AGRA

China has enjoyed a miraculous economic performance since the 1980s, with fast and uninterrupted growth. What the outside world usually missed, however, is the unprecedented speed of both China’s domestic economic structural shift and its impact on the world economy. For instance, China transformed from a major exporter into the biggest importer of agriculture products within only 15 years since 2004. During the Forum of China Africa Cooperation 2021, China announced it plans to import 100 bn worth of agricultural products from Africa in 3 years (See CAPD June). Can Africa meet the demand? What is the entry point for African countries to tap into this new market? What do African exporters need to know when negotiating with Chinese companies? CAPD serves to equip you with knowledge regards China’s agriculture policies, starting with the 101 of China’s latest agriculture performance in production and trade.

China’s Agricultural Policy Digest No.2

China has been gradually opening up its agricultural sector since joining the World Trade Organization in 2001. The level of marketization and internationalization of agriculture in the country has increased substantially. In 2021, China’s total grain production approached 683 million metric tons despite the difficulties of the COVID19 pandemic. Beyond that, China’s agricultural sector has also solidified the nation’s efforts to reduce poverty by acting as a “stabilizer” for the growth of the rural economy. Meanwhile, China has emerged as the world’s biggest market for agricultural products.

Section 1: China’s Agricultural Production in 2021

In 2021, the global economy showed a recovery trend, while the geopolitical landscape became unstable, energy prices fluctuated, and supply chains were interrupted. Although the global grain output reached a record high, the prices of global grain and other major agricultural products were greatly increased. Similarly, China’s agricultural production is steadily progressing and improving, as grain output has reached another record high.

In 2021, the total national grain output (mostly rice and wheat) was 682.85 million metric tons, with a 2.0% yearly growth. The annual grain output reached a new high and has remained above 650 million metric tons for seven consecutive years.

In 2021, the area planted in rice decreased slightly, while the yield and total output continued to increase. The planted area, yield, and total output of wheat all increased year on year. The planted area and total output of maize increased year-on-year, while the yield decreased slightly. The output of rice, wheat, and maize reached 213 million metric tons, 137 million metric tons, and 273 million metric tons, respectively.

The total output of oilseed crops dropped. In 2021, soybean production dropped significantly, with the planted area, yield, and total output all declining, the output reached 16.4 million metric tons, which declined by 16.33% year-on-year. Rapeseed production remained stable, and peanut planting area, yield, and total output increased simultaneously.

The total output of the three major oil crops (i.e., soybean, rapeseed, and peanut) reached 47.9 million metric tons, which declined by 7.62% year on year.

Moreover, the production of meat, milk, and aquatic products kept growing, egg production declined slightly. The production of other important agricultural products remained stable, while the output of cotton and sugar crops declined.

Section 2: Agricultural imports and exports of China

Rising income and living standards, increasing urbanization, and food safety concerns have fueled China’s agricultural imports. As incomes rose, the average Chinese diet changed to include more meat, dairy, and processed foods, while grain consumption declined. From 2000 to 2019, per capita consumption of poultry meat increased 32 percent, soybean oil consumption more than quadrupled, and fluid milk intake more than tripled. China is now the world’s largest agricultural importer, surpassing both the European Union (EU) and the United States in 2019 with imports totaling $133.1 billion.

From 2000 to 2020, China’s agricultural trade volume increased from US$26.85 billion to US$246.83 billion, with an average annual growth of 11.7%. The export value increased from 15.62 billion US dollars to 76.03 billion US dollars, with an average annual growth rate of 8.2%; the import value increased from 11.23 billion US dollars to 170.80 billion US dollars, with an average annual growth rate of 14.6%.

The global ranking of China’s agricultural product import and export volume and import volume has risen from 12th to 2nd, and the ranking of exports has risen from 10th to 5th.

China’s agricultural product import and export volume from 2000 to 2020

Unit: US$100 million

Since 2004, China’s trade in agricultural products has shifted from net exports to net imports, and the trade deficit has continued to expand since 2009. China’s imports are mainly land-intensive agricultural products and high-protein agricultural products. Exports are mainly labor-intensive agricultural products. In the past 20 years, the export volume of aquatic products has increased from 1.19 million tons to 3.75 million tons, and the export volume of fruits and vegetables has increased from 3.1 million tons and 6.0 million tons in 2004 to 4.9 tons respectively. The export volume of tea increased from 228,000 tons to 349,000 tons.

