Opening Remarks By

Ms. Doojduan Sasanavin Inspector General

Ministry of Agriculture and Cooperatives

12th Annual Meeting of the Working Group on Agriculture (WGA-12) Sheraton Orchid Hotel

Bangkok, Thailand 25-26 June 2015

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Distinguished Delegates, Ladies and Gentlemen, On behalf of the Ministry of Agriculture and Cooperatives, I wish to extend a very warm welcome to all the delegates attending the 12th Annual Meeting of the Working Group on Agriculture. I hope that the atmosphere of Bangkok will energize you toward a free-flowing discussion and exchange of views on this important subject –for which we have gathered here today –- climate-friendly agriculture. As we all greatly appreciate, agriculture is vital to our developing economies, and is the life-blood of our farmers. At the same time, it is vulnerable to many stressors, including decreased rainfall; and increased frequency of extreme weather events, such as drought, wildfire and reduced water availability. For these and similar reasons, farmers will need to better adapt to the changing conditions in agriculture. For instance, they might plant new crop varieties that offer disease-tolerance, pest resistance, and general improvements in crop yield and quality. Advanced technologies and management methods can also play imperative roles in helping increase irrigation efficiency and reduce problems of soil degradation. Tillage practices that incorporate crop residues in the soils might likewise help improve soil quality. We might look at rain-making to help address drought conditions. These approaches, among others, can help our agriculture sector cope with the pressures confronting it. With agriculture production significantly stressed, ensuring food security is one of the greatest challenges facing the world community. In order to bring food closer to the consumers, a more comprehensive local food system based on sustainable regional agriculture should be built. This should foster robust local economies and ensure that all citizens have access to healthy, affordable and culturally appropriate food. Such systems will require investments in human resources and skills training in a range of new approaches, including organic agriculture, as part of a broader sustainable development strategy. With today’s meeting theme, “Achievements and Contributions of Regional Approaches to Sustainable Climate Friendly Agriculture (CFA) in the GMS”, we are all invited to arrive at these strategies together and ensure food security in our GMS countries, while simultaneously tackling one of the key problems brought on by climate change. Distinguished delegates, Ladies and Gentlemen, The answer to “How we might fulfill GMS’ potential as the leading producer of safe food globally, using climate-friendly agricultural practices” might surface in the next

two days. This meeting offers us an excellent opportunity to review pending issues, update ourselves on progress, and identify priority areas for cooperation on climate friendly agriculture. In these two days, we have this venue to exchange views on how to push forward with implementation and jointly explore new areas of possible cooperation, beyond our routine deliberations.

I would also like to reiterate that all our efforts at strengthening regional cooperation at the GMS level in terms of increasing bilateral and multilateral cooperation, cross-border and intra-GMS agricultural trade is very crucial in realizing ASEAN Economic Community integration. The process might be long and arduous at times—but it is a worthwhile endeavor since improvements in GMS agricultural production and trade are expected to lead to inclusive growth, greater cross-border investments, trading activities, cross-border production, improved technology and labor mobility, as well as agro-processing and marketing tie-ups that relieve supply constraints. The trade expansion is also expected to enhance linkages of agribusiness companies with global supply chains and networks.

The task before us at the 12th Annual Meeting of the Working Group on Agriculture to strengthen the regional cooperation is very important and challenging, but I am confident that we will make the most fruitful and prolific outcomes from this meeting. In conclusion, as the host country, I would just like to say that it is indeed a pleasure for Thailand to be hosting this important meeting. Thank you for your attention.

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The 12th Annual Meeting of the Working Group on Agriculture (WGA-12)

Theme: Sustainable Climate Friendly Agriculture (CFA) in the GMS

Venue: Sheraton Orchid Hotel, Bangkok, Thailand

Dates: 25-26 June 2015

Yasushi Negishi ADB Thailand Resident Mission

Country Director Excellencies, Distinguished Guests Ladies and Gentlemen, On behalf of the Working Group on Agriculture under the GMS Regional

Cooperation Framework, I welcome you to the 12th WGA Annual Meeting.

I would especially like to thank the Government of Thailand for hosting this

meeting providing the opportunity for the GMS sector representatives to come

together within a dialogue that increasingly needs to shape the direction and

focus of the regional support program which ADB manages.

