POLICY PARTNERSHIP ON FOOD SECURITY (PPFS) APEC FOOD ... · APEC Policy Partnership on Food Security [PPFS], as primary mechanism for APEC economies to address food security issues,is

APEC FOOD SECURITY ROAD MAP TOWARDS 2020 (vERSIOn 2013)

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Published by:INDONESIAN AGENCY FOR FOOD SECURITY

MINISTRY OF AGRICULTURE, 2013

P O L I C Y PA R T N E R S H I P O N F O O D S EC U R I T Y ( P P FS)

APEC FOOD SECURITY ROAD MAP TOWARDS 2020

(V ERS I O N 2013)

Asia-PacificEconomic Cooperation


APEC FOO

D SECURITY ROAD M

AP TOW

ARDS 2020 (VERSION 2013)


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P O l I C Y PA R T n E R S h I P O n F O O D S EC U R I T Y ( P P FS)


(v ERS I O n 2013)


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Published by:InDOnESIAn AgEnCY FOR FOOD SECURITY

MInISTRY OF AgRICUlTURE, 2013


P O l I C Y PA R T n E R S h I P O n F O O D S EC U R I T Y ( P P FS)


(v ERS I O n 2013)


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Foreword

The sharp increase of international food prices in 2008 and in 2011 have increased awareness and refocus of many governments’ attention on agriculture and food security issues. Many experts predicted that increased food price volatility

is likely to remain for the foreseeable future, particularly due to more unpredictable weather patterns. The pressure steadily rises as increased competition for alternative uses of land and water resources will further constraint the ability of agricultural production to expand in the future. Population growth and demographic changes, including rapid urbanization, will also put pressure on the global food system.

Achieving food security and eliminating poverty is a cross-border issue where a problem of a country will link to and affect others. Therefore, the establishment of APEC Policy Partnership on Food Security [PPFS], as primary mechanism for APEC economies to address food security issues,is an important step to achieve food security, both at national and regional levels.

As mentioned in APEC PSU report, there are at least five reasons why APEC has important role to play. First, there is still about one quarter of the world’s hungry residing in the region. Second, APEC account for 53 per cent of global cereal production and almost 70 per cent of fish production. Third, APEC consists of major players in global agricultural trade. Fourth, APEC economies are vulnerable to food security risks as experienced by riots during the food price crisis in 2007-08, and finally, APEC region is frequently exposed to natural disaster that temporary disrupt food supply, damage the food production base and reduce people access to food.

Hence, I fully appreciate and welcome this APEC Food Security Road Map Towards 2020 as the region strategic planning in achieving food security of the region, which raising the importance of partnership between government as policy formulator and private sector as food business players. I also highly appreciate the intention of involving small farmers into food value chains not only in improving their knowledge but also their incomes and welfare.Finally, I would like to express my high and sincere gratitude to all PPFS members for their hard work to make this road map is materialized.

SuswonoMinister of Agriculture,Republic of Indonesia

Ministry of Agriculturerepublic of indonesiA


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Remark

Let me begin by welcoming the Policy Partnership on Food Security (PPFS) Roadmap on Food Security towards 2020. I believe this roadmap will pave the way for a more cohesive and integrated collaboration of government and

private sectors to implement result-oriented strategies in achieving food security in the region.

I applaud the Chair for his able chairmanship in PPFS 2013, and commend his tireless efforts in realizing this. The role of private sector is the strength of APEC and the establishment of this Road Map is a testament for enhanced partnership in the future. This is really an important step to move forward.

Almost 20 years ago, in 1994, Indonesia hosted and chaired the Asia Pacific Economic Cooperation (APEC) forum leading to an important milestone called the Bogor Declaration and its Bogor Goals that enhance the prospects of an accelerated, balanced and equitable economic growth not only in the Asia-Pacific region, but throughout the world as well.

This year, once again, Indonesia takes the lead of APEC 2013 under the theme “Resilient Asia-Pacific, Engine of Global Growth”. This theme is elaborated into three priorities namely Attaining the Bogor Goals, Achieving Sustainable Growth with Equity and Promoting Connectivity.

The second priority, Achieving Sustainable Growth with Equity, underscores the importance of ensuring quality growth by taking into account social inclusion and environmental sustainability in various areas of cooperation, including food security.

In APEC, the issue of food security was initially raised in 1999 by the private sectors under the APEC Business Advisory Council (ABAC) focused on establishing an APEC food system. Subsequently, the 2008 high food price volatilities reinforced the awareness of the importance of food security in the region, and for the first time in 2010, food security became one of the important agendas discussed in APEC through the successful Ministerial Meeting on Food Security in Niigata, Japan.

In Montana, United States in 2011, the APEC Policy Partnership on Food Security (PPFS) was established as the primary mechanism of APEC economies to address food security concerns. Finally in Kazan, Russia in 2012, the first APEC PPFS Meeting was inaugurated.


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Now, in 2013, I believe PPFS has reached a new standard of cooperation in APEC. Achieving food security in the region is one of our utmost efforts in the attainment of sustainable growth with equity. This Road Map will guide future cooperation in APEC to ensure the achievement of food security particularly in providing access to sufficient, safe and nutritious food for all people at all times.

Finally, I commend the work being done by the Indonesian Agency for Food Security representing Indonesia’s contribution in 2013 to APEC and as APEC’s contribution to the global effort in achieving food security.

I thank you.

Yuri O. ThamrinSOM Chair APEC Indonesia 2013/Director General of Asia Pacific and Africa,Ministry of Foreign Affairs, Republic of Indonesia


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The idea of having Policy Partnership on Food Security [PPFS] started in 1999 when APEC leaders endorsed a plan for a unified APEC Food System. Ten years later, in 2009, APEC Business Advisory Council [ABAC] issued a strategic

framework for food security which among its recommendations called for the establishment of an on-going mechanism at a high level to ensure the policy and technical cooperation necessary to achieve an integrated food system.

In 2010, APEC Ministers Responsible for Food Security declared that consultation with relevant stakeholders is critical to making sustained progress towards food security goals and instructed Senior Officials to integrate ABAC into APEC’s food security efforts in a more sustainable manner. In 2011, APEC Senior Officials agreed to create a Policy Partnership on Food Security [PPFS]. In Kazan, Russia, in 2012 the meeting agreed to created four Working Groups [WGs] namely [1] WG on Stock-take and Action Plan Towards 2020, [2] WG on Best Practice Sharing, [3] WG on Investment and Infrastructure development, and [4] WG on Enhancing Trade.

In Jakarta, January 2013, the meeting agreed to rename the WGs became [1] WG on Stock-take and Food Security Road Map Towards 2020, [2] WG on Sustainable Development of Agricultural and Fishery Sectors, [3] WG on Facilitation on Investment and Infrastructure, and [4] WG on Enhancing Trade and Markets. The Jakarta meeting also agreed to draft the Food Security Road Map Towards 2020 and Inputs to the Leaders’ Statement on Food Security.

As the followed up the Jakarta meeting,a document called APEC Food Security Road Map was endorsed in Medan Plenary meeting 22-23 June 2013. This Road Map was considered as the strategic plan for APEC economies to achieve food security towards 2020. This document is a living document which might be adjusted in accordance with the dynamic nature of food security in the APEC region. Therefore, this document is called as version 2013. The Medan meeting also agreed that the implementation of the Road Map will be formulated in an operational Business Plan.

The endorsed Road Map covers food security challenges, vision and goals, mission and strategies, while annexes present the compilation of activities proposed by working groups and endorsed in Medan meeting. This book also presents two supporting documents that rich with food security related information, prepared by Japan-PPFS delegation led by Mr. Masaki Sakai of Japan Ministry of Agriculture, Forestry and Fishery [MAFF]. These include food supply and demand condition and food current situation.

Acknowledgement


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This Road Map is a result of collective works. Hence, I would like to express my sincere gratitude to all my PPFS colleagues mentioned below for their hard work, understanding, patience, willingness to share and spirit of togethernessthat make this Road Map completed faster than it is expected.

The PPFS Vice Chairs, Mr. Pavel V. Skurikhin from Russia, Mr. Han Ji Zhi from •China and Mr. Frank Ning Gaoning from ABAC.

Co-chairs of Working Group 1: Mr. Masaki Sakai from Japan, Mr. Rajiv Koshla •from The United States of America and Mr. Pavel V. Skurikhin from Russia; Chair of Working Group 2 Mr. Franky Welirang from Indonesia; Chair of Working Group 3Mr. Antyukhin Kirill from Russia; and Chair of Working Group 4 Mr. Tony Nowel from New Zealand.

Great thanks to Mr. Thanawat Sirikul and Ms. Dewi Justicia Meidiwaty of APEC •Desk Indonesia for their continuous supports which made PPFS meeting run well in order.

High appreciation to the World Bank Jakarta for valuable technical assistance, •especially by providing Mr. Fabrizio Bresciani to share the ideas and Mr. Asep Sjaiful Bahri to work together with PPFS Chair Office team organizing the PPFS events.

Very special thank goes to Chair Office team and APEC Desk Indonesia for their •never ending spirit and dedication to make sure everything is done in order.

Finally, I hope this Road Map is useful as a reference for APEC economies’ policy makers in addressing and overseeing all issues related to, and affecting, food security to drive economic growth and prosperity with dignity for people in the region.

Achmad SuryanaAPEC PPFS Chair 2013Director General, Agency for Food Security,Ministry of Agriculture, Republic Indonesia


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Chair and Vice ChairsMr. Achmad Suryana, Indonesia (Chair)•Mr. Pavel V. Skurikhin, Russia (Vice Chair)•Mr. Han Ji Zhi, China (Vice Chair)•Mr. Frank Ning Gaoning (ABAC, China)•

Co-chairs Working Group on Stock-take and Food Security Road Map toward 2020

Mr. Masaki Sakai, Japan•Mr. Raj Koshla, the United States of America•Mr. Pavel V. Skurikhin, Russia •

Chair Working Group on Sustainable Development of Agricultural and Fishery Sectors

Mr. Franky Welirang, Indonesia•

Chair Working Group on Facilitation on Investment and InfrastructureMr. Antyukhin Kirill, Russia•

Chair Working Group on Enhancing Trade and MarketMr. Tony Nowel, New Zealand•

Chair Office Team, IndonesiaMr. Tjuk Eko Hari Basuki•Mr. Suryadi Abdul Munir•Mr. Nasfirman Yul•Mr. Asep Sjaiful Bahri•Ms. Nita Yulianis•Ms. Inti Pertiwi Nashwari•Ms. Dewi Kartika Damayanti•Ms. Murni•

APEC PPFS 2013 Management


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ConTEnT

Foreword

Remark

Acknowledgement

APEC PPFS 2013 Management


The Challenges

The Vision and Goals

The Missions

The Strategies

Plan of Activities towards 2020

Appendix. Detailed Activities and Goals 2020

ANNEX. COMPILATION OF WORKING GROUP PROPOSED ACTIVITIES

SUPPORTING DOCUMENTS

Food Supply and Demand1.

Current Situation2.


