Food Security Challenges Faced by Developing Asian Countries and Responses toward 2025: The Case of Indonesia

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1 Food Security Challenges Faced by Developing Asian Countries and Responses toward 2025: The Case of Indonesia Achmad Suryana *) Presented at International Conference on Asian Food Security (ICAFS) Singapore, August 2014 *) Former DG of Indonesian Agency for Food Security/Research Professor at Indonesian Agency for Agriculture Research and Development

2 2 TOPICS OF DISCUSSION I. Current Situation II. Challenges Toward 2025 III. Policy Alternatives

3 I. CURRENT SITUATION INDONESIA Energy and protein availability for consumption was higher than the recommended standard requirement. Average volume of rice import was less than 3% of total domestic production. Indonesia can be categorized as a food secure country. Per capita rice consumption has been decreasing: Increase in variety of food consumed toward more balance nutrition diets. Increase in demand for protein and vitamin sources: livestock, fish, horticultural products Increase in demand for imported food: wheat, beef, soybean, non-tropical horticultural products. Nutrition status of children under 5-year was not significantly improved during the last 10 years. Number and percentage of poverty has declined slowly since 2000 (2011=11.37%). 3

4 I. Current Situation... (continue) Energy and protein availability for consumption, Indonesia Year Energy (kcal/cap/day) Protein (gram/cap/day) , , * , ** ,56 Recomended standard requirement for energy 2700 Kcal/cap/day and 57 gr/cap/day) Source : Agency for Food Security (AFS), Indonesian Food Balance Sheet, *) Preliminary **) Estimate 4

5 I. Current Situation... (continue) Ratio of rice import to domestic production, Indonesia Source : Indonesian Central Bureau of Statistics (CBS) 5

6 I. Current Situation... (continue) Kg/year Source : SUSENAS, CBS calculated by AFS 6

7 I. Current Situation... (continue) Nutrition Status of Children Under 5, Indonesia (%) Stunting Overnourisment Severe undernourishment undernourishment Source : Ministry of Health, Indonesia 7

8 I. Current Situation... (continue) Million, (%) Number of poor people and poverty rate, Indonesia Number of the poor (million) Poverty rate (%) Source: CBS 8

9 I. Current Situation... (continue) ASIA Average dietary energy supply was adequate (>100%). Rice share in consumption pattern declined but was still as a major food commodity in most Asian countries. Rice availability/production in ASEAN countries was relatively adequate to support supply and price stability. Undernourishment has decreased but was not sufficient to achieve hunger reduction goal. Poverty incidence in Asia has been decreasing slowly and large differences in hunger incidence persisted across regions/countries. 9

10 I. Current Situation... (continue) Average dietary energy supply adequacy Regions*/ Countries (%) (%) ** (%) World Asia Eastern Asia South Eastern Asia Southern Asia *) Eastern Asia : China, Chinese Taipei, DPR Korea, Mongolia, Republic Korea *) Shouth-Eastern Asia : Cambodia, Indonesia, Lao PDR, Malaysia, Philippines, Thailand, Viet Nam *) Shouthern Asia : Bangladesh, India, Iran, Nepal, Pakistan, Srilanka **) Projection Source : FAO,

11 Rice production, beginning stock, and domestic utilization, ASEAN 2012 Country Production (000 ton) I. Current Situation... (continue) % P/DU % BS/DU ASEAN ,51 20,53 Indonesia ,59 7,60 Vietnam ,71 18,56 Thailand ,85 68,83 Myanmar ,37 15,07 Philippines ,49 20,25 Cambodia ,14 27,63 Lao PDR ,23 19,06 Malaysia ,62 24,79 Brunai 1,5 4,57 34,92 Singapore ,56 P/DU = Production to Domestic Utilization BS/DU = Beginning Stock to Domestic Utilization Proportion of BS/DU that may guarantee supply and price stability in ASEAN Countries is 20% Source :APTERR Secretariat 11

