Can cooperatives innovate?

Three news items stood out this week: KPMG’s global leader for agribusiness and food predicts New Zealand’s ag-exports could grow to $100 billion in 20 years, if we move away from commodities into riskier value-added products; as if to underscore the inability of farmers to control volatile commodity markets, global dairy prices dropped another 8%; and a research project was launched to study the contribution cooperatives make to our economy.

Like many New Zealand ag-exporters, Fonterra is owned by farmers through a cooperative ownership model. And like many of these exporters, it is constantly accused of failing to innovate and move along the value chain, away from its reliance on bulk commodities into more brands and consumer products. It’s easy to level this accusation when farm-gate prices have crashed in line with the global commodity price, but farmers must get sick of being price-takers afloat on such a volatile sea.

The study into cooperatives, particularly their ability to innovate and add value to the raw product, could be telling. To reach the $100 billion target, KPMG estimates we need to increase the compound annual growth rate of ag-exports from 4.5% to 5.4%; Sounds easier than it is. Can we make this leap under the dominance of the cooperative model?

To understand how co-operatives contribute to the economy, a team from The University of Auckland Business School and Erasmus University’s Rotterdam School of Management is undertaking a series of case studies and a major survey of co-operative businesses.

Researchers Dr Frank Siedlok and Dr Lisa Callagher say it is time to find out how the 149 Kiwi companies registered as co-operatives tick, what they are doing to improve their competitiveness here and abroad – and what lessons can be learnt to help all co-ops to do better.

“Several high profile co-operatives, such as Zespri and Foodstuffs, show that through strategies focused on added-value products or services, innovation and knowledge-sharing, they can successfully compete against large private sector organisations and multinationals. Yet, there are many misconceptions about just how innovative and entrepreneurial they are. We want to better understand the mechanisms that can make co-ops more competitive” says Dr Siedlok. 

'Government should regulate GMOs, not local councils'

With some New Zealand councils trying to regulate genetically modified organisms, Federated Farmers is backing a move by the Minister for the Environment, the Hon Amy Adams, to clarify who has regulatory responsibility for the management of GMOs.

“Federated Farmers would welcome amendment to the Resource Management Act to “clarify the respective functions and roles of the Environmental Protection Authority (EPA) and local government,” as the Minister put it,” says Katie Milne, Federated Farmers Local Government spokesperson.

“We are not overly impressed with some councils wasting ratepayer resources on trying to ape the EPA. As Minister Adams put it, councils should not “set up their own independent states where they write their own rules and ignore the national framework”.

“Especially when those rules are based on what seems to be ‘pub-talk’.

“Regarding the Northland inter-council working party’s draft section 32 analysis recommending ‘local regulation’ to restrict GMO’s, the critical section on risk and benefits only references one website known for its anti GMO stance, one anti-GMO book and one of the key proponents for local regulation.  None of these references are peer reviewed and there is no mention of reports from agencies, such as the European Commission.

“A section 32 analysis should be based on sound science but this analysis is neither unbiased nor rigorous. The intercouncil working party appears to ignore its own legal advice, which is qualified by the need for a robust section 32 analysis which could withstand challenge in the courts.

“It puts these councils on a collision course with the EPA, which does possess the brainpower and resources to test more than an internet search engine.

“Bizarrely, the Northland inter-council working party’s analysis makes no mention of the GMO based “equine influenza vaccine”, which is currently approved for conditional release in New Zealand.

“Nor, I must add, what the cost to Northland’s bloodstock and racing industries would be if councils tried to block its use.

“That’s why the legality of councils regulating GMOs is highly questionable.

“Federated Farmers view, shared by Minister Adams, is that the only appropriate way to make these decisions is through careful scrutiny of the science. We entrust the EPA with the scientific and funding resources to make these types of scientific assessments.

“Councils need to stick to their knitting and regulating GMO’s is not it,” Katie Milne concluded.

