CFS40

1. CFS40 A Report on the Fortieth Committee on World Food Security Meetings at the Food and Agriculture Organization Rome, Italy, 7-11 October 2013 The Issues -The Players -The Program

2. The issues • Food to Feed the World • The Right to Food • Enhancing nutrition • Responsibleinvestment • Smallholders and Agribusiness • Biofuels prospects and consequences • Land and Water • Women’sEmpowerment

3. The players • 130 government delegations, 100 civil society and 50  private sector organizations.  • PrivateSectorMechanism • Civil Society Mechanism • FarmerCommunity • Governments • International GovernmentalOrganizations

4. The program • Report on the State of World Food Insecurity • Policy Roundtables • Biofuels and Food Security • Investing in Smallholder Agriculture for Food Security and Nutrition • Other CFS Workstreams • Going forward

5. The State of World Insecurity Key Messages • 842 million chronicallyhungry– 1 in 8 people. This is down 17% from 1990-1992 • Trends on track for coming close to but not meeting MDG 1 – more effort needed to getthere • Economicgrowthaloneis not enoughto alleviatehunger and poverty – growthneeds to besustained and shared • Markeddifferencesacrossregions– SSAfricamostundernorished; no progress in W. Asia; slow progress in S. Asia and N. Africa; improvements in E &SE Asia and Latin America • Food securityiscomplex– betterportrayedwith a variety of indicators, not just a few

6. The State of Food Insecurity Key messages – continued • In a number of countries undernutrition rates indicate crucial need for interventionat all stages, from « farm to fork », particularlytargetingwomen • Policiesdirectedatincreasedproductivity, particularly of smallholders, not onlyhelpsreducehunger and poverty but has multiplier effectsspurring rural development • Remittancesare 3x ODA – can help reducepoverty and hunger, improvediets, increase on-farminvestment • Long-termcommitmentswith effective policyregimes, reforms, incentives and sustained social protection crucial for achieving major reductions in poverty and undernourishment

7. Policy Roundtables • Biofuels and Food Security • Investing in Smallholder Agriculture for Food Security and Nutrition

8. Biofuels Issues and Prospects • The issues • Impact on agriculture commodityprices • Impacts on land use, water use, other agricultural resources • The evidence • Trends in prices • Land and water use • Implications • CFS policy guidance

9. High Level Panel of Experts Report on Biofuels and Food Security …conduct a science-based comparative literature analysis taking into consideration the work produced by the FAO and Global Bioenergy Partnership (GBEP) of the positive and negative effects of biofuels on food security …

10. Biofuels Policies • Different biofuels profiles of countries and regions have given rise to varied national biofuels plans and policies • Countries have tended to regulate biofuels imports while encouraging biofuels exports • The biofuels market has evolved from energy price shocks of the 1970’s, through periods of heavy subsidies and other incentives, to a mature market that can now (Brazil) or soon (USA) operate without aid and in response to movements in world energy prices • Over 50 countries have adopted biofuels policies with an eye toward fleet fuel mix, GHG emissions, and competing demands for land and water used in agricultural pursuits

11. Biofuels Technology Frontier • Impacts of biofuels on food security depends on choice of feedstock (especially), land and water involved, relative efficiencies of production, and processing technologies • Concern over competition between biofuels and food production has been particularly acute given the overwhelming use of food- and feedcrops for both ethanol and biodiesel • Second generation biofuels have been slower to evolve than hoped; and the jatropha experience has shown that any new biomass for biofuels schemes will spur competing demands for land and water, impacting on food security

12. Biofuels, Food Prices, Hunger and Poverty • World biofuel production has increased 5-fold in less than a decade • The steep increase in demand for biofuels was a major but not the only factor contributing to rising food prices in 2007/2008 • The complexities of cause and effect inter-relationships in food and energy markets blur conclusive cost benefit analyses of the impacts of biofuels on food security • the growth in biofuel demand could continue so long as oil prices remain higher than the cost of biofuel production.