For China, total coarse grain imports for 2022/23 are forecast at 37.9 million tons, down 5.0 million from a year ago and below the record 50.5 million reached during 2020/21. China’s internal market prices for animal feed remain higher than the world market, following a surge in prices among major exporting countries. Maize imports are expected to drop by 5.0 million tons to 18.0 million with a decline in imports from Ukraine. Barley imports are projected at 10.0 million tons and sorghum at 9.5 million.

Obviously, China’s huge demand for agriculture products provides a long-waited opportunity for African agriculture to tap into international trade, to alleviate farmers’ income and attract international investment in a significant way. Meanwhile, there is also a risk, that the huge demand might also distort incentives in Africa’s agricultural sector, especially regards corps choices and protection of small-hold farmers, if African countries failed to coordinate with China and among themselves. The next CAPD will focus on, specifically, China’s import performance and policies of agricultural goods from Africa. In depth analysis will keep on following in the future on this subject.

Source:

China Agricultural Sector Development Report 2022;

United States Department of Agriculture, World Agricultural Supply and Demand Estimates;

United States Department of Agriculture, China: Evolving Demand in the World’s Largest Agricultural Import Market;

中国国际经济交流中心课题组,杜鹰,张秀青,谢兰兰,梁腾坚,张学彪,杨光,于敏.新时期我国农业对外开放与高质量发展问题研究[J].全球化,2022(01):5-26+134.DOI:10.16845/j.cnki.ccieeqqh.2022.01.001.

In recent years, Africa has been dealing with a multitude of overlapping food systems shocks — climate-induced drought and floods, locust attacks, the COVID-19 pandemic, and conflict. The World Bank warns that for each one percentage point increase in food prices, 10 million people are thrown into extreme poverty. If food prices stay this high for a year, global poverty could go up by more than 100 million people.

As the world scrambles to address the current crises, the continent is reminded that only Africans can take responsibility for building climate resilient, nutritious, and inclusive systems that leave no one behind — as envisioned by the Sustainable Development Goals. This is why the African Union declared 2022 as the year of nutrition and why we must implement the national food systems pathways agreed upon at the U.N. Food Systems Summit in 2021. Progress made to date will be undone if we fail to lead and fail to act now.

Advances in productivity have been made

After decades of stagnation, much of Africa has witnessed sustained agricultural growth — 4.73% per year on average between 2000 and 2018. A promising transformation has already started in Africa’s farmlands. Farmers are increasingly using innovative approaches and scientific research combined with traditional knowledge to increase the productivity of their fields, diversify their crops, boost their nutrition, and build climate resilience. Yet Africa is struggling to achieve the SDGs.

Resilience through food systems transformation

Africa, like other regions, must adapt and fundamentally transform food systems to meet its development goals. This reality is being confronted head-on. Some 37 African countries committed to national pathways for food systems transformation as part of the Food Systems Summit, and many also contributed to the development of an African Common Position curated by the African Union Commission and the African Union Development Agency.

The African Common Position and national food systems pathways will not happen without stakeholders at every stage of the food system taking ownership — governments, the private sector, finance institutions, producers, and civil society. Those with a responsibility to act, ensure strong accountability, avoid unnecessary externalities, and ensure investments are attracted to food systems. So, the AU Commission, with other partners, is developing a blueprint to move from national pathways to food systems strategies and investment plans that will help unlock priority actions and needed investments.

Africa needs to demonstrate a unity of purpose

The multiple crises that have created rippling effects on our food systems have been brought into sharp focus at this year’s Africa Green Revolution Forum, or AGRF, in Kigali. The AGRF is Africa’s premier platform for discussing and advancing the continent’s food systems and agricultural transformation to give all voices within the food systems the opportunity to promote bold initiatives, collaboration, large-scale innovation, and action.

The forum offers a platform to have a conversation across African constituencies and bring in the experience of global partners to help define ways to both manage crisis and advance the critical food systems transformation agenda. We have already heard from the governments of Ghana, Malawi and Rwanda at the AGRF, on how they are implementing their food systems pathways to inspire other countries. 

The time is now for the continent to demonstrate a unity of purpose to effectively tackle hunger and nutrition insecurity, address climate change, and advance inclusive development.

