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July 30, 2008

Burkina Faso fears 'collapse' of its cotton industry after failure of WTO talks

Cotton growers in Burkina Faso will suffer from the failure of world powers to conclude a global trade pact, its trade minister said July 30, highlighting broad concern over the impact of the breakdown on the developing world.

"We can hardly control our anger," said Burkina Faso's Trade Minister Mamadou Sanou the morning after July 29th's dramatic collapse of ministerial talks at WTO headquarters.

He warned that his country's cotton industry -- which accounts for over half its export earnings -- faced "extinction."

"They wanted me to be here to negotiate on cotton. I have been here for 10 days and I haven't been able to discuss cotton," he told a news conference. "There is a risk that the whole system will collapse in our country."

The Doha Round, launched in the Qatari capital in 2001, aimed to help poor countries around the world by using trade to boost economic development. With the collapse of the negotiations, countries such as Burkina Faso now face an even longer wait for help for their farming industries.

"We are most disappointed that the rich countries, the champions of liberalisation who urge us to liberalise our trade and our economies... are afraid to trade with us on an equal footing," Sanou said.

Sanou is the coordinator for the C4 group of West African cotton-producers, which since 2003 has been fighting for the cotton issue to be included in the Doha Round.

The group -- Benin, Burkina Faso, Chad and Mali -- wants industrialised countries, particularly the United States, to lower domestic subsidies that African nations say depress world cotton prices at poorer countries' expense.

Some diplomats accused the United States of tactically avoiding the issue.

"The US cannot afford to give way on cotton, so it does not even want to go into the issue," one Asian diplomat said.

"It knows that India would not give ground on SSMs, in which case India would be blamed in case of any collapse."SSMs, or special safeguard mechanisms, are a measure to protect farmers in case of an import surge. India and the United States were unable to agree on the question, triggering the failure of negotiations here.

On July 28 China -- a major buyer of US cotton -- waded into the row, saying it had heard "absurd arguments" that the United States would cut its subsidies on cotton only if China and other developing countries cut their cotton tariffs.

Senior Chinese official Zhang Xiangchen said the United States was "not in a position to discuss" tariff cuts with developing members until it eliminated its own subsidies.

"The extremely high cotton subsidies by the US have caused serious damage to cotton farmers in developing countries, including those in Africa and 150 million ones in China," said Zhang.

At a news conference on July 29, US Trade Representative Susan Schwab said the US "remained committed to working" with the C4 group to address cotton concerns.

AFP


Low producer prices threaten maize farming in Zimbabwe

Low producer prices that Zimbabwe's state-controlled Grain Marketing Board is paying farmers has crippled the viability of maize production, posing a major threat to food security.

Farmers, reeling from the uneconomic price, have gone full throttle into the production of other money-spinning crops at the expense of maize, the country’s staple food, hampering efforts to replenish strategic grain reserves.

Zimbabwe Commercial Farmers Union president, Mr Wilson Nyabonda said the viability of maize production in the country was non-existent and would be difficult to maintain the food security status of the nation.

"It is of great importance to adequately reward farmers as this reduces the problems of side-marketing and food insecurity concerns," he said.

Mr Nyabonda said that currently with the interbank rate farmers were being paid less than US$2 per tonne and the money was not enough to let farmers continue with production.

"Last year in October Govern-ment announced an import parity price for maize and wheat which is currently US$400/tonne yet the current producer price is not in line with the standing policy of the import parity price. Government should honour that policy if maize production is to increase and we are still to receive communication that the policy has been reversed."

Paying farmers the import parity price would enable them to meet the increasing costs of production.

The strategic grain reserve needs at least 500 000 tonnes of grain. But with the prevailing producer price the GMB would find it difficult to replenish the reserves.

Selling maize to GMB presents advantages to farmers as they get bonuses and back pay, in addition to having a sales and production record that helps them access cheaper inputs timeously.

Mazowe Syndicate chairman and farmer, Mr Garikai Msika said farmers should be given an incentive, a price matching the regional price.

"We are not saying pay us the US$ equivalent but we want a competitive price. It is very difficult to set the cost of production per hectare because of the hyper-inflationary environment, it is unworkable, the costs will not be valid tomorrow," Mr Msika said.

The Herald

New research re-iterates benefits of no-till in retaining tropical soil nutrients

Tropical soils often behave differently than temperate soils when being farmed. In tropical regions, soils lose nutrients quickly when cultivated.

With food shortages looming and soil quality declining rapidly, new farming techniques are needed to make tropical and sub-tropical farming more productive and sustainable. New research from Agronomy Journal shows that no-till management combined with a winter cover crop is most effective in retaining nutrients in tropical soils.

An international team of scientists from Brazil, France, and the U.S. studied the impact of different cover crops, crop rotation, and tillage on soil organic carbon storage after 19 years of crop production on a tropical soil in southern Brazil.

The results, published in the July-August issue of Agronomy Journal, show that no-tillage management combined with crop rotations including winter cover crops with high amounts of crop residues returned annually to the soil, will most likely maintain soil organic carbon stocks, and most likely mimic natural forested condition for tropical and subtropical areas.

This crop management, if adopted by farmers in tropical and sub-tropical regions, can help to keep land productive and sustainable.

Scientist Bill Hargrove from Kansas State University said, “These results have broad implications for agricultural production in tropical areas in Africa, Asia, and Latin America. We can manage soils in ways that allow profitable crop production while mimicking natural vegetative conditions under which land is not degraded at accelerated rates.”

View the abstract at http://agron.scijournals.org/cgi/content/abstract/100/4/1013.

A peer-reviewed international journal of agriculture and natural resource sciences, Agronomy Journal is published six times a year by the American Society of Agronomy, with articles relating to original research in soil science, crop science, agroclimatology and agronomic modeling, production agriculture, and software.

Innovations Report


Project attempts to reduce role of middle men by assisting farmers to value-add

The Common Fund for Commodities plans to spend more than $100 million over five years helping farmers in the developing world to process their crops for added-value exports.

The money is aimed at millions of small-scale farmers in mainly Africa, South America and Asia who often have no choice but to sell their crops for a steal to middlemen, who have connections to outside markets.

"Food security in poor nations is not just about growing food, it's also about generating income so you can have access to health care and education which healthy workers need," said Ali Mchumo, managing director of the Common Fund for Commodities (CFC).

The idea is to shorten the supply chain by removing brokers, enabling poor agricultural producers to sell directly to retailers and supermarkets for a higher price.

One initiative will enable Tanzanian and Ugandan coffee farmers to supplement their income by growing fruits that are used as ingredients in locally manufactured juices.

In Mali, Burkina Faso and Tanzania, another project will build world-class laboratories to test the quality of cotton produced in Africa.

Already underway in Tanzania’s eastern Tanga region is the first-ever, large-scale factory to convert sisal residue to biofuel, which is generating about 150 MW of electricity a day.

Tanzania is the world’s second-largest producer of sisal, a plant used to make rope, yarn and carpets among other manufactured items, behind Brazil and tied with China.

"The best help we can ask is that we utilize more of the plant for products of high value. Then we'll be able to increase the value of the plant," Salum Shamte, owner of Katani Ltd. which is operating the biofuel factory. "In that manner, the returns for the farmer will be higher."

The global food scare this year has thrown a spotlight on the plight of 450 million smallholder farmers and 850 million starving or malnourished people in developing nations. Sharp increases in food prices due to higher demand for biofuels and from rapid growth in places like China and India has hit the poorest nations the hardest, said Guy Sneyers, the CFC's chief operations officer.

The World Bank has warned the doubling of prices for wheat and corn over the past few years could mean another 100 million people may face hunger or starvation. In the midst of this crisis, the focus of international donors has finally shifted to boosting agriculture, a sector that has been neglected for decades, Sneyers said.

Ideally, poor nations will focus both on growing their own food to reduce the threat of hunger, as well as tapping into international markets to get much-needed export revenues from agriculture, he said.

"Farmers need to sell something with value addition to earn money," said Sneyers. "Cassava is a food crop but you can also use it to make cassava chips, animal pellets or ethanol."

Producers in Tanzania agree they are being denied higher profits by selling unprocessed commodities.

Cashew farmers want to export roasted nuts, not just the raw variety, and higher-value products like butters and chutneys, said Peter Masawe coordinator for the Regional Cashew Improvement Network for Eastern and Southern Africa based in Tanzania’s southern city of Mtwara.

"What our industry needs now is to concentrate on the value chain. If we don't process there is no way the cashew industry will ever change here," he said.

The story is the same for Tanzania’s cotton growers, says Elizabeth Kimambo, who helps run the Common Fund for Commodities’ Dar es Salaam, Tanzania-based office.

"Most farmers want their own ginnery to sell the end product for better prices and to process other things like cottonseed oil," she said.

The commodity boom is a golden opportunity for farmers, especially of cash crops such as coffee and tobacco, to boost production and improve their livelihoods, said Caleb Dengu, a project manager with the Fund.

"What we need is, for example, coffee farmers to continue to focus on their crop and not try and shift to food crops. Some will be tempted because of the global food shortage," he said "They should concentrate on making money through coffee and then they can still be able afford to buy food."

IPS

Rising inputs prices hurt Swazi maize farmers

Swazi farmers are still failing to meet the maize quota required by the National Maize Corporation (NMC) to sustain local markets.