- Supplied release from Federated Farmers

South African seed market shake up

DuPont Pioneer has scaled up its efforts to bring technological innovation to agriculture in Africa by acquiring a majority stake in Pannar Seed, a South Africa-based seed company with operations throughout Africa and in other parts of the world.

The companies hope the partnership will increase the pace and scope of research and innovation in the African seed industry, giving farmers on the continent more product and better products.

DuPont Pioneer President Paul Schickler said the partnership represents growth opportunities for both businesses and for the productivity of small-scale and commercial farmers.

As a result of the deal, Pannar receives access to the Pioneer genetics library and its maize breeding and biotechnology capabilities. Pioneer will tap into Pannar’s expertise and reach across Africa, and its maize genetics developed specifically for the region.

“This is good news for Pannar customers, for our employees and for Africa,” said Brian Corbishley, chairperson of Pannar. “This partnership will ensure long-term growth as we deliver improved products to farmers in South Africa and across the continent.”


Technology Hub to be Established for Africa Under a Unified Research Strategy

One of the key outcomes of the partnership will be the establishment of a world-class technology hub for Africa through which South Africa will become a center of innovation in seed breeding, said Schickler.

Pioneer committed to investing R62 million (South African Rand) by 2017 to establish a technology hub in South Africa to serve the region, similar to the research hubs that Pioneer has established in Brazil, India and China. The Africa technology hub will comprise a network of research facilities and testing locations in South Africa and around the continent in which Delmas, South Africa, will serve as a technology center of the network. The network will be infused with leading R&D technologies which shorten breeding cycles and improve accuracy toward breeding targets, such as doubled haploids, ear photometry and the proprietary Pioneer Accelerated Yield Technology or AYT™ System, as well as genetic breeding technologies like marker-assisted selection.

“A critical benefit of this partnership will be the newly energized product pipelines for Pioneer and Pannar that will flow from combining the companies' complementary germplasm pools and leveraging the expanded research infrastructure and network under a unified research strategy,” said Schickler.

The technology hub will incorporate key Pioneer and Pannar research and testing locations, combined germplasm – or plant genetic resource collections – talent and experience to improve cultivar breeding and development for Africa. Data sharing and analysis will be elevated to a new level as the Africa technology hub is connected to the Pioneer global R&D network. Research efforts will support all crops for which Pioneer and Pannar currently maintain breeding programs, including maize, sunflower, grain sorghum, forage sorghum, wheat, dry beans and soybeans.

“Pannar has long been known as leader in plant breeding in Africa, boasting a rigorous multi-location research trial program,” said Corbishley. “Applying the advanced breeding technologies and data-sharing infrastructure of Pioneer to our breeding programs will greatly strengthen the capacity of both brands to continue to meet farmers’ demands for high yielding varieties that offer improved disease resistance, drought tolerance and the ability to withstand varying degrees of insect pressure.”

Pesticide phase out too slow for Indian kids

The tragic incident in Bihar, India, where 23 school children died after eating a school meal contaminated with monocrotophos, is an important reminder to speed up the withdrawal of highly hazardous pesticides from markets in developing countries, says the UN Food and Agriculture Organization (FAO).

Monocrotophos is an organophosphorus pesticide that is considered highly hazardous by FAO and the World Health Organization. Experience in many developing countries shows that the distribution and use of such highly toxic products very often poses a serious risk to human health and the environment.

The incident in Bihar underscores that secure storage of pesticide products and safe disposal of empty pesticide containers are risk reduction measures which are just as crucial as more prominent field-oriented steps like wearing proper protective masks and clothing.

The entire distribution and disposal cycle for highly hazardous pesticides carries significant risks. Safeguards are difficult to ensure in many countries.

Among international organizations, including FAO, the World Health Organization and the World Bank, there is consensus that highly hazardous products should not be available to small scale farmers who lack knowledge and the proper sprayers, protective gear and storage facilities to manage such products appropriately.

FAO therefore recommends that governments in developing countries should speed up the withdrawal of highly hazardous pesticides from their markets.