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Photo Session of the PPFS 1st Plenary Meeting, Ritz Carlton Hotel, Jakarta, January 2013

The PPFS 1st Plenary Meeting, Ritz Carlton Hotel, Jakarta, January 2013



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Challenges to Achieving Food Security in APEC

Achieving food security in APEC region is facing challenges both in demand

and supply sides. In demand side, the global population which reached 7 billion in 2011 is predicted to rise to 9.3 billion by 2050, with the APEC region estimated to have 3 billion people, accounting for 32% of the world population at that time. Such rapid population growth has caused many to questions whether there will be enough resources to meet the expected growth in food demand, especially since the predicted increase in population will require food production to rise by an estimated 60%. In addition, the global use of agricultural crops for biofuels is expected to increase at an accelerated rate in the future, in line with many governments’ policies pursuing clean energy. Demographic changes, including rapid urbanization, will also put pressure on the global food system. Today, more than 50% of the global population lives in urban areas – a proportion that is forecast to rise to 70% by 2050. In addition, diet diversification associated with increased income will result in demand growth for agricultural products that outstrips the demand growth due to an increased population.

In supply side, climate change and increased competition for alternative use of land and water resources will further constraint the ability of agricultural production to expand in the future. Higher and more variable temperatures and changes in rainfall patterns associated with climate change could have severely disruptive effects on agricultural yields. Meanwhile, land resources, as measured by arable land per capita, have declined sharply since 1961 and are projected to fall further, from 0.22 hectares in use per person currently to 0.18 in 2050.

Agriculture is an important sector in many APEC economies, accounting for 13% of GDP in developing APEC. Sustainable expansion of production, via the adoption on new technologies, knowledge and skill as well the modernization of infrastructure, will not only help to address food security issues, but will also allow for the potential of the agricultural sector to be realized as an engine of growth.

Quoted from:APEC Policy Support Unit, November 2012, “Challenges to Achieving Food Security in APEC”, Singapore


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Food security has become an increasing concern among many APEC economies 1. due to rising food prices and periods of price volatility. Food security is a multi-dimensional and complex issue consisting of many social, economic, environmental, physical and political factors. The commonly accepted definition of food security is: “Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life”.

However, APEC economies are faced with both demand and supply of food 2. security challenges. On the demand side, APEC economies must deal with global population that will reach an estimated 9.3 billion in 2050. Income growth and urbanization resulting in the change in food consumption pattern, in term of variety and quality, and safety, and nutritional issues. Increased demand for food as energy feedstock and for other industrial uses will also become more prominent drivers of increasing demand for food.

On the supply side, natural resources constraints will become more stringent in the 3. coming years, adversely impacting crops, fisheries, and aquaculture yields as well as the capacity to expand food production, including capture fishing. Agricultural land per capita is projected to decline from its 2012 level of 0.22 hectares in use per person to 0.18 in 2050, while the proportion of the population living in urban areas is forecasted to rise from 50% to 70%. In addition, increased cycle of adverse weather condition associated with climate change will cause yield declines from some important staple food crops, especially rice, wheat and fish products. Hence, in the absence of any policy intervention, the cost of food could rise substantially as a result of increasing demand and reduced production. Producers will also pass on the higher costs of climate adaptation measures to consumers [APEC PSU, 2012].

APEC economies are faced with different food security issues in their agricultural 4. and fisheries sectors as well as in their approaches to address food insecurity due to different characteristics in each member economy. Another important challenge, especially in developing economies how to improve the involvement of the private sector and business entities in strengthening national and global food security.

Considering that establishing a com prehensive food system-based food security 5. environment in APEC is a complex and long term effort, APEC created the Policy Partnership on Food Security [PPFS].

The Challenges

APEC Food SECuRiTy RoAdMAP TowARdS 2020 (vERSion 2013)

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The vision and GoalThe PPFS vision is “APEC economies that are free from hunger and malnutrition, 1. and contribute to the efforts of improving the living standard of all, especially the poorest and small holder, in an economically, socially and environmentally sustainable manners”.

The long term goal of the PPFS, as mentioned in its Term of Reference, is the 2. attainment of a food system structure by 2020, sufficient to provide lasting food security to APEC member economies.

The PPFS is the primary mechanism for APEC economies to address food security 1. policy concerns and should oversee all issues related to, and affecting food security. The first mission of the PPFS is the development of a food sector that is economically efficient and profitable, socially acceptable, and environmentally sound. The important role of the private sector in achieving food security is fully recognized as a necessity. Hence, public-private partnerships will become the main approach in any APEC PPFS activity.

In line with the awareness of the important role of trade in achieving food security, 2. the second PPFS mission, using the spirit of partnership as mentioned in the Niigata Declaration, is to enhance food production and trade, as well as to improve food stocks and safety nets for the poor; considering the level of development and resource endowment in each economy, and the role of trade in stabilizing food prices.

With full awareness that most APEC economies are dominated by small scale 3. farmers and small scale fisheries and that poverty and food insecurity are highly correlated, the third mission of the PPFS is to consider how to improve small holders’ income and welfare as well as their competitiveness in producing food, in accordance with the PPFS 2013 theme “Aligning Farmers into the Achievement of Global Food Security”, which was designated by Indonesia as the APEC host economy, is in line with this mission.

The Missions

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Several APEC sub-fora are already working directly on topics relating to food 1. security, including the Committee on Trade and Investment [CTI] and its subgroup the Food Safety Cooperation Forum [FSCF], the Agricultural Technical Cooperation Working Group [ATCWG], the Ocean and Fisheries Working Group [OFWG], and the High Level Policy Dialogue on Agricultural Biotechnology [HPLDAB].

Closely linked to other APEC fora, APEC PPFS has three paths or strategies to 2. achieve its goals. They are:

Sustainable Development of the Agricultural and Fishery Sectors,a.

Facilitation of Investment and Infrastructure Development, andb.

Enhancing Trade and Markets.c.

The spirit of mutually beneficial partnership between public and private entities, including farmers, as well as between developed and developing countries will always be firmly held in implementing PPFS activities.

The Road Map to achieving the goals of the PPFS should be strategic, result-oriented 3. and comprehensive to achieve the long term goal of setting up a food system structure by 2020 sufficient to provide lasting food security to APEC economies, as instructed by ministers. The Road Map provides guidance for the three PPFS Working Groups [WGs],that were established in line with the three strategic issues mentioned above, to take appropriate measures to strengthen food security. The three WGs are WG on Sustainable Development of the Agriculture and Fishery Sectors, WG on Facilitation of Investment and Infrastructure Development, and WG on Enhancing Trade and Markets.

Members of each WG are encouraged to set up an implementation plan which 4. details, in the style of a multiyear business plan, integrating the private sector in very specific ways, including who exactly will do what, when, where and how, and how those actions will be funded.

The Strategies

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In 5. Developing Sustainable Agricultural and Fishery Sectors, the APEC PPFS will hold the principle of development that “meets the needs of the present without compromising the ability of future generations to meet their own needs”. Research and development, technology dissemination, management of marine ecosystem and aquaculture, farmer organization empowerment, and sustainable management of natural resources will become the core issues to address.

In 6. Facilitating Investment and Infrastructure Development, APEC PPFS will refer to the Principles for Responsible Agricultural Investment, which is being discussed by international fora. This will also include infrastructure development and analyzing impact of Foreign Direct Investment [FDI].

In 7. Enhancing Trade and Markets, APEC economies believe that trade can support food security when it improves incomes, improves availability or access to nutritious food, and improve price stability. Therefore, APEC PPFS shall support international trade that increases incomes where the gains from trade can be distributed among players in a more equitable manner and, in such a way that can improve small holders’ income. This is in line with the sub-theme of APEC 2013 “Achieving Sustainable Growth with Equity”. The priority toward 2020 will include trade facilitation in food and agricultural products, and improving governance frameworks.

In improving food supply, APEC economies should focus on promoting effective 8. management of the food supply chains, reducing food losses and waste; sharing experience and information on reducing food losses and sharing effective models of food supply chains.

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The following are priority activities of each WG agreed to in the APEC PPFS Plenary meeting in January 2013, in Jakarta, Indonesia. Details are presented in the appendix.

1. Priority activities of WG on Sustainable Development of the Agricultural and Fishery Sectors

Promoting research and development and technology dissemination.a. Promoting effective management of marine ecosystems, fisheries, and b. aquaculture. Strengthening farmer’s organizations and cooperation, strengthening c. resilience of smallholders, promoting the welfare of women in farming, empowering smallholder farmers into the food supply and value chain, and enhancing services and training for small holders.Ensuring sustainable management of natural resources such as land and d. water, enhancing positive externalities and minimizing negative social and environmental externalities of agriculture and fisheries, increasing resilience to natural disasters and global climate change, and providing food safety net, including proper nutrition for vulnerable communities.

2. Priority Activities of WG on Facilitation of Investment and Infrastructure Development

Promoting investment in agriculture including through promoting the a. Principles for Responsible Agricultural Investment (PRAI).Infrastructure development and analyzing the impacts of Foreign Direct b. Investment (FDI).

3. Priority activities of WG on Enhancing Trade and Markets

Facilitating trade in food and agricultural products.a. Reducing food losses and waste.b. Improving governance frameworks.c. Promoting, studying and sharing of best practices of risk management d. methods among stakeholders in order to strengthen food security.

Plan of Activities Towards 2020

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WORKING GROUP ON SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL AND FISHERY SECTORS

A. Promoting Research and Development and Technology Dissemination Promotion of scientific research and development (R&D) and dissemination of technologies is of crucial importance. There is considerable potential for further advances in R&D in the fields of agriculture and aquaculture by means of public and private investment in developing countries.

Goals 2020:Promoting private and public R&D spending in agriculture and fishery.1.

Creating an attractive investment climate to encourage more private sector R&D 2. investment in agriculture and fishery.

Promoting interaction between research institutes and innovation centers in APEC 3. economies by means of establishing a regional network of such institutions and centers.

Developing effective public technology dissemination systems to enhance capacity-4. building and promoting agricultural knowledge sharing and transfer, while ensuring that gender-sensitive dissemination systems are created.

Promoting effective mechanisms to facilitate voluntary public-private technology 5. transfer, while respecting intellectual property rights.

Developing policy environments for the use, regulation and trade of innovative and 6. emerging technologies.

Developing technologies for efficient use and sustainable management of 7. agricultural and fishery resources.

Developing technologies such as climate-smart agricultural technology to adapt to 8. or mitigate the impact of climate change.

Providing open access to publicly funded agricultural relevant data, such as the G8 9. Open Data initiative.

Appendix. detailed Activities and Goals 2020

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Supporting initiatives to drive sustainable productivity gains, such as the G20 10. Meeting of Agricultural Chief Scientists whose goals are to identify global research priorities and targets, facilitate collaboration between public and private sector organizations in key areas, and track progress on established goals over time.

Conducting an analysis on agricultural and fishery areas and resources under 11. stress and determine means and ways to return its potentials into full recovery or regenerate.

B. Promoting Effective Management of Marine Ecosystems, Fisheries, and Aquaculture

The APEC region accounts for two-thirds of the world’s wild capture fisheries and more than 80% of the total world share in aquaculture production. Population in APEC member economies consumes around 70% of the world’s fish products and fish provides a significant portion of animal protein consumption in the region, especially for low-income, food-deficit economies. For the past 50 years aquaculture has been the fastest growing food production sector in the world, with an annual growth rate of 8,9%. Most of aquaculture production in Asia, or 85%, are small-sized farms.