NMC Technical Manager Sipho Dlamini said farmers were currently able to produce about 8 000 tonnes of maize and yet the corporation needs over 40 000 tonnes of maize per year to sustain local markets. He observed that the current shortfall in maize production emanates from the ever increasing farm input prices, with both smallholder and commercial farmers being unable to bear the brunt.

“The sudden increase in farm input prices has really devastated our local farmers as they can no longer afford to produce maize in the manner they did before. The ever escalating farm input prices coupled with the ravaging drought have proven to be major challenges for maize farmers and contingency plans have to be devised to deal with such issues,” he said.

The erratic rainfalls currently experienced in the country have also immensely contributed to the ever dwindling local maize production in the country.

Dlamini said the effect of all this was that the country was now forced to import over 70% of all the required maize from South Africa. This also means that local consumers suffer a double blow as maize prices were projected to double as a result of the ever escalating food and commodity prices.

The technical manager said despite the evident hardships faced by local farmers, the corporation’s crusade of encouraging local farmers to increase supply of maize still continues. He said this was because local farmers have the potential to outdo their South African counterparts in terms of maize supply.

“The corporation is a readily available market for maize farmers, unlike with other crops where the markets are there, but their certainty is unpredictable,” he said. Dlamini observed that local farmers do indeed exude the motivation and skills to reach the target quota, but as it stands they did not have the means to do so.

A prolonged dry spell and high temperatures ravaged Swaziland’s maize crop in recent years, resulting in the lowest annual harvest on record, worsening the chronic food insecurity in the country. The chronic food insecurity persists throughout the country owing to declining income-earning opportunities and remittances, high levels of unemployment and the impact of HIV and AIDS.

The country requires international assistance to feed approximately 25% of its most vulnerable people, including orphans, child-headed households, households affected by HIV and AIDS as well as tuberculosis and children needing school feeding. Maize production in Swaziland has been on a steady decline for the past decade. Until 2000, Swaziland was in a normal agricultural season harvesting more than 100 000 tonnes of maize.

However, erratic weather, the devastating impact of HIV and AIDS as well as a decline in the use of improved agricultural practices and inputs were among the factors contributing to this decline.

Swazi Observer

African cotton growers gradually embrace GM varieties

African cotton growers are set to embrace the same wave of yield increases hitting China and India, thanks to GM varieties.

The Government of Burkina Faso has authorised planting of 15,000 hectares of biotech cotton in 2008/09 for planting seed production and to evaluate impacts on cotton yields, quality, rural economies and the environment.

Research conducted in experimental plots by the Institute D'Economie Rural (IER) indicates that the use of Bt cotton in Burkina Faso can lead to a gain in yields of as much as 30pc while reducing pesticide use by 60pc.

According to the International Cotton Advisory Council, if commercial results from the 2008/09 crop confirm the research results, the use of biotech cotton will expand rapidly in Burkina Faso beginning in 2009/10.

Farm Online

Indian cotton farmers gradually shunning GM varieties over cost, health fears

Genetically modified cotton was to be the saviour of India's farmers, but ill-health and financial worries are fuelling a backlash

"My family was one of the first to stop using pesticides," says Sattemma, a lively Indian woman in her mid-40s, confidently talking to a group of visiting farmers. "Three years ago, we realised we were spending over half our income on chemicals. It was too much. We were getting into debt and the pesticides were making us ill."

Sattemma is in the village of Lakshminayak Thanda in Warangal district of Andhra Pradesh. The visitors are keen to know how she and other villagers are progressing after their decision to stop using pesticides and Bt cotton, the genetically modified variety manufactured by US biotechnology firm Monsanto.

Bt cotton was engineered to combat pests, with the introduction into the cotton seed of a gene from a soil bacterium called Bacillus thuringiensis (Bt), which has a natural insect-killing poison called Bt-toxin. When it was introduced into India at the turn of the century, it was promoted as the "wonder product" that would solve the serious problem of pests, which many of India's 17 million cotton farmers were facing.

Many of the farmers had not been growing cotton as a cash crop for very long. In the late 1980s, under pressure from the International Monetary Fund, India had opened up its strongly protected economy and encouraged its farmers to switch to modern farming, with its hybrid seeds, fertilisers and pesticides. The idea was to turn India into an important exporter of commodities, including cotton.

At first, cotton farmers did well. They got high yields and enjoyed a real increase in income. But then problems arose. The hybrid cotton proved susceptible to pests and diseases, and it was not uncommon for farmers to spray their fields up to 30 times in a single season. Production costs went through the roof and farmers got trapped in debt. They became desperate for a technical fix, and Bt cotton seemed to be the answer.

In its first year of sales, Mahyco-Monsanto sold its entire stock of Bt cotton. According to the company, the area in India under Bt cotton rose from 3.1m acres in 2005 to 14.4m acres in 2007. According to Sekhar Natarajan, regional leader of Monsanto India, Bt cotton yielded 700kg-900kg per acre, compared with 300kg-400kg an acre with conventional seeds.

However, some say that what has been happening on the ground has been very different from the official success story. Scientists Abdul Qayum and Kiran Sakhari assessed Bt cotton's performance in the first three years and found that, despite claims by the company, farmers were not achieving big yields. This perhaps was to be expected, because Bt cotton had been engineered to reduce pesticide use, not to increase yields. But, more surprisingly, they found that pesticide use was not falling either, because farmers were facing serious problems with secondary pests. They worked out that, on average, the income of non-Bt farmers was 60% higher than that of Bt farmers. Monsanto contests these numbers.

There have been other, more alarming problems. In her chat with the visiting farmers, Sattemma says she had seen several of her neighbour's goats die after spending all day grazing on post-harvest Bt cotton plants. Such a story could be dismissed as anecdotal, if it were not backed up by more solid evidence. In 2006, more than 1,800 sheep died in similar circumstances in other villages in Warangal district. The symptoms and post-mortem findings suggested that they had died from severe toxicity. Hundreds of agricultural workers had also developed allergic symptoms when exposed to Bt cotton.

One might have expected such reports to have led to a thorough investigation into the safety of Bt cotton but, according to the US-based Institute for Responsible Technology, this has never happened. Again, Monsanto contests this account. According to Natarajan, Bt cotton was exhaustively tested for six to eight years before it was authorised for release and there were no reports of adverse impacts on the health of humans or animals.

Less controversial is the financial risk that Bt cotton, along with other hybrids, brings to small farmers. Farmers have traditionally saved seeds from one harvest to another, but this is not possible with hybrids, as they lose vitality. So farmers purchase on credit from middlemen a package of hybrid seed, fertiliser and pesticide, paying back the loan once the crop is harvested. The problems start when a farmer loses a crop through bad weather. Unable to repay, they can easily get caught in a debt trap. Problems were serious before Bt cotton but have got worse because Bt cotton seed is expensive.

Despite these problems, the Indian government believes that cotton has proved a success. In 2006, India overtook the US to become the world's second largest cotton producer (after China). The biotechnology industry is taking the credit, though some farmers are reporting new problems, saying Bt cotton is highly susceptible to wilt. On one occasion a Mahyco-Monsanto representative was taken hostage by irate farmers demanding compensation. More difficulties could lie ahead: a recent study by the Nagpur-based Central Institute for Cotton Research showed that the main cotton pest, bollworms, is becoming resistant to Bt cotton.

Many farmers, like Sattemma, have not followed the debate around Bt cotton. She says it was practical considerations that led to the change in farming. "It was the 15 women in our village's self-help group who got things going," she says. "We were worried about the health of our children. We got the men on our side by showing them that they would save money."

Sattemma points to a chart on the wall of a nearby house, on which, with the help of a non-governmental organisation, they have recorded side-by-side the expenses of growing cotton with and without pesticides. Non-pesticide management (NPM), as the system is called, is clearly more profitable, not because yields are higher but because expenditure is so much lower.

In Yenabavi, about 30 miles away, the farmers have gone further, becoming organic and declaring their village GMO-free. Their conversion also began with dissatisfaction with pesticides, this time because they didn't work. "Ten years ago, this field was covered with red-headed hairy caterpillars," says Malliah, the farmer who has led the change. "I kept applying more pesticides but I couldn't get rid of them." By chance, an organic agronomist was visiting. He showed Malliah how to set up solar-powered light traps and, to Malliah's delight, they worked. Since then, he and the other farmers have developed other natural pest controls.

Other villages are following suit. Almost 2,000 in Andhra Pradesh have adopted NPM. Raghuveera Reddy, the state's minister for agriculture wants 2.5m acres under community-managed sustainable agriculture within a few years. The long-term goal is for 10m acres, 45% of the state's cultivable land.

Sustainable agriculture involves hard work and does not guarantee huge profits, but it will not harm the farmers' health, brings personal satisfaction, and involves fewer financial risks. It is crucial to remember what is truly sustainable for small farmers.

The Guardian

July 29, 2008

Mozambique sugar production in 2008 to rise 20% over 2007

Mozambique's sugar production will rise to 295 000 t in 2008, a 21 percent increase from 243 000 in 2007, due to favourable weather and widespread investment, a senior agriculture official said on July 29.

About 165 000 t of output is earmarked for domestic consumption and the remainder for export, said Roberto Albino, director of the government's Agriculture Promotion Centre (CEPAGRI).