13. Biofuels and Land • Except when relying on crop residues and waste, biofuel production requires land. It thus competes for land with other agricultural activities • The debate is very much oriented by prospective considerations on what is/would be the land needed to produce a certain quantity of biofuels versus what is/would be the land “available” globally, given the need to increase food production to satisfy a growing demand. • Major assessments suggest that ample amounts of land can be mobilized to confront future food (and biofuels) demand on the condition that good management practices are adopted • Many authors point to the need for a clearer picture of what “available land” means, some preferring to use “underutilized” land, while others contest the very notion, arguing that most, if not all, land is already used, in various ways • Many have questioned the role of biofuels as a driver of domestic and foreign large-scale investments in land, often called “land grabbing”.

14. Biofuels and bioenergy Socio-economic impacts and development perspectives • The most positive use of biofuels in highly rural developing countries where transport fuels are less important and where the majority of the rural poor live without access to energy is in the development of bioenergy initiatives for cooking, heating and local power generation. • A number of scholars have produced typologies to identify both the conditions under which biofuel/bioenergy policies should be adopted in developing countries and the specific focus that these policies should have in each country, • An appreciation of impacts over time and on a macro or regional scale is still largely speculative. • If small farmers have inadequate access to basic resources of land and water, little can be done to consolidate their income on a productive basis • Positive welfare results with the expansion of ethanol replacing other export crops rather than foodstuffs • A growing number of studies have tried to bring to the attention of policy-makers the importance of taking gender into account in biofuels development.

15. Biofuels Report Recommendations • Adapt to the change to global, market-driven dynamics • Address the land, water and resource implications of biofuel policies • Foster the transition from biofuels to comprehensive food-energy policies • Promote Research and Development • Develop methods and guidelines for coordinated food, biofuels, bio-energy policies at national and international levels

16. Biofuels: The CSM Position • Biofuels are emblematic of a failing food system, increasing food price volatility, reinforcing inequity where a few capture scarce resources and many are bearing the costs. • There is overwhelming evidence that the artificial demand for biofuels is undermining the right to food, causing significant increases in food insecurity, malnutrition, and land-grabbing. • The fast- growing demand for biofuels is largely the result of direct and indirect subsidies, including mandatory blending quotas and targets, especially in the EU and the Americas. • The promotion of biofuels is undermining the right to food, and not just through rising food prices and greater food price volatility. • All of the research into land grabbing confirms a very substantial number and scale of landgrabbing for monoculture production of biofuels. • Loss of land and livelihoods and the ability to grow food resulting from such land grabs is another significant cause of increased hunger and malnutrition. • Increased demand for water and outright water grabbing for biofuels pose a further serious threat to the right to food. The CFS must therefore • Call on governments to eliminate direct and indirect subsidies for biofuels • Explicitly acknowledge the conflict between biofuels and food • Acknowledge that biofuels policies are not achieving their key original aim

17. Biofuels: The PSM Position • The biofuelsindustry has evolvedinto a viable, sustainable provider of clean energywith all incumbentbenefits of jobs, incomes, and reducedemissions of GHG • Biofueldemand, supply, production , and consumption are important but not unique in their impacts on prices for agricultural commodities. • The biofuelsindustrycancoexisteffectively and constructivelywith all producers of agricultural commoditiesthroughcooperation and responsible planning and management of agricultural resources.