On the other hand, in recent decades wild fisheries around the world have faced serious problems, namely degradation of the marine and freshwater environments, over-exploitation of marine resources, and illegal, unreported and unregulated (IUU) fishing. These have caused damage to ecosystems and depleted fisheries resources. Related to aquaculture, the lack of effective disease management technology for farmers in developing countries poses a huge risk. Rapid and uncontrolled development of coastal aquaculture also have significant adverse environmental impacts.

Goals 2020:1. Improving fisheries management and sustainable aquaculture practices.

Increasing the number of APEC economies that ratify, or adhere to, the United a. Nations Convention on the Law of the Sea (UNCLOS), the United Nations Fish Stocks Agreement (UNFSA),1982; the Food and Agriculture Organization of the United Nations Compliance Agreement, 1993; United Nations Fish Stocks Agreement (UNFSA), 1995; FAO Port State Measures Agreement, 2009.

Increasing the number of APEC economies that implement the FAO Code of b. Conduct for Responsible Fisheries, 1995; FAO four International Plans of Action on Seabirds, Sharks, Fishing Capacity, and IUU fishing, 2001; the Strategy for Improving Information on Status and Trends of Capture Fisheries (Strategy–STF), 2003; and the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security, 2012,Combating illegal, unreported and unregulated (IUU) fishing and associated c. trade and improving fisheries management,

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Sharing best practices and ensuring capacity building, information exchange d. and the provision of technical and financial assistance between APEC member economies on combating IUU trade in living marine resources and trade in illegally obtained fish production,

Improving traceability of fish and fish products for consumer protection,e.

Encouraging APEC economies to take voluntary measures, as appropriate, f. regarding certification of sustainable fishery and aquaculture products used directly as foodstuffs and indirectly as feed products, and

Identifying the economic and food security benefits of rebuilding overfished g. stocks and putting in place measures to rebuild such stocks.

2. Reducing excess fishing capacity.Identifying mechanisms to better manage fishing capacity, such as through a. projects that facilitate the sharing experiences of APEC economies in fishing capacity reduction and adjustment, to help ensure a balance between such capacity and long-term resource sustainability, and

Aligning the capacity of the world’s fishing fleets with the productivity of b. their target fish stocks, recognizing the special circumstances, requirements and interest of developing economies and artisanal fishers in developing their fisheries, consistent with the principles of sustainable development and relevant international instruments.

3. Promoting sustainable aquaculture practices. Sharing best practices between APEC member economies in technologies and

innovations on disease management, promoting sustainable, environmentally and socially responsible feed production systems, recognizing the special circumstances and requirements of developing economies in aquaculture production.

4. Promoting contributions of sustainable managed small scale fisheries and aquaculture to food security.

Creating greater market access for sustainable harvested fish products of small and medium enterprises (SMEs), small-scale fishers, and small scale aquaculture farmers.

5. Increasing investment in fishery human resources through trainings on technical capacity to foster more rapid implementation of best practice fishery management and legislative measures.

6. Improving gender equality in fishery development and ensuring that modernization and efficiency measures in this sector do not discriminate against women.

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C. Strengthening Farmer’s Organization and Cooperation, Strengthening Resilience of Smallholders, Promoting the Welfare of Women in Farming, Empowering Smallholder Farmers into the Food Supply and Value Chain, and Enhancing Services and Training for Small Holders.

Small farmers provide around 80% of food consumed in developing regions of Asia. Farmers’ organizations and cooperatives play an important role in providing small farmers need on a wide range of services. These organizations play also a critical role in empowering farmers, including women, by providing training in the various fields, such as on natural resource conservation, as well as providing greater access to information, technologies, and innovations.

Goals 2020:Providing easy and simple access for small holders to agricultural financial 1. sources.

Supporting small holder farmers’ participation in agricultural insurance in order to 2. reduce farming risks.

Empowering farmers and farmer groups or organizations through agricultural 3. education and training, access to information, and technology transfer.

Providing small holder farmers and farmer organizations, including women 4. farmers and traders, equitable access to markets and information on production, supply, demand, and prices of agricultural and fishery products in order for them to effectively participate in the markets.

Facilitating agricultural and fishery best practices sharing through training, 5. extension services, and technology transfers.

Expanding access of women to local and regional agricultural associations, noting 6. that women’s groups and cooperatives are often the most difficult to form and sustain.

Conducting the targeting programs for women in agriculture by using gender-7. based analysis of programs’ impacts to ensure these women receive maximum benefits from the efforts to achieve sustainable food security.

D. Ensuring Sustainable Management of Natural Resources such as Land and Water; Enhancing Positive Externalities and Minimizing Negative Social and Environmental Externalities of Agriculture and Fishery; Increasing Resilience to Natural Disasters and Global Climate Change; and Providing Food Safety Net, Including Proper Nutrition, for Vulnerable Communities.

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Soil degradation, desertification, accumulation of salts in soils, overuse of chemical fertilizers, pollution of underground water, release of greenhouse gases, the growth of cities; all of these factors have decreased the world’s arable land by 51 million hectares since 1992. Agriculture is also particularly vulnerable to climate change. Many APEC economies are prone to natural disasters. Agriculture has positive externalities such as flood and soil erosion prevention. On the demand side, there is still exist a sizable proportion of population in APEC member economies consumes food and nutrition below daily recommended. Meanwhile proper nutrition consumption is important during early child development, especially during the first 1,000 days. Evidence has shown that optimal nutrition during this time can have a lasting impact on a child’s growth, learning, and future productivity.

Goals 2020:Promoting agricultural production practices that assist in adapting to, and 1. mitigating of the impact of climate change.

Promoting sustainable crop diversification and agricultural production practices 2. which contribute to enhancing land conservation while reducing chemical fertilizer dependencies.

Developing and introducing effective conservation systems to maintain soil 3. fertility.

Developing sustainable agriculture by encouraging the use of environmentally 4. low impact resources such as fertilizers and converting negative externalities of agriculture such as groundwater pollution and greenhouse gas emission to positive externalities of agriculture such as soil sequestration of Green House Gases( GHGs).

Facilitating technology transfers and best practices sharing in the area of sustainable 5. management of land and water resources.

Using advanced technology to monitor conditions of land and water resources 6. in APEC economies and sharing of data and considering potential links to this goal and the ongoing implementation of the Group of Earth Observation Global Agricultural Monitoring(GEO-GLAM )initiative

Increasing public-private investments in the construction of land-reclamation 7. programs in APEC economies.

Promoting the sustainable use of natural resources by all people and societies.8.

Developing universal and voluntary guidelines on natural disaster preparedness for 9. farmers and industries.

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Facilitating data and information sharing as well as best practices to expand natural 10. disaster preparation and recovery.

Building a coherent public-private cooperation system framework in the food and 13. market supply chain for natural disaster management.

Facilitating investment for agriculture and fishery infrastructure construction and 14. renovation to prevent and prepare for natural disasters. Improving sustainable irrigation by greater investments in water infrastructure.15.

Promoting technical cooperation in order to improve water resources management 16. in developing countries.

Promoting water management and renovation of old facilities for more efficient 17. use of limited water resources.

Promoting Participatory Irrigation Management (PIM) and the understanding of 18. multi-functionality of paddy fields and agricultural water in cooperation with the International Network for Water and Ecosystem in Paddy Fields (INWEPF).

Identifying policy options and market approaches that give sufficient incentives to 19. farmers, agri-food sector, and consumers to better react to market changes and contribute to enhancing positive externalities such as soil erosion prevention and flood prevention.

Identifying food insecure communities and taking targeted steps to overcome the 20. problems, including provision of proper nutrition mainly for pregnant women and children.

WORKING GROUP ON FACILITATION OF INVESTMENT AND INFRASTRUCTURE DEVELOPMENT

a. Promoting Investment in Agriculture Including through Promoting the PRAI (Principles for Responsible Agricultural Investment)

b. Infrastructure Development and Analyzing the Impact of Foreign Direct Investment (FDI)

Low levels of public and private investment in agriculture and infrastructure can lead to low productivity and stagnation of production of many major crops in developing countries. The lack of infrastructure, institution, policies and services facilitating the free flow of goods need to be addressed, such as market access, border administration, telecom and transport infrastructure, and business environment.

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Establishing the food supply chain with a cold chain infrastructure, transport and communications infrastructure/services through a strong PPP (Public and Private Partnership) scheme could be strongly effective in reducing food losses and wastes and may also lead to the development of food manufacturing industries which are important for the sustainable economic growth of emerging economies.

Goals 2020:Increasing public investments in agriculture.1.

Creating an attractive business environment to encourage more private sector 2. investments in agriculture.

Ensuring a high level of investor protection, including safeguarding and enforcing 3. the rights and claims of investors and protecting robust intellectual property rights including Plant Variety Protection (PVP).

Consolidating information on each economy’s regulatory framework for agricultural 4. investment and specific investment information on the Asia-Pacific Information Platform on Food Security (APIP).

Sharing good practices of agricultural investments through APIP.5.

Creating lists of prospective infrastructure projects for development using the 6. mechanisms of state-private partnership in the framework of the PPFS.

Developing conditions for a functioning, unified transport and logistics network in 7. APEC economies.

Reducing post-harvest losses through infrastructure development of food markets 8. and supply chains, including the use of public/private partnerships.

Developing a framework of activities/business plans in accordance with the 9. Principles for Responsible Agricultural Investment (PRAI), for APEC economies.

Forming a policy/roadmap in the development of the food industry utilizing a cold 10. chain infrastructure and starting several pilot projects for building the cold chain infrastructure in the selected economies through public-private partnerships.

Promoting responsible agricultural investments that contribute to food security 11. and nutrition within the framework of the RAI principles which is expected to be endorsed by the UN Committee on World Food Security’s in October 2014.

Supporting investment programs aimed at strengthening the food security of 12. APEC economies within a framework of cooperation with international financial institutions (banks, funds, etc.).

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12

Disseminating knowledge on the use of satellites and information technology to 13. enable the use of “precision farming” techniques.

Surveying and mapping unused land suitable for production in APEC economies, 14. taking into account the availability of water resources and the impact on biodiversity.

Addressing supply chain barriers to trade, such as market access, boarder 15. administration and telecom and transport infrastructure.

WORKING GROUP ON ENHANCING TRADE AND MARKETS

A. Facilitating Trade in Food and Agricultural Products Trade in agricultural products plays a key role in ensuring food security. All trade-

related measures need to be in compliance with current WTO commitments.

Goals 2020:Ensuring an affirmation of the pledge to end protectionist measures in trade of 1. agricultural products.

Studying the impact of trade-related measures, especially export measures that 2. impact food security.

Promoting development of regionally integrated markets.3.

Strengthening confidence in agricultural markets and establishing effective systems 4. of collecting and disseminating market information.

Promoting harmonization of standards and adherence to international, science-5. based standards, i.e. Codex, World Organization for Animal Health (OIE), International Plant Protection Convention (IPPC).

Ensuring compliance with the WTO notifications requirement on export restrictions/6. prohibitions in order to enhance transparency.