"This is a good harvest for us as we aim to produce 500 000 t the next four years", Albino said.

In 1972, Mozambique was the world's fourth largest sugar exporter after Mauritius, South Africa and Egypt, but 16 years of a devastating civil war wrecked the entire infrastructure, drastically cutting production.

Officials say the country's sugar sector is in the middle of a revival, and more than U$500-million has been invested in the industry, much of this by South African firms.

"We are having perfect weather and additional investments and our plans are to double production by 2012, and we are confident that this year's projections would be reached because we do not have any weather related problems," Albino said. "We don't have drought and the four mills are operating at full throttle."

The four operational sugar plantations and mills are at Xinavane and Maragra in Maputo province, and at Marromeu and Mafambisse in the central province of Sofala.

Two other mills, Luabo in central Zambezia province and Buzi in Sofala are awaiting results of negotiations over funds for rehabilitation.

"Once funding is secured Buzi will start producing sugar again but mostly for ethanol production and there will be a major turnaround in the fortunes of the sugar industry, which had stagnated for years following acts of sabotage during the civil war", Albino said.

Reuters

Planting of GM crops in South Africa rises

In a new online video released recently, South African farmer Richard Sithole shares his family's experience farming genetically modified Bt maize. Since planting his first genetically modified Bt maize crop in 2000, Sithole has increased the size of his farm, increased his income, and improved his family's standard of living.

"The new kind of maize is important to me because I can grow enough to feed my family and also have some surplus leftover to sell," says Sithole, who, in 2000, farmed 10 hectares of land and today farms 15 hectares. "Previously, I failed to make this farm produce as much as it could, but now, because I'm well equipped, I'm farming all of my hectares."

In 2007, approximately 57 percent of the total maize acreage in South Africa was planted to genetically modified maize. Including maize, soybeans and cotton, South African farmers grew more than 1.8 million hectares of genetically modified crops in 2007 - almost 30 percent more acres than in 2006.

The adoption of genetically modified crops in South Africa has been progressive and steady over the last decade due to significant on-farm economic benefits. A 2008 study by Brookes and Barfoot estimates that South African farmers have increased their farm income by using genetically modified crops by US$156 million in the period 1998 to 2006.

"When I was using conventional maize, I was losing too much money because I had to buy chemicals to control insects like the corn borer. And, sometimes, when I went to the shop to buy the pesticide, they didn't have it," continues Sithole. "Now, using the Bt maize, I'm getting more yield and spending less money compared to conventional maize.

"My family is well fed now, and we live at a higher standard because of Bt maize," continues Sithole, husband, father of seven and grandfather of seven. "My children are now getting a good education. … Even my livestock is living at a higher standard because I use this maize to feed them."

This new video about genetically modified maize in South Africa can be viewed, downloaded or embedded into another Web site from the Conversations about Plant Biotechnology Web site. In addition, visitors to the Web site can view videos with other South African farmers talking about the benefits of genetic engineering of crops, and videos with experts about the need for GM technology in developing countries to benefit subsistence farming.

The Conversations about Plant Biotechnology is designed to give a voice and a face to the farmers and families who grow GM crops and the experts who research and study the benefits of biotechnology in agriculture. The Web site contains more than 70 two- to three-minute, candid, straightforward and compelling video segments with the people who know the technology best. The Web site is hosted by Monsanto Company -- a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

Contact:
Ranjana Smetacek
314-694-2642
ranjana.smetacek @ monsanto.com

PR Web

Protestors cause halt to field testing of GM crops in UK

A trial of genetically modified potatoes that could help protect billions of pounds worth of crops from disease is to be abandoned after scientists admitted it was futile to conduct such research on crops in the UK.


The scientists claim that sabotage by environmental protesters has made it too expensive to conduct GM crop trials in this country under the current regulations, that require the exact location of each trial to be made public.


They called on the Government to allow the location of small scale trials to be kept secret or to establish a high security facility where research on genetically modified plants could be protected from vandals.

One of only two trials on GM plants being conducted in Britain this year was destroyed last month by protesters at a field near Tadcaster, North Yorkshire, who pulled up the crop.

Scientists at Leeds University had been hoping to test the effectiveness and environmental impact of a new type of genetically modified potato that was resistant to attack from tiny cyst nematode worms.

Cyst nematodes cost the UK farming industry more than £50m a year and more than 80 per cent of potato fields in the country are affected by the pest. Worldwide, nematodes costs more than £60bn and can effect damage important crops such as bananas, which form up to 25 per cent of the diet in many African countries.

Professor Howard Atkinson, who led the trial, said he had decided to abandon research after the destruction of the crops. He is now due to meet with Environment Minister Phil Woolas later this year to discuss ways of protecting GM trials.

He said: "Is it appropriate for universities to put up security that will cost a six figure sum to protect research from unlawful acts by zealots? We are not going to pursue the cyst nematode trials at the moment. I am not sure what the future holds for GM trials.

"I can only see two solutions. The first would be to have the Government regulate and assess trials but not publish their location or, and I think this is less likely, to have some sort of nationally secure trial field."

The cyst nematode trial, which consisted of 400 plants, cost of around £25,000. To put up security fencing and 24 hour surveillance to protect the plants from protesters would have cost at least another £100,000.

The only other GM trial currently being carried out in the UK is with potatoes that have been engineered to be resistant to potato blight which was vandalised last year in Cambridge. The remains are now protected by security fencing with 24 hour patrols.

Under existing laws, full details of every GM crop trial must be disclosed in advance on a Government website, with a six-figure grid reference identifying the precise location of the field.

Critics insist that GM crops could be harmful to the environment and almost all of the 54 GM trials conducted in the UK since 2000 have been targeted by protesters because of these fears.

GM companies and scientists now want the rules changed so that they can conduct small scale trials at secret locations so they can help to answer some of the questions that still surround the effectiveness and safety of GM crops.

Professor Wayne Powell, director of the National Institute of Agricultural Botany where the potato blight trials are being conducted, added: "The decision to release the six figure grid reference is a matter for the Government, but it is an issue that needs to be addressed. I do believe we need to be utterly transparent.

The Telegraph

Banana conference in Kenya to address production, marketing, research issues

As a fruit, bananas could justifiably claim to be the best of the bunch. Packed with vitamins, minerals and energy-rich carbohydrate, bananas are the best-selling fruit in the world earning around US$5 billion each year. And yet, surprisingly perhaps, only about one-fifth of global banana production is traded.

However, stakeholders due to gather at an international conference in Mombasa, Kenya, intend to develop a long-term strategy that will change the way bananas are produced and marketed, particularly in Africa.

The conference, Harnessing international partnerships to increase research impact, will focus on banana and plantain (Musa) research across Africa. By building key partnerships, the organisers hope that the event will strengthen banana research and transform banana production across the continent, from a donor-supported system to one that is driven by the private sector.

Starchy varieties of banana and plantain are a key staple food crop in Africa, providing food security, nutrition and income for millions of smallholder farmers. Different types are used in a multitude of ways, including being eaten fresh, cooked, fried and brewed for beer. Marketing, however, is a serious constraint. In a recent address to Commonwealth heads of state, President Museveni noted that while ten million tonnes of bananas are produced each year in Uganda alone, up to 40 per cent of it rots and goes to waste.

However, the tide may be turning for banana marketing in Africa. Leading international company, Chiquita Brands International, has pledged support for projects in Angola and Mozambique, with the aim of producing the countries' first commercial banana exports by 2010. Ultimately, the company aims to source 20-30 per cent of its bananas from the region, for sale in Europe.

By establishing partnerships with local investors and with established companies with experience of growing and marketing bananas in Africa, Chiquita will not only provide capital but also expertise in farm development, good agricultural practices, training, as well as marketing and distribution to Europe. "We are confident that by leveraging our technical knowledge with the expertise of our new partners, whose core business is based on a strong history of operating success in Africa, we will ensure the reliable production of high-quality, Chiquita-branded fruit," says Fernando Aguirre, Chiquita CEO.

Chiquita's move to Africa not only provides important investment in the banana industry but opens the door for a greater proportion of banana exports to be sourced from Africa. "Bananas and plantains are among the main staple food crops on the African continent," says Dr. Thomas Dubois, the coordinator of the banana conference. "Local and regional banana production, undertaken largely by smallholder farmers, requires substantial improvement and better marketing support. But times are changing. The conference will capitalise on this wind of change to help improve the plight of resource-poor banana farmers in the region."

Discussions on further opportunities for trade and how to best stimulate markets will be a major theme for participants at the banana conference in October. Delegates from across the banana sector in Africa and further a field, will also hear from representatives involved in other commodities, to draw relevant lessons for the banana industry.

Research aimed at strengthening banana production to meet the challenges of evolving production trends, emerging markets and trade networks will be another key aspect of the conference. It is envisaged that the way forward for research will be detailed in a ten-year strategy to harmonise and guide future research in Africa.

Smallscale, lucrative enterprises such as Kenyan private tissue culture business Mimea based in Nairobi are already helping to provide large quantities of improved and disease-free planting material for banana farmers. Genetically-modified (GM) bananas, currently undergoing strictly contained assessment trials run by Uganda's National Agricultural Research Organisation (NARO), could also provide banana plants with resistance to diseases such as Black Sigatoka and bacterial wilt, which devastate production in many countries.