12 Prevalence of undernourishment I. Current Situation... (continue) Regions/ Countries *) World: Number (million) Proportion (%) (15.5) Asia (18,3) South Eastern Asia**) 113,6 (21,5) China 183,5 (14,0) India 204,7 (22,5) Indonesia 42,8 (19,8) 878 (12,9) 585,5 (14,7) 80,5 (13,8) 174,8 (11,6) 233,1 (18,9) 38,6 (12,8) *) Estimate **) Cambodia, Indonesia, Lao PDR, Malaysia, Thailand, Viet Nam Source : FAO, INFP, IFAD. The State of World Food Insecurity in the World ,3 (12,0) 552,0 (13,5) 64,5 (10,7) 158,0 (11,4) 213,8 (17,0) 22,3 (9,1) 12

13 II. CHALLENGES TOWARD 2025 GLOBAL / ASIA Food security is a multidimensional and complex issue consisting of social-economic, environmental, physical, and political factors Supply Side Natural resources constraint Competition in land and water use continues due to economic growth and population increase Increase in the amount of degraded soil and polluted water Global Climate Change Increase frequency or cycle of adverse weather condition 13

14 II. Challenges toward.. (continue) Large proportion (dominance) of small-scale farming Subsistence family farming characteristics Inefficiency in farming activities. Uneven ownership of resources, technology, and food production/availability across regions/countries. High proportion of food losses and waste (30% of total food production). Demand Side Global population increases especially in Asia, and more than 75% in developing countries Ever increasing food demand 14

15 Relatively high rate of income growth in Asian countries Increase in food demand in term of quantity, quality, safety, and healthy food. Demand for protein and vitamin sources (livestock, fishery, horticultural products) will increase much faster than those for carbohydrate sources. Change in demographic structure and urbanization Change in food consumption pattern (in term of variety, quality, nutrition, and safety) More women enter labor force More demand for processed food II. Challenges toward.. (continue) Increase demand for food as energy, feedstock and other industrial uses Create high and more volatile food prices 15

16 II. Challenges toward.. (continue) Resultant In the absense of any policy intervention: Yield decline for some important food crops (rice, wheat) and fishery products (due to GCC) Capacity of food production decrease Costs of food production increase Producers will pass on the higher costs of food to consummers Amount global stock will remain stagnant or decline Global food price volatility will remain as a threat to sustainable food security 16

17 II. Challenges toward.. (continue) World food (energy) consumption (Kcal/person/day) South Asia 2500 East Asia / / / Industrial countries Near East-North Africa South Asia Sub-Saharan Africa Latin America & Caribbean East Asia Source: Alexandratos,

18 II. Challenges Toward.. (continue) World demand for cereals 1965 to 2030 Source: FAO Data and Projections,

19 II. Challenges toward.. (continue) World demand for meat and soy 1961 to 2030 Source: FAO Data and Projections,

20 II. Challenges toward.. (continue) Dietary changes in developing countries to 2030 Source: FAO Data and Projections,

21 21 INDONESIA Supply Side II. Challenges toward.. (continue) Conversion of agricultural land remain high and uncontrolled (+ 60,000/year). Inadequate infrastructure in agriculture/rural areas Damaged irrigation 22.4% (1,5 million Hectare) Limited access to clean water and electricity Competition in utilization and increase in degradation of land and water resources Impact of global climate change: drought/flood, temperature increase, change in cropping pattern, pests outbreak Agriculture is dominated by small-scale farming 56% (14,6 millions) family farms was less than 0,5 hectares Average holding size of rice farming was less than 0.2 hectares

22 II. Challenges toward.. (continue) Demand Side Total 252 million people (2014) with high growth rate (1.35%) and 56.8% at productive age. 49.5% urban population and projected to increase at faster rate (60% in 2025) due to urbanization and transformation of small towns become cities; Women participation in labor force: 32.3% of total working age, 36.4% of total employment, and 57.6% works outside agriculture. Increase demand for processed food and eat outside home at faster rate. Number and percentage of the poor is still high (2013 = 11,37% of total population) 22