Reaffirming our pledge to refrain through the end of 2015 from imposing new 7. export restrictions (Declaration of APEC leaders, 2012).

Ensuring effective global data standards for the connectivity of the food supply 8. chain in support of APEC’s existing supply chain objectives and in coordination with the CTI:

Reviewing deployment of data standards in the framework of APEC and taking a. into account the interests of the food industry,

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Bringing the benefits of using global data standards to the attention of national b. food authorities, and

Introducing “smart” supply chains with the use of advanced technologies in c. satellite navigation and intelligent transportation systems.

9. Analyzing food market information such as price levels and the impact of price volatility throughout APEC economies.

10. Increasing transparency of the market by means of:

Obtaining more accurate data on production, consumption, trade and stocks a. in APEC region, and

Continuing maintenance and upgrading of APIP, creating links between APIP b. and the G20/AMIS as well as the ASEAN Food Security Information System (AFSIS)

B. Reducing Food Losses and Waste

Loss and waste of food occurs at all stages of the food supply chain because of deficiencies in infrastructure, training, and education and includes actions by farmers, suppliers, and consumers. Data on food loss are very limited and requires greater research.

Goals 2020:Developing unified methodologies to estimate food losses and waste.1.

Identifying major sources of food loss2. and waste in the distribution channel (farm storage, food harvesting, food processing industries, transportation, retailers, and households), and compiling regional strategies for specific products in both developing and industrialized nations.

Introducing a plan for reaching a targeted rate of food loss and waste reduction3.

Facilitating the sharing of best practices in the APEC region.4.

Strengthening food supply chains and reducing food losses in developing 5. economies through public-private partnerships:

Providing farmers with necessary technologies and managerial knowledge in a. handling and storage through improved extension services,

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Enhancing investments in modern agricultural machinery and equipment, b. storage facilities and transportation infrastructure,

Facilitating programs that encourage smallholder farmers to organize, diversify c. and scale up their production and marketing, and

Enhancing investments in the food supply chain with cold chain infrastructure d. in order to develop the food manufacturing industry and help increase revenues for farm producers.

C. Improving Governance Frameworks

A number of separate public agencies deal with the various aspects of food security. A few economies in the APEC region have a centralized agency as a coordinating body which is tasked to deal with food security as a whole. Various communication strategies with stakeholders, including the private sector, are undertaken in APEC economies with regards to food security policies.

Goals 2020:Sharing strategies and experiences among APEC economies regarding their food 1. security policy governance frameworks and their food security communication strategies with the private sector.

Determining the best or, at least, better governance framework for food security 2. policy and communication strategies in each APEC economy, for example by establishing policy deliberating council with private sector and civil society membership for the purpose of incorporating external stakeholders’ viewpoints at the policy planning stage; conducting public hearings before important policy decisions are made; establishing policy evaluation council with private sector and civil society membership to objectively evaluate various policy decisions and their implementation.

D. Promoting Studying and Sharing Best Practices in Risk Management Methods among Stakeholders in order to Strengthen Food Security

Transitory food insecurity refers to unpredictable and abrupt occurrences in food production and trade which cause a temporary decline in access to adequate food. Unpredictable threats could be political, technical, demographic, or environmental. For example, the recent world food price hikes in 2007 and 2008 caused food insecurity in many countries and induced various policy actions including introduction of export restrictions, pursuance of self-sufficiency and establishment of food reserves.

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Goals 2020:Evaluating the likelihood and impact of food security threats, with soliciting 1. stakeholder input during the evaluation process.

Creating diversified strategies to respond to various potential economic and 2. environmental risks for each of the APEC member economies.

Sharing best practices in risk management methods to strengthen food security in 3. APEC economies.

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Photo Session of the PPFS 2nd Plenary Meeting, Medan, 22 June 2013

The Chairman, Vice Chairman, APEC Secretariat and the representatives of the Chair Office at the PPFS 2nd Plenary Meeting, Medan, 22 June 2013



17


The Important Role of Intra-regional Trade in APEC

No. Economy Export [%] Import [%]1 Australia 72 64

2 Brunei Darussalam 58 91

3 Canada 77 78

4 Chile 63 23

5 China 72 61

6 Hong Kong China 88 70

7 Indonesia 48 78

8 Japan 90 80

9 Malaysia 53 71

10 Mexico 87 90

11 New Zealand 64 77

12 Papua New Guinea 44 97

13 Peru 44 49

14 Philippines 64 82

15 Korea 90 81

16 Russia 29 17

17 Singapore 74 79

18 Chinese Taipei 90 67

19 Thailand 62 66

20 United States 73 68

21 Viet Nam 58 70

22 APEC 72 70

Quoted from: APEC Policy Support Unit, September 2012, “Food Security Policies in APEC”, Singapore

Trade within APEC is extremely important for its member economies, which absorb a

significant portion of the region’s total exports and imports. The share of intra-APEC trade in merchandise reached 67 percent of all total export and imports

while the share of intra-APEC trade in food and agricultural products is even higher. As a region, 72 per cent of all of APEC’s food and agricultural exports are absorbed by member economies while 70 per cent of its imports originate from other economies.

Intensity of intra-APEC food and agricultural goods trade 2010, by member economies [share of total exports and import, in %]


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APPENDIX. Compilation of Working Groups’ Proposed Activities

SUSTAINABLE DEVELOPMENT OF AGRICULTURAL AND FISHERY SECTORI.

Workstream 1 : Promoting research and development and technology dissemination

Objectives ActivitiesEconomya. Due Dateb. Lingkagec.

Optimizing seeding •management and bio-technology

Accreditation and •certification

Indonesiaa. –b. –c.

Integrating science and •technology into the supply chain

-a. –b. –c. –

Workstream 2 : Promoting effective management of marine ecosystem, fisheries, and aquaculture


Provide data for fishery •statistics to make fishery management system.

Developing APEC Fishery •Data center

Indonesiaa. 2016b. OFWGc.

Promotion of •sustainable fisheries in Southeast Asia

Countermeasures •against IUU fishing and improvement of catch data collection

SEAFDEC (Japan a. support) –b. –c.

Developing and •disseminating techniques of stock enhancement and eco-friendly aquaculture

a. –b. –c. –

CoMPiLATion oF woRKinG GRouPS’ PRoPoSEd ACTiviTiES

AnnEx

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Wild-capture fisheries •specific: Promoting effective management of marine ecosystems and fisheries and raise the profile of food security in these discussions

Establish dialogue with •regional inter-governmental and scientific bodies and institutions, and connect with fisheries experts across APEC region to identify where PPFS can add real value to promoting effective management of marine ecosystems and fisheries and also raise the profile of food security in these initiatives

a. Hongkong Chinab. Sept 2013c. OFWG; CTI-CFF;

ISSF; SEAFDEC; APFIC; WorldFish Centre; Asian Fisheries Society

Cross-cutting issues: •Support key issues of concern that have yet to achieve using PPFS network

Establish connection with •expert on gender and/or under related concern and identify appropriate channel through which to further the discussion in the region among industries and under stakeholder

a. Hongkong Chinab. Dec 2013c. –

Aquaculture specific: •Enhancing the role that industry can play in improving sustainable aquaculture fisheries management

Highlight key issues of •concern and showcase channels through which to achieve sustainable aquaculture fisheries management

a. Hongkong Chinab. Dec 2013c. –

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Workstream 3 :Strengthening farmers cooperation and resilience of small holders, promoting the welfare of women in farming, empowering small holder farmers into the food supply and value chain, and enhancing services and training for small holders


Partnership between •small farmers and private sectorImproving the •productivity and efficiency of production at on-farm and off-farm

Workshop on integrating •small holder farmers and fisheries into supply chains for sustainability in food and agriculture*)

Indonesiaa. 2014b. ATCWG and c. Private Sectors

To exchange information •and experiences and to activate cooperation among the member organization

Involvement of farmers in •the APEC-PPFS dialogue

Rep -resentatives a. of farmers’ organization in APEC economies–b. AFGC(Asian c. Farmers’ Group for Cooperation), WFO(World Farmers’ Organisation), and ICA (International Co- operative Alliance)

Foster core leaders of •agricultural cooperatives and rural women coordinators who support entrepreneurship activities by rural women

Training courses on •agricultural cooperatives and marketing

International a. Co-operative Alliance and ASEAN Secretariat (supported by Japan)Continuingb. -c.

Information sharing on •marketing and crop production

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Partnership between •small farmers and private sector

Workshop on innovative •financing for farmers

Indonesia a. Chamber of Commerce2015b. -c.

Reduce shifting cultivation •and to safe the forest through established palm oil farming

a. Indonesia Chamber of Commerce

b. 2016c. –

Certify all palm oil nucleus •companies

a. Indonesia Chamber of Commerce

b. 2015c. –

Identifying area of •government and private sectors can cooperate with

Join ASEAN Pacific •training program for local community in the prone areas

New Zealanda. –b. –c.

To examine mitigation •and adaptation measures including water management technique

Conservation of irrigation/•drainage facilities for adaptation to climate change

IWMI – a. supported by Japan March 2015b. – c.

To renovate of old •facilities for more efficient use of water adapting global climate change

Improvement of irrigation •facilities adaptable to climate change in lower Mekong basin

MRC Japan a. Support ProjectMarch 2014b. – c.

Preparing against the •large scale disaster in emergency aiming at expeditious establishment with a view to strengthen food security and eliminating poverty in East Asia

Establish the support system •by using earmarked stock and stockpiled rice (cash) in order to correspond to disaster in emergency

ASEAN a. supported by Japan, China, Korea2014b. –c.

Providing participants •with further information of disaster prevention and reconstruction

Workshop on disaster •prevention and reconstruction

Japana. September b. 2013–c.

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Understanding small •farmers can contribute to value chain

- -

Providing participants •with information of farmers’ market and innovation of local agriculture

Workshop on farmers’ •market and innovation of local agriculture

a. Japanb. September

2013c. –

Strengthening the value •chain in LDC

Strengthening the food •industry in LDC of ASEAN region through the human resource development

a. Asian Productivity Organization (supported by Japan)

b. –c. –

Workstream 4 :Ensuring sustainable management of natural resources


Providing participants •with further understanding agricultural externalities/multi-functionalities

Workshop on agricultural •externalities and multi-functionalities in agriculture

Japana. September b. 2013–c.

Implementation the project •of the globally important agricultural heritage system

Japan (FAOs a. Japan support project)March 2016b. –c.

Cooperation with the •International Network for Water and Ecosystem in Paddy Fields

INWEPF a. member–b. –c.

To use water efficiently •by promoting Participatory Irrigation Management [PIM]

Cooperation with the •International Network for Water and Ecosystem in Paddy Fields

a. INWEPF memberb. –c.

To use water and land •efficiently – encourage to use efficient land and water resource

Rehabilitation and •intensification of sub-system for agriculture

a. USAb. –c. –

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Land availability •[allocation] for expansion food crops

Irrigation network damages •and rehabilitation

-

To develop sustainable •agriculture for the local community and farmers

(consecutively) Promoting •the best practice for local community and farmers to maintain soil fertility and conserving biodiversity and ecosystem

Thailanda. 2016b. –c.

