Miguel Garcia-Winder miguel.garcia@iica.int IICA

Miguel Garcia-Winder miguel.garcia@iica.int IICA

Acknowledgments Components of Food Security Goal Is food security a real issue? Some responses implemented by Latin American and Caribbean countries to improve food security The challenges for agriculture Concluding Remarks

Rafael Trejos Enrique Alarcon Gustavo Cárdenas Joaquín Arias Hugo Chavarría Jeanette Cardenas Julio Paz James French Institutional Modernization Innovation and Technology Natural Resources Trade Policy Institutional Modernization Natural Resources Trade Policy Directorate of Technical Leadership

Availability. Access. Quality. Stability.

Discuss what has happened with the so called food crisis in Latin America and the Caribbean. Share some information as to what have been some of the responses implemented by countries in the region to deal with this crisis and to ensure their food security. Contribute to the dialogue to define what is needed for agriculture to contribute effectively to reach some level of food security in the region.

FOOD PRICE INDEX (FAO data) Arias J. 2008. OIMA, Panamá

Population increase and improved incomes. Increse demand by emerging economies. Changes in food production patterns. Reduction in food reserves. Changes in oil prices. Expansion of biofuels. Financial crisis and changes in currency parities. Increase in production costs. Innadecuate trade policies. Structure of market chains. Environmental conditions.

Prices declined and are expected to remain volatile

250 ALC: Crecimiento en el costo de la canasta de consumo (commodities) a precios internacionales 200 150 +105% Aceites Vegetales 100 Azucar y endulzantes Leche excluye mantequilla 50 Carne 0 Cereales, excluye cerveza Participacion en el Costo de la canasta 2003 Costo canasta 2008 (2003 base 100) Fuente: UMI con base en datos de FAOSTAT y World Economic Outlook del FMI (Abril, 2008)

70 60 59.9 65.4 62.5 58.8 50 40 30 29.8 41.4 35.9 34.1 Rural Urbano 20 10 0 1980 1990 2000 2005 FUENTE: CEPAL 2008

Dependency : domestic prodution to imports 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 155 160 165 170 175 180 100% 90% BHS JAM BRB CRI VCT TTO 80% 70% 60% 50% COL HND SLV CUB 40% 30% ECU VEN PER GTM CHL MEX 20% 10% 0% PRY DMA BOL USA CAN BLZ BRA NIC GUY ARG URY Fuente: UMI con base en datos de COMTRADE y FAOSTAT Per capita consumption (Kg) 2003

Food consumption per capita 650 Percentage of the population that is classified as poor VS per capita food consumption 600 CHL CRI MEX BRA 550 500 450 400 VEN PAN ECU COL PER SLV DOM PRY GTM BOL HND 350 300 NIC 250 10 20 30 40 50 60 70 80 Fuente: UMI con base en datos de CEPAL Poverty percentage

$/CABEZA INCREASES IN GRAIN COSTS AFFECTS OTHER RELATED INDUSTRIES (Feedlot efficiency in Mexico,2008) 12,000 COSTOS DE PRODUCCIÓN VS INGRESOS $/CABEZA COSTO TOTAL Ingresos totales 11,250 11,000 10,321 10,614 - $1,218.51 por cabeza 10,000 9,606 9,936 10,094 10,252 9,000 9,036 9,124 8,431 8,000 AGOSTO 2006 GRANO $1.60/KG. AGOSTO 2007 GRANO $2.03/KG. ENERO 2008 GRANO $2.86/KG. ABRIL 2008 GRANO $3.20/KG. Septiembre de 2008 grano $3.20/KG Culiacán, Sin. FUENTE: AMEG, con información costos de producción de los asociados. Julio 2008

Recent increases in food prices have exposed the fragility of the current food system (s) and have shown that there is a real risk of food insuficiency. There is a new concern related to the levels of poverty (100 million new poor) There is real risk of social and political innestability. We were not prepared for this!!!!!!!!!!!!!!!!

What to produce? What is the economic model that need to be implemented?

Institutional Changes (Br, Ur, CAC) Short term policies directed to reduce the impacts of food price increses improving food availability to most needed sectors. Reduction of import tariffs (Bol, Ec, Mex, Nic. Hon, Per, Ur) Elimination of taxes (VAT) to food (Bol, Br, Hon, Pan, Per, Ur. ES, Guyana). Reduction of food prices. Supply agreements.

Income transfer to weaker groups (increase the amount and the number) Bolsa familia (Brasil); Red Solidaria (El Salvador); Oportunidades (México), Tarjeta Electrónica (Urug.) Strengthening of school feeding programs. Government purchases Release of public stocks (Br, Co, Ni) Application of subsidies for marketing (Ec, Guy) Consumer protection acts and price fixation (ES, Ec) Restriction to exports (Ar, Bol, Br, Pan)

Policies to increase production: Seed and input supply (Central America, RD) Reduced import tariffs for machinery and supplies (several countries) Special financing strategies (Br, CR, RD, ES, Hon, Mx, Per) Land access (Cuba, Guat, Par)

Purpose To provide innovative technical cooperation to the Member States, with a view to achieving their sustainable development in aid to the peoples of the Americas Vision To be the leading agriculture institution of the Americas and the partner of choice by virtue of the quality of the technical cooperation it provides in response to the needs of Member States and its contributions to sustainable agricultural development, food security and rural prosperity.

Line 1. Creating a new paradigm for development of the agricultural innovation systems. Line 2. Strengthening the institutions and services to link small holder producers to markets. Line 3. Analysis, monitoring and evaluation of agricultural and food policies implemented by IICA memeber countries on Food Security.

People

People Land

Hectáreas per capita 3,5 3,0 Sur 2,5 2,0 Norte 1,5 1,0 Central Andina 0,5 Caribe 0,0 1965 1970 1975 1980 1985 1990 1995 2000 2005'

People Land Water

http://maps.grida.no/go/collection/environmental-food-crisis Fuente: United Nations Environment Programme (UNEP) / GRID-Arendal

People Land Water Energy

People Land Water Energy Knowledge

Fuente: datos de RICYT y Banco Mundial; análisis: IICA - Tecnología e Innovación, 2007

People Land Water Energy Knowledge Policy and Institutions

Security Crisis Energy Crisis Food Crisis Financial Crisis Envrionmental Crisis

We believe that we need to do something different to improve the livelihood of millions of people in our world. We believe that we have the responsability to preserve our environment and our resources for future generations. We believe that agriculture has an irreplaceable role in the future of the world.

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