Non-chemical and less toxic alternatives are available, and in many cases Integrated Pest Management can provide adequate pest management that is more sustainable and reduces the use of pesticides.

The International Code of Conduct on Pesticide Management, adopted by FAO member countries, establishes voluntary standards of conduct for all public and private entities involved in pesticide management. This Code has been broadly accepted as the main reference for responsible pesticide management.

The Code states that prohibiting the importation, distribution, sale and purchase of highly hazardous pesticides may be considered if, based on risk assessment, risk mitigation measures or good marketing practices, are insufficient to ensure that the product can be handled without unacceptable risk to humans and the environment.

For monocrotophos, many governments have concluded that prohibition is the only effective option to prevent harm to people and the environment. This pesticide is prohibited in Australia, China, the European Union and the United States, and in many countries in Africa, Asia and Latin America.

-Source: FAO

Farm awards about sustainable production

Ballance Agri-Nutrients Chairman David Graham says that alongside increasing demand for global food production is a growing expectation for food to be produced sustainably.

“All around the world producers are responding to the growing demand for food to feed an expanding world population. At the same time, there is more emphasis being placed on producing this food sustainably – and we are seeing that sentiment flow through to regulations on how we farm here in New Zealand,” he said.

Mr Graham, who recently attended the Ballance Farm Environment Awards national showcase ceremony, believes sustainability is about ‘doing the right thing’, but doing what’s right has to contribute to farming profitability – if farmers cannot make a living there will be no farmers, no food, no future.

“The need for sustainability is understood by farmers all around the country. The challenge is determining how to go about achieving the balance between improving our efforts to look after the environment and maintaining, or better still improving, our economic success.”

The Ballance Farm Environment Awards have existed since the mid-1990s and are much more than an annual celebration of farming excellence. They have created opportunities for farmers to benchmark themselves and their environmental practices against their peers – and learn something along the way.

“Ballance has been a long-time supporter of these awards, and we are working hard to help New Zealand food producers to farm more productively and sustainably.

"We have taken note of the growing interest in sustainable farming practices and the demand for good advice and good science to support decisions on-farm.”

“As a co-operative, owned by farmers and here for farmers, it is only natural we would increase our ability to respond to this demand. We have expanded beyond fertiliser to offer complete farm nutrient management advice, technology, services and products backed by sound science.”

As part of this work the co-op is looking to the future, with its research and development programme finding new ways to support sustainable, productive farming.

“We’re building a comprehensive toolkit including the products, services, technology and advice that will enable the pastoral sector to lift profitable production with reduced environmental impacts.

“This includes new forms of nitrogen and phosphate fertilisers to reduce nutrient losses, along with new systems and models to help farmers use fertiliser only on areas of their farm which will benefit most from nutrient application.”

As Ballance looks to better support farmers’ needs they can expect to see some of the results of the research roll out of the lab and onto the farm once the co-operative has worked through user trials and validation.

Cereal production heads for historic high

World total cereal production is forecast to increase by about 7 percent in 2013 compared to last year, helping to replenish global inventories and raise expectations for more stable markets in 2013/14, according to the latest issue of FAO's quarterly Crop Prospects and Food Situation report.

The increase would bring world cereal production to 2 479 million tonnes, a new record level.

FAO now puts world wheat output in 2013 at 704 million tonnes, an increase of 6.8 percent, which more than recoups the previous year's reduction and represents the highest level in history.

World production of coarse grains in 2013 is now forecast by FAO at about 1 275 million tonnes, up sharply (9.7 percent) from 2012.

World rice production in 2013 is forecast to expand by 1.9 percent to 500 million tonnes (milled equivalent) although prospects are still very provisional.

Cereal imports of Low-Income Food-Deficit Countries for 2013/14 are estimated to rise by some 5 percent, compared to 2012/13, to meet growing demand. Egypt, Indonesia and Nigeria, in particular, are forecast to import larger volumes.

