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Tuesday, December 11, 2012

Asia's Future Food Security Hinges On Modernisation Of Farm To Market Chains: ADB Study


By Tengku Noor Shamsiah Tengku Abdullah

SINGAPORE, Dec 10 (Bernama) -- Asia's ability to keep food prices in check and ensure long-term regional food security will require the region's farms to market supply chains to become more efficient and cost-effective, says an Asian Development Bank (ADB) study.

In a statement Monday, ADB said the study, "The Quiet Revolution in Staple Food Value Chains: Enter the Dragon, the Elephant and the Tiger," analysed domestic rice and potato supply chains in Bangladesh, India and China.

"The study, produced by ADB and the International Food Policy Research Institute (IFPRI) in response to the 2008 spike in food prices, found that the rapid modernisation of staple food chains in Asia has allowed farmers to increase control over what they produce and to whom they sell," it said.

ADB said the study found out that the transformation has been particularly dramatic in China, with modern rice mills increasingly buying direct from farmers, cutting out middlemen.

"In India, the study said the spread of modern cool storage facilities has given consumers year-round access to potatoes and delivered substantial price advantages to farmers.

"More isolated rural areas have seen an increase in jobs and incomes from new links with commercial urban centres, and better infrastructure, technologies and policies," it said.

The study said at present the benefits were not always shared equally, however, with large- and medium-sized farmers typically getting the lion's share of subsidies and marginal farmers largely missed out.

It said there was no "silver bullet" to address the challenges facing staples value changes, meaning a variety of policy and programme measures will be required to stimulate the efficiency of staples markets.

"Given Asia's widely different zones, no 'one size fits all' approach will work, requiring tailored solutions," it said.

ADB vice president for knowledge management and sustainable development, Bindu Lohani, said Asia faced a formidable challenge of feeding five billion people by 2030.

"Rising populations and incomes, resource degradation and climate change will keep putting upward pressure on food prices, requiring vast improvements to ensure adequate and affordable food supplies," he said.

One of the authors of the study and senior research fellow at IFPRI, Bart Minten, said the changes in food demand, driven by urbanisation and increasing incomes of consumers, were creating important opportunities for agricultural development and rural poverty reduction in Asia.

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