West African response to the context of price increase: regional offensive for food production and the fight against hunger Dr Yamar Mbodj, Agriculture Advisor/NEPAD

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West African response to the context of price
increase regional offensive for food production
and the fight against hunger Dr Yamar Mbodj,
Agriculture Advisor/NEPAD ECOWAS Commission

• Meeting of the Platform of CAADP Partners
  (Pretoria, South Africa, 26 - 27 March 2009)

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Outline

• Context
• Introduction
• What is the situation in West Africa in 2008?
• Market outlook and opportunities
• Measures recommended
• Implementation status
• Measures aimed at reviving the ECOWAP/CAADP
  process
• New measures to refine the regional policy
• Measures to strengthen dialog with its partners
• The way forward (work plan) for 2009
• Short-term programs to consolidate and extend the
  ongoing actions
• Medium and long-term programs to finalize
• Regional associated instruments and mechanisms
• High-level consultation meetings, workshops and
  meetings

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I. Context

• West Africas engagement, since 2003, in various
  processes aimed at developing and building new
  mechanisms and tools for the CAADP implementation
• In that context, ECOWAS developed West Africas
  Regional agricultural policy (ECOWAP) to guide
  the CAADP implementation in West Africa
• The ECOWAP/CAADP process is based on four
  complementary approaches
• Early actions of food security promotion
• Medium and long-term investment programs at the
  national level (NAIP)
• Medium and long-term complementary agricultural
  investment programs at the regional level (RAIP)
• Cross-cutting actions and collaborations with the
  ECOWAS departments, IGOs and development partners
• To mobilize, ensure coherence and synergy of
  ECOWAP/CAADP actions/Objectives

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I. Context

• The context in 2008 was characterized by a sudden
  price increase
• Between April 2007 and April 2008, the price of a
  tonne of rice short up to over US 700 from 300,
  reaching a historic level of 1000 in early May.
• Between March 2007 and March 2008, the price of
  wheat climbed to 397/tonne, up from 170.
  Powdered milk rose from 2 125 in April 2006 to
  3 850 a year later, reaching 4 550 in April
  2008.
• These hikes are occurring within a context of
  crisis-ridden financial markets, near general
  increases in the prices of raw materials,
  particularly oil (the price of a barrel of oil
  jumped from 63 to 120 dollars over the last 12
  months) due to the slump in the value of the
  dollar (1 was worth one euro as at 1 January
  2000, 0.75 euro as at 1 April 2007 and 0.63 euro
  a year later).

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I. Context

• West Africa was hard hit by the repercussions of
  the global crisis, although the situation varies
  from country to country
• Thus, prices are more moderate in the countries
  of the regions centre and higher in the
  countries which have had a poor crop season and
  are highly import-dependent.
• The prices of rice and wheat are higher than
  those of other cereals.
• They are higher in Nigerias sphere of influence
  as a result of the poor planting season in that
  country and the high demand for livestock feeds

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I. Context

• The responses provided by States are, on the
  whole, of two types
• The emergency measures and measures focused on
  the 2008-2009 crop season
• The emergency measures include i) suspension of
  customs duties (CD) and in some cases, the
  value-added tax (VAT) ii) fixing and control of
  prices of some essential goods iii)
  subsidization of consumer prices iv) suspension
  of cereal exports, and v) interventions in food
  markets (sales at affordable/moderate prices).
• With regard to measures on the 2008-2009 crop
  season, many countries have prepared and adopted,
  or even implemented, strategies for developing
  off-season farming, as well as programmes for
  developing crop production, particularly rice,
  through reforms and supply of inputs and seeds.

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I. Context

• Attention was drawn to the potential impacts of
  the soaring prices and of the scope and
  limitations of the measures taken, especially to
  the following
• possible return to the stabilisation policies of
  the 80s and 90s (decades lost for development)
• return to restrictive monetary policies
  (inflation control) with negative repercussions
  
• loss of the achievements made in the construction
  of the Community call into question of the
  efforts being made for the establishment of the
  CET and for achieving macroeconomic convergence
• possible erosion of regional solidarity as a
  result of the ban on exports imposed by some
  countries
• Long-term unbearable character of the suspension
  of taxes on food imports

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I. Context

• The surge in food prices leads ECOWAS to take the
  initiative of
• Organizing an extraordinary meeting of Ministers
  of economy and finance, agriculture and commerce,
  in May 2008
• Then of Heads of State and Government, in June
  2008.
• They stressed that the crisis is of a structural
  nature and may linger on
• They recalled the enormous potentials that West
  Africa is endowed with mobilisable abundant land
  and water resources a market with over 255
  million consumers.
• They underscored the need for the region to take
  a bold and concerted initiative to address the
  situation in a sustainable manner
• In view of this state of affairs, the ministers
  acknowledged the relevance of the short, medium
  and long-term actions, measures and policies put
  forward by the ECOWAS Commission to curb the
  effects of the rising prices on the populations
  and the economies of the States.