International prices of wheat declined slightly in June with the onset of the 2013 harvests in the Northern Hemisphere. By contrast, maize prices increased, supported by continued tight supplies. Export prices of rice were generally stable.

Next generation needed for food security effort

WASHINGTON, May 21, 2013 – DuPont Pioneer President Paul Schickler (pictured below) urged leaders from across government, business and non-profit organizations to invest in today’s youth to solve the greatest challenge of tomorrow’s generation – feeding 9 billion people.

Schickler spoke at the Chicago Council on Global Affairs Symposium and shared stories of outstanding students who have made a commitment to feeding a growing world population.

“My parents’ generation put a man on the moon; my generation put a computer in every pocket.  Feeding the world will be the great challenge of generations to come,” Schickler said.  “It is a challenge that will need to engage the best minds in information technology to food processing, international trade to water and land resources, political reform to culinary sciences.  Together, I know we can feed the world.”

This year’s symposium, for the first time, included university students nominated by leaders in food and agriculture to represent the future scientists, engineers, policy makers, and more who are critical to increasing food production worldwide.  Schickler shared several students’ stories of how they will combat world hunger in their lifetime at the conference.

“We must ask ourselves what we are doing to support today’s leaders, scientists and farmers who are feeding the world, and that next generation who will take our place,” Schickler said.  “The collaborations and innovations that will increase global food security will be fueled most of all by the enthusiasm of generations to come.”
-Release by Du Pont

New record forecast for coarse grains

Strong growth is expected for global wheat, coarse grains and rice production in 2013, according to early forecasts published in the May issue of FAO's monthly Cereals Supply and Demand Brief.

Assuming more normal weather conditions than in 2012, global wheat production in 2013 is expected to reach 695 million tonnes, 5.4 percent up from last year's harvest and just some 6 million tonnes short of the 2011 record level.

And in 2013, coarse grains production  is expected to set a new record at 1 266 million tonnes - 9.3 percent up on the previous high of 1 167 million tonnes registered in 2011.

Of this total, maize is forecast  to account for about 960 million tonnes, some 10 percent up from 2012. The bulk of the increase is expected in the United States, the world's largest producer, where maize plantings are forecast to reach their highest level since 1936. Recovery from drought in the major CIS producing countries should also contribute significantly to the record global production.

Still tentatively, FAO foresees rice production in the forthcoming  2013 season to rise to 497.7 million tonnes, 16 million tonnes more than in 2012, with particularly large increases expected in India and Indonesia.

NZ university to lead food security plan

Massey University is to help World Bank lead a plan to improve food safety worldwide.

Launched before Christmas, the Global Food Safety Partnership is a public-private partnership with the aim of increased food safety capacity.

Massey’s Professor of Agribusiness Hamish Gow (pictured), winner of a major international award for an open source food safety knowledge network, will take a leading role in the multi-agency structure.

“The goal is to build a food safety system suitable for supporting the delivery of safe, affordable food for everyone, everywhere, all of the time,” says Gow.

The partnership will utilise an open educational model that would enable individuals, firms, non-governmental organisations, governments and international agencies to collaborate.

Massey will facilitate the working groups that will provide technical input and expertise into the design of the partnership and associated programmes. Ross Davies of the School of Engineering and Advanced Technology in the College of Sciences will act as project manager for Massey’s part of the initiative.

These working groups will cover the establishment of the open source platform (or information resource), an effective communications strategy and technical aspects including training materials, quality control, service provision and delivery systems.

“We need innovative solutions to share best practice, increase adoption, build capacity, lower delivery costs and more generally improve food safety systems across the developing world,” Gow says.

“The science of food safety is already well established, what we need to do now is package that knowledge appropriately for food producers, manufacturers, retailers and distributors and consumers so it is relevant to them. It is not so much a scientific problem as a business development and community development problem.”

New Tool Checks Food Affordability

Agribusiness giant DuPont has modified the Global Food Security Index to account for the impact of changes in global food prices at a national level where price fluctuations impact most directly.

