FAO in Kenya

Agriculture crucial in breaking the chains of commodity dependence

22/07/2016

Smallholders and family farmers at the centre of action

Nairobi – Kenya is one of the ninety-five commodity-dependent developing countries in Africa where at least forty-five countries fall in the same category.  Decreasing demand for commodities from emerging economies and adapting to the current global low prices is one of the challenges discussed during the 14th session of the United Nation Conference on Trade and Development (UNCTAD 14) in Nairobi, Kenya. More than seven thousand delegates from across the globe including heads of state, ministers, academia, economic experts, private-sector representatives and civil society groups were in attendance.

The discussion was within UNCTAD’s Global Commodities Forum, co-organized by the Food and Agriculture Organization of the United Nations (FAO) and the Commonwealth Secretariat.  The crux of the forum’s discussions was on tackling the challenge of decreasing demand of commodities from emerging economies and lower prices, and policies that could help shape the capacity for countries to adapt.

In his opening remarks during the ministerial round table, Mr. Kostas Stamoulis, FAO Assistant Director-General (ad interim), Economic and Social Department (ES), emphasized on agriculture’s crucial role in breaking commodity dependence.  He called for a joint effort to place smallholders and family farmers at the centre of the action towards achieving sustainable agriculture and food systems in a bid to free humanity from the scourge of hunger and malnutrition.

“It is of utmost importance that we do not neglect the agricultural sector, as we enter this period of low economic growth, slowing demand and declining commodity prices. Now more than ever, renewed focus on agriculture is necessary to secure productivity increases in a sustainable way, while ensuring farmers’ profitability and governments’ revenues,” said Mr. Stamoulis.

Projections of slow grown in global food demand in the next decade

Citing the recently published OECD-FAO Agricultural Outlook that projects a slow growth in global food demand due to slower population growth, weaker income growth in many countries, and rising levels of consumer satiation, Mr. Stamoulis was quick to point out that the introduction of targeted policies and technology adoption can have a direct impact on the quality and productivity of produce – citing success stories of Burkina Faso’s cotton and Ghana’s cocoa industries where these adjustments have had a positive impact on the lives of farmers.

Forum and the ministerial roundtable participants included Kenya’s Cabinet Secretary in the Ministry of Agriculture, Livestock and Fisheries Mr. Willy Bett, as well as ministers and high-level guests from Angola, Ethiopia, Burkina Faso, Ghana, Benin, Uganda, Egypt and Nigeria.

Majority of African countries dependent on commodities

According to The State of Commodity Dependence Report 2014 (UNCTAD), in 2012 – 2013 45 African developing countries were dependent on commodities. This represents an increase of seven percent from previous years. Kenya’s record demonstrates commodity exports reflecting 65% of the country’s merchandised export value.

The primary commodities sector remains an essential source of employment, income and government revenues for most developing countries. Twenty countries in Africa depend on agricultural commodities for generating export revenue while twenty-nine countries depend on non-agricultural exports, such as oil and minerals.

The fluctuation of commodity prices especially within the agriculture sector has a significant impact on the economy of commodity-dependent countries. Smallholders and the rural sector are adversely affected in terms of poverty, food security and income generation.

Evaluating Trade and Development through the SDGs

UNCTAD is a quadrennial event held in Africa for the fourth time and in Kenya for the second time since inception. Established in 1964, it has become the focal point for trade and development issues within the United Nations system. The key roles of UNCTAD are: developing policy recommendations on trade, finance, technology and investment; providing a platform for discussions and policy dialogue for state representatives; and giving technical assistance to developing countries and counties with economies in transition.

States and governments are currently implementing seventeen Sustainable Development Goals (SDGs) under the 2030 Agenda for Sustainable Development. One of the main objectives of the conference was to provide a platform to discuss the opportunities and challenges countries are facing in the process of operationalizing the SDGs hence this year’s conference theme: “From decision to action: Moving towards an inclusive and equitable global economic environment for trade and development”. High level forums held during the conference were the World Investment Forum, the Global Commodities Forum, the Civil Society Forum and Youth Forum.

Reaching a final agreement at UNCTAD 14 – Azimio and Maafikiano

After long days of fruitful discussions and negotiations during UNCTAD 14, two strategic documents were developed. The first titled Nairobi Azimio, or Swahili for ‘Nairobi’s Agreement’ is a political declaration of UNCTAD’s mandate and its role as a United Nations focal point for trade and development issues. Nairobi Maafikiano or ‘Nairobi’s Consensus’ focuses on UNCTAD’s role in facilitating multilateralism for trade and development, promoting inclusive and sustainable growth, building economic resilience through structural transformation of economies and the effective implementation of the 2030 Agenda and the realisation of the Sustainable Development Goals.

 Contacts:

| Ruth Njeng’ere – Communications Officer | Email: [email protected] |

| Martina Torma - Communications | Email: [email protected] |