Tag Archives: food

Africa’s Farmers Seek Private Money

By Busani Bafana [ Sweetpotato farmer Jose Ricardo in Maputo Mozambique. Africa currently imports almost 40 billion dollars worth of food, and experts say that the continent needs to become more self-reliant. Credit: Busani Bafana/IPS Africa currently imports almost 40 billion dollars worth of food a year, but it should implement measures to attract private sector investment in agriculture in order to reduce its food import bill and increase its self-reliance, experts in the sector tell IPS. “In the next 10 years, African countries should not rely on food aid, but should produce their own food and buy from within Africa when they run out of food,” agriculture researcher and director of the Barefoot Education for Africa Trust, Professor Mandivamba Rukuni, told IPS. “The biggest trick is the private sector putting more money into agriculture. There is nowhere in the world today where you can get the government or industry moving if government and the private sector are not working together.” — agriculture researcher, Professor Mandivamba Rukuni “Food self-reliance means wealth creation and farmers should be directly linked to markets. More people will have more money in their pockets if more smallholder farmers are farming profitably, and this can be done,” Rukuni said. African countries, according to an Alliance for a Green Revolution in Africa (AGRA) African Agriculture Stats Report launched in Maputo, Mozambique’s capital, on Sep. 4, produced 157 million tonnes of cereals and imported 66 million tonnes in 2010. In August, the Forum for Africa Research in Africa put the continent’s current food import bill at more than 40 billion dollars, money it said would be better spent enabling African farmers to become self-sufficient. African heads of state and government committed themselves to improving agricultural and rural development in Africa in the Maputo Declaration of 2003. It includes the ambitious goal of governments allocating at least 10 percent of national budgets to agriculture and rural development. But in the last 10 years, only a few of the 54 African Union (AU) member states have made this investment. These include Burkina Faso, Ghana, Guinea, Mali, Niger and Senegal. A further 27 have developed formal national agriculture and food security investment plans under compacts. Compacts are a result of country roundtables that bring together key players in agriculture to agree on investment priorities. Currently one of the few countries prioritising investment in agriculture is Nigeria. In that West African nation, the government developed the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL), which seeks to reduce the risk in the agricultural finance value chain by building long-term capacity and institutionalising incentives for agricultural lending. The goal of NIRSAL is to expand bank lending in the agricultural value chain. Nigeria’s minister of agriculture and rural development Akinwumi Adesina told IPS that Nigeria was leveraging 3.5 billion dollars for agriculture from local banks. The government is shouldering the risk in a bid to attract the participation of the private sector. “We are developing an approach for the private sector to have access to finance because without finance you cannot do much,” Adesina told IPS. “We are working on new financing instruments that will allow our capital markets to work for agriculture. Agriculture accounts for 44 percent of our GDP and 70 percent of all employment but it has only two percent of all bank lending in Nigeria.” Meanwhile, Rukuni told IPS that while most African countries have not been able to commit 10 percent, they have seen the wisdom of doing so. “Although 10 percent is a nice figure to talk about, it is not a magic figure. What is more important moving forward is catalytic public financing, where government, its experts, farmers and private sector work together and really understand here it is important for government to invest to trigger private sector investment,” Rukuni said. Citing China, India and Brazil as examples of public-private partnerships at work, Rukuni said it was time for Africans to understand that there is no competiveness in agriculture without governments and the private sector setting joint targets in infrastructural development, for instance. “The biggest trick is the private sector putting more money into agriculture,” he said. “There is nowhere in the world today where you can get the government or industry moving if government and the private sector are not working together.” The AGRA report notes that despite having over 70 percent of prime uncultivated land, land holdings in Africa continue to shrink. This shrinkage has impacted on the productivity of the 33 million smallholder farmers responsible for up to 90 percent of the continent’s agricultural output. The alliance estimates that a one percent growth in agriculture will increase the income of the poor by more than 2.5 percent, yet only 0.25 percent of bank lending in the Common Market for the Eastern and Southern Africa region goes to smallholder farmers. AU Commissioner responsible for agriculture and rural development, Rhoda Peace Tumusiime, told IPS that investment in African agriculture has become more urgent than before and this was reflected in the political movement towards the development of national agriculture plans as proposed under the Comprehensive Africa Agriculture Development Programme (CAADP) framework of eliminating hunger and reducing poverty. “The 70 percent of the population who depend on agriculture is a big figure, so if we focus on improving the situation of this 70 percent, poverty will be eradicated. We do not want a situation where the economies are growing but agriculture is not,” she said. In a March 2013 report, “Growing Africa: Unlocking the Potential of Agribusiness”, the World Bank projected African agriculture would top a trillion dollars in 2030 on the back of increased domestic and international demand for food. The bank also urged African governments to improve their agriculture policies and promote agribusiness as a driver of growth. Abraham Sarfo, agriculture, technical and vocational education advisor at the New Partnership for Africa’s Development, told IPS that agriculture used to be part of dual development planning but was now on the continental agenda through the Africa-driven CAADP agenda of eliminating hunger and reducing poverty through agriculture. “A sector that contributes over 30 percent of the economy of a country and is still at subsistence level shows how it is underdeveloped compared to mining or ICT that attract the private sector,” Sarfo told IPS. He called for the increase of innovative financing models that will remove risk in agriculture investment to attract the private sector. Phillip Kiriro, president of the East Africa Farmers Federation, which represents about 200 farmer bodies told IPS that access to critical inputs and better technologies has slightly improved in the last 10 years but governments still need to help farmers live off their land. Continue reading

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Biofuel Crops: Food Security Must Come First