Commissioned by DuPont and developed by the Economist Intelligence Unit (EIU), the Price Adjustment Factor captures the impact of changing food prices and income growth over time. In response to the rising cost of food, mainly in June of this year, the Index recorded a slight decline in food security globally.  The interactive tool is available online at www.foodsecurityindex.eiu.com.

DuPont Executive Vice President James C. Borel says this tool will help understand the root causes of hunger. “The ramifications of this year's drought are far reaching.  Knowing where the impact is the greatest can help focus our collective efforts where they are needed most.”

The World Bank estimates that global food price spikes in 2008 pushed 44 million people below the poverty line globally, most of them in poor countries.  In the United States, almost 15 percent of households experienced food insecurity in 2011, up 11 percent before recent price jumps.

“Many factors affect food prices, from rising demand in emerging markets to abrupt changes in the weather,” said EIU Global Forecasting Director Leo Abruzzese.  “The new Price Adjustment Factor tool will assess, quarterly, the impact of price changes on a country’s ability to afford food.  High and volatile prices can impact food security by limiting consumers’ purchasing power and calorie consumption.”

Seventy eight percent of U.S. corn acres have been affected by drought; some farmers can’t afford to feed livestock and the cost of commodities is at record highs.  While this year’s drought has been devastating to farmers, the United States Department of Agriculture (USDA) has reported the 2nd largest corn crop globally, in addition to the 2nd and 3rd highest rice and soybean crops respectively.

Feed production increases

Speaking at the Food and Agriculture Organization of the UN, in Rome, Alltech vice president Aidan Connolly, presented the results of the 2011 Alltech Feed Tonnage Survey, along with results from previous surveys, showing a steady increase in feed production year on year.



The 2011 survey, covering 128 countries, put the total feed at 873 million tonnes. The 2012 survey, due to be published soon and covering more than 130 countries, is expected to show a further increase. For 2013 however, Connolly, presenting at the IFIF-FAO joint meeting, predicted a contraction in the region of 3 – 5%, driven by the following three factors:

1. Continued global recession affecting protein consumption.
2. The conversion of large amounts of feed stocks and materials into biofuels.
3. Reduced feed supply due to a global drought, specifically in the US.

In addition, a mycotoxin survey, also carried out by Alltech, indicates that the surviving US harvest will be highly contaminated with up to 37 different mycotoxins, due to crop vulnerability from adverse weather conditions. The resulting percentage contraction in feed production will then be determined by the ability of integrated food producers, farmers and food companies to pass on the increased feed material cost to consumers, without any loss in overall consumption levels.

“We are facing into a completely new era for the agriculture industry where, for the first time in history, feed production for 2013 will be lower than for 2012, and it is clear that efficiency in converting feed into food will be more critical to food companies than ever,” said Connolly.

FAO bullish on hunger reduction

If countries step up their efforts to reduce hunger, the Millennium Development Goal of halving the proportion of hungry people by 2015 can still be reached, FAO Director-General José Graziano da Silva told the opening session of the Committee on World Food Security (CFS) today.

Graziano da Silva said that important progress has been made in cutting the number of hungry people by 132 million since 1990. The proportion of the hungry also fell in the developing world from 23.2 percent to 14.9 percent.

He expressed concern that still around 870 million people are hungry and that hunger has risen in Africa and the Near East. Progress in reducing hunger has stalled since 2007, he said.

"As we renew and increase our commitment to reach the Millennium Development Goal for hunger reduction, let's look beyond it, towards the total eradication of hunger because, when it comes to hunger, the only acceptable number is ‘zero'," Graziano da Silva said.

CFS is the foremost inclusive platform for all stakeholders to work together and recommend policies that will promote food security and nutrition for all. The inter-governmental body is open to participation by civil society, the private sector, international and regional organizations and philanthropic institutions concerned with food security and nutrition. As many as 18 government ministers are expected to attend this year's session.