About the authors

Josefa Sacko

Ambassador Josefa Sacko is a leading African agronomist and commissioner for agriculture, rural development, blue economy, and sustainable development at the African Union Commission. Prior to her reelection in 2021, she was special adviser to the Angolan minister of environment and climate change — and adviser to the minister of agriculture in charge of food security and poverty reduction. Sacko was also the former secretary-general of the Inter-African Coffee Organization for 13 years.

Agnes Kalibata

Agnes Kalibata is the president of AGRA, leading its efforts to ensure a food secure and prosperous Africa through inclusive, sustainable agricultural transformation, improving the productivity and livelihoods of millions of smallholder farmers in Africa. Prior to joining AGRA, Kalibata was Rwanda’s minister of agriculture and animal resources, where she drove programs that moved her country to food security helping to lift more than a million Rwandans out of poverty. Over the last two years, she has also served on the global scene as the special envoy of the U.N. secretary-general for the Food Systems Summit.

Kigali: Friday September 9, 2022 – AGRA yesterday launched its new five-year strategy that helps governments tackle hunger and enhance nutrition by building resilient food systems.  The need for this support is powerfully highlighted by a decade of multiple natural and manmade crises. To help articulate the evolved emphasis of the strategy, AGRA today also unveiled a refreshed branding.

AGRA’s new strategy is a response to recent global and African catastrophes including famine, COVID-19, drought, fall army worm, climate change, soaring food, fertilizer and energy prices, and the conflict in Ukraine. These events have created a truly urgent need for rapid strengthening of food systems and accelerated transformation of agriculture.  

The new strategy will build on AGRA’s achievements to date, and crucially the lessons it has learned with its partners. 

In the strategic period 2017-21, AGRA’s direct contributions have included:

• 11 million farmers reached directly 
• 26 million farmers reached through policy, state capability and partnerships work 
• Facilitated 42 policy reforms
• Supported 11 national flagships
• Catalyzed $1.4 billion in investment 
• 33,000 village-based advisors trained
• 75% of AGRA farmers adopted fertilizer use 
• 48% of AGRA farmers adopted improved seed
• 60% adopted post harvest practices 

Despite progress, Africa’s food systems urgently need further radical transformation.  Many countries still struggle to achieve food security and provide diverse, nutritious choices for their populations. Supply chains that bring food to markets are often long and fragmented, leading to significant waste and higher costs for consumers. This is exacerbated by climate change and environmental degradation that threatens livelihoods, biodiversity and sustainability across much of the continent’s agricultural sector. 

“We have demonstrated that when farmers have access to choices of inputs and when those inputs give a clear yield differential farmers adopt and their lives change. We have also seen that this only happens sustainably when markets are available to farmers” said AGRA’s President, Dr. Kalibata.  “Our new strategy therefore will see us do more of what works for farmers and will see us trying to understand markets better. In all this we must bring more youth, more nutrition and be smarter in use of environmental resources” she added. 

AGRA’s new strategy, which will run from 2023-27 and is costed at $550 million, concentrates on key areas of work from our last strategy, including seed system development, and government engagement, expands AGRA’s work in sustainable farming and markets and trade, and focuses on three critical areas of change: climate change, gender, youth and inclusion work, and transforming African diets.

Overview of focus areas and targets: 

1. Working with smallholder farmers – AGRA will aim to reach 28 million farmers in 15 countries to enable their full participation in sustainably growing Africa’s food systems
2. Developing seed systems – We will build on the ten countries where AGRA has strengthened seed systems to ensure farmers gain access to affordable, productive, climate/pest resistant seeds 
3. Sustainable farming – AGRA has set a goal of 30 percent of targeted farmers to adopt sustainable farming practices that build livelihoods today, and protect the environment for tomorrow
4. Inclusive markets and trade – AGRA will invest $300M through AGRA platforms to enhance market competitiveness for farmers, while bringing nutritious food to consumers
5. Policy and state capability – We will support 12 countries to develop strategies and investment plans for food system transformation pathways, that create an environment where farming businesses thrive 
6. Inclusivity – Our new strategy will see a 25 percent increase in funding for women-led SMEs, which will create new opportunities for women and youth to thrive in farming
7. Nutrition – AGRA’s new strategy aims to support targeted farmers to adopt improved varieties including climate smart and nutrient dense varieties, to provide affordable, diverse, and nutritious diets for consumers
8. Climate adaptation – We aim to help 40% of targeted farmers to adopt varieties including climate smart/nutrient dense varieties

The new Strategy also speaks to the need for  businesses to recognize growth opportunities and have the confidence, financing, and capabilities to serve farmers, trade produce, and process food profitably. 

