Unctad trand and environment review 2013

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UNCTAD

TRADE TRADE ANDAND ENVIRONMENT ENVIRONMENT REVIEW REVIEW 20132013

KEY MESSAGES

TRADE AND ENVIRONMENT REVIEW 2013 UNITED NATIONS

• The 2008 food crisis was an important catalyst for realizing the need for a fundamental transformation and questioning some of the assumptions that had driven food, agricultural and trade policy in recent decades. However, actual results achieved since 2008 suggest that a paradigm shift has started, but is largely incomplete. Priority remains heavily focused on increasing industrial agricultural production, mostly under the slogan “growing more food at less cost to the environment”. The perception that there is a supply-side productivity problem is however questionable. Hunger and malnutrition are mainly related to lack of purchasing power and/or inability of rural poor to be self-sufficient. Meeting the food security challenges is thus primarily about empowerment of the poor and their food sovereignty. Furthermore, the current demand trends for biofuels, concentrate animal feed, excessively meat-based diets and post-harvest food waste are regarded as given, rather than challenging their rational. • The fundamental transformation of agriculture may well turn out to be one of the biggest challenges, including for international security, of the 21st century. Much slower agricultural productivity growth in the future, a quickly rising population in the most resource-constrained and climate-change-exposed regions (in particular in sub-Saharan Africa and South Asia) and a burgeoning environmental crises of agriculture are the seeds for mounting pressures on food security and the related access to land and water. This is bound to increase the frequency and severity of riots, caused by food-price hikes, with concomitant political instability, and international tension, linked to resource conflicts and migratory movements of staving populations. • The world needs a paradigm shift in agricultural development: from a “green revolution” to an “ecological intensification” approach. This implies a rapid and significant shift from conventional, monoculture-based and highexternal-input-dependent industrial production towards mosaics of sustainable, regenerative production systems that also considerably improve the productivity of small-scale farmers. We need to see a move from a linear to a holistic approach in agricultural management, which recognizes that a farmer is not only a producer of agricultural goods, but also a manager of an agro-ecological system that provides quite a number of public goods and services (e.g. water, soil, landscape, energy, biodiversity, and recreation). • The required transformation is much more profound than simply tweaking the existing industrial agricultural system. Rather, what is called for is a better understanding of the multi-functionality of agriculture, its pivotal importance for pro-poor rural development and the significant role it can play in dealing with resource scarcities and in mitigating and adapting to climate change. However, the sheer scale at which modified production methods would have to be adopted, the significant governance issues, the power asymmetries’ problems in food input and output markets as well as the current trade rules for agriculture pose considerable challenges. • Elements and key achievements of the required transformation of agriculture, elaborated upon by the authors of this Review, include: - Increasing soil carbon content and better integration between crop and livestock production, and increased incorporation (not segregation) of trees (agroforestry) and wild vegetation. - Reduction of direct and indirect (i.e. through the feed chain) greenhouse-gas emissions of livestock production. - Reduction of indirect (i.e. changes in land-use-induced) GHG emissions through sustainable peatland, forest and grassland management. - Optimization of organic and inorganic fertilizer use, including through closed nutrient cycles in agriculture. - Reduction of waste throughout the food chains. - Changing dietary patterns towards climate-friendly food consumption. - Reform of the international trade regime for food and agricultural products. • In pursuing a fundamental transformation of agriculture, one should take into account systemic considerations in particular (i) the need for a holistic understanding of the challenges involved due to inter-linkages between sometimes competing objectives; (ii) the merits and demerits of single climate-friendly practices versus those of systemic changes (such as agro-ecology, agro-forestry, organic agriculture); and (iii) the need for a two-track approach that drastically reduces the environmental impact of conventional agriculture, on the one hand, and broadens the scope for agro-ecological production methods, on the other.

U n i t e d N at i o n s C o n f e r e n c e o n T r a d e A n d D e v e l o p m e n t

MAKE AGRICULTURE MAKE AGRICULTURE TRULY SUSTAINABLE TRULY SUSTAINABLE NOW FOR NOW FOOD FORSECURITY FOOD SECURITY IN A CHANGING IN A CHANGING CLIMATE CLIMATE EMBARGO The contents of this Report must not be quoted or summarized in the print, broadcast or electronic media before 18 September 2013, 17:00 hours GMT


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Russia

600 -

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EU-27

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GreenLeafGenetics

GoldenHarvest

LongReach

DiaEngei

AdvantaNACornSoybeans

Gutwein

CropDesign

Thurston

HybriTech (1995)

JacobHartz (1995)