Agriculture to blame for obesity too?!

Prompt action to promote "sustainable diets and food biodiversity" so as to improve the health of humans and of the planet is urged in a book just published by FAO and Bioversity International. Progressive farmers, be afraid.

Irrespective of the many successes of agriculture in the last three decades, Barbara Burlingame, Principal Officer of FAOs Nutrition and Consumer Protection Division, says food systems are not working. Never mind that the proportion of the world's population that is hungry is actually lower now; never mind that food is produced more efficiently now; and never mind that most of the problems with hunger can be sheeted back to a political (distribution) factor.

Anyway, blame modern agriculture if that's the fashion.

The book, Sustainable Diets and Biodiversity, makes the claim that while over 900 million people in the world suffer from hunger, about 1. 5 billion are overweight or obese, and an estimated two billion suffer from micronutrient malnutrition including vitamin A, iron, or iodine deficiency.

The problem of feeding the world's growing population has so far been seen largely in terms of providing sufficient quantities of food, the book points out. "But the pace of biodiversity loss and ecosystem degradation, coupled with emerging health issues related to diet, make it urgent to address the quality of agriculture and food systems."

"Poor diets are linked to marked increases in non-communicable diseases such as diabetes and cardio-vascular diseases across the world." Yeah, thanks for that.

One omission of the book seems to be not placing any weight on the contribution poor personal choices make to the obesity problem; would different farming systems really make any difference in this regard? Very unlikely.

Image: Not from the book mentioned above.

Weather slams grain production

Global rice paddy production for 2012 is forecast to drop by 7.8 million tonnes due to lower than normal rainfall in India.

However, world output will still be slightly above levels achieved in 2011, according to the July 2012 issue of the Rice Market Monitor released by the Food and Agriculture Organisation of the United Nations.

Global paddy production should reach 724.5 million tonnes (483.1 million tonnes milled), compared with the original forecast in April of 732.3 million tonnes (488.2 million tonnes milled).  The downward revision was mainly due to a 22 percent lower-than-average monsoon rainfall in India through mid-July, which is likely to reduce output in the country this season. Production forecasts were also lowered for Cambodia, Taiwan, North and South Korea and Nepal, all of which may see lower production in 2012.

In sharp contrast with trends observed in the maize and wheat markets, which have been rocked by widespread drought in the US, rice prices have remained surprisingly stable after gaining 2 percent in May. Amid abundant rice supplies and stocks , the likelihood of a strong price rebound in coming months is low, but the future of rice prices remains uncertain. Meanwhile, corn, wheat and similar grains have soared in price as the US drought maintains its grip.

'Conventional plough could contribute to famine'

Photo: Cross Slot no tillage drill

A New Zealand agricultural scientist slash machinery manufacturer claims conventional ploughing could contribute to famine because it causes high rates of carbon loss from soil.


Dr John Baker, has a MAgrSc in soil science and a PH.D in agricultural engineering, which these days are mainly deployed in the manufacture and sales of his Cross Slot no-tillage seed drills. His 'famine' claim is stretching it, and he obviously has a vested interest in this, however, he makes a valid point about carbon loss.


He says carbon is lost to the atmosphere through conventional ploughing and that studies show 15-20% of CO2 in the atmosphere comes from annual ploughing.


Vital ingredient
Carbon is a vital ingredient of soil, Baker notes. Plants that we eat all contain carbon. When they die they decompose and earthworms and other microbes take the products of decomposition, which are rich in carbon, into the soil and keep them there. Fair enough.


“When the soil is ploughed it releases much of the carbon back into the atmosphere. The long term result is a reduction in soil organic matter, which in turn leads to soil erosion, dust storms and ultimately famine,” Dr Baker says.


“Ploughing takes away the food sources of microbes that hold the soil together. Organic matter also stores water and the loss of both decreases the crop yields.”


Key-hole surgery
After 30 years of research at Massey University, Dr Baker researched and developed Cross Slot no-tillage drills which penetrate through crop residue on top of the ground and simultaneously sow seed and fertiliser in adjacent bands.