18. Biofuels: CFS40 Outcomes • Biofuel development should not compromise food security • “Progressive realization of the right to adequate food for all" should be a priority concern in biofuel development • Biofuel development should especially consider women and smallholders • The CFS encouraged FAO and other stakeholders to look at ways to help countries strengthen their capacities to assess their situation with regards to biofuels, taking into account food security concerns at global, regional and national levels, and legitimate land tenure rights. • "Governments and other appropriate stakeholders are encouraged to review biofuels policies - where applicable and if necessary - according to balanced science-based assessments of the opportunities and risks they may present for food security,"

19. Investing in Smallholder Agriculture for Food Security and Nutrition • The Issues • Constraints on investing • Overcoming constraints • Perspectives on responsible agricultural investments (RAI) • CSM and PSM positions • CFS Policy Guidance

20. High Level Panel of Experts Report on Investing in Smallholder Agriculture for Food Security prepare "a comparative study of constraints to smallholder investment in agriculture in different contexts with policy options for addressing these constraints, taking into consideration the work done on this topic by IFAD, and by FAO in the context of COAG, and the work of other key partners … include a comparative assessment of strategies for linking smallholders to food value chains in national and regional markets and what can be learned from different experiences, as well as an assessment of the impacts on smallholders of public-private as well as farmer cooperative-private and private-private partnerships"

21. Investing in Smallholder Agriculture for Food Security – What is smallholder agriculture? • There are a number of different definitions with different implications for measurement and assessing investment needs. • Smallholder agriculture is typically conducted by individual farmers and their families. The definition is necessarily flexible. Smallholder agriculture is also defined by what it is not: large commercial holdings with hired labour at one end, and landless farm workers at another. • To inform sound policy-making, more accurate and extensive data are needed on all facets of smallholder farming activities.

22. Investing in Smallholder Agriculture for Food Security –Why invest in smallholder agriculture? • In many countries, smallholder agriculture is the socioeconomicfoundation, and in most of themprofound changes are occurring, creatinggreat challenges of national importance, oftenagainst the interest of smallholders • Historicalmodels of economic and social transformations in the West are muchless applicable today as demographic patterns and rural/urbaneconomicdynamicslendthemselves to different sets of risks and opportunities • «The contribution that smallholder agriculture makes to world food security and nutrition is both direct, in as far as it links production and consumption for many rural households, and indirect because (a) it is provisioning domestic markets with the main food products, (b) it does so in a potentially resilient way, and (c) because in many countries smallholder agriculture functions as an important social safety net.  » • In lessdeveloped countries there are more and more smaller and smallerfarms. In more developed countries, there are fewer and fewerlarger and largerfarms . Definitional issues not withstanding, there are upwards of 500 million smallholderfarmscontributing 20 percent of the world’sfoodsupply.

23. Investing in Smallholder Agriculture for Food Security – Who invests in smallholder agriculture? • Most investments in smallholder agriculture are made by smallholderfarmers for themselves, mostly through own labour to improve the resource base, and to a lesser extent through personal savings and remittances • Public investments in and for agriculture have fallen considerably since the 1980s • Larger export-oriented enterprises have been favoured, while the smallholder sector, producing mainly for the domestic market, has been neglected. • There is growing interest in making more effective use of public–private partnerships (PPPs) in order to better mobilize and orient private investments towards collective goals.

24. Investing in Smallholder Agriculture for Food Security – What are the constraints to investing in smallholder agriculture? • Constraintsincludepoverty, highrisk (personal, financial, environmental), decliningfarmsizes, lack of incentives, difficultmarketaccess, and a weakvoice in policydebates. • The diversity of such constraints to investment can be organized along three dimensions related to • assets • markets • institutions

25. Investing in Smallholder Agriculture for Food Security – What strategies have been shown to work in overcoming these constraints and enhancing investment in smallholder agriculture? • Supporting investments by smallholders themselves • Designing policies that are integrated • Supporting the multifunctional roles of smallholders • Adopting a transparently determined political processes • Improving assets, improving markets and improving institutions for smallholders • Investing in public goods is essential • Strengthening the collective voice of smallholders • Respecting the right to food.

