Transformations in the food economy and implications for policy making

Transformations in the food economy and implications for policy making

THE SAHEL & WEST AFRICA WEEK

Abuja, Nigeria, 15 December 2016

ClubSAHEL ANDWEST AFRICA

Secretariat

Transformations of the food economy and implications for policy making

Current situation and implications for the future

Philipp Heinrigs



Secretariat


Secretariat Urbanisation and cities


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3 The regional opportunities

4 Outlook

2 Food: The largest private sector

1 Changing demand

17 %

37 %

2 %

16 %

27 %

Fruits & Vegetables Meat & Fish Dairy Cereals Others


Secretariat Consumers’ diversifying consumption

17 %

26 %

4 % 22 %

31 %

Urban Rural

Processed foods39 %

Unprocessed foods30 %

Cereals27 %

Beverages4 %


Secretariat Demand for convenience

Urban

36%

Rural

41%


Secretariat


4 Outlook

1 Changing demand



Secretariat Size of the food economy

100 %c

178 USD billion

(2010)

36% of regional GDP

100 %32 USD billion

(2010)

GDP Ghana

The region’s largest private sector


Secretariat Food imports = 7%…

Imports7 %

Domestic production93 %

178 USD billion

(2010)


Secretariat Increasingly non agricultural

Non agricultural40 %

Agriculture60 %

178 USD billion

(2010)


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4 Outlook

1 Changing demand




Secretariat Huge regional opportunities

The food sector is 9x bigger than the export sector


Secretariat Concentrations and interdependences

Traded on markets

126 USD billion

(2010)


Secretariat

1 Changing demand



4 Outlook


Secretariat Demand for post-harvest activities to grow fastest

Forecasted demand growth in urban areas (income elasticities)

Source: Hollinger and Staatz (2015)

High food pricesClubSAHEL ANDWEST AFRICA

Secretariat

5000

50

100

150

200

250IC

P Fo

od p

rice

leve

l ind

ex

GDP per capita2,000 8,000 32,000 128,000

WorldAfricaAsia & PacificWest Africa

Thank you for your attention


Secretariat





Secretariat

Thematic sessionClubSAHEL ANDWEST AFRICA

Secretariat

ALH. ALI MADUGU, mni Managing director

Dala Foods Ltd, Kano Vice-president

Manufacturers’ association of Nigeria





Secretariat

Transformations of the food economy and implications for policy making

Implications for policy design

Ousman Tall



Secretariat

33 %

28 %

39 %

Farm-level production Marketing & processing


Secretariat Increase level and mix of investment

Nigeria

35 %

6 %

59 %

Senegal

NAIP budget allocation

33 %

28 %

39 %

Farm-level production Marketing & processing


Secretariat Increase level and mix of investment

Nigeria

35 %

6 %

59 %

Senegal

• Policy and budget allocation should change to reflect changes in the food economy

• Stronger emphasis on post-harvest segments of the food value chains

• Processing, packaging, logistics and marketing will experience the fastest growth


Secretariat Increase the level of investment

CAADP target of 10%

At farm level:

• boost long-term productivity: infrastructure, technology development, farmer support services

• target high demand growth products: fruit & vegetables, meat & fish, dairy


Secretariat Increase policy co-ordination

Move beyond the traditional confines of agricultural ministries

• Multi-sectoral: Agriculture, Trade, Transport, Energy, Industry, Health

• Longer value chains, MORE actors: Farmers, traders, processors, consumers

• Level of government: ECOWAS/UEMOA, national, local


Secretariat Improve policy co-ordination

The food sector is 9x bigger than the export sector


Secretariat Improve policy co-ordination

Match export crop value chains structuring (cocoa, rubber, cotton)


Secretariat Connect producers and consumers

67% of demand is concentrated in urban markets


Secretariat Connect producers and consumers

Meeting demand is about connecting producers and consumers

• Movement of goods and services

• Transport, storage and marketing infrastructure

• Input markets and support services in rural areas

• Grades and standards


Secretariat Deepen regional integration

Greater regional integration is the key to scale-up opportunities

• Connect regional producers to regional consumers

• Increase scale economies in production and policy

• Improve the region’s international competitiveness

• Develop regionally co-ordinated systems for grades and standards, for agricultural research and technology development


Secretariat

The transforming food system requires profoundly different set of skills AT ALL LEVELS of the systems

Develop new skills and techniques


Secretariat Develop new skills and techniques

The transforming food system requires profoundly different set of skills AT ALL LEVELS of the systems University of Ghana - BSc Food Science curriculum

Fundamentals of Food Science and Technology Human Nutrition

Structure and Function of Biomolecules Organic Chemistry

General Microbiology Analytical Chemistry

Unit Operations in Food Processing Nutritional Physiology

History of Nutrition and Concepts in Nutrition Cell Biology

Enzymology Food Chemistry Food Microbiology and Safety

Beverage and Sugar Processing Technology Nutrients and their Metabolism

Thermal Processing of Foods Post-harvest Science and Technology

Thank you for your attention


Secretariat





Secretariat

Transformations in the food economy and implications for policy making

Government & Nonprofit

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