Transcript Presentation 2 UNDP

TRANSFORMING AGRICULTURAL SUPPLY CHAINS
TOWARDS A GREEN ECONOMY
By
Nathan Leibel
Eddy Russell
Presentation Outline
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Introduction
Key success areas/ lessons
Threats, challenges and opportunities for action
5 Key thematic questions/issues
Economic implications
Policy and governance requirements
Concluding remarks
Recommendations for Green Economy Plan
Introduction - Agricultural construct
• 15% SA land under cultivation (approx. 50 million hectares) 1.3 million ha irrigated;
• Agricultural contributed R36 billion in 2009 ;
• Main crops: Corn, wheat, many other niche crops;
• Supplied through a combination of commercial, small holder,
subsistence farming;
• Main Problems for green economy: Unsustainable agricultural
practices, low wages, limited credit access, human capacity
issues, weak rural institutions, inadequate infrastructure
(including access to markets), low technology access and
worsening climate change.
Key success areas/ lessons
• Shifting some of this burden using Market Based Instruments
rather then public funds i.e. using supply chains to;
i.e. Drive eco-labeling and their markets e.g. flowers / wine
industry / badger friendly honey
i.e. Other PES markets i.e. carbon credits, water payments,
biodiversity payments.
UNDP is tackling sustainability issues using a supply chain
approach through the development of mainstreaming projects
that protect biodiversity in production landscapes, and through
the creation of a new UNDP facility the “Green Commodities
Facility” that focuses on sustainable production.
Threats, Challenges and
Opportunities for action
• Threats : loss of biodiversity and ecosystem services;
globalization of commodities; national food security; climate
change;
• Challenges – health, education, support services (production),
lack of infrastructure (roads, irrigation, storage), credit access,
incentives for sustainability, finding the right
policy/regulation/legislative tools ;
• Opportunities – International green markets, engaging private
sector supply chains, consumer awareness, increasing
agricultural employment, reduced food prices.
5 Key thematic questions/issues
• Best ways to promote and drive sustainable production?
• What financing mechanism can we use to promote
sustainable production – MBI? Public funds? A combination?
• How do we create and strengthen the appropriate tools to
drive sustainable agriculture?
• How do we better involve private sector supply chains to
promote sustainable sourcing operations?
• What is the most efficient and timely way of raising consumer
awareness? Who pays?
Economic implications
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Exports WILL grow, need sustainable production practices;
Import issues – subsidized goods from Europe;
Rising input costs i.e. fertilizers etc,
Water shortages for irrigation – 50% water in SA used for
agriculture;
• Raised awareness of green goods and options to buy them i.e.
support eco-labels (new markets and premiums);
• By greening upstream supply chain processes, more jobs will
naturally flow at each supply chain step.
Given this, investment in efforts to protect the environment’s
ability to deliver ecosystem services becomes crucial
Policy and governance requirements
• Remove restrictive policy;
• Farmer support services, improve human capacity,
strengthen rural institutions;
• Tax breaks for green orientated supply chains;
• Fast tracking registration processes for green
investments; the need for a national clearing house?
• Creating national standards for sustainable
production.
Concluding remarks
“We need to work together towards a greener economy…. the
continuation of unsustainable production practices and the
unsustainable use of priceless public resources i.e. water, soils,
forests, etc will not last forever. We all have a vital role to play,
and we are far from powerless. Your purchasing choice can and
will play a pivotal role in the transformation of the consumer
market place. This statement crosses all borders… from who you
chose as your banker, to what you buy at your local supermarket
– you indeed have a choice and buying power.”
Recommendations
Short: Increase awareness campaigns for green goods
Medium: Promote and strengthen market based
instruments i.e. certification, that lead to sustainable
management of production landscapes
Long: Institutionalize agriculture best
practices/standards within national policy.
THANK YOU