The no tillage process causes minimal or low disturbance to the soil, traps the humidity, preserves the micro-organisms and soil life and largely prevents carbon from escaping into the atmosphere. Further, by leaving the stubble and straw from the previous crop to decompose on the surface of the ground, it helps sequester new carbon into the soil. 


Food Prize
This year Dr Baker was nominated for the World Food Prize, which was announced last month at the State Department in Washington. Someone is taking his no tillage message seriously.


He points out it’s incredibly important for the soil to gain and trap carbon “if we’re to feed the 50% extra population in the world by the year 2050.”


“Only four percent of the world’s surface has arable soil and we have to learn to farm it sustainably which we simply haven’t been doing. That means no-tillage must replace ploughing as the mainstream food production technique.”


Fuel costs: a net gain
Dr Baker also claims no-tillage saves up to 80% of a farmer’s fuel costs in establishing crops and pastures. Typically no tillage drills are harder to pull through the ground and therefore require a more powerful (and less fuel efficient) tractor. However, no tillage requires fewer passes by the tractor; Baker says farmers typically use 50 to 90 liters of diesel per hectare during the multiple times required to establish a crop. By comparison no-tillage uses “10-20 liters per hectare”.


Dr Baker says that New Zealand farmers sow about one million hectares of new seeds each year. Recent Massey University research suggests that if low-disturbance no-tillage was used universally to sow these seeds it would result in about 1.5 million tonnes less CO2 discharged into the atmosphere annually.

Wanted: Drought resistant crops

With over 60% of continental US suffering drought it is perhaps no surprise Purdue University is promoting its work to find drought-resistance genes.

The search for these genes is focusing on tropical varieties of corn; the genes would be transferred to American corn varieties along with the drought tolerance they confer on plants. The desired equation is simple: maximum yield for minimum water use. As such, it is likely the most useful genes will be related to the control of transpiration -- the opening and closing of stomata on the leaf surface.

Meanwhile, the US droughts are forcing authorities to open up protected land to help farmers feed stock. Agriculture Secretary Tom Vilsack has authority to open up land under the voluntary Conservation Reserve Programme for emergency grazing.

According to US Drought Monitor data, 88% of US corn and 87% of US soybean crops are in drought-stricken areas. Global grain prices have soared over recent weeks.

No surprises in FAO's food security summary

While international agricultural commodity markets appear to have entered calmer conditions after record highs last year, food commodity prices are anticipated to remain on a higher plateau over the next decade, underpinned by firm demand but a slowing growth in global production, according to the latest OECD-FAO Agricultural Outlook.


The report suggests that in addition to population growth higher per capita incomes, urban migration and changing diets in developing countries, as well as rising requirements for biofuel feedstocks, are underpinning demand pressures. At the same time, agricultural output by traditional exporting developed countries has been slow to respond to higher prices in the last decade.


Higher demand will be met increasingly by supplies that come to market at higher cost. With farmland area expected to expand only slightly in the coming decade, additional production will need to come from increased productivity, including by reducing productivity gaps in developing countries, the report said.


The Outlook anticipates that agricultural output growth will slow to an average of 1.7 percent annually over the next 10 years, down from a trend rate of over 2 percent per year in recent decades. Higher input costs, increasing resource constraints, growing environmental pressures and the impacts of climate change will all serve to dampen supply response.


Much of the projected growth will come from developing countries, which will increasingly dominate in the production of most agricultural commodities, and also take on a more important role in commodity trade.


"Increased productivity, green-growth and more open markets will be essential if the food and nutrition requirements of future generations are to be met," said OECD Secretary-General Angel Gurría. "Governments should renounce trade-distorting practices and create an enabling environment for a thriving and sustainable agriculture underpinned by improved productivity. We have highlighted many of these issues in our work on food security for the G20 and this Outlook provides further important analysis and recommendations to governments."

