Market Access for SE/East Asian Farmers · Market Access for SE/East Asian Farmers the need to regulate agricultural markets: ... food security measures for small scale farmers land

Market Access for SE/East Asian Farmers

the need to regulate agricultural markets:analysis and proposals

in view of the recent food price crisisMay 4-5, 2009

Brussels,Belgium

by:Asian Farmers’ Association(AFA)

Outline of presentation

Brief on AFAIssues on marketing Initiatives of AFA members on marketingRegional Trade Agenda

QuickTime™ and aBMP decompressor

are needed to see this picture.





AFA peasant agenda: to promote

SA practices and policiesfair and just treatment of farmers food security measures for small scale farmersland /resource rights, farmer rights, farmer-farmer market exchangesAlternatives to economic globalization Agriculture towards the young Strengthen FOs at national and regional level

Major activities on marketing2006: farmers’ exchange visit cum workshop on marketing and trading -held in Japan-result: concept paper on pro small farmer marketing and trading

2007: research on initiatives on pro small farmer trade ( 4 national cases, 1 regional case)

2008: research on national and regional trade situation in 5 countries

2008: linking small farmers to market project

Common issues among farmers in 5 ASEAN countries

Poor investment in agriculture, especially for important rural physical infrastructure and economic services ; projects marred w/corruption

Lack or inadequate post harvest processing technologies and facilities

Lack or inadequate information about market systems and pricing, esp for SA products

Presence of multi-layered, unscrupulous middlepersons

Common issues among 5 ASEAN countries

Farmers poorly organized, inadequate capacities

Lack /inadequate farmers’ participation in agri policy making

Unbridled “free trade” rules leading to domination of big business and TNCs, dumping

Lack of competitiveness under globalization

Increased pressure to use non-SA to meet quantity requirements

AFA Members’ InitiativesTaiwan Waxapple Devt Association-shifted from rice farming after WTO-production and marketing teams at village level- strong tie up with University for research and extension -tie up with govt for export activities

-tasks of TWADA:---collect waxappple industry info at domestic/intl level---promote production techniques through seminars ---assist in waxapple classification ratings, sale, demonstration, promotion and publicity activities (e.g. wax apple fairs)

AFA Members’ Initiatives

Taiwan Dairy Farmers-bridge b/w govt and dairy product manufacturers-sits in milk price appraisal committee; nego for milk prices-leisure farms focused on dairy

Japan (Ainokai)-direct farmer-consumer relationships ( Ms. Simoo story)

- cooperative distribution outlets in residential towns- organic certification system with government-owns agricultural high school-focus on local , not foreign, markets

Korea (KAFF)-Best Crops Exhibition every year-agricultural cooperatives in many towns

AFA members’ initiatives

Indonesia (API)-capacity building (value chain, quality control)focused on organic rice, cashew-act as market linkage : give info to farmers where is the market -partnership with VECO Indonesia -advocacy for agrarian reform -diversified sources of food ( East Nusa Tenggara story)

Philippines (PAKISAMA)-Agrarian Reform Community as main organizing strategy: the story of Pecuaria Development Cooperative- advocacy for agrarian reform -production and marketing survey-commodity clustering : rice, coconut , sugar

AFA Members’ Initiatives

Thailand (SKP)-access of training from govt on product quality-negotiations for price support

Cambodia (FNN)-producers’ network for organic rice, vegetables, ecological chicken - tie up with NGO CEDAC as market mediator ( with own organic resto and outlet)-- AsiaDHRRA assistance to CEDAC ( for chicken marketing)

Vietnam (VNFU)-organic tea marketing project with AsiaDHRRA

Marketing strategies

Setting up company owned by consumers and/or producers ( social enterprises, marketing coops)

Fair trade

Direct marketing arrangements

Identification of market intermediaries ( NGO)

Requirements for pro-small farmer

marketing: investments in

Access to productive resources:land, water, seedsGood physical infrastructureAdequate support services Organizing farmers along crop linesCapacity buildingAdequate Space for farmers participationMeet domestic needs firstStrong links with consumers

Regional Trade Agenda

Trade agreements

- restrictions on importation of goods important to small farmers

- capability of government to protect farmers in times of import surges or price declines

- Removal of unfair subsidies of partners

Because of global crisis call on ASEAN to freeze trade liberalization concessions


Development of ASEAN-based Sanitary and Phytosanitary Systems

- developing scientific capability to challenge Western based standards

- Imposition of ASEAN based standards- Strategy to push for offensive and defensive trade

interest


Assessment of AFTA-CEPT and other trade arrangements

- assess to cover both direct and indirect impacts of trade and investment liberalization

- Farmers and other stakeholders must be involved in the assessment process

- Results of assessment to serve as input to alternative sustainability impact assessment

- Assessment results to be used as basis in defining position and agenda in future trade agreements


Creation of ASEAN Agricultural Producers’ Advisory Council

- Creation of Terms of ��Reference of the Council, and location in ASEAN structure

- National process to identify representatives of each member

- Process should be transparent and democratic


Creation of ASEAN Rice Reserve - Set of rules and regulations to govern

trade of the staple grain among ASEAN members;

- Based on principles of fostering national food self-sufficiency as the foundation of regional food self-sufficiency

Possible agenda in view of the global crisis

Freeze ASEAN liberalization

What next?