Policies and regulations need to be in place before GM bananas are available to farmers. But Andrew Kiggundu of NARO is optimistic about the conference: "The benefit for the African farmer is that scientists will mix with the people that control the markets, and we can make the research more relevant, whether by conventional or other means. So ultimately, farmers can benefit from more targeted research and produce what is required for the market."

Over 400 participants are expected at the conference, including researches, donors, policymakers, commercial companies, NGOs and farmer groups. Ultimately, the event intends to foster the successful research and trade developed for other crop commodities so that Africa's farmers can exploit the potential of banana and gain a more significant slice of the international market.

New Agriculturalist

South African maize exports up

South Africa exported 21,599 tonnes of white maize last week, up from 19,870 tonnes in the previous week, the South African Grain Information Service (SAGIS) said on July 29.

Yellow maize exports rose to 2,096 tonnes from 1,176 tonnes in the week before, SAGIS said on its website www.sagis.org.za. The bulk of white maize exports were destined for Zimbabwe, which accounted for 7.019 million tonnes of the total white maize exports. The remainder of the white maize exports were destined for Botswana, Mozambique, Lesotho, Benin and Senegal.

Smaller yellow maize amounts were also sold to Mozambique, Namibia, Lesotho and Swaziland, which recieved the bulk of yellow maize sales at 723 000 million tonnes.

There were no imports for the white and yellow maize crop.

Reuters

Zimbabwean fertiliser companies resume production

Windmill and the Zimbabwe Fertilizer Company, the country's giant fertilizer makers, have started production after receiving consignments of superphosphates, a key ingredient in the making of fertilizer.

Zimphos’ managing director, Mr Tapiwa Mashingaidze said they had supplied 1 000 tonnes of superphosphates so far which had already been dispatched to fertilizer companies. "We are working hard to ensure continuous supply of phosphates and very soon we will reach a situation where phosphates will cease to be the reason slowing down production," he said.

ZFC’s managing director Dr Richard Dafana confirmed receipt of the phosphates and said production of fertilizers has started. "We are currently warming up our machinery and we will start providing the product from the end of this week," he said.

Dr Dafana said the fertilizer was being manufactured on a toll-manufacturing basis with the entire product being handed over to the Reserve Bank of Zimbabwe, which in turn would be responsible for distribution.

The industry is expected to supply Ammonium Nitrate at a rate of 1 250 tonnes per week and 3 000 tonnes per week for Compound D.

The resumption of fertilizer production follows the release of US$10,1 million by the RBZ on June 5, 2008, which was used to procure raw materials from South Africa.

The industry is expected to roll out 25 000 tonnes of fertilizer against the US$10,1 million.

The country needs at least 560 000 tonnes to satisfy demand and this would require the industry to receive at least US$10 million every month to operate at full capacity and satisfy demand.

Fertilizer is a key component in the success of the agrarian reform and its unavailability on the market has caused some anxious moments for farmers.

The Herald

Zimbabwe misses wheat targets

Zimbabwean farmers have again failed to meet winter wheat target after planting 43 percent of the targeted hectarage, Agriculture Minister Rugare Gumbo said.

"We had a target of 70 000ha but we only achieved 30 379ha," he said.

Gumbo cited fertilizer shortages, power cuts, erratic supplies of fuel to farmers among other challenges.

Mashonaland Central had the highest hectarage planted of 7 802ha and Matebeleland South had the lowest hectarage of about 600ha.

The Government had projected 3,5 tonnes of wheat would be harvested from each hectare. This would translate to 105 000 tonnes from the planted hectarage, against the national annual requirement of nearly 450 000 tonnes.

Zimbabwe currently imports wheat from South Africa, Zambia and Malawi to meet local shortfalls. Bakers have been forced to suspend operations due to flour shortages, causing bread shortages on the market.

A deficit in wheat production would mean the country would have to allocate more foreign currency towards wheat importation. According to estimates, Government has already pumped about US$120 million towards wheat importation. Wheat shortages have seen the prices of bread and other cereal products rising beyond the reach of many.

The planting of wheat has come under severe stress in recent years due to lack of input, lack of the desired technical knowhow amongst some farmers and persistent droughts.

Wheat is a critical cereal crop needed to make bread, a major component of breakfast for most Zimbabweans.

The Herald

More aid goes to quick-fix needs than to agriculture

Hussein Ibrahim walks solemnly past tidy rows of bright green cabbages, vines bursting with tomatoes and trees weighed down with plump avocados.

This modern, thriving farm - a rarity in drought-ravaged Ethiopia - filled Hussein with envy. Like so many other farmers across the Horn of Africa, he has no hope for his own crops this year.

"We are behind all the other people in the world," said Hussein, who tends his land in southern Ethiopia the way his ancestors did hundreds of years ago - with rain, if it comes, and oxen, as long as they're healthy.

To break out of endless cycles of drought, poverty and hunger, experts say, Africa desperately needs to modernize its age-old farming techniques. But the vast sums in foreign aid to Africa go toward feeding the hungry, and very little is left for improving farming so that Africans will cease to depend on handouts.

The situation is not impossible. A decade ago, a "green revolution" helped millions of farmers in Asia and Latin America emerge from poverty with basic innovations such as fertilizer, improved irrigation and hybrid seeds.

But Africa's farms, which employ more than half the labor force, remain one-fourth as productive as their counterparts around the world.

Ethiopia drew international attention in 1984 when a famine compounded by communist policies killed 1 million people. The nation is now gripped by a drought that has left 4.6 million people in need of emergency food shipments.

Drought is especially bad for Ethiopia because farming employs more than 80 percent of Ethiopians and accounts for half of all domestic production and 85 percent of exports. Yet, it is not that Ethiopia is incapable of growing food, as this experimental farm 100 miles southwest of Addis Ababa demonstrates. It just needs the right tools.

The farm, part of a government-run research center, beats the drought with smart irrigation systems, higher-yielding seeds, and fertilizer and pesticides correctly applied.

Hussein and dozens of other farmers were invited to the farm in late June to learn about modern agricultural techniques.

The 640-acre center employs nearly 350 workers, nearly 60 of whom hold advanced degrees in agriculture. It was set up in 1969 in the dying days of Ethiopia's monarchy, survived a decade of Marxist dictatorship, famine and wars, and continues to point the way to food independence.

But all it can do is point. It costs the Ethiopian government about $1.1 million a year to run the farm. The average Ethiopian works two acres, has little education and earns about $800 a year.

Also on the visit to the center was Mitike Abebe, who farms wheat, barley, lentils and other crops in southern Ethiopia. She depends entirely on rainfall, sturdy oxen and her overworked soil. "We don't want food aid," she said. "We need tractors, we need seeds, we need farm machinery."

There's aid aplenty - Ethiopia alone got $1.95 billion in 2006 - but Africa-wide, less than 5 percent of it goes toward the sort of things Mitike needs. The United States, Ethiopia's largest donor, this year gave it more than $570 million, but just over 1 percent of that money is going toward developing agriculture.

In 2004, African nations agreed to set aside 10 percent of their national budgets for agricultural development. Ethiopia exceeded that promise, with 16 percent of its $3.4 billion budget. But experts say it is simply not enough for a country so dependent on the land.

According to the United Nations, nearly two-thirds of Africa's agricultural land has been degraded by erosion and misused pesticides. In Ethiopia, where bad farming practices have led to extensive erosion, 85 percent of the land is damaged.

"We've underinvested, and everybody appreciates this now," said Glenn Anders, who heads the U.S. aid program in Ethiopia. "Particularly in Africa, for the last few decades, maybe more."

The continent's other needs often offer a quicker fix for donors, he said.

"You give a kid an immunization and that kid's better. Agriculture's much more indirect than that and also requires a lot more time. It's not a quick fix at all."

Baltimore Sun

South Africa's animal feed imports rise

South Africa suffered a negative balance of agricultural trade for the first time last year because of rapidly increasing imports. The fastest-growing and largest import was vegetable proteins.

According to Professor Nick Vink, of the agricultural economics department at the University of Stellenbosch, these imports were boosted by the need for animal feed. While most animal carbohydrate requirements were supplied by domestic maize feed, the protein requirements were supplied by oil seeds. The growth of the middle class was fuelling the demand for animal products, particularly chicken and dairy, he said.

According to figures from the SA Revenue Service (Sars), imports of animal or vegetable fats and oils rose to R2.6 billion in May, 60 percent more than a year earlier. Exports grew to R296 million, rising 148 percent from a low R119 million. (1US$= 7.5SAR)

Imports for the economy as a whole totalled R282 billion in May, compared with exports of R248 billion. But last year agricultural exports added up to R29.2 billion, compared with imports of R29.4 billion, bringing the trade balance into negative territory at R172 million.

According to the department of agriculture, farm exports amounted to R4.6 billion in 1990, compared with imports of less than R2 billion.

In 1992 exports were R4.8 billion and imports R4.4 billion, for a trade balance of a mere R382 million. But in 2002 a trade balance of more than R10 billion in South Africa's favour was recorded, with exports amounting to R25.8 billion and imports to R15 billion.

What this adds up to is that South African agricultural exports do not now cover its agricultural imports - or, at least, they are at the tipping point of not being able to do so. Agriculture will no longer contribute foreign exchange to the economy if this trend continues. National food security could be jeopardised, especially, Vink points out, if high world prices continue leading to more expensive imports.

