropped land– Split between 3-4 different plots– Land as a source of security– 2 million hectares of undermanaged land
• Irrigation– WB project repaired physical structures– Needs local management – Amelioration
Associations
Structure• Credit– High cost– Banks unprepared to use land as guarantee– Fear of debt – for reasons of security
• Government– MoAg about 1% of government spending– Unclear policy on agricultural priorities– Centralisation of decision making– Little local government capacity
Education• 908 people trained in agricultural in VET
Centers in 2009/2010 across the country– No national system for training small farmers– Little infrastructure for community-based
education of farmers– Few community based associations
• Little information on new markets and prices• Little information on business planning
Social Capital and Local Communities• Inability to work collectively
– Failing amelioration associations and low payment for irrigation– Little collective management of farm machinery– Higher input prices and lower use of inputs– Lower sales prices
• Few Community Based Organisations– Little knowledge transfer– No input into management of shared resources or protection
against disease• Little interaction with central/local government
– No input on management of shared resources like land– Little information or input on management for disease risk
Community Organisations can help…Farm Associations….
•Can utilise and manage assets…
•Can buy cheaper inputs•Can collectively sell outputs•Can share knowledge
oOn goods oOn markets and prices
Other Community Organisations
Amelioration AssociationsNeeded to…•Build trust in the system and local ownership•Collect fees from small farmers for irrigation•Maintain small infrastructure
Agricultural Service CenterNeeded to:•Access to reliable inputs•Source of expertise and advice•Even small machinery
CLOSED
Growingexports
Similar products
Cheaper products
West:Supply Issues
Exports doing better slowly…Official Exports 2004-2009
2009 Exports
$70 million nuts
$15.7 Citrus – mostly manderins
$32 million wine $54 million Spirits (mostly Cognac)
2009 Exports surprises
Live animal exports2007 - $42,0002009 - $34 million
Cattle Sheep
Azerbaijan 16.5 2.1
Egypt 0.4
Lebanon 3.8
Saudi Arabia 9.3
Armenia 0.8
Jordan 1.1
Total 16.9 17.1
Exports (Million USD)
Food Imports and Exports(Million USD)
Imports….still space to substitute
Meat Imports 2009
$37 million mostly from USA
$12 million mostly from Brazil and Canada
$10 million mostly from India
Vegetables
$2.6 million
Milk, dairy and honey $24 million.
Most milk is powdered and VERY cheap
$3.5 million $3.7 million
Onions and garlic $3.8 million
Conclusions• Even infrastructure is social and needs
community ‘buy-in’ if it is to be beneficial to poor communities
• Widening participation and ensuring security is essential for strengthening markets
• Import substitution in food appears to offer the greatest opportunity for pro-poor growth in the medium term
Thank you