Workstream 5 : Others


Providing food security •information for planning, implementation, monitoring and evaluation in ASEAN region

Developing agricultural •statistic information network – data base, ACO, EWI – and building capacities

Japana. –b. AFSISc.

FACILITATION ON INVESTMENT AND INFRASTRUCTURE DEVELOPMENTII.

Workstream1: Promoting investment in agriculture including through promoting the PRAI [Principles for Responsible Agricultural Investment]


Increasing public •investment in agricultureCreating an attractive •business environment to encourage more private sector investments in agricultureEnsuring a high level •of investor protection, including safeguarding and enforcing the rights and claims of investors and protecting intellectual property rights.

Engaging the private sector •on sharing best practices to foster a favorable environment to attract domestic and foreign private investment in agriculture. For example, Cargill or another corporation could make a presentation with a country such as Vietnam on the benefits of developing Commercial Business park to attract foreign and domestic investment

USA, Japan, a. Russia, Indonesia, Vietnam2020b. –c.

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Developing a framework •of activities/business plans in accordance with the PRAI, for specific APEC economies

Seminar on the PRAI on July •2, 2013 – the outcomes will contribute to the ongoing consultation at the Committee on World Food Security [CFS] in Rome, which is mandated to take into account the PRAI

Japana. Done in July b. 2013 –c.

Promoting responsible •agricultural investment that contribute to food security and nutrition within the framework of the PRAI principles

Japana. Done in July b. 2013–c.

Consolidating •information on each economy’s regulatory framework for agricultural investment and specific investment information in APIP

Providing accurate and •accessible information system and data base of agriculture

Japana. 2020b. –c.

Sharing good practices •of agricultural investment through APIP

Japana. 2020b. –c.

Supporting investment •programs aimed at strengthening food security of APEC economies within a framework of cooperation with international financial institutions [banks, funds, micro-finance institutions, etc]

To create an opportunity for •financial and development organizations to inform the economies of their existing programs to strengthen food security

USA – Russiaa. 2020b. –c.

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Workstream 2 : Infrastructure Development and PPP and Analyzing negative impact of Foreign Direct Investment [FDI]


Creating list of •prospective infrastructure projects for development with use of mechanism of state-private partnership in the framework of the PPFS

Creation of cold chain •infrastructure consortium to share experience and guidance on the development of an environment to foster the creation of a cold chain infrastructure and related industries

Japan, USA, a. Indonesia, China, Russia2013/2014b. –c.

Forming a policy/road •map in the development of the food industry utilizing a cold chain infrastructure and starting several pilot projects for building the cold chain infrastructure in the selected economies through public-private partnership

Creation of a cold chain •infrastructure consortium

Japana. 2014b. – c.

Setting up Steering •Committee

Japan, Russia, a. US, China2015b. –c.

Launching several pilot •projects

Japan, Russia, a. US, China, Indonesia 2016/2020b. –c.

Elaborating approaches to •improving the operation of food supply chains including through development of modern supply chain – value chain

Developing infrastructure in •the Far East region of Russia - Russia plans to construct a grain terminal in Port Zarubino in the Far East

Russiaa. 2016b. –c.

Developing measures to •attract targeted investments into food markets infrastructure and their logistical support

Russia, Japana. 2020b. –c.

Developing conditions •for a functioning, unified transport and logistics network in the framework of APEC economies

Sharing the best practice •and challenges on ongoing public infrastructure projects – Jakarta Metropolitan Priority Area (MPA)

Indonesiaa. 2020b. –c.

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Reducing post-•harvest losses through infrastructure development of food markets and supply chains, including the use of public – private partnership

Sharing the best practice •and challenges on post-harvest losses – Inviting companies such as Grain Pro to share their experience and innovative products that are being used to reduce post-harvest losses in an economical manner

Japan, Indonesia, a. Chinese Taipei, New Zealand2013-2020b. –c.

Carrying out joint •research project to share approaches and tools for post-harvest handling

USAa. 2020b. –c.

Disseminating knowledge •on the use of satellites and information technology to enable the use of “precision farming” techniques

The International Rice •Research Institute [IRRI] is working with the government of the Philippines and Allianz Insurance to use highly detailed satellite images to significantly cut the cost of selling crop protection in even the most remote corners of the world. The aim of this project is to make insurance more affordable and more accessible t farmers working on small plots of land. These actors could share their experiences with the economies at a future meeting

USA, Indonesia, a. Philippines2020b. –c.

Surveying and mapping •unused land suitable for production in APEC economies, taking into account the availability of the water resources and impact on biodiversity

Russiaa. 2020b. –c.

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ENHANCING TRADE AND MARKETSIII.

Workstream 1 : Non-tariff barriers to trade/enhancing market access


Member economies •are cognizant of the need, and take action to support regional food security through promoting policies that support food trade Business within the •APEC region work collaboratively to identify and address trade barriers that limit access to food

Set up monitoring •and reporting process within ETCWG for private sector notification on non-tariff barriers to food products

New Zealand to a. draft frameworks for discussiion at PPFSII Medan 2013For discussion in b. MedanFAO food security c. works, RIO+20 ‘The future we Want’; G20: International Organisations paper1(Improving trade policies); APEC : Market Access Group, Policy Support Unit; WTO and OECD monitoring reports; USC Marshall School reports to ABAC

Develop principles •for the application of measures to achieve food security and support trade consistent with the ambitions of the WTO Doha Round for a rule-based, inclusive trade environment including imports and export [– 2014]

New Zealand a. to prepare a papersynthesising principles already existing and identify any gapsDefer to 2013-2014b. –c.

Assess the impact •of trade-related measures on the attainment of food security

Rob Scolary Australia a. to present at PPFS II Medan Plenary)For discussion in PPFS b. II Medan Plenary–c.

Prepare report back to the PPFS Plenary forsubmission to SOM

PPFS Chair 2013a. Done in July 2013 b. (PPFS Medan Plenary)–c. 2625


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Workstream 2 : Effective global data standards to enhance food trade


The cost of trading •products across APEC region is reduced

Review ABAC/GS1 •proposal for deployment of data standards in APEC, ensure it reflects food industry concerns and promote through PPFS

WG Chair in a. association with GS1Done in July b. 2013 (PPFS Medan Plenary)ABAC proposal c. to APEC/ CTI on global data standards; GS1; APEC: SCSC, SCCP

Business certainty is •increased

Draw ABAC/GS1 proposal •to the attention of national food authorities

PPFS membersa. Done in July b. 2013 (PPFS Medan Plenary)ABAC proposal c. to APEC/ CTI on global data standards; GS1; APEC: SCSC, SCCP

Workstream 3 : Enhancing supply chain connectivity for food


Efficient and safe •distribution system throughout the supply chainSurety of supply•Economic development •[opportunity to participate in trade and manufacturing]

Review APEC Supply •Chain Connectivity Framework Action Plan to ensure food trade issues are covered

TBCa. 2013-14b. APEC: c. SCSC;SCCP

Ensure appropriate •linkages are created between ABAC/GS1 proposal for data standards within APEC and the APEC Supply Chain Connectivity Framework Action Plan

WG Chair/GS1a. Ongoingb. –c.

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Workstream 4 :Refraining from imposing new export restriction


Ensure consistent PPFS •messaging backed up by analysis of negative impact of export restriction

Complete relevant analysis •and ensure references in PPFS statement

TBCa. Done in b. July 2013 (PPFS Medan Plenary)WTO c. commitments; APEC Leaders’ statements

Workstream 5 :Analyzing implications of current high food market prices


TBC• TBC• TBC

Workstream 6 : Reducing post-harvest loss and promoting food safety


Implement practical projects •to address identified problems

Monitor progress •with Japan Cold Chain proposal and Chinese Taipei best practice public-private partnership

Japan and a. China TaipeiReview in b. July 2013 (PPFS Medan Plenary)TBCc.

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The Minister of Agriculture, Republic of Indonesia officially opened the PPFS 2nd Plenary Meeting and launched the Expo, Medan, 22 June 2013

Intense discussion of the Working Group 1 Meeting during Break Out Session on the 2nd day of the PPFS 2nd Plenary Meeting, Medan, 23 June 2013



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Photo Session of the PPFS 2nd Management Council Meeting, Kyoto, Japan 2013

PPFS Chair, PPFS Chair Office team and Indonesian Delegation (government and private officials) at thePPFS 2nd Management Council Meeting, Kyoto, Japan 2013



32

APEC region, which consists of only 21 out of more than 220 economies in the world [less

than 10 per cents], play a large role in global food supply, accounting for more than half of the world production

of rice, maize, eggs, vegetables and fish; more than 40 per cents of world production of wheat, soybeans, beef and buffalo meats and fruits; more than 30 per cents of world production of raw sugar and milk.

APEC and world main food production, 2011 [ton]

No Food productsProduction [000 tons] APEC’s share to world

[%]APEC World

1 Wheat 287,327 701,395 41.0

2 Rice 256,239 469,664 54.6

3 Maize 580,168 885,290 65.5

4 Soybeans 106,553 262,038 40.7

5 Raw Sugar 51,834 170,840 30.3

6 Beef and buffalo meats 28,372 66,334 42.8

7 Milk 225,562 739,363 30.5

8 Eggs 47,179 70,616 66.8

9 Vegetables 694,889 1,090,425 63.7

10 Fruits 258,544 637,576 40.6

11 Captured fish * 54,602 88,604 61.6

12 Aquaculture * 47,439 59,873 79.2

Notes: [*] 2010 data; includes fish, crustaceans, mollusca, etc., excludes aquatic plants.Rice production is rice equivalent, using 0.65 conversion factor paddy to rice.Source: FAOSTAT data [calculated].


APEC’s Share on World Main Food Products


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Top three APEC food producer economies, 2011

No Food Products Rank 1 Rank 2 Rank 3

1 Wheat China [16.7] Russia [8.0] US [7.8]

2 Rice China [28.0] Indonesia [9.1] Viet Nam [5.9]

3 Maize US [35.5] China [21.8] Indonesia & Mexico [2.0]

4 Soybeans US [32.1] China [5.5] Canada [1.6]

5 Raw Sugar China [7.4] Thailand [5.6] US [4.5]

6 Beef and buffalo meats US [18.1] China [9.0] Australia [3.2]

7 Milk US [12.0] China [12.0] Russia [4.3]

8 Eggs China [40.3] US [7.7] Japan [3.5]

9 Vegetables China [51.9] US [3.2] Russia [1.5]

10 Fruits China [21.1] US [4.3] Indonesia [2.7]

11 Captured fish China [17.4] US [4.9] Peru [4.8]

12 Aquaculture China [61.4] Viet Nam [4.5] Indonesia [3.9]

Notes:[…] is per cent share to world production.Source: FAOSTAT data [calculated].

APEC region food production is dominated by China and the United State of America. Other economies that include in the top threeproducers in 2011were: Russia was rank 2 in wheat and rank 3 in milk; Indonesia was rank 2 in rice and rank 3 in maize,

fruits and aquaculture; Viet Nam was rank 2 in aquaculture and rank 3 in rice; Thailand was rank 2 in sugar; Mexico was rank 3 in maize; Canada was rank 3 in soybeans; Australia was rank 3 in beef; Japan was rank 3 in eggs; Peru was rank 3 in captured fish.