23 III. POLICY ALTERNATIVES Basic Policy of Indonesia Food Security (Law No. 18 /2012 pertaining Food) Food Sovereignty Food Resilience Food Security Healty, active and productive individual and community Spirit/foundation Performance measure Outcome 23

24 III. Policy Alternatives (continue) Food Sovereignty Right of the state and nation to determine its own food policy Right of the community to determine their own food system based on local resource potential Food Resilience Ability of the state and nation to produce diversified food that can secure the food need for all individuals through the use of domestic resources optimally. Food Security Fulfillment of food need at state up to individual level; In term of quantity, quality, diversity, safety, nutrition, affordability, and halal/comply with religious, believe and culture. 24

25 III. Policy Alternatives (continue) Policy Direction for Sustainable Food Security in Indonesia From Food Self-sufficiency toward Food Resiliency Implementation of comparative and competitive advantage of local resources principles From Food Production Increase toward Farmer Income Increase Facilitation to achieve efficiency and competitiveness; farmers protection and empowerment From food consumption in term of quantity fulfillment toward consumption with food diversity, nutrition balance, and safe Promotion of food processing technology, food and nutrition security 25

26 III. Policy Alternatives (continue) Goal of Food Security Development To increase domestic capacity in food production resiliently To promote food diversification base on local food sources to support recommended food consumption pattern (diversity, balance nutrition, and safe food) To provide staple food adequacy for community with affordable prices 4 To provide enough food for the poor and hungry through distribution of subsidized food. 26

27 III. Policy Alternatives (continue) Strategy Food Availability Source of food supply are from domestic production and food reserve. In the case food supply is not adequate from those two sources; food may be imported as needed. Increase production of important foods (in term of economic, social, and politic) by using domestic resources optimally. Create strong national reserve of staple food at central and local government, and rural community. Treat import of important foods as the last resort. Align small-holder farmers into food supply chain based on mutually benefit partnership. 27

28 III. Policy Alternatives (continue) Accelerate technology dissemination and increase farmers capacity to adopt proper technology to increase crop yields and efficiency. Promote reduction of food losses and waste through food handling and processing technologies application and social campaign Food Accessibility/affordability Enhance and facilitate efficient domestic food trade and market. Maintain food supply and price stability through food reserve management and trade policy instruments (domestic and international). 28

29 III. Policy Alternatives (continue) Provide adequate food for the poor and hungry by distributing subsidized food. Food Utilization Promote food consumption diversification based on local food sources and food culture/culinary Improve community nutrition status through improvement and fortification of certain food nutrition Assure food are safe, hygiene, good quality, nutritious, and halal/comply with religious believe and culture. 29

30 III. Policy Alternatives (continue) APEC PPFS Food Security Roadmap toward 2020 Main Goal: The attainment of food system structure by 2020, sufficient to provide lasting food security in APEC member economies. Main Approach: Public Private Partnership (PPP) Strategy 1. Sustainable development of agricultural and fishery sector. Research and development Technology dissemination Sustainable management of natural resources, marine ecosystem, and aquaculture Farmer capability improvement 30

31 III. Policy Alternatives (continue) 2. Facilitation on investment and infrastructure development Principle for Responsible Agricultural Investment (PRAI) as a guidance 3. Enhancing Trade and Markets Optimizing benefit of international trade to improve farmers income, accessibility to nutritious food, stability of food prices Promoting distribution of gain from trade more equitable among players, including small-holder farmers. 4. Reducing food losses and waste Promoting effective management of the food supply chain Sharing technology and knowledge on reducing food losses and waste 5. Improving food safety in nutrition. Ensuring food standards and system that are integrated across regions to assure food safety, enhance productivity, and reduce barrier to food trade. 31

32 Terima kasih/ Thank You 32

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