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I. Context

• They therefore adopted the regional offensive for
  food production and the fight against hunger. The
  offensive is focused on
• three thematic actions
• (i) accelerated and sustainable food production
  to minimize dependency on imports and roll back
  poverty in the rural environment
• (ii) structuring of value chains and regulation
  of markets to ensure secure outlets for products,
  stabilise markets, adapt products to demand
  (processed and standardised products )
• (iii) food and nutritional security for the
  vulnerable sections of the populations the
  establishment of appropriate safety nets in the
  rural and urban areas
• three time horizons (i) immediate emergency
  measures (ii) measures to ensure rapid
  agricultural growth and elimination of hunger in
  the medium-term (iii) long-time measures
• three levels of governance and responsibility
  through concerted and coherent actions (i) at
  national level under the responsibility of States
  in conjunction with stakeholders (ii) at
  regional level under the responsibility of ECOWAS
  and other integration institutions and
  organisations (iii) at international level
  United Nations, WTO, etc

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I. Context

• This offensive is the regions response to the
  new international price context. It is structured
  around three major orientations
• Quick and sustainable increase in food
  productions
• Organization of the value chains and market
  regulation 
• Food and nutritional security of vulnerable
  populations
• This is in line with the objectives and
  priorities defined in the ECOWAP/CAADP process
  and is a form of accelerating its implementation
• With measures that relate to and distinguish the
  short, medium and long terms and refer to either
  national, regional or international
  responsibilities
• Short-term actions seek to coordinate and back up
  the efforts made by the countries in 2008 and to
  put them in a medium-term perspective medium and
  long-term actions are considered in the NAIP/RAIP
  process

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II. Implementation status

• More specific actions to support the
  implementation of the offensive against soaring
  food prices (1)
• After the extraordinary ministerial meeting in
  May 2008 in Abuja, the ECOWAS Commission took
  several measures aimed at reviving the
  ECOWAP/CAADP process 
• Worked out an action plan towards implementing
  the recommendations
• Initiated actions to support boosting production
  during cropping season 2008-2009 (FAO, BIDC,
  ECOBANK)
• Launched the implementation process of the
  recommendation relating to group purchasing of
  strategic food commodities (BIDC, ECOBANK)
• Rice Forum in Bamako/Ségou, ECOWAS Forum on
  agribusiness in Ouagadougou
• Speeded up the implementation of on-going
  programs that contribute to increase agricultural
  production
• More closely monitored the food and agricultural
  situation in the region, in collaboration with
  CILSS
• Supported the formulation process of
  implementation plans of recommendations addressed
  to the countries and the regional level
• Improved the NAIP/RAIP facilitation process and
  strengthened financial support to the countries
  and lead institutions of thematic groups

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II. Implementation status

• More specific actions to support implementation
  of the offensive against soaring food prices (2)
• The context of price increase and growing
  instability (cf. context) led ECOWAS to refine
  its regional policy in three areas
• Market regulation, to reduce price instability
  which is harmful to producers and consumers this
  aspect deals with internal market regulation and
  re-definition of commercial policy tools at the
  regional borders
• Definition of a regional approach as regards
  access to food for the vulnerable segments of the
  population so far, this issue was addressed only
  in case of food crises occurring in the Sahel
  countries and the instruments were targeted on
  the rural area
• Conditions and instruments for the sustainable
  intensification of agriculture in a changing
  climatic context
• .

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II. Implementation status

• More specific actions to support implementation
  of the offensive against soaring food prices (3)
• The context of price increase and growing
  instability (cf. context) led ECOWAS to the
  organization of the Paris conference on the
  ECOWAP/PDDAA process , which helped to
• Share a common vision between the region and the
  international Community about agriculture and
  food issues and challenges and how to tackle
  them
• Discuss about ECOWAP/CAADP implementation
• Suggest a timeline and working method between the
  region and the international Community
• .

