Ms. Mayling Hortensia Fernanda Jos Flores Rojas

Agricultural Mechanization Systems Officer

The Food and Agriculture Organization

The United Nations The 6th Regional Forum

for Sustainable Agricultural Mechanization in Asia and the Pacific

- Enabling Environment for the Private Sector

25 October 2018, Wuhan, China

The 6th Regional Forum for Sustainable Agricultural Mechanization in Asia and the Pacific

- Enabling Environment for the Private Sector

25 October 2018, Wuhan, China

Presented by

Mayling Flores Rojas

Agricultural Mechanization Systems Officer

FAO Head Quarters

Enabling Environment for the

Private Sector

for Sustainable Agricultural Mechanization across agri-food chains

Content

Regional context

Players in the private sector

Enabling Environment: basics

Enabling Environment for the private sector: Why is it important?

Enabling Environment, some options and actions for the public sector

3

What is the Regional context?

Influencing Sustainable Agricultural Mechanization across agri-goof chains

Growing urbanization

Rural-Urban migration

Increased per-capita income

Impacts of Climate Change impacts

Ageing and Feminization of agriculture

Changing on consumers‘ preferences:

Sustainable Agricultural Mechanization has a Key role to play

Lack of labour in rural communities

Increased labour cost

Increased women’s work burden

Pressure on Natural resources

4

What are the players in private sector?

For Sustainable Agricultural Mechanization Development

Source: Adapted from: T. Breuer, K. Brenneis and D. Fortenbacher. 2015. Mechanisation – a catalyst for rural development in

sub-Saharan Africa. Rural 21,2: 16-19. http://www.rural21.com/uploads/media/rural2015_02-S16-19.pdf.

Input suppliers: Importers, retail shops,

distributers

Manufacturers:

Blacksmiths

National, international

Support Services: Repair shops, free-lance

technicians

Mechanization service

providers: Farmers, operators, SMEs (processors, aggregators,

transporters)

5

What does the Enabling Environment

consist of?

Natural elements:

Societal elements:

When EE is created actors in the agri-food chains have the right conditions/incentives to:

Invest

Innovate

Access productive resources

Source: Neven, D. 2014. Developing Sustainable

Food Value Chains: Guiding Principles. FAO

Rome. (also available at http://www.fao.org/3/a-

i3953e.pdf).

6

Why is it important?

To Enable Environment for the private sector for SAM

It allows to:

increase efficiency on the use of natural resources and inputs

develop/enhance agri-food chains

create jobs in the rural and urban communities (youth)

establish food processing/value addition centers and cold storage

promote information and communications technology (ICT)

reduce costs of the operations, enhance efficiencies

promote social inclusion

For inclusion Vulnerable groups must be taken into account

7

Enabling Environment (1/4)

Public sector options, examples and actions in support of EE:

Policies and Regulations:

Secure title deeds for the land of farmers

Harmonize policies and regulations to attract investment in SAM

Support the operation and management of mechanization supply chains

Create poverty-reduction policies and risk-sharing schemes

Reduce/remove import and sales taxes on mechanization

8

Enabling Environment (cont 2/4)

Public sector options, examples and actions in support of the EE:

Testing and Standards:

Develop and operationalize testing and standards

Harmonize regional protocols;

The Asia Network for Testing Agricultural Machinery (ANTAM) important role to play.

Research, capacity building and technical support services:

Provide assistance to Higher education and training institutions

Improve the coordination of the different Government research and development departments

Build technical capacity of vulnerable groups, manufactures, distributers

Provide technical assistance and business advisory services

Enhance innovation in SAM

9

Enabling Environment (cont 3/4)

Public sector options, examples and actions in support of EE:

Financing

Development of public-private partnerships (PPP)

Government-owned agricultural banks channel subsidized loans to farmers

Finance training, licensing of machine operators, research and development

Make credits available for smallholder farmers and SMEs in support of SAM

Investment

Roads, ports, electricity systems

10

For promotion of Conservation Agriculture (CA) – with a clear exit strategy

Key principles

Conservation

Agriculture

Minimum soil disturbance

Soil cover

Crop diversification

Enabling Environment (cont 4/4)

Public sector options, examples and actions in support of EE:

Advocacy and promotion of knowledge sharing

Organize campaigns, public speaking, commissioning and publishing of

research findings

Enhance information dissemination on mechanization technologies

Sources (slide 7-4): FAO. A regional strategy for sustainable agricultural mechanization:

Sustainable Mechanization across agri-food chains in Asia and the Pacific Region.

Bangkok. 72 pp. (also available at http://www.fao.org/3/a-i4270e.pdf).

FAO and African Union. 2018. Sustainable Agricultural Mechanization A Framework For

Africa. Rome. 127 pp. (also available at

http://www.fao.org/3/CA1136EN/ca1136en.pdf).

11

Thanks 12

Mayling Flores Rojas

Agricultural Mechanization Systems Officer

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Plant Production and Protection Division

Food and Agriculture Organization of the United Nations (FAO)

Viale delle Terme di Caracalla, 00153 Rome, Italy

http://www.fao.org

Available at: http://www.fao.org/3/i9207en/I9207EN.pdf