34

The global population is predicted to reach 9.3 billion in 2050, adding more than zz2.3 billion people on the demand side for food. The APEC region is estimated to have 3 billion people, accounting for 32 % of the world’s population at that time. To feed the population, food production will have to increase by 60 % in the world and by 70 % in the developing countries (FAO).

Food demand in the APEC region over the past 20 years has been driven by a zzcombination of rapid population growth, a high rate of urbanization, higher income growth, and growing demand for bio-fuels (APEC PSU).

SuPPoRTinG doCuMEnT *)

1. Food Supply and demand

*) This document was prepared by PPFS-Japan Delegation. This document was used as an initial reference in composing a concise APEC Road map on Food Security toward 2020

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Higher income growth expands consumption of live stock products, which necessitate a lot more grains.

Food Supply

Agricultural production has been increasingly constrained as crop yields are zznot improving as fast as in previous years; public investment has diminished in the long term; and desertification, shortages of fresh water, conversion of farmland to non-food production and the adverse impacts of climate change have increased. (Niigata Declaration)

Slowing yield growth in the APEC region is pronounced in important crops such zzas rice and wheat. Between 1992 and 2010, rice production grew at less than one-third the rate at which it grew during the 1962-1991 period. The yield growth for wheat slowed from 2.6 % per year between 1962 and 1991 to 1.0 % per year between 1992 and 2010 (APEC PSU).

Average annual growth in the production of selected crops in APEC

(Source: APEC PSU Challenges to Achieving Food Security in APEC (2012))

%Wheat Rice Corn Oil Crops

1962-1991

1992-2010

1962-1991

1992-2010

1962-1991

1992-2010

1962-1991

1992-2010

Production 2.5 -1.0 3.3 1.0 2.4 2.7 4.0 4.0Area -0.1 -2.0 0.8 0.2 0.6 1.0 1.5 1.0Yield 2.6 1.0 2.5 0.7 1.8 1.7 2.5 3.0

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Long-term Projection

Agricultural commodity prices are projected to remain relatively high over the next zzdecade or so due to tightened food supply and demand both in the OECD-FAO and PRIMAFF, JAPAN long-term projections.

OECD-FAOz

Agricultural commodity prices

(Source: OECD-FAO Agricultural Outlook 2012-2021)

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Policy Research Institute of MAFF Japanz

(Source: World Food Supply and Demand. Projections to 2022. Policy Research Institute. Ministry of Agriculture, Forestry and Fisheries.(PRIMAFF)

Note: Nominal price refers to an economic value expressed in current prices including inflation(that is, in units of a currency) in series of years. Real price adjusts nominal value to remove effects of general price-level change over time.The figures by 2012 are actual value whilst the figures from 2013 to 2022 are estimated value.Future nominal price of rice is estimated by using CPI of Thailand and those of other crops are estimated by using CPI of U.S., the gap between the nominal price and the actual price of rice is wider than those of other crops.

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1. SUSTAINABLE DEVELOPMENT OF AGRICULTURAL AND FISHERY SECTOR

1-1. Promoting Research and Development and Technology Dissemination

Agricultural research and development (R&D) is crucial to increasing zzproduction, enhancing quality and safety and reducing food losses.

Public R&D spending in developed economies has been in a slowdown and zzthat in developing economies still stays at law levels.

The Research Intensity Ratio in 2008 (APEC PSU)~

(= Public agricultural R&D spending for every USD 100 of agricultural output.)

3.07 0.54

The focus of agricultural R&D in developed economies has also shifted ~away from on-farm productivity enhancements towards food safety and quality as well as industrial uses of agricultural commodities.

Stagnating public R&D in developed economies reduces international ~spillovers from such economies, negatively impacting future gains in productivity growth of both economies.

Developing APEC economies increasing their public agricultural R&D ~spending is concentrated in just a few large economies and their spending level isn’t as high as that of developed economies.

Much smaller than recommended ratio of 1%

Developed economies Developing economies

2. Current Situation

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Given the trends in declining public R&D spending, it is essential that APEC zzeconomies encourage private R&D investment.

Share of private investments to total agricultural R&D spending (APEC ~PSU)

There is considerable potential to further build up agricultural R&D capacity ~through private investments in developing economies.

To create an attractive investment conditions and business environment, ~improving agricultural infrastructure through ODA is also important.

A high level of investor protection and robust intellectual property rights ~are important factors.

In developing areas, more than a billion people are suffering from extreme zzpoverty and hunger. With regards to the food security in these areas, there are serious issues such as inadequate infrastructure and delay in development of technology which is indispensable for agricultural productivity improvement.

In order to tackle the above-mentioned issues, it is necessary to develop the zzfollowing technologies:

Technologies to sustainably manage agricultural resources1.

(e.g. Grass field management technologies to prevent desertification)

Technologies to improve the productivity and stabilize crop production in 2. unstable environments such as those in the tropical regions

(e.g. Developing varieties which have blast disease resistance and phosphate depletion resistance

Global environmental issues such as climate change and deforestation give a zzmassive impact on agricultural production.

{ Climate change }

The IPCC 4th assessment report forecasts that the global temperature may be increased by 0.2 degrees Celsius per decade until 2030.

{ Deforestation }

The forest area has been decreased by 5.2 million hectares every year (average from 2000 to 2010), even though afforestaion has proceeded in some Asian economies.

Developed economies More

than 50%

Developing economies 6%

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Agricultural technologies to counter global warming 3.

(e.g. Elucidation of generation/absorption mechanism of GHGs; Forest management methods to reduce deforestation and forest degradation in tropical regions)

Technologies for effectively utilizing unused agricultural resources 4.

(e.g. Technologies to produce biofuels from unused biomass resources such as logged oil palm trees)

1-2. Promoting Effective Management of Marine Ecosystem, Fisheries, and Aquaculture

In 2010, people consumed about 128 million tonnes of fish. In the last five zzdecades, world fish food supply has outpaced global population growth, and today fish provides more than 4.3 billion people with about 15 percent of their intake of animal protein. Estimates for 2010 point to fish consumption reaching another new high of 18.6 kg per person. (FAO SOFIA)

Stimulated by higher demand for fish, world fisheries and aquaculture zzproduction is projected to reach about 172 million tonnes in 2021. (FAO SOFIA)

Some 57% of the world’s marine fishery resources are fully fished, or fished zzto the maximum sustainable level. Another 30% is overfished, depleted, or recovering from depletion (2009). (FAO SOFIA)

The sustainable management of marine ecosystems, fisheries and aquaculture, zzand combating IUU fishing and associated trade is extreme important. (Kazan Declaration)

For many economies of the APEC region, fisheries and aquaculture are zzsignificant components of social and economic wellbeing and contribute significantly to food security. (Kazan Declaration)

In recent decades, global fishing has faced serious problems - degradation zzof the marine environment, overexploitation, and IUU fishing have damaged marine ecosystems and depleted fisheries resources. (Kazan Declaration)

1-3. Strengthening Farmer Cooperation and Resilience of Smallholders, Promoting the welfare of women in farming, and Empowering smallholder farmers into Food Supply and Value Chain

Energy, food and financial crises in recent years seriously affected the zzlivelihood of farmers in APEC economies.

The increasing market volatility of prices, not only of agricultural products ~but also of agricultural inputs like fertilizer and fuels, has seriously affected all the farmers.

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Global challenges such as climate changes and environmental degra dation ~are also affecting farmers and agricultural production.

Farmers’ organizations and cooperatives play an important role in providing zzfarmers, in particular smallholder farmers, a variety of services such as training in natural resource management as well as better access to information, technologies, innovations etc.

The cooperative system represents a fundamental tool for eradicating ~hunger and reducing poverty, being a catalyst for socially-inclusive development (jobs and income generation). They also represent a powerful means for supporting marginalized groups, such as youth and women.

The role of the cooperative system is important especially in developing ~economies.

International Cooperation between farmers is proceeding especially in times zzof natural disasters.

Japanese farmers received heartful supports from farmers all over the ~world when the Great East Japan Earthquake caused a tremendous damage to regional agriculture.

Globally, there are an estimated 500 million smallholder farms in developing zzeconomies, which cultivates most of the agricultural land. (APEC PSU)

Smallholders support two billion people’s diet. Smallholders provide up to ~80 percent of food consumed in developing regions of Asia. (FAO, IFAD etc.)

Smallholders commonly face and suffer from price fluctuations, especially in zzdeveloping economies.

Weak market information systems and poor market integration often ~result in smallholders making incorrect decisions on what and how much to produce.

Lack of adequate technologies and knowledge can lead to unsustainable ~practices by small holders, which impoverish the natural resource base and, in the longer term, contribute to volatile supply.

Initiatives such as the Agricultural Marketing Information System (AMIS, ~a G20 initiative), which seeks to provide greater transparency in market information system can help reduce market uncertainty. Initiatives such as AMIS could provide value-added, especially if the information is shared broadly with the agricultural sector.

Much of the private investment comes from the farmers themselves.zz

Smallholders in particular face many challenges in obtaining access to ~credit since they often have few assets that can be used as collateral.

Enhancing access to credit is an essential business condition to promote ~smallholders’ investment.

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1-4. Ensuring sustainable management of natural resources, enhancing positive externalities of agriculture, increasing resilience to natural disasters and providing for vulnerable communities, focussing on the impact of proper nutrition

Agriculture and rural area, which have the crucial role in food security, can zzcontribute to other positive externalities such as conserving agricultural land, fostering water resources, preserving landscape and protecting biodiversity.

These multi-faceted functions of agriculture can be difficult to value but zzonce destroyed, they are irreparable or require a great amount of time and investment to recover. Hence, we need to continue with strenuous efforts to maintain and enhance positive externalities by reinvigorating agriculture and rural area.

Agricultural activities also has negative externalities such as groundwater zzdepletion and GHG (Green-House Gas)s emission. Especially, agriculture is a major net contributor of GHGs, accounting for about 13% of the total if fuel, fertilizer are included. The intensification of agricultural practices (especially the use of fertilizers) and changes in dietary patterns (in particular increased consumption of meat) are projected to drive up these emissions. Therefore, we need to reduce negative externalities.

Food

World population will increase to 9.3 billion in 2050.zz

World agricultural production will need to increase by some 60 percent zz(70% in developing economies) from 2005/2007 to 2050.

Over the past 50 years, land and water management has met rapidly rising zzdemands for food. In particular, input-intensive, mechanized agriculture and irrigation have contributed to rapid increases in production. More than 40 percent of the increase in food production came from irrigated areas.

Agricultural land per person has reduced dramatically from 0.45 in 1961 to zz0.22 ha per person in 2008. (FAO)

In order to increase agricultural production, the increase of land productivity zzthrough the enlargement of irrigated area is necessary.

Land Resource

World soil degradation accounts for approximately 15% of the world area. zzEnvironmental issues such as desertification and salt accumulation have been occurring.

Paddy field has multi-functionality such as flood control, sediment control, zzgroundwater recharge and ecosystem.

Development and implementation of effective systems aimed at the zzprevention of unfavourable nature disasters and restoring soil fertility, as well as the regulation of atmosphere parameters. 3837


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Creating and strengthening international organizations of producers, zzincluding Farmers’ Water Management Association, and promoting Participatory Irrigation Management.’