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II. Implementation status

• More specific actions to support implementation
  of the offensive against soaring food prices (4)
• The price increase context also led ECOWAS to
  strengthen dialog with its partners
• With USAID development of several joint
  initiatives in the fields of support to the
  private sector ( ATP Project and WASA), the
  cotton sector, the public/private Funds are
  available within the framework of the US
  President and Congress support to fight against
  hunger
• With ADB support to regional programs
  (irrigation, invasive plant control, IWRM)
• With the World Bank Agricultural productivity
  development Program in West Africa there are
  opportunities within the framework of their
  program in support of regional integration
• With the EU support to early actions carried out
  by the DARD in the 9th EDF
• funding could be obtained under the
  international facility , the 10th EDF and the
  EPA
• With the French cooperation support to the
  definition process of the list of sensitive
  products opportunities for funding two projects
  (FCPM and food crop value chains) support to the
  organization of the Paris conference on the
  ECOWAP financing
• Several other partners (Spain, Italy, Great
  Britain, Netherlands, IFAD, ADB) are currently
  preparing programs to support regional
  integration in West Africa, from which support
  can be expected for the ECOWAP/CAADP process

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VIII. The way ahead in 2009

• Short-term programs (1)
• The program in support of agriculture
  intensification, which consolidates and extends
  the following existing achievements and projects
• Country initiatives to boost production (rice,
  maize, roots and tubers)
• Pesticide and seed legislation that must result
  in infrastructures to develop so as to ensure
  quality control for both importations and local
  production as well
• Needs for extending the STCP project for
  sustainable production and public-private
  partnership
• The IFDc MIR plus Project
• The Seeds Alliance gathering the ECOWAS, USAID,
  The Melina and Bill Gates Foundation, AGRA
• The rainfed food crop development project
  currently being prepared jointly by AFD and IFAD
• Needs for extending the FAO FSSP
• Needs for optimizing CORAFs achievements

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VIII. The way ahead in 2009

• Short-term programs (2)
• The second program in support of
  commercialization of agricultural products, which
  strengthens and extends the following
  initiatives
• Country initiatives to optimize production
• The USAID ATP Market project
• Needs for extending the FAO FSSP
• CMA/AOC initiatives in the field of value chains
  promotion, public-private partnership
  development
• The IFDC MIR plus Project, financed by the
  Netherlands
• WFPs initiatives in the area
• Programs of the NGO Afrique Verte
• Success stories in national programs to support
  optimized use of production

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VIII. The way ahead in 2009

• Medium and long-term programs
• 15 national agricultural investment programs
  (NAIP)
• 6 program documents that make up the Regional
  agricultural investment Programs (RAIP)
• The operational document for the implementation
  of the regional agricultural information system
  (AGRIS)
• The ReSAAKS WA build-up program

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VIII. The way ahead in 2009

• Technical and financial feasibility studies on
• Instruments for
• Regional market regulation through a combination
  of intervention tools, by storage and border tax
• Financial support to intensification to
  facilitate access to inputs (interest rate
  rebate, subsidy to fertilizers and crop seeds,
  storage guarantee on short-term credit)
• Vulnerability reduction or food crisis mitigation
  through social transfers
• The ECOWAP global financing system

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VIII. The way ahead in 2009

• Organization of meetings for validation and
  mobilization of adequate resources
• Technical and political support to the
  organization of the 15 national round tables in
  April-June
• Presentation of progress reports to meetings with
  partners (February, March, May, July, September)
• Organization of regional validation workshops of
  the RAIP 6 components, the AGRIS System, 4
  technical and financial feasibility studies, by
  end June
• Presentation of a progress report to the ECOWAS
  Authority Summit meeting in June
• Presentation of a progress report to the NEPAD
  Secretariat with a view to the AU CM and Summit
  meeting in June/July
• Organization of a joint meeting of Ministers of
  Economy and Finance, Agriculture, Commerce,
  Regional Integration, in July
• Organization of the International Conference on
  the ECOWAP/CAADP financing process, in October
• Presentation of the conclusions of the
  international Conference to the ECOWAS Authority
  Summit meeting of November

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• I thank you for your kind attention