Government representatives, NGOs, companies, small holder farmers, traders and all those involved in the growing, processing and distribution of food in Africa gathered in Kigali this week at the annual summit of the AGRF.  AGRA continues to explore new partnerships as it prepares to implement its new strategy. 

“AGRA is a proudly African institution,” stated AGRA’s Board Chair, H.E. Hailemariam Dessalegn. “To work sustainably and inclusively, food systems need to be built on solid foundations,” explained H.E. Dessalegn. “Together in partnership, we can transform our agriculture; protect our environment; create equitable prosperity; and feed our communities and families.”

Ends

More information here:  AGRA’s Five Year Strategy: Sustainably Growing Africa’s Food Systems  or  https://bit.ly/3D8AGC2

About AGRA

Established in 2006, AGRA is an African-led and Africa-based institution that puts smallholder farmers at the center of the continent’s growing economy by transforming agriculture from a solitary struggle to survive into farming as a business that thrives. Together with our partners, we catalyze and sustain an inclusive agricultural transformation to increase incomes and improve food security in 11 countries. 

https://agra.org/      Rebecca Weaver, rweaver@agra.org| 

To contact the AGRF virtual press room: ewangui@hudsonsandler.com: ewangui@hudsonsandler.com

Between 2008 and 2018, Africa suffered an estimated $30-billion in losses caused by a decline in crop and animal production, as a result of floods, diseases, droughts and other shocks, according to the United Nations Food and Agriculture Organisation.

With such increasingly unpredictable weather patterns, a result of the effects of climate change, and frequent pest and disease outbreaks, farmers must take any measures to enhance yields. This includes access to and planting quality seeds. 

Seeds significantly influence the quality and quantity of farmers’ output. The African Union Commission’s Seed Sector in Africa: Status Report and Ten-year Action Plan (2020-30) indicates that good quality seeds can potentially increase overall productivity by nearly 40%.

Clearly, it is critical that efforts to put quality seeds in the hands of smallholder farmers, who represent 70% of Africa’s agricultural production, are accelerated. A key measure to support this is the formalisation of seed systems being rolled out in many African countries by instituting legislation.

But there is still a long way to go. Informal seed systems still account for up to 85% of the seeds that are planted on the continent. In the majority of cases, farmers store a portion of seeds from their own harvests for the next planting season and sometimes trade with their neighbours. These practices expose farmers to admixtures of all sorts of seed, whose yield potential is compromised by exposure to pests and diseases, while farmers miss out on the benefits of improved seed. Despite these risks, using informal sourcing channels remains an attractive option for farmers, as the most affordable, easily accessible, and available route. 

The formalisation of seed systems aims to ensure that farmers only plant seeds sought from licensed seed producers that adhere to certain quality standards. Seeds must meet the characteristics of the prescribed variety and be free of pests and diseases. Only registered companies can be involved in the production, processing, packaging and distribution of seeds. This ensures that farmers have access to the right inputs and get value for their money. To illustrate this point, seeds of improved maize varieties could yield up to six metric tonnes a hectare, in comparison to 1.8 metric tonnes a hectare yielded by home-saved seeds. 

Policy interventions must be aligned to support all actors, ensure seed research is funded, seed production and markets are transparent, and the right information is disseminated to the farmer. Quality assurance, national planning and coordination of legal and regulatory frameworks must also function to support this. 

There will still be a place for informal distribution, which has been instrumental in sustaining farmers’ seed requirements, allowing farmers to access seeds of varieties and crops that are not offered by large-scale distributors. Most seed companies in formal systems still focus mainly on maize, and very few on self-pollinating crops such as legumes, and small grains like millets, sorghum and rice. Even less for vegetatively propagated crops like cassava, potatoes, yams and bananas. Yet, informal seed systems often lack critical data on potential yields, pests or disease resistance, or even required climate and soil conditions for growth, making it difficult to plan. 

