improving food security in sub-saharan africa by reducing food losses and improving agri-food chain...

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IMPROVING FOOD SECURITY IN SUB-SAHARAN AFRICA BY REDUCING FOOD LOSSES AND IMPROVING

AGRI-FOOD CHAIN EFFICIENCY

Global Initiative on Food Loss and Waste Reduction


1 Total quantitative food loss in SSA: 100 million MT/year

2 For grains alone, the value of losses USD 4 billion/per year

3 This can meet the annual caloric requirements of at least 48 million people

4 It exceeds the value of grain imports for Africa and exceeds the value of

total food aid received in SSA over the past decade.

The magnitude of the problem


Strategies for reducing food losses are being adjusted

Rapid population growth: 2.1 billion by 2050, 25% of the world’s

population.

Rapid urbanization: SSA has the highest urban growth rate in the world

and the urban population is expected to triple by 2050.

Trends in consumption: increasing demand for processed and

convenience foods


Strategies for reducing food losses are being adjusted

Growing influence of private sector enterprises.

Demographic transition: the share of youth in Africa is the highest in the

world.

More than half of Africans are under 25

11 million will join the labour market every year


Population in Sub-Saharan Africa

0

100

200

300

400

500

600

700

1980 1990 2000 2010* 2020* 2030*

numb

er o

f pop

ulat

ion

(milli

ons)

Population in Sub-Saharan Africa

rural population

urban population

Source: FAOSTAT


Investment in the agricultural sector

Cumulative investments in Africa’s agricultural sector until 2050 are estimated

at USD 940 billion. 50% required in agribusiness and agro-industries

To be achieved through partnership with the private sector

Dialogue and linkages between governments and the private sector through

various agro-industry fora and multi-stakeholder platforms e.g. AGRF, EMRC


ITEM Sub-Saharan Africa

1. Primary Production (including irrigation &

mechanization) 496

2. Downstream Support Services (storage; markets &

first stage processing) 444

TOTAL 940

Source: Capital Requirements for Agriculture in Developing Countries to 2050, FAO, Rome, 2009

Cumulative Investments to 2050 in billion US$

Capital requirements to Overcome Hunger


Challenges in reducing food losses

Agriculture is still predominantly smallholder based. Lack of understanding of

‘Farming as a Business’

The agro-industries sector : large scale (multi-national), micro-scale (informal

household) and ‘missing middle’.

Limited access to processing equipment and PACKAGING MATERIALS.


Food Security through Commercialization of Agriculture (FSCA)

FAO/Government of Italy Cooperative Programme since 2007.

In Africa covers 14 countries.

Transform agriculture into a modern and competitive sector through:

• Increased market-oriented production/productivity

• Reduced post-harvest/food losses

• Enhanced value addition

• Promotion of food safety/quality standards

• Improved market efficiency


Food security through commercialization of agriculture

Some achievements of FSCA

• In East Africa, project supports about 47,000 people, grouped in 374 FOs/co-ops

• 30% have been upgraded into formal FOs/co-ops,

• Market transactions increased by 35% for targeted FOs and SMEs

• Income at household level increased by approximately 30%

• Cross border trade enhanced for selected commodities

• Access to credit enhanced (1 M USD in Burundi; USD 300,000 in Uganda)

FSCA is considered a flagship programme by the Italian Government and will be promoted

during the Italian Presidency of the EU


FAO FACILITATING ROLE: THE EXAMPLE OF THE DAIRY VALUE CHAIN IN UGANDA

Input Supply Centre

One of the dairy farms in Kisoro

supported by the project

FAO partnerships

Training in basic veterinary services

delivered by AFRISA to extension services

of NAADS

SOUTH SUDAN

BURUNDI

DR CONGO

UGANDA

RWANDA

Packed milk ready for sale

Financial institutions

providing credit (loans

and other services)

through Rubuguri

SACCO

Veterinary drugs and

insecticides Rudafa’s initiative

with support from FAO

Rubuguri Dairy Cooperative

(160 households)

Birunga Dairy Farm Industries

The milk collection

centre of Rubuguri

Dairy Cooperative,

Kisoro, equipped with

a milk cooler by FAO

A milk tanker provided

by FAO. Farmers

purchased a truck for

mounting the milk

tanker with 50 percent

contribution from FAO

The price of quality

milk amounts to 500

Ug Shs in the

community , from

200 Ug Shs before

the project

Presently, an average of

20 000 liters are delivered to

the Dairy Corporation each

month (out of which 6 000

liters to Birunga Dairy Farm

Industries)

END

MARKET

Constraints being addressed:

- Lack of a cooling unit at the Rubuguri Collection

Centre;

- Lack of milk tanker and truck for transportation of

the milk to the processing plant;

- Poor access to dairy farm inputs;

- Inadequate extension services to the dairy farmers;

- Inadequate animal husbandry and business skills;

- Poor access to finance services.


FSCA: facilitating the dairy value chain in Uganda

Quality check of milk delivered at the

collection centre of Rubuguri Dairy

Cooperative, Kisoro, Uganda


FSCA: Fruit processing in Guinea

Recycling bottles and jars in Guinea


FSCA: adding value to pineapple in Rwanda


FSCA: Food processing training centre in Senegal


FSCA: marketing processed food products in The Gambia


Main challenges for FSCA approach

1. Time required for VC and enterprise development often goes beyond project duration

2. Reluctance in changing the mind-set and shift from production/ productivity increase

3. Government staff turnover and different levels in implementation capacity at local level

4. Reluctance in understanding business management

5. Enabling environment for private sector development

6. Market development requires full engagement from all stakeholders

7. Difficulty in ensuring constant supply of raw materials in terms of quantity and quality


Recommendations for Interpack

There is huge potential and interest in African countries to develop their agro-food

industries and reduce food losses. Interpack is in a unique position to assist African

countries and African entrepreneurs to achieve this goal. What can Interpack do?

• Hold regular trade fairs in Africa to foster linkages with African companies and

entrepreneurs.

• Investigate the options for collaborative ventures/research to design appropriate

processing and packaging equipment for African agro-industries.


Thank you!

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