According to Sars, imports of oil seeds increased from R1.4 billion in 1996 to R2.3 billion in 2001, rising sharply to R3.6 billion in 2004 and reaching a record R6.6 billion last year.

While the value of imported animal products has been rising sharply, it has not advanced as rapidly as that of oil seeds. Yet it took over from rice as the second-largest imported product in 2003, reaching R1.174 billion, compared with animal products at R1.176 billion. By last year, rice imports amounted to R2.1 billion and animal products to R3.1 billion.

Johann Kirsten, a University of Pretoria professor of agriculture, argued that the dual nature of local agriculture, consisting of large commercial farms owned mainly by white farmers, and small subsistence farms located in the former homelands, remained a challenge for policy.

The commercial sector was capital intensive, with an estimated 25 percent of farmers producing 75 percent of output, Kirsten said.

About 46 000 farmers occupied 87 percent of agricultural land. Smallholder farming remained largely impoverished.

Vink argued that South Africa was feeling the pinch of a largely failed land reform programme. With rising global food prices, new black farmers would now have been able to reap the benefit.

"South Africa has lost a golden opportunity to transform agriculture. If the land reform programme had progressed to the extent that it should have, by now there would have been thousands of black farmers able to benefit. We have a land reform programme that is unable to attract the best black managers."

As a result, South Africa had not been able to grow new export industries. White farmers would not invest, Vink said, because the land reform programme created uncertainty. "There are too few good black farmers because they do not see the profit potential."

Business Report

Policy reforms needed for African farmers to access improved maize seed

African policy experts on July 28 called for reforms to be introduced in maize seed sector in order to meet farmers' needs.

Senior policy makers from 13 sub-Saharan Africa countries meeting in Nairobi to deliberate ways to improve farmers' access to new maize seed including an increasing number of forthcoming drought tolerant maize varieties said at issue are policies that constrain the production, release and marketing of improved seed varieties.

Citing a study undertaken in 14 African countries, the policy experts said maize seed production in sub-Saharan Africa last year, similar to previous years, fell short of farmers' demand. The region was only able to meet 28 percent of its farmers' effective demand for improved maize seed, according to the International Maize and Wheat Research Center (CIMMYT).

The experts said a wide range of reasons contribute to this situation, including farmers' demand and seed production capacity of the maize seed sector. In several instances, restrictive national policies and trade regulations prohibit effective production and marketing of improved seed varieties and this continues to undermine food security and farm incomes in Africa.

The regional policy workshop is being organized by the Drought Tolerant Maize for Africa (DTMA) Project, which is jointly undertaken by CIMMYT, the International Institute of Tropical Agriculture (IITA) and a wide range of public and private sector institutions in sub-Saharan Africa.

The experts are discussing the 2007 study that gathered views of 156 representatives of seed companies, national agricultural research institutes, and non-governmental organizations in Angola, Benin, Ethiopia, Ghana, Kenya, Mali, Malawi, Mozambique, Nigeria, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.

Stronger national seed laws and regulations are in order, according to Dr. Augustine Langyintuo, the economist at CIMMYT who led the 2007 seed sector study that, among other things, profiled maize seed producers and the varieties marketed in the region, and identified the factors constraining efficient seed production and distribution.

"Seed trade should be liberalized and, at the same time, seed quality better monitored," he says. "This and measures to avoid undue delays in variety release will have huge pay-offs."

"Regional harmonization of seed laws should also be expedited, so that seed released in one country but also useful in similar agro-ecologies of neighboring countries can be shared," says Dr. Langyintuo.

Moneybiz

African Center for Biosafety urges rejection of S.African GM potato

Taking into account that South Africa’s Agriculture and Research Council (ARC) has announced their intention to apply to the South African government for permission to make GM potatoes commercially available, we hereby vehemently oppose the marketing and growing of GMO potatoes and implore the SA GMO council to reject the application outright, on the following grounds:

Force feeding fellow Africans with dangerous food

ARC’s GM potato work is funded by USAID, which is well known for their tactics to push US corporate interests in GM in Africa. They are up front about their goal to “integrate GM into local food systems” through their Agricultural Biotechnology Support Project (ABSP).

South Africa exports 90% of its potato crop to its neighbours in SADC, where many have imposed bans or biosafety restrictions on GM food. ARC’s GM potatoes will force feed fellow Africans with food that they have neither asked for nor have a say in.

GM Potatoes won’t help African farmers

GM potatoes are located within the “Green Revolution” package for Africa that proffers technical and economic solutions for African agriculture. These solutions, designed by transnational agribusiness, create dependence on hi-tech, capital-intensive technology that is inappropriate for small-scale farmers. Public research money would be better used on enhancing more appropriate agricultural systems that ensure local food security, adaptability to changing climates and local control over resources.

African farmers face the loss of their markets and control over their farming systems if South Africa paves the way for the introduction of GM potatoes onto the continent.

Biosafety Concerns

GM potatoes are touted as a tool to reduce the use of pesticides, particularly to control the tuber moth, which is most destructive during storage. However, these potatoes express toxins 24 hours a day that accumulate in the environment and throughout the food chain. As pests develop a resistance to the toxin, this is a short-term and short-sighted solution to the tuber moth problem.

GM potatoes will easily spread throughout the continent – a pocket of potatoes bought for consumption can be transported across borders and ultimately be planted in places where they have not been approved and cannot be traced. This will impact on each country’s sovereign right to decide on whether or not they want to accept GM potatoes, as well as impact on their Biosafety.

Health Concerns

There is no consumer confidence in the long-term safety of GM potatoes and they pose no benefit to the consumer. Problems with Bt genes that have been commercialised in the past have included immune reactions, impacts on organ weight and function and allergic reactions.

Additionally, the use of antibiotic resistant marker genes poses an unacceptable risk to the health of Africans. There is a possibility that the use of these genes could diminish the efficacy of antibiotics such as Kanamycin, a drug that is listed in the WHO Essential Medicines Library as a drug reserved for treating multi-drug resistant tuberculosis.

There is no reason for consumers to take the risk of eating a novel food for the sake of storage requirements for farmers.

African Centre for Biosafety


China releases GM rice

By Dennis T. Avery*

China says short world grain supplies have persuaded it to release biotech rice nationwide, ensuring the broadest-ever use of genetic engineering in a food crop. Chinese plant breeders say biotech crops are certain to produce higher yields, forestalling the need to finance costly rice imports for China’s billion-plus consumers.

To further protect its grain supplies, China has also been discouraging grain-based ethanol for the last two years. Chinese demand for grain ethanol—mainly from corn—had threatened to inflate prices for China’s rice and livestock products as world oil prices hit record levels.

These strategies may quickly become the model for developing countries as the world strives to double food and feed production over the next three decades—with or without biofuels.

Western biofuel mandates have, unfortunately, more than doubled world grain prices since 2005. Corn costs have soared from less than $2 per bushel to more than $7, before settling recently at about $5.50 per bushel. Pork, poultry, beef, and milk producers are still warning of further food price inflation ahead due to biofuels mandates.

The Chinese have already developed genetically engineered rice strains with bred-in pest and disease resistance. They’re also experimenting with new nitrogen-efficient rice that needs only half as much fertiliser to get top yields. The new rice thus costs much less to grow, and emits far less greenhouse gas per ton of rice produced. They also say biotech rice “escapes” will not be a problem, since they’ve pre-programmed the rice to be hyper-sensitive to a particular herbicide.

China already permits the growing of genetically engineered peppers, tomatoes, and papaya, and much of its huge cotton crop is genetically modified to resist pests. Biotech has overcome the deadly ringspot virus, which severely hampers papaya production in much of the world, and provided virus resistance for tomatoes and peppers. Another genetic modification permits Chinese tomatoes to survive the longer shipping delays caused by the poor Chinese roads and lack of refrigeration.

The nitrogen-efficient biotech rice being tested by the Chinese emerged at Canada’s University of Alberta, as breeders were seeking drought-tolerant crops. Someone forgot to fertilize the seeds in the greenhouse, but one set of plants grew vigorously anyhow. They had discovered a new and more efficient pathway for crop nitrogen uptake that allows top yields with half the nitrogen fertilizer.

Arcadia Biosciences is marketing the nitrogen-efficient crops, working with Chinese rice growers and Australian wheat growers and is working to develop the new nitrogen efficiency in corn. Arcadia has already signed a licensing agreement with the Maharashtra Seed Company in India, the world’s second-most-populous country.

Greenpeace claims that rice smuggled from biotech experimental fields has already been sold on consumer markets without government approval, and perhaps even exported. However, with world rice prices recently hitting record highs, no one has seemed to care.

The question today is how to produce adequate food, with cropland per person declining. In addition, fertilizer prices have been sharply inflated by the conversion of power plants to burn much of the natural gas which used to supply fertilizer factories.

World leaders are also welcoming the Bill and Melinda Gates Foundation’s major effort to create a renewed Green Revolution to create the first high-yield farming in sub-Saharan Africa, supply the last surge of human population growth worldwide, and provide higher-quality diets for the tropical countries.

*DENNIS T. AVERY is a senior fellow for the Hudson Institute in Washington, DC and is the Director for the Center for Global Food Issues. (www.cgfi.org) He was formerly a senior analyst for the Department of State.