Even so-called ‘good’ biofuels need safeguards to ensure that they don’t damage biodiversity or displace other crops Ben Phalan theguardian.com , Thursday 29 August 2013 18.06 BST Biofuel crops increase emissions through land clearance, fertiliser use, and by displacing other crops. Photograph: Sipa Press/Rex Features Since 2003, the UK and other EU countries have effectively poured billions of euros into biofuels , on the premise that they reduce emissions from transport. But it has been an expensive case of the Emperor’s new clothes: we now know that many biofuel crops actually increase overall emissions . At the same time, they damage biodiversity, hurt some of the world’s poorest people by pushing up food prices , and cost us an estimated £460m each year. Early in September, the European Parliament will have its first opportunity to put the brakes on. MEPs will vote on whether to amend biofuels policy to take account of the critical issue of indirect land use change (iLUC) and at what level to cap biofuels made from food crops. Biofuel crops increase emissions through land clearance, fertiliser use, and by displacing other crops. When millions of hectares of land are switched from food to biofuel crops, food prices rise and food production is displaced , triggering a domino-like chain of events ending in cropland expansion elsewhere, including into the tropical forests of Southeast Asia and the savannas of South America and Africa. This is iLUC. We can’t point to the precise hectare of rainforest that’s felled because a particular farmer now grows fuel rather than food. But the evidence is clear that burning millions of tonnes of food as biofuel on top of what we eat leads to more land clearance and more fertiliser use (even accounting for useful biofuel co-products fed to animals). UK biofuel use in the first year of monitoring required around 1.4 million hectares of farmland, most of it overseas. That’s an area the size of Northern Ireland, just to provide 3% of our transport fuel. By ignoring iLUC, the EU overlooks a large share of the emissions triggered by its biofuel targets. ILUC is not just about carbon. Agricultural expansion and intensification are among the greatest of all threats to wild nature. Each year, millions of hectares of new cropland threaten tropical forests, wetlands and other biodiversity-rich habitats. Fertiliser run-off from the US corn belt, which supplies us with bioethanol, helps create an oxygen-depleted ‘dead zone’ in the Gulf of Mexico. The EU’s Renewable Energy Directive has laudable ‘sustainability criteria’, but unsustainable biofuels can still be imported; they just don’t count towards the targets. Furthermore, the criteria don’t address iLUC, so biofuel demand continues to cause deforestation and biodiversity loss . If a domino falls in the forest, apparently no-one can hear it. Some in the biofuels industry don’t want iLUC factors introduced next month, because some crops would no longer be counted as ‘green fuels’. But fuels that trigger deforestation, increase emissions and destroy biodiversity are not ‘green’. Supporters of the industry argue that iLUC factors are too uncertain for policy. But they seem happy for policy to support an industry whose promise to deliver lower emissions is even more doubtful. The irony is that any carbon benefit of biofuels is based on their indirect effect in replacing and reducing fossil fuel use. It’s nonsensical to argue that food-based biofuels should be supported for this indirect carbon benefit without also counting their indirect carbon cost. MEPs will also vote on whether to cap use of food as biofuel at 5.5% or 6.5% of transport fuel . The lower cap would protect existing jobs while sending a clear message to investors that food-based biofuels are a poor prospect. In the longer term, we should ask whether it is rational to burn any food at all in our cars. The right biofuels have a role to play in our energy mix, in the right quantities. Governments should continue to support the development of advanced biofuels, such as those made from waste and those grown in places unsuitable for food crops. But even these ‘good biofuels’ need safeguards to ensure that they don’t damage biodiversity or displace other crops. In the meantime, it’s clear that the Emperor has no clothes. Will the European Parliament listen to the science, and curb the unseemly rush for food-based biofuels? I’ll be writing to ask my MEPs to vote for a more modest approach, and I urge you to do the same . • Dr. Ben Phalan is a research associate in conservation science at the Department of Zoology, University of Cambridge, and is the Zukerman junior research fellow in global food security at King’s College.[/font][/color] Continue reading

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UK Seeks “Best” Biofuel

Posted on August 12, 2013 by Joanna Schroeder    According to an article in The Guardian , the United Kingdom (UK) is willing to pay for the best biofuels. The UK government is hosting a competition to come up with the most viable demonstration plants for biofuels made from waste organic materials, such as wood waste or straw. Many groups, especially environmental groups, have begun to lobby in favor of “better biofuels” or ones they consider to be both better for the environment or for society. Within this context, groups are opposed to first generation biofuels – or those that can be used for “food-” aka the food versus fuel debate. In light of this trend, focus has shifted to biofuels made from other feedstocks, especially waste materials – things that would end up in landfills. Attempts to manufacture biofuels from waste have been going on since the late 1960s; however, until now, research has been limited to the lab have have not met with great success. Yet growing concerns about the environment has brought more attention to the transportation sector and a resurgence in waste-to-energy technology has evolved. Today, the industry is beginning to see some success at demonstration level . In the UK, Ministers believe that research has now reached a stage where advanced biofuels are commercially possible. The department for transport said indications from the biofuels industry have demonstrated there are potential projects with a modicum of interest. The Ministers believe there will be several “high quality” bids for the 25m on offer, which must be matched by private sector investment. Norman Baker, the Liberal Democrat transport minister, told the Guardian, “It’s hugely important that we decarbonise transport. We have been up hill and down dale on biofuels in the past few years. What we need to do is distinguish between good biofuels and bad biofuels, and this competition will produce good biofuels.” The first step of the prize will involve a feasibility study detailing the design of the competition and the criteria that needs to be met by any bidder. This stage is expected to take four or five months, after which bids will be accepted. A winner could be announced within a year, but the process could take longer depending on the bids received. The prize will accept a bid for a project using any methodology or feedstock as long as they can be proved to produce carbon savings over conventional fuels and come from feedstocks that are environmentally sustainable. Continue reading

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