26. HLPE Report on Investing in Smallholder Agriculture for Food Security -- Recommendations • Develop national strategies and mobilize political will • Gain access to natural assets • Provide a favourable investment climate • Improve productivity through research and extension. • Invest beyond the farm: rural non-farm economy and territorial development • Promote awareness on the specific instruments, programmes and policies needed to realize the right to food • Support the National Smallholder Investment Strategies by financing pilots of the design, implementation and monitoring of such strategies in a small number of countries. • The CFS could take up the challenge of leading inclusive processes to develop • guidelines on contract farming and • guidelines on PPPs that relate to investment in smallholder farming.

27. CSM Position on Responsible Investment in Agriculture • The particular challenges and priorities of agricultural and food workers must be given adequate attention. • Small-scale food producers cannot be grouped in the same category as other “private investors,” that include large-scale investors, state enterprises, financiers and corporations. • The rai principles will only have an added value if they include clear criteria of what kinds of investment are considered not responsible. • The rai principles must clearly articulate the importance of public investment that favours small scale food producers, and the roles and responsibilities of the state in relation to enabling and facilitating public investment, provision of public goods and services, public policy, and regulatory and legal frameworks that address the interests and priorities of small-scale food producers.   • The rai principles should call for agricultural systems based primarily on the use of local resources and natural interactions of ecosystems, and supporting bottom-up processes that make the best use of local producers' traditional knowledge, know-how, experimentation and innovation. • Civil society expresses concerns regarding the time-line of the rai consultation process and the drive by some to push the consultations beyond 2014.

28. PSM Position on Responsible Investment in Agriculture - 1 • Food Security and Nutrition impacts • Investment is needed to foster food production, avoid waste, and create value added products. • Investments should be assessed at the local, national and regional level taking into account potential trade offs. • Investments that support smallholders in moving from subsistence farming to creating surpluses are advantageous to help support food security through local, regional and international trade. • Environmental and natural resources impacts • Environmental impacts of investment projects should be assessed and measures taken to encourage sustainable resource use while minimizing the risk of negative impacts and mitigating them. • Investments in the transportation, storage, and handling of grain can help to minimize post harvest losses and increase overall food availability.

29. PSM Position on Responsible Investment in Agriculture - 2 • Economic and social impacts: • Investment, foreign and domestic, should be encouraged as a vital source of capital as well as a driver for increased productivity in the national market, and as a source of significant secondary job creation. • Investors should ensure that projects respect the rule of law, reflect industry best practice, and result in durable shared value. • Investments should generate desirable social and distributional impacts and should not increase vulnerability. • Cultural impacts: • Consumers should have choice in their food and should have access to a diverse, nutritious diet. • Projects that add value to food in-country are advantageous. • Governance structures, review mechanisms and decision making processes to enable and facilitate responsible agricultural investment • Domestic markets and foreign investment require the same conducive operating environment, • Governments should prioritise putting those elements of a conducive operating environment in place to help attract quality domestic and foreign investments. • Guidelines and rules for investment should be clearly stated and easily available to encourage transparency and accountability. • States should ensure that all actions are consistent with their existing obligations under national and international law

30. PSM Position on Responsible Investment in Agriculture - 3 • Regulation and governance of investments, in particular the role of the State • National governments should establish transparent regulations for large-scale investment on the size, mode and rules regarding maximum acquisitions. • An acquisition should ensure proper remuneration for any affected tenure holders, workers or affected communities. • All those materially affected should be consulted, and agreements from consultations need to recorded and enforced. • Investors have the responsibility to respect national law and legislation, in particular the tenure rights of others and the rule of law • Policy coherence and sector development • Clearly articulated national priorities for development can help guide investment and assess the most suited investment proposals. • Working with national and international priorities, an integrated approach to improving whole value chains can offer benefits. • Investments should take place across a range of issues to ensure a coherent and effective development of the agricultural sector and value chain • Coordination among all stakeholders • States and affected parties should contribute to the effective monitoring of the implementation and impacts of investments in agriculture. • All stakeholders involved and affected

