Asian Development Bank

Agriculture and Natural

Resources Sector

Lourdes Adriano
ladriano@adb.org
2 March 2011
Rising and Volatile Food Prices

Extreme Weather Events, June – December 2010

Weather Event (Most) Affected Area
Severe winter / snow fall  Europe (Western)
 US
Drought and wildfires  PRC (Shandong)
 Russia (mainly west)
 US (California, Texas, Alabama)
Cyclone, flooding,  Australia (Queensland)
inundation  Pakistan
 PRC
 Malaysia, Myanmar, Philippines, Thailand
 USA (Arkansas)
Asian Food Prices: Moderate Increases & Vary Across
Countries
% Wheat Price Change (June 2010- Jan 2011) % Rice Price Change (June 2010- Jan 2011)

(June 2010
Current Trends on Food Security Policies in Asia:
more on food self-sufficiency & less on export bans

• General trends: (i) increase in stockpiling, (ii) more consumer &

producer subsidies, (iii) safety nets, (iv) less reliance on export
bans

• Food insecure countries (conflict, food import dependent,

and losses due to natural calamities) requiring external
assistance (FAO): Afghanistan, Pakistan, Mongolia, Kyrgyz

• Major big food importers and need to watch: Indonesia and

Bangladesh

• Countries with unfavorable prospects for current production:

Cambodia, Lao, and Pakistan
Food Security in Asia: Two Challenges

Price volatility
(macroeconomic &
poverty impacts)

Food supply system vulnerability

• Low productivity
• Weak & fragmented market links
• Stressed water & land

Short term Medium term Long term

 6
ADB’s Operational Plan for
Sustainable Food Security in Asia
and the Pacific
• Achieving Asia’s sustainable food security is
an underlying element for the strategic
agenda of Strategy 2020
• Multi-sector Three binding constraints
Declining

• Partnerships land and water

resources;
stagnating crop
yields
Productivity

Sustainable
Food
Lack of access to Security Climate change
markets, services, impacts; price
resources, and fluctuations
nonfarm income
Connectivity Resilience
ADB’s Works Since 2008
• Operational Plan for Sustainable Food Security in Asia and
the Pacific (multi-sector approach in improving productivity,
connectivity, and resilience)
• Lending
o Emergency: $700 M to BAN, CAM, MON, & PAK in 2008
o Multi-sector investments: $4 B in 2009-2010
• Regional Cooperation
o Support for ASEAN +3 integrated food security framework
(market information, regional trade, regional
stockpile system)
o GMS, SAARC
o ADB-FAO-IFAD Investment Forum for Food Security
(July 2010)
• Research Support & Knowledge Works
o IFPRI, IRRI, Others ($8.325 million)
 8
2009-2010 Food Security
Investments
in US$ million (%)

Agriculture &
Others, 714.30 Natural
Water & Other (17%) Resources,
Municipal 784.30 (19%)
Infrastructure &
Services, 316.70
(7%) Irrigation and Water-
based natural
resources
management, 571.70
(14%)

Transport and ICT,

1,775.06 (43%)
 9
Sectoral distribution of
Loans in 2010
Agriculture & Natural Resources
Water & Other Municipal 6%
Infrastructure & Services Education
5% 1%

Energy
18%

Transport and ICT

36%
Finance
8%

Health and Social Protection

2%

Mutisector
Public Sector Management
15%
9%
 10
Sectoral distribution of
Grants in 2010
Agriculture & Natural Resources
Water & Other Municipal 12%
Infrastructure & Services
2%
Education
2%

Transport and ICT Energy

45% 21%

Finance
2%
Health and Social Protection
4%
Industry and Trade
0%

Public Sector Management Mutisector

4% 8%
 11
Sectoral distribution of
TAs in 2010
Water & Other Municipal
Infrastructure & Services
6%
Agriculture & Natural Resources
14%
Transport and ICT
8%

Public Sector Management Education

13% 18%

Mutisector
20%
Finance Energy
6% 12%

Industry and Trade

2% Health and Social Protection
1%
Opportunities for Food Security
Investments
 Monitor food market situation in countries -
policy advice & need for social safety net
assistance
 Continue strategic studies (food-energy-
water nexus; risk management approaches)

 Investment financing for food security

infrastructure & water/energy efficiency

 Cross-sector support for innovative public-

private partnerships
 13

For More Information

• ADB Web site: www.adb.org

• Food Security Website:

http://www.adb.org/Food-Security/default.asp

• ADB’s business opportunity site:

www.adb.org/Business/Opportunities/prpprjcs.asp