Water Resource

The volume of water resource accessible for human beings is limited.zz

Agriculture is the biggest user of freshwater, accounting for a global zzaverage of 70% of all water withdrawals. Efficient use of agricultural water is necessary.

Establishing and strengthening of Farmers’ Water Management Association zzand promoting Participatory Irrigation Management (PIM) are necessary.

International Network for Water and Ecosystem in Paddy Fields (INWEPF)

INWEPF was established by some paddy countries mainly in Asia-monsoon zzregion and some international organizations such as FAO and IWMI in 2004.

INWEPF is a network for sustainable paddy farming, and studies about paddy zzfield and ecosystem such as PIM system and multi-functionality of paddy field, which is disseminated to the international society.

It is important to support the progress of INWEPF activities. zz

Multi-functionality of paddy farming

Flood Preventiona.

Soil of a rice paddy or a field with high absorption capability, which is enclosed by levees, can prevent or alleviate flooding by temporarily holding rainwater and releasing the water gradually to downstream areas over a longer period of time.

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b. Soil Erosion Prevention (Prevention of Run-off)

Water filled in rice paddies protects the soil from rain and wind and prevents erosion. Fields also have the function to prevent run-off to downstream areas by the ground-covering effect of plants and by the gentle slope of the field.

c. River Flow Stabilization

Most of the irrigation water used for rice paddies as well as rainwater permeates underground, part of which will be incorporated in spring water and eventually discharged back into the river, contributing to the stabilization of the river flow.

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d. Groundwater Recharge

Most of the irrigation water used for rice paddies as well as rainwater permeates underground and enters the groundwater of the drainage area, which will subsequently be used for household and industrial uses as good quality water.

e. Atmospheric Regulation (Climate Moderation, Atmospheric Purification)

Plants cultivated in farmland absorb heat by evapotranspiration, which has an effect of reducing temperature. Particularly in rice paddies, the climate condition is eased by evaporation from the water surface of the paddies (function of climate condition relief). In addition, plants in green areas such as rice paddies and fields not only absorb carbon oxide and release oxygen, but also absorb air pollutants including sulfurous acid gas and nitrogen dioxide (atmospheric purification function).

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Sustainable Development of Agriculture by promoting the Use of Organic Fertilizers

Chemical fertilizer use is rising, particularly in developing countries, to increase zzfarm productivity in response to the increased food demand (Figure 1).

Overuse of chemical fertilizers harms the environment in terms of groundwater zzpollution and greenhouse gas emissions (i.e. negative externalities).

Prices for chemical fertilizers and their raw materials have been rising(Figure2) zzin a fear that the world reserves of fertilizer resources, particularly phosphorus and potassium, are going to be depleted.

There is a possibility that the chemical fertilizer prices will rise furthermore in zzresponse to the increasing crop production. Those rising prices worsen the business conditions of farmers, particularly those of smallholders.

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Strengthening Resilience to Natural Disasters

APEC economies are prone to natural disasters which severely affect agricultural zzsectors.

The Asia-Pacific region experiences over 70 percent of the world’s natural ~disasters.

Most APEC economies are located in the Pacific Ring of Fire, which is ~home to over 75 percent of the world’s volcanoes and is the source of 90 percent of the world’s earthquakes.(Niigata Declaration).

Natural disasters have surfaced as a major food security concern for all APEC zzeconomies. (APEC PSU)

By ongoing drought in the United States, Corn production is forecast at 10.8 ~billion bushels, down 13 per cent from 2011 and the lowest production since 2006 while soybean production is forecast at 2.69 billion bushels, down 12 per cent from last year (USDA, 2012b)

Agricultural output fell by 12 per cent following a severe drought in Russia ~in 2010. Total grain output was reduced by 31 per cent compared to the previous five-year average. Barley, the principal feed crop, had a 52 per cent fall in output compared to the average of the previous five years.

2. FACILITATION ON INVESTMENT AND INFRASTRUCTURE DEVELOPMENT

2-1. Promoting investment in agriculture including through promoting the PRAI, Infrastructure Development and Analyzing negative impacts of FDI

Investments in hard and soft infrastructure and R&D are critically important to zzincreasing agricultural production and productivity.

Investments in food, agriculture and rural development need to increase by ~50% in order for food production to meet the expected growth in demand by 2050 (FAO).

There has been a low level of investment in the agricultural sector of most zzdeveloping economies over the past 30 years, resulting in low productivity and stagnant production of many staple crops.

There is wide disparity of agricultural investments within APEC region. ~(APEC PSU)

USD 1,822 (Developing APEC economies)

Average capital stock per agricultural worker

USD 219,900(Industrialized APEC economies)

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This highlights the need for investment in developing APEC economies~

Much of the private investment in the agricultural sector comes from the ~farmers themselves. They face many challenges in obtaining access to credit since they often have few assets that can be used as collateral.

ODA will no longer be a major source of funding in the region. zz

Share of agricultural and fisheries sectors to the total ODA commitments ~also declined (APEC PSU), 9% (1995-96) zz 5% (2009-10)

Given the trends in declining public R&D spending, it is essential that APEC zzeconomies encourage private R&D investment.

Share of private investments to total agricultural R&D spending. (APEC ~PSU)

There is considerable potential to further build up agricultural R&D capacity ~through private investments.

Promoting private sector investments including Foreign Direct Investment (FDI) zzis critically important to reactivate agricultural investments.

Primary agriculture have not been the most attractive sectors for FDI, ~accounting for just 5.4% of global FDI inflows during 2008-10. Of this amount, over 90% went to processed agriculture, indicating that much of the FDI is concentrated in the downstream agricultural activities of processing, manufacturing, and retail trade (APEC PSU).

To create an attractive investment conditions and business environment, ~improving agricultural infrastructure through ODA is also important.

A high level of investor protection and robust intellectual property rights are ~important factors.

Protection of Intellectual Property Rights to strengthen Food Security

(Regional Cooperation to Establish Plant Variety Protection Systems)

Various types of intellectual property rights play a very important role in every zzstage of food supply chain starting from farming.

Developed economies More than 50% Developing economies 6%

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In particular, impacts of new varieties on productivity growth can be very substantive, as zzexemplified by remarkable historical increase of rice yield in Japan. Contribution of new varieties to yield growth is near 50%. Contribution of Fertilizer is 20% (3.3/2.7) that of farming machines such as cultivator is 10% (3.6/3.3), and that of Pesticide is 25%(4.6/3.6).

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Source: Developed by MAFF based on MAFF-statistics and other sources.

Genetic Resources are treasures. Breeding Technology and Investment from zzPrivate sector are critically important to create new varieties. If there is no protection for Breeder’s Right, no one pay for R & D. Plant Variety Protection System facilitates private sector’s investment, promotes trade, expands markets and strengthen Food Security.

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Quality of roads and ports

It is important to develop internationally harmonized Plant Variety Protection zzsystems.

However, the International Convention for the Protection of New Variety of zzPlants has been ratified only by few economies in the APEC region and further cooperation in capacity building is necessary.

Infrastructure Development & Public Private Partnership (PPP)

For many developing APEC economies, there underinvestment in agricultural zzinfrastructure, resulting in food losses and lower crop yields.

In 2009, only half of the total area with the potential for irrigation was actually zzequipped for irrigation in developing APEC economies (excluding China). (APEC PSU)

Roads and ports in developing APEC economies are, on average, of poorer zzquality in comparison with those in industrialized APEC economies, reflected by their lower score in the responses to the Global Economic Forum’s Executive Opinion Survey as to the quality of roads and port infrastructure.

Cold chain infrastructure is commonly recognized as an important solution zzfor the food loss. This infrastructure is consisted of a set of 3 facilities – a cold storage, a primary processing and a public wholesale market. Building the nationwide cold chain would help grow food industry. This could be achieved only through PPP where Public plays a role of policy formation in roadmap, financing & tax system, hygiene system etc and Private shares the operational expertise, technology, food business know-hows etc.

Note: 1=extremely underdeveloped 7=extensive (roads) / well developed (ports) and efficient by international standards.

(Source: World Economic Forum, The Global Competitiveness Report

2012-2013. )

Quality of roads Quality of infrastructure

SN 6.5 6.8HKC 6.3 6.5CDA 5.9 5.7JPN 5.9 5.2ROK 5.8 5.5USA 5.7 5.6CT 5.7 5.3

CHL 5.6 5.2MAS 5.4 5.5BD 5.2 4.5

AUS 5.1 5.1THA 5.0 4.6NZ 4.9 5.5

MEX 4.5 4.3PRC 4.4 4.4NA 3.4 3.6

PHL 3.4 3.3PE 3.1 3.5VN 2.7 3.4

RUS 2.3 3.7 4645


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Promoting the Principles for Responsible Agricultural Investment (PRAI)

The IAWG, having been welcomed by G8, G20, and APEC, is now operating zzpilot projects for research and analysis of the PRAI as well as its pilot use until mid 2013.

The IAWG operations are supported by PHRD (Policy and Human Resources zzDevelopment) fund of the World Bank, FAO’s work to develop a database and policy guidance on agricultural investments (a trust fund project), and a 2013 scheduled APEC’s seminar to share the outcomes of the pilot projects.

Measures need to be implemented for agricultural investments in a responsible zzmanner, both for public and private, to avoid negative impacts and to promote their profitable nature.

Meanwhile, taking PRAI into account, the Committee on World Food Security zz(CFS) has commenced a consultation process scheduled by 2014 to develop CFS’s principles for responsible agricultural investments (rai principles) to secure broader ownership of them. The process reached to the draft outlines as of February 2013.

Analyzing Negative Implication of Foreign Direct Investment

Global food price hike in 2007-08 triggered large-scale land acquisition events zzin developing countries especially in Africa and Asia. Those events peaked in 2009, and some of them were reported by the press as “land grabbing” and provoked international concerns.

Following that, the Principles for Responsible Agricultural Investments (PRAI) zzwere elaborated by relevant international agencies in 2010, which aimed at avoiding negative impacts on local communities and providing tripartite benefits to recipient economies, local people including farmers and investors, and the research and analysis of PRAI are ongoing at present. Further, since 2012 FAO’s Committee on World Food Security (CFS) has commenced a consultation process to develop CFS’s principles (rai principles) to secure broader ownership.

Reflecting those international circumstances, outstanding three reports on zzagricultural investments were published one after another from October 2012 to January 2013 as follows:

Trends and Impacts of Foreign Investment in Developing Country Agriculture ~(FAO trust fund project)

The State of Food and Agriculture 2012 –Investment in Agriculture for a ~better future (FAO)

Trends in Foreign Direct Investment in the Agricultural Sector of Developing ~and Transition Countries

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Berlin Agriculture Ministers’ Summit 2013 Back Ground Study

Some major findings of those reports are as follows: zz

In development countries, farmers are by far the largest source of ~agricultural investment. In order to promote farmers’ investments, public investments into infrastructure which play a catalytic role are important as well as corporate investments which adopt inclusive business models involving farmers.

