Thank you for the opportunity to comment on the V0 draft study Water and Food Security. I own a farming operation in Ghana, on the shores of Lake Volta, so I've had the opportunity to consider the role of water as it relates to food production, efficiency, and the sustainability of our investment in Ghana, and its impact on our Ghanaian farmer friends and neighbors.
The draft report is excellent, but here are some ideas that may be useful to consider as the committee seeks to examine the full extent to which water can optimize food security. My comments relate to Africa, so this is a limiting factor, but perhaps these themes could be relevant in other food insecure regions.
1. Access to water increases land productivity; makes African farm enterprises more bankable; reduces risk of crop loss; and increases land real estate value.
Access to water unlocks value in four ways:
(1) increases the productivity of the land (this addressed in the study relating to irrigation);
(2) increases a farmer's access to seasonal and operational finance (this is not addressed in the study);
(3) reduces the risk of crop failure/loss due to drought, thus making crop insurance more economically feasible (this is not addressed in the study); and
(4) helps poor African farmers build tangible assets (with proper land title) that can appreciate in value and can be sold/transferred to create wealth for African farm enterprises (this is not addressed in the study). (e.g. un-irrigated, untitled land is worth less than $100 per hectare; irrigated, titled land is worth $10,000+ per hectare)
2. Access to bulk and cold chain transport by water will save money and reduce post-harvest loss.
Think about the Mississippi River (and other waterways) transport systems impact on U.S. agriculture industry: billions per year in cost savings vs. ground transport. Bulk and cold chain transportation by water costs a fraction (per km, per kg) of road transport and should be included as an important "food security" variable.
Improved water transport will unlock value in four ways:
(1) will reduce COGS (cost of goods sold); (this is not addressed in the study),
(2) will reduce post-harvest losses (this is not addressed in the study);
(3) will reduce the cost of food for consumers (this is not addressed in the study); and
(4) will increase farmer incomes (this is not addressed in the study).
Summary Comments
Again, the study is excellent as far as it goes. But it leaves billions of dollars off the table of value for food security related to leveraging water resources. The increase in productivity is covered very well, as is water quality; but farm enterprise bankability, crop insurability, and land value appreciation etc is what will unlock commercial-grade investment, which is absolutely required for sustainability in African food production. And water transport efficiency will provide a dramatic increases in direct and indirect cost savings, passed on to farmers and consumers alike, in the form of more affordable food, less reliance on imports, etc.
These items - billions of dollars of value to farmers and ultimately African consumers, offered by improved water policies, land values, improved crop banking and insurance risk profiles, infrastructure, systems - are unaccounted for in this draft study.
I would be happy to pursue these themes in more depth with the HLPE, if interested.
Best,
Jon
Jon Vandenheuvel
CEO
Africa Atlantic Holdings Ltd
www.AfricaAtlantic.com
Jon Vandenheuvel