American Daily

African cotton producers see no progress in US subsidy talks

African cotton producers seeking a cut in US subsidies for US cotton producers voiced frustration july 27 as they claimed Washington offered "nothing concrete" during global trade talks underway now.

"We cannot say that we are satisfied. There is nothing concrete," an African negotiator said.

The so-called C4 group of West African cotton producers -- Benin, Burkina Faso, Chad and Mali -- met US Trade Representative Susan Schwab to discuss domestic cotton subsidies within the overall framework of mammoth talks to secure a new global free trade pact. The C4 group has since 2003 been fighting for the cotton issue to be included in the Doha Round of World Trade Organisation negotiations.

The group wants industrialised countries, particularly the United States, to lower domestic subsidies that the African nations say weigh down world cotton prices and penalise poorer countries.They were assured that the issue would be treated "ambitiously, expeditiously and specifically" by WTO trade partners in 2004.

But the African negotiator said July 27 that there had been "no advances" in the talks with Schwab. "The US promised they would do more on cotton than on the rest of agriculture, but they don't want to announce anything right now," he said. "There weren't even any signals at this stage on what figures they might propose," he added.

The group wants to see subsidies cut by 82.2 percent in the US, a figure included in a negotiating text that is forming the basis of discussions on a new free-trade pact.

Schwab's spokeswoman Gretchen Hamel said that the two sides "discussed creating opportunities for African farmers to export through lowering tariffs and barriers imposed on cotton."

But the African diplomat said market access was not the issue, stating: "What we want is for them to relieve us of the burden of (their) subsidies."

AFP

Sekem Farm creates organic oasis out of Egyptian desert

It’s not supposed to be like this. The desert does not give up its grip lightly. Yet some 60 kilometres north-east of Cairo, what should have been (and was 30 years ago) a parched dry scrubland of desert and rock is now a place of vivid green, a patchwork of fields rich in fruits, and vegetables, herbs and spices, all contained within a network of mud brick walls and spotless lanes that lead through avenues of tall trees to the Sekem farm.

Today Sekem produces fruits and vegetables; herbs, spices and seedlings; milk; cotton for textiles and clothing and phytopharmaceuticals (natural medicines, medicinal teas and healthcare products). Everything, including the cotton, is organic.

The first impression when you arrive and breathe in the pure scent of herbs, spices and acacia trees is that it shouldn’t be here. It doesn’t make sense, surrounded as it is by a dry country on the edge of Cairo’s suburban sprawl. But then you meet Dr Ibrahim Abouleish, the man whose vision and laughter and unbounded optimism brought Sekem into being in 1977, and you begin to understand: perhaps the land had no alternative but to surrender to his infectious will.

It started when Ibrahim, an Egyptian expatriate, returned from Austria with his family for a visit in 1975. What he found horrified him. “Everything was destroyed in my country. I witnessed misery and I wanted to analyse, to diagnose, why people could suffer without trying to do anything to relieve it. I wanted to help… it took some years.”

The doctor’s way of helping was to give up his comfortable European life and start a farm. Looking out from his studio on to his verdant creation he laughs, “I never had any contact with farming before. As you know, my profession was as a doctor of medicine, far away from all this beautiful nature.”

His friends and other members of his family, not to mention the bemused Bedouin already living on the land, thought he’d gone crazy, but Ibrahim was adamant. “I had this vision after I had visited the country; that I should set an example for the future, to show the developing countries how they can, if they have the knowledge, and the will, convert misery into beauty.”

His son, Helmy, now Sekem’s CEO, describes what was here when the family arrived: “Nothing. Desert. You can’t imagine. Really nothing and basically no infrastructure, no electricity, no water, no drinking water. I mean, no waste water system, so from the very beginning we had to really build the infrastructure.”

Because Ibrahim insisted on using biodynamic methods (a form of organic farming that creates a closed, self-sustaining environment – Sekem farm produces all its own compost) it took a time to bring the land to life.

“The first thing was to get electricity as a source of energy,” Helmy says. “Then for a year or more we started digging the deep wells and bringing up water, but the whole process took several more years because even when you had the water you needed the organic matter to increase the soil fertility before you began planting things. It was like the question of the chicken and the egg. Where do you get your compost when you hadn’t yet got a farm? So you had to buy in compost and start to develop the soil and so on.”

It was four years before Sekem began exporting medicinal herbs and spices and two more years before its organic food came to market. It’s been expanding and developing its range of products ever since, with annual growth over the last few years of between 20 and 25 per cent.

In 2007 Sekem, working with a regional network of 800 farmers, had sales of over 200 million Egyptian pounds (Dh138 million) and a net profit of over 12 million pounds. It could have made a lot more profit but that’s the key to the Sekem enterprise – it has never been just about the produce.

From the start, Sekem was meant to be different. It was one of the first proponents of fair trade, making sure, as Ibrahim puts it, that “the whole supply chain from the poor farmer to the consumer in London is transparent. Every participant in the chain should know what the next in line is doing and the end result of this transparent chain is the farmer gets the fair price for his product…

“From our first beginnings the idea of fair trade came up in our discussions with many people around the world; that the rich should care for the poor, that when the rich buy the products the money must go back to the poor.”

Back in 1977, this philosophy was unheard of but Ibrahim was determined Sekem would always give back to the community. It hired the help it needed from the surrounding villages (last year it employed around 2,000 people). Then it began providing the village kids with schools; offered vocational training varying from carpentry to electronics; opened classes for children with special needs and, if the parents were too poor to let their children attend school, paid them for their kids’ time. It started adult education and literacy programmes and opened a medical centre that now provides primary care as well as specialised services including ophthalmology; gynaecology; paediatric care; x-rays and a dental clinic.

And you don’t actually have to work for Sekem to benefit from the education or health care. Both schemes are open to everyone from the villages and only around 20 per cent of students are children of Sekem employees.

Over the years, the company kept innovating. It opened an arts and sciences research centre and encouraged all its employees to participate, during working hours, in art and music classes. Then it created workers councils so its employees could participate in the company’s decision-making process.

Thirty thousand people in the villages surrounding Sekem’s mother farm benefit directly or indirectly from its presence. But again Sekem is taking things further.

“We’re now collecting solid waste from all these villages,” Helmy says. “We are recycling it and using the organic part for the composting site and selling on the plastics and metals. We are collecting their liquid wastewater and purifying their biological waste products. We are cleaning up the villages and we are really trying to build their sense of pride in their villages, their sense of beauty and hygiene. People from the medical centre are going into the villages, teaching them about hygiene, how to use water, how to cook, how to feed your children. We also have a programme for nurses and for midwives.”

Sekem’s concern for the environment has always been one of its principal motivating factors. It was the first farm in Egypt since the introduction of chemicals into agriculture to be completely organic. Then it accomplished what should have been impossible for one small farm to do: the total transformation of a country’s agriculture.

By the time Sekem had started, Egypt’s agricultural industry was approaching a crisis. The building of the Aswan Dam had ended the Nile’s annual floods, which refertilised the soil, and forced the farmers to turn to chemical fertilisers.

“They quickly went from using nearly zero chemicals and fertilisers to huge quantities, 20 million tons of chemical fertilisers,” Helmy says.

The industry compounded the damage through the use of chemical pesticides. “Egypt went from zero chemical pesticides to six kilos of pesticides per acre, per year,” Helmy says. “So with six million acres of farmland we ended up with 36 million kilos of pesticides applied by aeroplanes over the whole country.

“Now, applying it by aeroplanes means you cannot really separate between fields and villages, between irrigation channels and cows, and between the people and plants. So it was really pesticides applied on everything. The first feedback they got on this policy was in the Eighties, when exports of our agricultural products to Europe were refused because they found residuals. They were testing it in Europe and everything was exceeding the limits, so they sent back the products. The Ministry of Agriculture then came to us and said, ‘Is there a way to safeguard our exports? Is there a way to grow the things without pesticides, whether it’s herb and spices or cotton or whatever?’ And we told them, ‘Yes there is a way, but you have to stop spraying chemicals over the whole fields’. They said, ‘That’s not possible. We have huge areas of cotton and it has to be sprayed five or six times a year – there’s no way not to spray it’. So we said, ‘OK let’s do a test.’”

Sekem’s tests worked. By using biological, organic measures such as pheromone traps to capture insects, they removed the need for pesticides. In fact, the results were so successful that Egypt “stopped aeroplane spraying and reduced pesticides usage by 95 per cent, so from 36 million to three million kilos per year. This was environmentally the biggest achievement we ever had.”

But Helmy maintains that was just the start of their environmental breakthroughs. “We have set up programmes and even companies to work on the field of renewable energy. We are in the process of setting up the first private wind park in Egypt so that we can really show you can work with wind energy on a competitive basis and as an alternative to fossil fuel. We are working on solar heaters as an alternative to electric heaters. We’re even in the early stages of working on photovoltaic cells to capture solar energy because, as you know, the sun provides Egypt with more than 15,000 times the energy it needs – if it only would use it. So photovoltaic I think, even if it’s still expensive, will be an alternative in a maximum of five to 10 years.”

Sekem is also trying to reduce the amount of water used in agriculture. Its biodynamic farming methods already reduce the amount of water consumption by some 20 per cent compared to traditional agriculture, but the company is “now testing some new technologies in irrigation such as sub surface irrigation, which can reduce water usage by another 10 or 15 per cent. We are also working on desalination.”