Identifying champions for each agenda, (within and outside AFA, maybe the RD Working Group?); Each champion to develop very specific and detailed proposal for each agenda;Popularization of agenda among agricultural groups across the region (primers and discussions)National and regional advocacy for governments and ASEAN to adopt agenda

What next?

Targets of advocacyNational agencies - Ministries of Agriculture Regional agricultural bodies - ASEAN Ministers

on Agriculture and Food (AMAF)Possible regional venues for advocacy:

Special SOM in Hanoi AMAF in Brunei

Thank you for your attention

Agriculture in ASEAN

C a m b o d i a I n d o n e s i a Ph i l i p p i n e s Th a i l a n d V i e t N a m

S ha r

e of a

g ri t

o GD P

, 20 0

4

32.9

15.6 15.2

10.1

21.8

0

5

10

15

20

25

30

35

( i n p

e rc e

n t)

Share of agriculture to GDP, 2004

Source: ASEAN Database

Indonesia has the biggest agricultural area, followed by Thailand and the Philippines.

Source: ASEAN Database

0.01

5.3

44.8

1.8

7.8

10.9

12.2

0.002

20.1

9.5

0 10 20 30 40 50(in million hectares)

Brunei Darussalam

Cambodia

Indonesia

Lao PDR

Malaysia

Myanmar

The Philippines

Singapore

Thailand

Viet Nam

Total agricultural lands in ASEAN countries, 2007

Agriculture is an important source ofincome and livelihood in many ASEAN countries

69

81

46

53

3738

53

68 6674

0102030405060708090

(in p

erce

nt)

Cambodia Indonesia Philippines Thailand Viet Nam

Share of agriculture to employment and total population

Share of agri labor to total labor force Share of rural population to total population

Source: FAOSTAT

ASEAN is a mix of net agricultural exporters and importers

55 162

9,401

5,181

2,0513,132

11,926

3,8303,312

1,968

0

2,000

4,000

6,000

8,000

10,000

12,000

(in U

S $

Milli

on)


Agricultural Import and Export of Selected ASEAN Countries, 2004

Exports Imports

ASEAN’s Top Agricultural Exports

8414

7292

27042272

1297 1117 960397

379 338

0

1000

2000

3000

4000

5000

6000

7000

8000

9000(in

U $

Mill

ion)

P a lm O i l

C r ud e

R u bb e r

R i ce

F i s he r y

P r od u c

t sS u g

a r an d

H o ne y

T o ba c c

oC o c

o n ut O

i l F e r

t i l i ze r s

I n se c t

i c i de s

e t c.

B a na n a

ASEAN Export of Selected Agricultural Products, 2004

Source: ASEAN Statistical Pocketbook 2006

ASEAN’s Top Markets for Agricultural Products

ASEAN Major Markets for Agricultural Products, 2004

Others 24%

South Korea 2%

Pakistan2%

ASEAN

Japan14%

European Union 10%

China9%USA

8%

Other European Countries

4%India5%

Australia2%

Source: ASEAN Statistical Pocketbook

Share of agricultural exports to total exports is generally small for many ASEAN countries

2,55555

71,261

9,401

39,700

2,051

96,064

11,926

20,176

3,312

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

(in U

S $

Milli

on)


Share of agricultural Exports to Total Exports, 2004

Total exports Agricultural Exports


ASEAN’s Top Sources of Agricultural Imports

ASEAN Major Sources of Agricultural Imports, 2004

ASEAN30%

New Zealand 4%

Australia 11%

European Union USA

9%

China 8%

India 5%

Argentina

Others 16%

Other European Countries

Brazil2%


Two phases of ASEAN Trade Policy1st Phase : Promotion of intra-ASEAN

trade; economic integration; creation of a common market

2nd Phase: Promotion of extra- ASEAN trade; establishing its role in the global supply chain; promotion of FTAs with major trade partners

Asean is entering into many new FTA’s, and is also facilitating the forging of bilateral trade agreements of members and major trade partners

ASEAN-CEPTASEAN trade arrangements with China, South Korea, India, Australia and New Zealand and the European UnionJapan Partnership Agreements

Schedule of phasing in of sensitive products in AFTA-CEPT

Country

Completion of phasing in of products in the

sensitive list ASEAN 6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand)

January 1 2010

Vietnam January 1, 2013 Lao PDR and Myanmar January 1, 2015 Cambodia January 1, 2017

ASEAN Economic Blueprint: Vision for ASEAN

Single market and production baseHighly competitive economic regionRegion of equitable economic developmentA region fully integrated in the world economy

Strategies to achieve ASEAN economic vision

Free flow of goods - elimination of tariffs and NTBs; rules of origin, trade facilitation, etc. Free flow of services Free flow of investmentsFree flow of capitalFree flow of skilled labor Focus on 12 priority integration sectorsIncreased cooperation in food, agriculture and forestry

ASEAN Trade Agenda1. For ASEAN to have a common agricultural policy

with common agricultural development fund- fund to come from members and from donor

organizations- can use the money to fund support for sustainable

farming technologies, important support services, and capability building

- Shld help farmers become competitive in national and international market

- Shld be for developing countries, esp CLMV countries within ASEAN

Documents

Market Access for SE/East Asian Farmers · Market Access for SE/East Asian Farmers the need to regulate agricultural markets: ... food security measures for small scale farmers land