Within the wider context of ongoing globalization of economic development -

regional coordination systems provide GMS countries within ASEAN

significant opportunity to increase the economic dividends from our respective

national programs. The ASEAN economic community and the economic

coordination framework to remove barriers to intra-regional trade in goods and

services by December 2015 is an important milestone for the region. By

December of this year most barriers to trade and movement of services and

goods will be significantly reduced. Through the harmonization of quality and

standards, assurances of food safety, and standardization of trade

certification, ASEAN agricultural products are expected to be ready to

compete in the global market by offering safe, healthy and quality foods. It is

beholding on us to ensure that the benefits of such opening of borders and

markets supports the needs of each country.

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In December 2015, AEC becomes an operative bidirectional agreement in

terms of access to consumers without guarantees that producers simply

benefit by default. Without understanding and supporting increased

competiveness in our production sector, the benefits of regional integration

will simply flow to consumers through access to cheaper goods and services

from within ASEAN. For agriculture, a factor for success will depend on how

each country can assess and build their ability to compete within the wider

regional markets and beyond. The key success factors of such agriculture-

sector transformation at the national level will include setting the right direction

through effective strategy and investment models, and scaling the

transformation through finance, infrastructure, institutions and monitoring.

Allow me to now share a few thoughts on the GMS Core Agriculture Support

Program and take the opportunity to commend the GMS countries for the

progress made thus far.

ADB designed Core Agriculture Support Program – what you refer to as

CASP - as a policy influencing technical assistance. Through the GMS

Core Agricultural Program Phase 2 (CASP 2), ADB strives to support the

GMS countries vision for the “GMS to be recognized as the leading producer

of safe food, using climate-friendly agricultural practices and integrated into global markets.”

CASP has made moderate, but noteworthy progress in a few areas. The

program has taken some strides towards strengthening private sector

linkages in providing market access for safe products in line with food safety

requirements that comply with government and international standards.

There has also been some headway in signing Memorandum of

Understandings (MOUs) with selected private firms, who are expected to

contribute towards boosting investments and trade in safe and climate friendly

agriculture in the subregion. Various events have been successfully

organized in 2014 to build capacity, raise awareness, establish networks, and

influence policymakers in the GMS to promote the production of safe food.

These include trainings and workshops on the preparation for farm

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certification and inspection, bio-fertilizer and soil management for enhanced

carbon sequestration, among others. The Participatory Guarantee System

(PGS) pilot project, a pro-poor community-based certification system for food

safety, improved income generation, and livelihood diversification is another

important CASP 2 initiative to enhance pro-poor market access by linking

smallholder farmers to larger markets.

Ladies and Gentlemen, the GMS is well positioned geographically and

economically to exploit the benefits of regional and global trade. However, it is

imperative that CASP 2 direct its resources to support policy and institutional

arrangements that build conditions to achieve competitive advantage. The

nature and context of agriculture and rural communities continues to change

rapidly. Rural economies face major challenges that range from poverty, low

labor productivity requiring a wider search for work and wages, new

technologies and biotechnologies, through non-farm rural economic

development, food-safety, food-security and trade. To address

competitiveness, we all need to consider our policies in these and other

requirements such as the increasing role and need for the private sector and

rural services.

Sector policies will need to focus on introducing the conditions required for

achieving competitiveness. Without this, some of your producers may be

crowded out of regional and even domestic markets. Without substantial

understanding of protecting and building such advantage, it is unlikely that

producers will improve their economic wellbeing. As such, if CASP 2 does not

deliver such competitiveness into the mainstream of agriculture in each

country the proportion of climate friendly production is unlikely to increase. I

am hoping the WGA is increasingly able to demonstrate how this is being

achieved.

Many of our current smallholders will not personally be active in production in

the next decade, they will move their resources into the nonfarm rural

economy, they may sell or lease land to increasingly large land managers and

owners or they may simply migrate to urban areas. These people need

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support that may differ from traditional agricultural program support such as

vocational training, business skills and rural financial services. A key question

for ADB is how best to ensure that those smallholders without the resources

to compete over the next decade are considered in our policy and programs.

We at ADB look forward to seeing how CASP 2 can be more effective in

delivering support to influence policy, building institutional strengthening and

improved capability to each country agriculture program. CASP 2 needs to

look into opportunities for closely aligning its activities with ADB and country

priorities in the agriculture and natural resources sectors to ensure it reflects

the changing institutional and policy settings. Ultimately, the success of CASP

2 will lie in ensuring that a significant proportion of agriculture output in the

subregion is produced in a climate friendly manner that provides wellbeing for

its producers.

Ladies and Gentlemen,

I would like to conclude by thanking the GMS countries and our donor

partners for their continued confidence in ADB. I wish you well and look

forward to closely working with you towards achieving our common goal of

“competitively producing safe food that is also safe for the environment.”