ExSeed

AgriProWheat

CottonStates

LimagrainCanada

iCORN

Renessen

Cargill Intl.SeedDivision

Terrazawa

Ciagro

SyngentaGlobalCottonDivision

Seed Industry Structure 1996 - 2008

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Garst

HeartlandHybrids

FieldersChoice

InterstatePayco

Jung

BoCa

Agracetus

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Marmot

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Peotec

AlyParticipacoes

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Syngenta

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Agritrading

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CibaGeigy

KoipesolAgrosemAgra

Hawkeye

ASI

Kruger

StoneSeeds

LewisHybrids

CampbellSeed

HeritageSeeds

NebraskaIrrigated

StewartSeeds

NCPlusHybrids

Trisler

Diener

CornStatesHybrid

CNDK

Monsanto

Carnia

AdvantaCanola

CornStatesIntl

Sensako

Agroeste

TrelaySeeds

ChannelBio

Mahendra

Poloni

DeKalb (1995)

Ecogen

EmergentGenetics

Fontanelle

Crows

WilsonSeeds

Indusem

PBIC

Holdens

Asgrow

DeRuiter

Monsoy

Horticeres

Barham

Genecorp (1994)

Agroceres

CustomFarmSeed

Daehnfeldt

EridaniaBeghinSay/ Koipe

RoyalSluis (1995)

Seminis

Bruinsma (1994)

InterstateCanola

MidwestSeedGenetics

Unilever

Ayala

ChoongAng

Hungnong

Petoseed (1995)

FTSementes

ChinaSeed

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2001 -

- 60

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2.0 -

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- 80

1999 -

2.5 -

1997 -

- 100

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1995 -

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2 400 -

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2 200 -

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2 000 -

1992 -

Bolivia

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3 200 -

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2 800 -

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2 600 -

2 400 -

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2007 -

2 000 -

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2 200 -

1992 -

kcal/person/ day

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- 125

FAO food index

100 -

- 100

75 -

- 75

Price of oil

2010 -

2009 -

2008 -

2007 -

2006 -

2005 -

2004 -

-0

2003 -

0-

2002 -

- 25

2001 -

- 50

25 -

2000 -

50 -

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- 12,000

7,053

6, 399

- 10,000 - 8,000 - 6,000 3,101

Nov. 2009 -

Sep. 2009 -

- 4,000

Jul. 2009 -

May 2009 -

Mar. 2009 -

Nov. 2008 -

Jul. 2008 -

Sep. 2008 -

May 2008 -

Mar. 2008 -

Jan. 2008 -

Nov. 2007 -

Jul. 2007 -

Sep. 2007 -

May 2007 -

Mar. 2007 -

Jan. 2007 -

Nov. 2006 -

Sep. 2006 -

Jul. 2006 -

May 2006 -

80 -

Jan. 2006 -

100 -

Jan. 2009 -

3,392

5,038

120 -

5,853

140 -

7,758

160 -

12,389

Primary commodity price index

Mar. 2006 -

Commodity price index

180 -

Sales value of OTC contracts in $ bn

- 14,000

200 -

- 2,000

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Cultural Life • The SEKEM Development Foundation (SDF) operates a broad range of educational institutions, provides health services and supports the cultural and artistic development of SEKEM employees and members of the surrounding communities • To spread knowledge about biodynamic agriculture, SEKEM established the Egyptian Biodynamic Association (EBDA) • SEKEM established the Helipolis Academy for Sustainable Development to foster research and development

Economic Life • The core business of the SEKEM group are land reclamation, organic farming, phytopharmaceutical and textile production • The SEKEM companies include the largest producer of organic tea and the largest producer of organic herbs in the Middle East • SEKEM companies are compliant with 14 international standars and certificates (Demeter, Fairtrade, ISO, etc.) • The SEKEM group has implemented a comprehensive management system, integrating the four dimensions of sustainable development and annually reports on progress and achievements

Social Life • SEKEM engages with all of it’s stakeholders in a holistic and transparent way • In 2010, the SEKEM Companies and Foundation employed 1 856 and 271 people respectively • SEKEM actively endorses the UN Global Compact principles and promotes human rights together with the Cooperative of SEKEM Employees (CSE) • SEKEM was awarded by UniFern to provide all its female employees with equal opportunities • SEKEM is at the forefront of national and international initiatives for sustainable development

Ecology • SEKEM cultivates 1 628 feddan (ca 684 ha) of farmland and its suppliers from the EBDA cultivate more than 7 200 feddan (ca 3 000 ha) • Roughly 30 percent of raw materials used in processing come from SEKEM firms • SEKEM constantly monitors and improves the efficiency of water usage and energy consumption • One of the major priorities of SEKEM is caring about the fertility of soil and the biodiversity of plants and the related ecosystem • Animal husbandry at SEKEM includes cattle, chickens, bees and pigeons, all living according to Demeter standards

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