While Large-scale agricultural land acquisitions may entail some risks to zzcause denial of access to resources, loss of livelihood, food insecurity, and environmental damage where there is a lack of good governance and clear land tenure rights in host economies, they offer also opportunities in terms of increased production, export earnings, employment and technology transfer. This is why the CFS’s principles for responsible agricultural investment (rai principles) is necessary

There is a need for “patient investment” provided by investors with long-~term perspectives in order to ensure that the expected benefits materialize. Therefore a long-term viewpoint is necessary to correctly evaluate individual investments.

3. ENHANCING TRADE AND MARKET

3-1. Facilitating Trade in Food and Agricultural Products

Agricultural trade plays a key role in achieving food security. To this end, we zzreconfirmed the value of an open and rules-based multilateral trading system under the framework of the WTO, which provides predictability and stability in agricultural trade. We agreed on the need to sustain the benefits of globalization and open markets, highlighting the crucial importance of encouraging science-based standards, rejecting protectionism and encourag0ing the development of regionally integrated markets.(Kazan Declaration)

Agricultural trade accounted for 8.3% of the value of global goods trade zzin 2011, while agricultural exports as a share of the total value of goods exports from APEC economies were 5.8% in 2011. Average MFN tariff rate on agricultural products in the APEC region was 12.3% in 2011 in comparison with 4.7% on non-agricultural products. Agricultural exports of developing economies as a share of total exports are 4.5% lower than those of industrialized economies, 8.0%. (APEC PSU)

As well as increasing concerns about non-tariff measures such as technical zzbarriers to trade (TBT) and sanitary and phyto-sanitary(SPS) measures. Between 1995 and 2011, 30% of the 317 specific trade concerns raised against a TBT measure were related to an agricultural product, nearly half of which named an APEC economy as the maintaining member. (APEC PSU)

Trade rules on agriculture are being discussed under the DDA in the WTO. zzSuccessful outcome at the 9th Ministerial Conference (MC9) in Dec. 2013 in Bali will be essential for making a breakthrough in the subsequent DDA negotiations including Agriculture negotiations. 4847


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At the same time there is a growing trend toward regional trade agreements, zzespecially plurilateral one compared to bilateral one.

(There has been a steady increase in the number of developing economies zzwhich once were net food exporters but have become turned to net food importers. “Developing APEC economies where strong economic growth since 2000 has strengthened food demand beyond their capacity to expand production, reflected by a substantial increase in their food import bills” from 10 billions USD in 2000 to 40 billions USD in 2010. (APEC PSU)

As tariffs are reduced as a result of a succession of trade liberalization zznegotiations, greater attention and importance are being put to Non Tariff Measures (NTMs) including regulatory measures, such as TBT/SPS measures.

Regarding TBT measures, among 317 concerns raised in the WTO between zz1995 and 2011, around 30% of them were related to agricultural product, nearly half of which were maintained by APEC economies. The number of concerns raised on SPS measures have been decreasing since 2002. (WTO World Trade Report 2012, APEC PSU)

Sufficient Information on NTMs other than TBT/SPS is not available from zzofficial resources.

Bans and other restrictions on the export of food may cause price volatility, zzespecially for economies that rely on imports of staple products. (Kazan Declaration)

In 2008, when the world food price increases unprecedently, export restriction zzmeasures were taken on cereals and other food products, which in turn had detrimental effects on world price. Even social disorder happened in countries outside the APEC region.

Exporters have a right to apply export restrictions temporarily to prevent/zzrelieve critical shortages of foodstuffs (Article XI of GATT). If they apply the measures, notification to the WTO in advance is necessary, but this notification rule is not well observed.

We reaffirm our pledge to refrain through the end of 2014 from imposing zznew export restrictions. (APEC Leaders’ Declaration, 2012)

Ensuring Effective Global Data Standards for Food Supply Chain Connectivity

APEC economies have a stated goal of reducing supply chain costs across the zzregion by 10% by 2015.

The role that global data standards and interoperability of information systems zzcould play in eliminating supply chain “choke points” that inhibit the flow of information and goods across borders.

Food Price Hikes and Volatility (Including the Analysis of Current High Food Market Price)

Slowing production growth in the past two decades for agricultural products, zzagainst a backdrop of accelerating demand growth, has created a tight agricultural market globally. 5049


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Food price volatility creates unpredictability in the market and poses zzfundamental food security risks for consumers and public. Volatility also discourages needed investment in agriculture for development due to increased financial risks and uncertainty for producers and traders.

The recent price hikes in 2007-08 and again in 2012 highlighted the zzvulnerability of many economies.

Higher food prices had pushed 130 million to 155 million people into poverty in 2008 and 44 million people in 2011 according to the World Bank estimates.

APEC Policy Support Unit identified five major determinants of price hikes and zzvolatility.

(Source: page10-11,Food Security Policies in APEC, APEC Policy Support Unit, zzSeptember 2012)

Population growth and urbanization in developing economies have added 1. significantly to the demand for food and will continue to do so in the foreseeable future.

Agricultural commodity prices are becoming increasingly correlated with 2. oil prices, which negatively impact the cost of fertilizers, transportation and shipping.

Many of the world’s agro-ecosystems being used as food production systems 3. are already showing worrying signs of degradation and unsustainability.

4. The world remains vulnerable to food price fluctuations because grain reserves are low and staple grains are exported by just a few economies.

There was enhanced transparency in the market with the introduction of zzAgricultural Market Information System (AMIS) under the Action Plan of G20. Self-Restrains on imposing export restrictions also helped to enhance market transparency and keep stability. 5049


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Sharing more information on food security is necessary to enhance transparency zzand predictability in the agricultural market.

The ABAC portal provides substantive information. The Asia-Pacific Information zzPlatform on Food Security (APIP on Food Security) was launched in March 2012.

It was agreed in Kazan Declaration to consider opportunities for cooperation zzbetween the APIP on Food Security and the G20/Agricultural Market Information System (AMIS).

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3-2. Reducing Food Losses & Waste

One-third of food produced for human consumption is lost or wasted zzglobally, which amounts to about 1.3 billion tons per year. (FAO)

Food is lost or wasted throughout the supply chain, from initial agricultural zzproduction down to final household consumption.

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(Source: FAO Global Food Losses And Food Waste)

In medium- and high-income economies food is to a significant extent zzwasted at the consumption stage, meaning that it is discarded even if it is still suitable for human consumption. For example, foods which are past sell by date are discarded even though they are still edible.

In low-income economies food is lost mostly during the early and middle zzstages of the food supply chain; much less food is wasted at the consumer level.

Given that many smallholder farmers in developing economies live on the margins of food insecurity, a reduction in food losses could have an immediate and significant impact on their livelihoods.

There are differences among different agricultural products in terms of zzwhere and how much food losses occur in the supply chain(FAO:Figure2,3)

Data on food losses are extremely limited, and much of what is available zzis out of date. Furthermore, there is no standardized methodology for measuring food losses across the different agricultural products

Figure 1.

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Figure 2.


APEC economies may be interested in the ”Think.Eat.Save.Reduce Your zzFootprint” initiative which was launched in January 2013 by the Food and Agriculture Organization and the UN Environment Programme. This initiative seeks to reduce food loss and waste along the entire chain of food production and consumption. The website (www.thinkeatsave.org) provides more information.

Figure 3.

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Public and Private Partnership on Food Safety and quality

Food safety is an essential element of food security.zz

“Food security exists when all people, at all times, have physical and economic zzaccess to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life”. (World Food Summit, 1996)

The global incidence of food borne disease is difficult to estimate, but it has zzbeen reported that in 2005 alone 1.8 million people died from diarrheal diseases. A great proportion of these cases can be attributed to contamination of food and drinking water. (WHO 2007)

3-3. Developing Technologies to Control Livestock Diseases and Zoonoses

Serious livestock diseases and zoonoses, such as foot-and mouth diseases zzand highly-pathogenic avian influenza not only give economic damages to livestock industries but also cause serious world-level public health problems and create trade barriers in the globalized society.

Standards should be based on science and internationally recognized zzstandards (i.e. Codex) in order to ensure uniformity and proper management of the problem.


Prompt and simple diagnosis technologies for serious livestock diseases 1. such as foot-and-mouth disease and zoonoses such as highly-pathogenic avian influenza.

Technologies to prevent occurrence of live stock diseases and zoonoses.2.

Technologies to contain spread of those diseases.3.

3-4 Improve Governance Frameworks

A number of separate public agencies deal with the various aspects of food zzsecurity.

A few economies in the APEC region have a centralized agency as a ~coordinating body which is tasked to deal with food security as a whole.

Various communication strategies with stakeholders including private sectors zzare undertaken in APEC economies with regard to food security policies.

Typical process is as follows: ~

Establishing a policy deliberating council whose member includes zprivate sector representatives for the purpose of incorporating external stakeholders’ viewpoints at the policy planning stage;

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Holding a public hearing and/or accepting public comments before zmaking an important policy decision;

Establishing a policy evaluation council whose member includes zprivate sector representatives in order to objectively evaluate various policy decisions and implementations.

3-5. Communication among Stakeholders in order to strengthen Food Security, by utilizing Risk Management Method

Two general types of food insecurity zz

Chronic food insecurity~

Addressed through increases in agricultural production and productivity zand poverty reduction.

Chronic food insecurity needs to be dealt at various forums.z

Transitory food insecurity~

Unpredictable and abrupt occurrences tend to cause a temporary zdecline in the access to adequate food.

Examples of threats to food security

Political Technical Demographic/economic Environment

Wars 3

Export restrictions 3

Trade embargoes 3

Breakdown of 3international trade

Government 3restrictions

Regulatory failures 3

Farming practices 3

Lack of transport 3

Contamination 3

Population 3growth

Increasing 3demand

High world 3prices

Financial crises 3

food inflation 3

Unemployment 3

Longer supply 3chain

Floods 3

Droughts 3

Plant and animal 3diseases

Extreme weather 3events

Pest and diseases 3

Source: Prepared from the data from DEFRA

“UK Food Security Assessment: Detailed Analysis” (2010)

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The recent world food price hikes in 2007 and 2008 induced various policy zzactions by various economies.

They include introduction of export restrictions, pursuance of self-~sufficiency and establishment of food reserves.

In order to cope with unpredictable occurrences, it is necessary to identify an zzeffective transitory food security strategy by utilizing the risk analysis approach in order to make national policy decisions.

First of all, it is necessary to objectively assess the likelihood and impacts ~of each threat to food security based on the communication with wide-ranging stakeholders.

It is also necessary to share the assessment of variety of risks over transitory ~food security among stakeholders.

Finally, it is necessary to establish a diversified strategy which can robustly ~respond to a variety of risks based upon the above-mentioned assessment and the result of communication with stakeholders.

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Published by:INDONESIAN AGENCY FOR FOOD SECURITY

MINISTRY OF AGRICULTURE, 2013

P O L I C Y PA R T N E R S H I P O N F O O D S EC U R I T Y ( P P FS)


(V ERS I O N 2013)



APEC FOO

D SECURITY ROAD M

AP TOW

ARDS 2020 (VERSION 2013)

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POLICY PARTNERSHIP ON FOOD SECURITY (PPFS) APEC FOOD ... · APEC Policy Partnership on Food Security [PPFS], as primary mechanism for APEC economies to address food security issues,is