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Vedini Harishchandra Southeast Asia Department Asian Development Bank

Regional Learning Session on Sustainable and Inclusive Marketing Arrangements Towards I ncreasing Farmers’ Market Power 9-11 May 2013 Manila. Vedini Harishchandra Southeast Asia Department Asian Development Bank. Importance of Agriculture Sector Growth in ASEAN .

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Vedini Harishchandra Southeast Asia Department Asian Development Bank

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  1. Regional Learning Session on Sustainable and Inclusive Marketing Arrangements Towards Increasing Farmers’ Market Power9-11 May 2013Manila Vedini Harishchandra Southeast Asia Department Asian Development Bank

  2. Importance of Agriculture Sector Growth in ASEAN Source: Asian Development Bank Key Indicators 2011, Asian Development Outlook 2012, ADB, FAO

  3. Smallholder Access to Markets: Challenges • Lack of policy, regulatory support and institutional framework • Poor provision of access to credit • Inadequate provision of rural infrastructure that reduces postharvest losses and transport costs, and shortens transit time, while increasing overall rural mobility • Lack of access to value-responsive markets • Lack of access to agricultural information and market data • High transaction costs • Lack of inclusion of smallholder farmer groups into value chains • Lack of opportunities for increased private sector engagement

  4. Agriculture Sector Performance Enhancing Priorities Source: ADB-RSDD Productivity - Increase production and productivity of food commodities in a sustainable way Connectivity - Improve linkages between food producers and consumers; input and output markets Resilience - Enhance the resilience of social and ecological systems against the effects of climate change

  5. ADB’s overall Agriculture and Natural Resources Priorities • Pro-poor investments focused on rural infrastructure, sustainability, climate resilience, and inclusive economic growth, to achieve the objective of poverty reduction. • Some of ADB’s SE Asia investments are in: • Rural infrastructure and connectivity • Environment and natural resources management • Irrigation efficiency and water resources management • Public-private partnership • Regional cooperation and integration

  6. Example… • Infrastructure for Rural Productivity Enhancement Sector Project (INFRES) – Philippines • INFRES Project aimed to increase agriculture productivity by improving rural infrastructure such as farm to market roads, communal irrigation systems and potable water systems. • Household Income: Average household income grew by 49%, on-farm income grew by 60% and non-farm income by 35%. • Agriculture Productivity: The rice yield increased from 3.28mt/ha to 3.53mt/ha and corn from 1.96mt/ha to 2.42mt/ha. • Distribution of Gains: INFRES contributed to reduction in poverty by 24.44 percentage points; exceeding the target by 11 percentage points. • Source: Benefit and Impact Assessment of the Infrastructure for Rural Productivity Enhancement Sector (INFRES) Project

  7. Sector Investments • Loans and Grants as of 2012 • Agriculture and natural resources sector: • Sovereign Projects - 21,453 million • Grant Projects – 1,081 million • Technical Assistance -776 million • Regional technical assistance – 247 million

  8. Some examples

  9. Agribusiness Development Assistance for Smallholders in Mindanao • Objective: The Project’s long-term objectiveis an improvement of the income of smallholders in Mindanao. • Funding: 8.8million • PrimaryBeneficiaries : The project will benefit about 2,000 smallholders (at least 50% will be women) by improving their access to capacity building, technical training, finance, infrastructure and other support • ProjectComponents: • 1 Support for start-up agribusinesses for smallholders:Thiscomponent will provide management, technical and financial support for smallholders in three provinces of Mindanao. • 2 Establish an apex institution for smallholders:Thegrant implementation unit (GIU), will study viable options to establish an apex institution to support smallholders during and after the project. • 3 Prepare feasibility studies for increasing agribusiness development for smallholders: This component will explore ways to increase the number of smallholders with access to technical, management, and financial services to improve their livelihoods from agribusinesses.

  10. Conclusions • Focus: • Inclusiveness • Sustainability • Green agriculture infrastructure • KeyConstraints: • Lack of enabling environment to attract needed investments in agriculture • Poor policy, legal, regulatory and institutional framework to support samllholder farmers • Poor delivery and absorption capacity • Inadequate support for agribusiness development • Insufficient extension support and infrastructure • Response: • Policy/program support • Productive Infrastructure/enhanced connectivity • Climate change resilience

  11. Thank you

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