Dr Jane Ininda is the head of seed research and systems development at the Alliance for a Green Revolution in Africa.

Originally posted on https://mg.co.za/

The price at which farmers in Ghana purchase fertilizer has doubled compared to the prices they bought them during the 2021 farming season due to a global shortage of the commodity. The country’s agricultural sector is currently suffering from a deficit of 350,000 metric tonnes of fertilizer due to Russia’s ongoing war on Ukraine. Ghana imports to meet almost all of its fertilizer needs, and the war is making it impossible for the commodity to come in from Russia and Ukraine, resulting in shortages, with the attendant hike in prices. 

Zakaria Abdulai, a 40-year-old farmer, and secretary to the local farmers cooperative union at Nangbagu in the Sagnerigu Municipality of the Northern Region of Ghana, says farmers have cut down on the size of land they are farming this season because of difficulty in getting access to fertilizer. “The fertilizer situation has really affected our farming. Not only me. But the farmers across the country. Last year, we bought fertilizer for 200 Cedis per bag. But this year, it has jumped to 400 Cedis per bag,” he said. 

“I used to farm 10 acres. But because of the high fertilizer cost, I farmed 4 acres (this season). But even the 4, I have still not yet applied fertilizer on the farm because of the prices. And this will affect my income and (my ability) to get food to feed my family, and not to talk of sending them to school,” he added. 

Abdulai was speaking when U.S. Ambassador to the United Nations, Linda Thomas Greenfield, visited the community to get a firsthand understanding of how the commodity price crisis, exacerbated by the Russia-Ukraine crisis, is impacting farmers’ access to fertilizer.

Ambassador Greenfield announced fresh support to help deal with the problem and urged other donors to support too. “We have just provided U.S. $2.5 million to support production in this region… The U.S. $2.5 million will support just those farmers dealing with the fertilizer (crisis)… And while the U.S. is the largest funder, we need others to step up to the plate to provide funding so we can deal with this crisis,” she said. 

Ambassador Greenfield said Ghana has the capacity to produce fertilizers locally and urged the country to take advantage of local resources to do so. “The resources on this continent are here, and we have to take advantage of the resources, so there is not that dependency on fertilizer and grain coming from as far away as Ukraine and Russia,” she said. 

The farmers showcased to Ambassador Greenfield a demonstration field set up by the partners with support from USAID. In this field, the farmers are getting practical hands-on experience in good agronomic practices, including how to use fertilizers efficiently. Zakaria says farmers have learned practices that have helped them double their farm yields, thereby earning more money to take care of their families. “This is a one-acre farm we are standing in. With this, I can get 30 bags of maize. But when we farm the normal way we used to farm, I may not be able to get even 10 bags. Because we use improved seeds and apply the right amount of fertilizer,” he explained. 

AGRA Ghana Country Manager, Juliette Lampoh-Agroh, said the demonstration fields are helping farmers deal with food insecurity challenges. “If they are going to cultivate even one (1) acre, they need to get optimal yield from the farm fields. And that is the essence of the demonstration field we have here. So, we have optimal use of inputs to get adequate yields, such that hopefully, we can avert the looming food crisis that is coming upon us. This is one of more than 17 demonstration farms that we have in the northern sector. And we look to expand the support we have for farmers through partners and the support of USAID,” she said.  

Lampoh-Agroh predicts the new U.S. $2.5 million investment by USAID will make a huge difference. “AGRA will be working with African Fertilizer and Agribusiness Partnership (AFAP) and YARA to ensure scarce fertilizer reach at least 100,000 smallholder farmers. AGRA’s role is to ensure we have the systems on the ground so the fertilizer can reach the required smallholder farmers. We will also ensure they are using the right seeds and using the right agronomic practices,” she said. 

Nana-Aisha Mohammed, Ghana Country Manager of the African Fertilizer and Agribusiness Partnership (AFAP) noted private sector participation is key in resolving the fertilizer crisis. “At AFAP, our main role is to work with the private sector to intervene. At the beginning of the crisis, we started engaging with the private sector to introduce new alternative fertilizers… We are also looking at how farmers can more efficiently use fertilizers by promoting new varieties of inputs and seeds that can generally require less fertilizer usage,” Mohammed said. 

The partners say they are ready to do more to support the smallholder farmers once they get adequate funding.