31. PSM Position on Responsible Investment in Agriculture - 4 • Complementarities between public and private investments • Both public and private sector investment can contribute to develop a robust agricultural sector and value chain – both need the same conducive operating environment, offering predictability, transparency, accountability, and stability. • Public and private investment can be complementary and often be part of the same investment projects where their complementary quality and terms are reinforcing of the projects’ objectives. • Public investment in key areas, such as infrastructure, in addition to its direct impact on local populations, is often an essential pre-requisite to attracting private investment. • Improved coordination between public and private investment in infrastructure can have a multiplier effect on development assistance. • Multilateral and regional organizations including international and regional financial institutions • Coherence is needed between the various projects at a multilateral level on agricultural investment. • Promotion of accountability • Transparency, clarity, respect, and accountability should be the responsibility of both investors and governments. • Best practices in corporate governance, integrated reporting, and responsibility, such as those in the UN Global Compact, provide useful examples for private sector engagement.

32. Responsible Agriculture InvestmentCFS40 Outcomes • Agreed on the importance of integrating smallholder agriculture into national policies, strategies, and research aimed at boosting investment and sustainable development • Adopted a policy recommendation calling on governments, together with smallholder organizations, civil society, the private sector, research institutions and international development partners, to work together to "build a country-owned vision" designed to boost investments in smallholder agriculture. • Recommended consideration of how agricultural, urban and rural sector policies, strategies and budgets could best enable smallholder access to productive assets, local, national and regional markets, appropriate training, research, technology and farm support services - especially for women.

33. CFS Workstreams • principles for responsible agricultural investments • addressing food insecurity in protracted crisis situations • the global framework for food security and nutrition • rules of procedure • a framework for monitoring CFS decisions • programme of work and priorities and emerging issues • the CFS communication strategy

34. Addressing Food Security in Protracted Crisis Situations Characteristics of protracted crisis situations include • multiple underlying causes • extreme levels of food insecurity • weak governance and public administration • breakdown of local institutions • unsustainable livelihoods and food systems 

35. Addressing Food Security in Protracted Crisis Situations – Agenda for Action • the critical role of country ownership and accountability for response strategies;  • the supporting role played by regional bodies • the contribution of local social institutions, civil society and the private sector • the role of governance, fragility and peace-building processes and approaches; • the contribution of food security in addressing state fragility and conflict resolution; • the need for more flexible, responsive and stable funding mechanisms and investment vehicles; • the opportunities presented by resilience-building programming and approaches to develop integrated strategies • prioritization of actions based on results-based approaches and realistic objectives to increase stakeholder accountability.The Agenda for Action will be presented to CFS 41 in 2014 for endorsement.

36. The Global Framework for Food Security and Nutrition The Global Strategic Framework for Food Security and nutrition (GSF) is a single, living document to be approved by the CFS Plenary. Its purpose is to improve coordination and guide synchronized action by a wide range of stakeholders. The GSF will be flexible so that it can be adjusted as priorities change. The main added value of the GSF is to provide an overarching framework and a single reference document with practical guidance on core recommendations for food security and nutrition strategies, policies and actions validated by the wide ownership, participation and consultation afforded by the CFS.

37. Steering Committee 2013-2015 • Mr Amadou Allahoury (Niger) • Ms Marion Guillou (France) • Ms Sheryl Hendriks (South Africa) • Ms Joanna Hewitt (Australia) • Mr Masa Iwanaga (Japan) • Ms Carol Kalafatic (USA) • Mr Bernardo Kliksberg (Argentina) • Mr Renato Maluf (Brazil) • Ms Sophia Murphy (Canada) • Ms Ruth Oniang’o (Kenya) • Mr Michel Pimbert (UK) • Mr Per Pinstrup-Andersen (Denmark) • Ms MaryamRahmanian (Iran) • Ms Magdalena Sepúlveda (Chile) • MrHuajun Tang (China) GerdaVerburg of the Netherlands was elected as the CFS Chair for a two-year term.

38. Thank You Ralph Doggett Managing Director Council for Multilateral Business Diplomacy rdoggett@cmbd.ch