Global atlas to gauge farmers' potential

Jun 25, 2012 by IFPRI

The world’s population is growing, but its resources, including land and water, are finite. This means that if farmers are to feed 9 billion people by 2050—which would require them to roughly double current production—they will have to make their fields work harder without transforming forests and other precious ecosystems into additional cropland.



Researchers at IFPRI and elsewhere have already shown that farmers—including smallholder farmers in developing countries—could sustainably boost crop yields through the use of traditional and innovative technologies and practices, including water harvesting and irrigation. But researchers have yet to successfully quantify how much potential, exactly, there is on earth to increase the crop yields of major crops.

A group of researchers from the University of Nebraska and Wageningen University are setting out to determine just that through the production of an atlas. The Global Yield Gap Atlas will use map-based evidence to reveal the “gap” between the current average yields of farms and their maximum production potential. In other words, it will show the difference between what the world’s farms currently produce and what they could produce. The Atlas will also document the world’s potential to use water more efficiently.

http://bit.ly/OomoPq

Ancient Inca crop has its day

Evo Morales Ayma, President of Bolivia, will visit FAO on Monday 11 June for bilateral talks with FAO Director General José Graziano da Silva and a special session of the UN organization’s governing council focusing on Quinoa, the so-called South American “super grain.”

The United Nations has declared 2013 the International Year of Quinoa. An extremely nutritional grain-like crop with high protein and micronutrient levels, Quinoa was of major nutritional importance for pre-Columbian Andean civilizations, second only to the potato. The International Year of Quinoa aims to focus world attention on the role that the crop can play in contributing to food security, nutrition and poverty eradication.

As a crop, Quinoa is undemanding and altitude tolerant and is grown from coastal regions in Chile up to 4000m elevations in the Andes. Timing the harvest seems to be its trickiest element as timing it wrong can result in high yield losses due to shattering of the grains.

The downside of eating local

   Australian Farm Institute Executive Director Mick Keogh says the international local food movement brings the potential for a retreat from globalised agricultural markets.

   Unwittingly the local food movement also has the potential to dramatically increase agriculture’s impact on the environment, he says.

   A ‘locavore’ is defined as a person who seeks to only consume food that is grown less than 160 km away. More generally, the 2008 U.S. Farm Bill, defines local food as produced and consumed within a state, or that is consumed less than 640 km from where it is produced.

   “Irrespective of the validity of the reasons advanced for preferring local food, the movement seems to encompass a strong desire to retreat from the globalised, internationally traded food supply system,” Keogh says.

   One often-claimed attribute of local food systems that is not supported by available research is the claim that local food systems are better for the environment.

   “A UK consumer opting for the local UK dairy product would unwittingly be selecting a product that has double the energy and environmental footprint of the competing New Zealand product, despite the New Zealand product having been transported almost 18,000 kilometres,” Keogh says.

    A comparison for lamb production, he says, shows the New Zealand lamb shipped to the UK had an emission “footprint” of 688 kilograms of CO2-e per tonne of lamb compared to the UK product with an emission footprint of 2,850 kg of CO2-e.

   Keogh says a further aspect of the local food movement that is seemingly at odds with many perceptions is the implications of a ‘local food’ model for the potential of global agriculture to provide sufficient food for a larger future population.

   “It is also easy to overlook the fact that the benefits of specialisation (growing specific crops in areas where they are agronomically best suited and transporting them to distant markets), modern science and scale economies mean that the world is now consistently able to produce a surplus of food, which can be safely and efficiently delivered to any location on earth in a relatively short period of time,” he says.

   A recent estimate says for the United States to maintain current output levels for 40 major food crops and vegetables under a locavore-like production system would require an additional 24.3 million hectares of cropland, 2.45 million tonnes more fertiliser, and 22.7 million kg more chemicals.

   “The result would be a profound increase in the carbon and energy footprint of the U.S. food system, and the destruction of significant natural habitat due to land use change,” Keogh says.