And they’re working to make all their operations carbon neutral, even with the amount of transportation involved in getting their products to market, by turning agricultural waste into compost rather than burning it or letting it rot. Their project already captures 60,000 tons of carbon emissions. Next year they intend to at least double that.

Sekem continues to grow. They’ve expanded their operations to other countries in Africa, the Middle East and Europe. And they have proved they can achieve seemingly impossible goals. But after spending time on the farm you get the feeling they’ve only just started.

The National

World Bank grant to help Rwanda develop irrigation

Rwanda has received a $41m grant from the World Bank to finance projects in the agricultural and financial sectors.

The World Bank signed a four-year $35m grant to help the central African country reclaim existing marshland and an extra $6m to fund reforms in the micro-finance sector.

Rwanda's economy largely depends on rain-fed agriculture and poor rains last year saw the sector register negative growth. Part of the grant will help in irrigation plans and support efforts to commercialise the largely subsistence agricultural sector, the World Bank said. The grant follows a similar $50m tranche that covered the last four years.

Rwanda's finance minister predicted agriculture would grow by at least 7% in 2008 mainly due to greater use of fertilisers, better farming methods and good rains this year. Rwanda expects its economy to expand between 7% and 8% this year.

Rwanda has about 90% of the population engaged in agriculture. It is the most densely populated country in Africa; is landlocked; and has few natural resources. Primary exports are coffee and tea. The 1994 genocide destroyed Rwanda's fragile economic base, severely impoverished the population, particularly women, and eroded the country's ability to attract private and external investment.

However, Rwanda has made significant progress in stabilising and rehabilitating its economy. In June 1998, Rwanda signed an Enhanced Structural Adjustment Facility with the IMF. Rwanda has also embarked upon an ambitious privatisation programme with the World Bank.

Continued growth depends on the maintenance of international aid levels and strengthening of world prices of coffee and tea.

New Vision

ACP countries under pressure to reach banana deal at WTO talks

African and Caribbean countries came under pressure on July 27 to reach a deal on bananas and remove a major obstacle to efforts to rescue global trade talks.

The chances of a deal on the core areas of farm and industrial goods in make-or-break talks at the World Trade Organisation (WTO) were delicately poised as rich and poor nations examined proposals for real new export opportunities.

The European Union and Latin American banana producers agreed early on July 27 to cut the EU's import duty to 114 euros ($179) a tonne by 2016 after an initial cut to 148 euros in 2009 from 176 euros now, people familiar with the fruit talks said.

But it must still be approved by former European colonies in Africa, the Caribbean and Pacific (ACP) as well as EU member states such as France and Spain, whose farmers in the Caribbean territories and the Canary Islands also grow bananas.

A banana deal would settle one of the world's oldest trade disputes and is key to any breakthrough in the WTO's Doha round of talks on a new agreement to open up world trade, potentially giving a boost to the global economy.

The WTO talks began on July 22 and are likely to run into the middle of the coming week.

Under Doha's agriculture proposals, tropical produce from Latin America would have faster, steeper tariff cuts than usual.

But ACP exports would see duties come down more slowly so they can retain some preferential access to rich markets.

The two sides have been working to tidy up overlaps of products on the tropical and preferential access lists but agreement would be impossible without a deal on bananas.

The fruit is a key export for many Latin American and ACP countries. Cameroon's banana industry is the biggest employer in the country after the public sector, and government officials say the industry helps prevent unrest in West Africa, which has been wracked by civil conflict in recent years.

Lowering the EU's import tariff further for their competitive Latin American rivals could devastate ACP banana output, they warn. ACP banana exports pay no EU duty.

"Bananas for us are a factor for political stability," said Luc Magloire Atangana Mbarga, trade minister of Cameroon.

Delegates were hoping to reach final agreement on bananas and other tropical products issues before ministers from 35 key WTO players resumed talks on the Doha deal.

The Doha negotiations were launched in November 2001 to boost the world economy and help developing countries grow out of poverty. They were almost written off last week as rich and poor countries remained deadlocked.

But a controversial move by WTO Director-General Pascal Lamy to shut out most of the ministers and get seven key members to tackle the nine most sensitive issues was vindicated on Friday when they produced a grudgingly accepted compromise.

Talks on July 26 on opening up services sectors were hailed by ministers and businessmen as also offering positive signals. The compromise included a proposed new cut in the ceiling for disputed U.S. farm subsidies and revised proposals allowing developing countries to protect their farmers, seeking to balance the needs of poor country importers and exporters. It also sketched out limits on the ability of developing countries to shield entire industrial sectors from opening up.

A trade source said developing countries were growing alarmed at signs that China would seek to protect markets for rice, cotton and sugar and other industrial sectors, shutting off new export opportunities for them.

Reuters

High fish demand in DRCongo creates aquaculture opportunities

Give a woman a fish, she will eat for a day. Teach a woman to grow her own fish, and she may soon have so many that theft becomes a problem.

The issue of thieves stalking the handful of fish farms coming back to life in the Congo speaks volumes about the sheer demand for fish as an essential source of protein in the former Belgian colony.

Yet the problem is relative – and containable. Here in Kipushi, near the headwaters of the mighty Congo River, the tidy series of rearing ponds dug and now run by 150 women – mostly widows, resettled refugees and former combatants of the Congolese civil war – lie an inconvenient 30 kilometres from the hungry city of Lubumbashi. Hence, no thieves here, and the women are making a tidy, sustainable profit on the delicious and nourishing 600-gram tilapia they raise from fry, selling their stock to local villagers.

A different story is told in the vast, lush market garden of Quartier Congo on Lubumbashi's outskirts, where so many fish were stolen that the seven farm associations representing smallholders simply abandoned their aquaculture ponds, deciding instead to concentrate on the thriving vegetable beds that have doubled farm incomes in the past four years, lifting the neighbourhood just above the poverty line.

Location, location, location, therefore, will be a crucial factor in whether fish farming will make a splash as part of a green revolution Congolese agronomists hope to bring to the war-torn central African country.

It matters because the Congo, like all of sub-Saharan Africa, is crazy for fish. Last February alone, the eastern province of Katanga imported 2,250 tonnes, mostly dried, smoked or salt-cured.

Perversely, some of that imported fish actually originates in Congo: it's netted in Lake Tanganyika and then shipped to Zambia before coming back through the borders at the bustling border city of Lubumbashi. The circuitous route says much about the state of Congolese infrastructure, where a simple 100-kilometre journey can take up to seven hours on roads barely worthy of the name.

The need for the Congo to more than dabble in fish farming is all the more acute, given doubts about the long-term viability of Lake Tanganyika's fishery. It was all but destroyed during the Congolese war, but now nearly 1,200 fishers are back on the lake, thanks to a UN Food and Agriculture Organization program that has replaced stolen nets and tackle. Some are line-fishing with dugout canoes; others are working in two-boat teams by lamplight to net bigger hauls overnight. Anecdotally, some say the stocks are not what they used to be.

The books of one of the seven fishing co-ops show a haul of 257 tonnes in 1993 dropping to 3.24 tonnes in 2003, a figure doubtlessly impacted by war, which saw some fishers drown in a bid to flee to neighbouring Tanzania.

Today, nobody knows the stock levels, says Adelard Mambo, 43, president of Kalemie's MPK fishing association. "There is no state regulation, no enforcement. We fish freely, yet we are seeing fewer fish."

Despite its lofty title, the provincial Centre for Aquaculture Research at Lubumbashi is actually just a small cluster of ponds tucked behind a tiger enclosure at the city zoo. There, head researcher Jules Lwamba leads a team of three working to supply the region's rearing ponds with the best possible local stock, focusing on tilapia and several variations of African catfish.

"We would like to follow the path of Asia, where they successfully combine rice paddies with fishing in dual-use projects," says Lwamba. "But we are so far behind. Before the war we had 8,000 fishponds, but at least half were abandoned. The goal of this centre is to restore them all and then keep going."

The problem is not demand, nor even technology. It is simply a question of building up capacity to help people help themselves – arguably the most common refrain heard today in eastern Congo.

"Everyone here wants fish," notes Lwamba. "We have to guard this place by night, otherwise people would steal them."

The Star

Nigeria to sell agricultural bonds

Nigeria will sell 200 billion naira ($1.7 billion) of bonds to provide loans to farmers and boost food production in the west African nation, President Umaru Yar'Adua said.

The funds will be offered for the construction of dams and irrigation channels, according to a statement published on the Web site of the Nigerian presidency.

Bloomberg

Fears in South African farming sector over Expropriation Bill

Fears have been expressed that the controversial Expropriation Bill currently in parliament could lead South Africa down the same road as Zimbabwe.

Opposition parties and non-governmental organisations joined hands to oppose the controversial bill at the first of two meetings of the ad-hoc committee for the protection of property rights on July 28.

Ostensibly designed to counter the slow progress of the land reform programme, the farming sector had dismissed the bill as a government tool enact Zimbabwe-style land grabs.

Former foreign affairs minister Pik Botha, who attended the conference; said fears that the bill could lead South Africa down the same as Zimbabwe were justified. "There is no question about it. There would have been no agreement, no constitution if we (National Party) were told then that this amendment would be implemented. Property rights, like other fundamental rights, were agreed upon by the National Party and the ANC to be included in the Bill of Rights. "It is unconstitutional to tamper with them and will lead to catastrophe," Botha said.

