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Creating a nutritious home for all. THE FOOD CRISES: BACKGROUND & THE WAY FORWARD. Dirk Troskie Specialist: Agricultural Economics Western Cape Dept. of Agriculture. % OF HOUSEHOLDS THAT REPORTS CHILDREN GOING HUNGRY DURING THE PAST YEAR. Fewer experience hunger than anytime in SA history.
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THE FOOD CRISES: BACKGROUND & THE WAY FORWARD Dirk Troskie Specialist: Agricultural Economics Western Cape Dept. of Agriculture
% OF HOUSEHOLDS THAT REPORTS CHILDREN GOING HUNGRY DURING THE PAST YEAR
Fewer experience hunger than anytime in SA history. THE FOOD CRISIS: THE SITUATION
TRANSFERS / CAPITA (Constant 2000 Rand) Source: vd Berg (2007) Departement Landbou | Department of Agriculture | Isebe Lezolimo
Fewer experience hunger than anytime in SA history. • Government interventions play a major role in this regard. THE FOOD CRISIS: THE SITUATION
FOOD PRODUCTION & POPULATION GROWTH Source: Abstract (2008) Departement Landbou | Department of Agriculture | Isebe Lezolimo
Fewer experience hunger than anytime in SA history. • Government interventions play a major role in this regard. • Food production keep track with population growth. THE FOOD CRISIS: THE SITUATION
AGRICULTURAL IMPORTS & EXPORTS(Nominal values) Source: Abstract (2008) Departement Landbou | Department of Agriculture | Isebe Lezolimo
EXPORTS OF WINE Source: SAWIS (2008) Departement Landbou | Department of Agriculture | Isebe Lezolimo
WESTERN CAPE EXPORTS2001 - 2003 Source: Quantec (2008) Departement Landbou | Department of Agriculture | Isebe Lezolimo
Fewer experience hunger than anytime in SA history. • Government interventions play a major role in this regard. • Food production keep track with population growth. • SA shows growth in the net value of exports THE FOOD CRISIS: THE SITUATION
SHARE OF AGRICULTURAL EXPORTS IN TOTAL EXPORTS (2002 – 2004)
Fewer experience hunger than anytime in SA history. • Government interventions play a major role in this regard. • Food production keep track with population growth. • SA shows growth in the net value of exports • Yet, SA is a deficit exporter of calories THE FOOD CRISIS: THE SITUATION
FAPRI % BFAP BASELINE PRICES:Wheat & Barley Source: BFAP (2007) Departement Landbou | Department of Agriculture | Isebe Lezolimo
BIOFUELS IN THE US Source: OECD/FAO Outlook (2007) Departement Landbou | Department of Agriculture | Isebe Lezolimo
ANIMAL PRODUCTSIndex of nominal prices Source: OECD/FAO Outlook (2007) Departement Landbou | Department of Agriculture | Isebe Lezolimo
PER CAPITA CONSUMPTION OF MEAT Source: OECD/FAO Outlook (2007) Departement Landbou | Department of Agriculture | Isebe Lezolimo
WORLD CLOSING STOCKS Source: OECD/FAO Outlook (2007) Departement Landbou | Department of Agriculture | Isebe Lezolimo
WORLD POPULATION Departement Landbou | Department of Agriculture | Isebe Lezolimo
POPULATION ON CONTINENTS Departement Landbou | Department of Agriculture | Isebe Lezolimo
Fewer experience hunger than anytime in SA history. • Government interventions play a major role in this regard. • Food production keep track with population growth. • SA shows growth in the net value of exports • Yet, SA is a deficit exporter of calories • We are experiencing a trend-break THE FOOD CRISIS: THE SITUATION
IMPACT ON THE MOST VULNERABLE: LSM1(Inflation = 6%; Food Inflation = 12%) Source: Own Calculations based on LSM Data (2007) Departement Landbou | Department of Agriculture | Isebe Lezolimo
% HH EXPENDITURE ON FOOD Source: Troskie (2001) Departement Landbou | Department of Agriculture | Isebe Lezolimo
Fewer experience hunger than anytime in SA history. • Government interventions play a major role in this regard. • Food production keep track with population growth. • SA shows growth in the net value of exports • Yet, SA is a deficit exporter of calories • We are experiencing a trend-break • We need to protect the most vulnerable • Certain countries are preventing exports: • Impact on WTO negotiations • Export instability THE FOOD CRISIS: THE SITUATION
UN DECLARATION • Feed the hungry • Food aid • Food for Tomorrow • Income generation programmes • Address research & knowledge gaps • Scale down trade distorting subsidies • Special focus on Africa Departement Landbou | Department of Agriculture | Isebe Lezolimo
PROPOSED WESTERN CAPE DEPT. OF AGRICULTURE RESPONSE • Feed the hungry • Food gardens • Food stamps • Consumer subsidies (BIG) • Emergency feeding schemes • Food from research farms • Food for Tomorrow • Research • Extension • Training Departement Landbou | Department of Agriculture | Isebe Lezolimo
COMMERCIAL VEGETABLEPRODUCTION Source: Combud & own calculations (2008) Departement Landbou | Department of Agriculture | Isebe Lezolimo
SCENARIO 1 Cost of buying 468 tons of veg. at Epping: R 905 465 Source: Own calculations (2008) Departement Landbou | Department of Agriculture | Isebe Lezolimo
SCENARIO 2 Cost of buying 624 tons of veg. at Epping: R 1 207 287 Source: Own calculations (2008) Departement Landbou | Department of Agriculture | Isebe Lezolimo
THE NATURE OF TECHNOLOGY Preferred characteristic Time/Research input Departement Landbou | Department of Agriculture | Isebe Lezolimo
RATE OF RETURN ON WHEAT RESEARCH Source: Troskie (2001) Departement Landbou | Department of Agriculture | Isebe Lezolimo
RESEARCH: IMPACT ON EMPLOYMENT Source: Provide (2005) Departement Landbou | Department of Agriculture | Isebe Lezolimo
PRICE ELASTICITY Source: Bonnen & Schweikhardt (1998) Departement Landbou | Department of Agriculture | Isebe Lezolimo
Fewer experience hunger than anytime in SA history. • Government interventions play a major role in this regard. • Food production keep track with population growth. • SA shows growth in the net value of exports • Yet, SA is a deficit exporter of calories • We are experiencing a trend-break • We need to protect the most vulnerable • Certain countries are preventing exports: • Impact on WTO negotiations • Export instability THE FOOD CRISIS: THE SITUATION