value addition and diversification in agriculture · 2019. 11. 22. · 22,6 28,8 16,8 00 05 10 15...
TRANSCRIPT
Value addition and diversification in agriculture
Vanuatu Coconut Summit 30-31 October 2019Luganville, Vanuatu
Stefan CsordasCommodities Branch, UNCTAD
Agriculture remains the backbone of many low and middle-income economies…
24,522,6
28,8
16,8
00
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Vanuatu LDCs LICs LMICs
Share of agriculture in GDP (2010-17 average, %)
Data source: World Development Indicators
Agriculture remains the backbone of many low and middle-income economies and is crucial to achieve the SDGs
24,522,6
28,8
16,8
00
05
10
15
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25
30
35
Vanuatu LDCs LICs LMICs
Share of agriculture in GDP (2010-17 average, %)
6259
64
42
0
10
20
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60
70
Vanuatu LDCs LICs LMICs
Employment in agriculture (2010-18 average, % of total employment)
Data source: World Development Indicators Data source: World Development Indicators
There are large differences in agriculutral productivity - value addition is essential
Vanuatu (2014): USD 2,598
Data source: World Development Indicators
Coconut products
Coconut
Kernel
Copra
Crude coconut oil (CNO)
Refined coconut oil (RBD)
Biofuel
Virgin coconut oil
Desiccated coconut
Coconut water
Coconut milk
Coconut vinegar
Coconut flour
…
Shell
Charcoal
Activated carbon
…
Husk
Coconut fibre
Coir yarn
Coir twine
Textiles
Mattresses
Molded coir products
Brushes
Brooms
…
Vanuatu's coconut product exports
72,1
24,2
3,8
67,8
30,2
2,0
50,3
44,9
4,7
0
10
20
30
40
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Copra Coconut oil Coconut meal
Vanuatu share of coconut products (2016-18, % of total coconut exports)
2016 2017 2018
Data source: Vanuatu National Statistics Office
Diversification can help mitigate weather and climate-related risks
• Vanuatu is one of the most vulnerable countries to climate change
– 21st out of 181 countries according to the 2017 ND-GAIN climate vulnerability score
• Agriculture is major receiver of climate-related impacts
– crop losses and damages to agricultural infrastructure due to floods, storms, and droughts
– Rising sea levels
– Changing precipitation patterns
– Increase in weeds, insect pests and plant diseases
Diversification can help mitigate price risks
Data source: UNCTADStat
1845
1244
931
796
669719
0
200
400
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1600
1800
2000
Coconut oil, crude, in bulk, Philippines/Indonesia, CIF Rotterdam ($/t)
Diversification can help mitigate price risks
Data source: UNCTADStat, International Coconut Community
1845
1244
931
796
669719
238
330 333320
303287
303
0
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0
200
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1400
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Au
g-1
7
Sep
-17
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-17
No
v-1
7
Dec
-17
Jan
-18
Feb
-18
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-18
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r-1
8
May
-18
Jun
-18
Jul-
18
Au
g-1
8
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Coconut oil, crude, in bulk, Philippines/Indonesia, CIF Rotterdam ($/t)
Coir fibre, FOB Indonesia, ($/t), right axis
Coconut products - example of a diversified coconut export structure
Data source: Sri Lanka Coconut Development Authority
UNCTAD project on cotton-by products in Eastern and Southern Africa
• Cotton sector in many African countries characterized by low value addition
• Project aims at strengthening the capacity of beneficiary countries to– assess the potential value, market situation and prospects for
cotton by-products– formulate evidence-based policies that improve the value added
of cotton by-products– devise investment profiles to attract potential investors
• Project implemented in United Republic of Tanzania, Uganda, Zambia and Zimbabwe from 2016 - 2019
Cotton-by products
COTTON PLANT
SEED COTTON
COTTON STALKSSEEDLINT
Meat
Hulls
Linters
Planting seed
Cake / meal- Flour- Feed- Fertilizer
Oil- Salad / cooking oil- Cosmetics- Pharmaceuticals- Waterproofing
- Feed- Fertilizer- Synthetic rubber
- Food packaging- Plastics- Film- Paper
Pulp- Particle board- Fuel briquettes- Substrate for
mushroom cultivation
Spinning (yarns)
Sewing thread
Non-woven- Medical uses- Ragtearing
Weaving yarn
Knitting yarn
Other
Textiles- Towels- Bed linens
Industrial- Canvas- Footwear- Belts
Textiles- Sheets- Curtains- Sleepwear
Industrial- Gloves- Bags
Industrial- Rope- Twine
Source: Adapted from Cotton Development Organisation, Uganda
(waste)
Focus area of UNCTAD project:"Promoting cotton by-products in Eastern and Southern Africa"
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• Income opportunities for farmers
• Small-scale, rural business opportunities, including for women
• New business opportunities for entrepreneurs
• Improved nutrition
• Substitution of fossil fuels
• Substitution of wood charcoal (deforestation)
• Reduced pollution
Cotton-by products can contribute to development objectives
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Sources: Estimates by UNCTAD, CIRCOT and Uganda Industrial Research Institute
ItemBriquetting
plantPelleting
plantMushroom
farm
Capacity 20 MT/day 4 MT/day 3,600 kg/yr
Total capital investment (US$) 69,000 25,000 14,850
Total revenues / year (US$) 350,000 59,000 5,832
Net profits / year (US$) 35,000 8,000 3,644
Net profit margin 10% 14% 25%
Return on investment, annual 53% 32% 25%
Investment payback period (months) 23 38 49
Financial projections for selected cotton stalk-based businesses
Summary
• Agricultural development is a crucial aspect of the sustainable development agenda
• Value addition and diversification can help to mitigate risks and contribute to achievement of SDGs
• Large potential for value addition and diversification exists in coconut sector
Thank you.
More information:https://unctad.org/en/Pages/SUC/Commodities-Special-Unit.aspx
Contact: [email protected]