He said the injustices of the past couldn't be compensated for by the creation of injustices in the present. Botha said some of the consequences would be less food production and no foreign investment. "Black people, whom this is intended to help, will end up like those in Zimbabwe and pay the highest price," he said.

University of North West director of research, Professor Andre Duvenhage, said the decision taken by the ANC at Polokwane pointed to a shift away from a non-state intervention market policy towards a more radical pro-expropriation, less market driven land reform process.

He said in 1994, about 80 percent of agricultural land - about 82-million hectares - was owned by about 61 000 commercial farmers. That number has decreased to about 46 000. Duvenhage said the government's target of 30 percent of the land redistributed to blacks by 2015 amounted to about 25,9-million hectares but at the current rate this would only be achieved in 2058. "A total of 20,6-million hectares must still be transferred," he said.

TAU General Manager Bennie van Zyl said the government's "lies and distortions" about the history of land ownership bordered on ridiculous. "No white commercial farmer has stolen the land he is currently farming on from anyone."

Van Zyl said investor confidence was of utmost importance in South Africa but it seemed as though this was of no concern to the ANC government. "How can they expect that anybody will invest with confidence in a country where they could at any time be targeted with such a draconian Expropriation Act."

He said the role of agriculture was not sufficiently acknowledged and the uncertainty created by this proposed bill put a dampener on investment. "The government has to show the world that what is happening here is not another Zimbabwe and that South Africa will not end up as part of a history of failure in Africa," he said.

Tackling affirmative action, Botha said the ANC's obsession with quotas amounted to the rejection of skilled workers and artisans who were able to make a substantial contribution in terms of the promotion of skills training among blacks, as well as actual empowerment.

He said the boomerang effect of the Employment Equity Act and the manner in which it was being applied was that masses of blacks were still not trained and were unemployed. This also meant the country's economic progress was under serious threat as a result of the skills shortages which contributed to the decline in service delivery which burdened millions of blacks, as well as whites.

"We acknowledge that the ANC inherited a lot of misery from the past, but at least they also inherited the most advanced infrastructure in Africa," he said.

IOL

July 27, 2008

The many unanswered questions about the long-term sustainability of Malawi's fertiliser subsidy

by Chido Makunike

Malawi has achieved bumper maize harvests three years in a row after instituting a subsidy program for fertiliser and hybrid seed. There has been an excited buzz in agricultural, economic and developmental circles about just what the right take-home lessons are of this experiment.

In just a few years Malawi has gone from being dependent on donor handouts of its staple crop to being self-sufficient and even exporting surplus to neighbouring countries like Mozambique and Zimbabwe.

One of the factors about this remarkable development is that Malawi embarked on the subsidy program with its own funds rather with loans or donor funds. The multilateral and bilateral donors on which the country is dependent on for a good part of its budget advised against the idea of subsidies. During the years of the “Washington consensus” the IMF, World Bank and Western ‘donor governments’ in general held that the solution to many developmental problems lay in the development of a strong private sector rather than in government intervention.

The ideology was that governments should withdraw out of many areas they were involved in so that the private sector could have a chance to develop and provide those goods and services more efficiently, while also producing widespread downstream economic growth. The supply of inputs and various other agricultural services were two areas that many African countries were arm-twisted to reduce support for in order for them to continue to benefit from credit and other assistance from various Western governments and financial institutions.

Unfortunately, the divestiture of governments from key areas like agriculture did not cause the more efficient flooding in of the private sector, for many reasons. Extension services suffered, fertiliser and other inputs became harder to get and much more expensive. Already low agricultural production in many countries declined even further, a situation which was compounded by factors like drought.

In Malawi this caused famine in 2005, causing President Bingu wa Mutharika to swear that his country would not again bear the indignity of begging for food. Hence the government’s decision to throw out the conventional wisdom of the Western experts and fund its own massive fertilizer and maize seed subsidy program. Fortunately the program has coincided with years of excellent rain, bringing about the bumper harvest that Malawi can be justifiably proud of. Many analysts from all over the world are keenly studying the implications of Malawi’s so-far successful experiment, and many governments seek to emulate this unfortunately unusual example of African agricultural success at the national level.

But amidst all the excitement are many questions about the sustainability of the subsidy model for Malawi or any other country. Some caution that it is only useful as a temporary measure, and that more complicated long-term interventions and investments need to be made to ensure long-term food security for Malawi.

Among the many questions to be asked:

Can Malawi sustain these subsidies in the face of the increasing demand for them that is partly fuelled by the initial success? Fertilizer prices worldwide have increased by unprecedented, enormous proportions to record highs in the last year. They are now generally over US$1000 per tonne, a more than three-fold increase in little more than a year. There are no indications that this trend will stop soon. Fertiliser is a fossil-fuel byproduct, and the price of oil is creeping towards an unheard of US$150 per barrel, with worse to come. Apart from the price of oil as a fertilizer raw material, there is also the escalating expense of shipping it. When you add the many middle men and speculators in the supply chain, not to mention the bribery that is an unfortunate part of fertiliser tendering the world over, one gets an idea of just how expensive it is going to become to get the product in the hands of the African farmer.

Fertiliser has long been considered the single most expensive 'input' in farming, and this was even before the recent dramatic price increases. Its expense is the main reason it has been out of reach of African farmers.

So is the Malawian government not entrapping itself into a situation where it would not be politically tenable to abandon the subsidy when it becomes unaffordable, even if it is no longer working as it should for one or another reason?

Given the foregoing, is the subsidy a short-term measure leading up to other strategies, or is it open-ended? What are the implications of either? There is little sign that these issues are being seriously discussed.

What went wrong with previous efforts to subsidise fertilizer in Malawi and elsewhere? Have steps been taken to prevent the recurrence of such problems?

Fertilizer addresses the symptoms of the problem of low soil fertility, not the underlying causes (poor/wrong and over-use of soils). Without somehow at least partially addressing the issue of the inherent degradation of the soils, one needs higher amounts of fertilizer every season to produce the same yield of crop. The costs are not only financial, but there is the issue of the poisoning of the soil and water that is an inevitable part of fertilizer use. Is this being considered and strategized for? If not, why not? If so, how?

How much are Malawi’s recent maize bumper harvests really due to fertilizer anyway? 100%, 70%, 40%, 10%? Obviously there is no easy way to quantify this, although that hasn’t stopped some from trying. But in short, some say the subsidy has just happened to coincide with a cycle of particularly good rains in that region of Africa.

When the expected drought cycles come (which partly contributed to previous famines) no amount of fertilizer will make much difference, and fertilizer on parched soils can actually scorch plants, causing even lower than expected yields. Climate predictions are that sub-Saharan countries like Malawi should expect more seasons of low rainfall than of the current heavy rainfalls, and that the model of heavy reliance on fertilizer is precisely the wrong way to prepare for this.

“Natural” means of enhancing soil fertility, while a lot of work initially, end up giving the soil more drought-tolerance by enhancing its moisture-retention qualities, etc. At the very least, fertilizer use should be an adjunct to enhancing soil fertility by improving its inherent structure. It should not become a sole strategy as is becoming the case, setting the country up for dramatic failure if the precise mix of good rainfall and widely available fertilizer is not available. Is this part of the debate at all in Malawi?

Is the subsidy not indeed hurting the potential for the development of an agro-related private sector, as the WB argues? It is said that instead of just being availed to poor farmers who could not afford it on their own, even well to-do farmers see no point in buying a commodity that there is now the possibility of getting at a fraction of its market price, even though in theory these farmers should not qualify for the subsidised fertilizer. This has led to many allegations of all sorts of corruption, and it has definitely hurt private fertilizer importers/vendors. What are the implications of all this in the long term?Is the development of a private sector not also important? If so, how can that take place inan environment where government intervention through subsidies makes fertiliser and other inputs available at below-market prices?

I have merely scratched the surface of this topic and the many questions that need to be carefully pondered to make Malawi's example part of a long-term trend, rather than just a flash in the pan. Here is a list of some useful further reading on an important subject for African agriculture that deserves close scrutiny over the years:

1.Fertilizer subsidy boosts Malawi maize yields but questions remain

2.How IMF-World Bank structural adjustment programs destroyed African agriculture

3.Malawi bumper harvests due to more than just fertilizer subsidy

4.Caution urged on Malawi fertilizer subsidies despite bumper harvests

5.Required: A new agriculture for a new Africa

6.Africa reconsidering agricultural subsidies

Understandbly, a lot has been said and written about the positive development of the record harvests. They are a wonderful example of an African country taking charge of its own agricultural affairs. Then there is the powerful symbolism of an African country being so committed to a well-thought out path of economic intervention that it is willing to dig deep into its own treasury to fund a program it believes in, even at the risk of angering the purportedly all-knowing foreign experts and donors.

Malawi's successful example, therefore, is significant for more than just the agricultural and economic reasons, although their importance are obviously also considerable. But all these reasons why Malawi's feat is of such huge symbolic importance to Africa are precisely why tough questions should be asked about the long term. Appropriate modifications can then be made to ensure that this development does not end up in failure when one or another critical element of its success is suddenly missing. If the right lessons are learned and appropriate adjustments made, Malawi may indeed blaze a unique trail to agricultural development for other countries to emulate.

African Path Business/Agriculture

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