GMS Working Group on Agriculture

Implementing the Core Agriculture Support Program (CASP) Phase II

Key Achievements & Next Steps

25 June 2015

By 2017Enhanced market access for climate-friendly agricultural products,

particularly certified products using reduced agrochemicals

Pillar 3:Bioenergy &

BiomassManagement

Pillar 1:Food Safety

Trade Modernization

Pillar 2:Climate Friendly

Agriculture

VisionThe Greater Mekong Subregion (GMS) is recognized as the leading producer of safe food, using climate-friendly agricultural practices and integrated into global markets

through regional economic corridors.

Pillar 3:Bioenergy &

BiomassManagement

Pillar 1:Food Safety

Trade Modernization

Pillar 2:Climate Friendly

Agriculture

RETA 8163: Implementing the GMS Core Agriculture

Support Program (2)

RETA 7833: Capacity Building for the Efficient Utilization of Biomass for

Bioenergy and Food Security in the GMS

RETA 6521: Accelerating the Implementation of the Core Agriculture Support

Program

RETA 6390: TransboundaryAnimal Disease Control for Poverty Reduction in the

GMS

99 99

9 99

999

9 99

8

8

8

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Highlight of Achievements

Program Management

• NSSU established in all GMS countries• Enhanced government ownership and

leadership role through an adoption of Letter of Agreement (LOA) mechanism

Program Management

• Increased collaboration with private sector, Civil Society Organizations, development partners and other GMS working groups

Pillar 1:Food Safety – Quality Management

Capacity of small farmers and suppliers of CFA products built to access markets• Participatory Guarantee System (PGS)

workshops held in all 6 GMS countries

Pillar 1:Food Safety – Quality Management

• Pilot sites selected and developed in THA and VIE

• E-traceability for quality assurance under consideration

Pillar 1:Food Safety – Trade Modernization

• Consultations with PRC to expand AINS as GMS e-trade platform initiated

• Collaboration with UNESCAP and other players on e-trade system development initiated

• Participation of 16 firms, NGOs, farmer groups in trade fairs facilitated

• Demonstration farms identified in all countries for establishment through LOAs

• 7 MOUs signed with private sector to promote market linkages in CAM, PRC, MYA, THA, VIE

• Early Warning System (S-DMEWS) developed

• Soil suitability mapping for biochar and nitrogen management ongoing

Pillar 2:Climate Friendly Agriculture (CFA) [1/3]

Pillar 2:Climate Friendly Agriculture (CFA) [2/3]

• Awareness raising and knowledge events conducted reaching over 1,200 persons (40% women)

• 27 knowledge products produced

Pillar 2:Climate Friendly Agriculture (CFA) [3/3]

• Online presence (i.e., GMS-WGA website, Facebook, YouTube) established

• Centers of Excellence identified in CAM, THA, VIE

• Pilot projects to test scaled-up financing modalities completed with lessons extracted for future investment projects

• Eight pre-feasibility studies on innovative investment models conducted and disseminated online

• 20 workshops and training events organized

• 15 knowledge products produced (incl. 12 bio-briefs and 3 videos)

Pillar 3:Bioenergy / Biomass Management

Cross-cutting Policy & Regional Cooperation Initiatives

• Policy initiatives and directives – to be discussed

• Annual and Semi-annual Meetings successfully conducted

• Regional cooperation enhanced• 1 MOU signed with DP and three more are

under development: (GIZ, FAO, Oxfam)• Collaboration increased with CEP, Human

Resource PPP, GMS Business Forum, DPs

Areas of Improvementfor Implementation

(i) Further highlight government leadership in effective implementation of program activities (e.g. farmer training, e-trade, demo farm on green water management)

Areas of Improvementfor Implementation

(ii) Enhance coordination through better understanding of government protocols

Areas of Improvementfor Implementation

(iii) Ensure sustainability by further aligning GMS government and ADB priorities, plans, and current initiatives

Priorities for 20151. Implementing activities under

the LOA2. Implementing of

demonstration and pilot farms under Pillar 2

3. Promoting adoption of CFA through Training of Trainers and Farmer Leaders

4. Scaling up of PGS5. Facilitating market linkages

for farmers through MOU

2015 Key Upcoming Events

WGA Key Upcoming Events

Date Event LocationJuly or August 2015 2nd Knowledge Exchange Series -

BiocharPhnom Penh, Cambodia

September 2015 Mid Term Review GMS countries

September 2015 AINS Consultative Meeting PRC

Sept – October 2015 WGA Semi-annual Meeting Thailand

November 2015 3rd Knowledge Exchange Series - System of Rice Intensification (SRI)

Viet Nam

Thank you very much