A Global Perspective of Potato Production in Emerging Markets presentations... · Strategy: Innovations for linking small-scale potato producers to market. Papa Andina Initiative

A Global Perspective of A Global Perspective of Potato Production in Potato Production in

Emerging MarketsEmerging Markets

Pamela K. Anderson

International Potato Center

8 August 2008 SCRI, Dundee, Scotland

Potato production shift

Source: FAOSTAT

05

1015

20

Mill

ion

hect

ares

1960 1970 1980 1990 2000 2010

Year

Developed Developing

Potato area from 1961-2006

in developed and developing countries

5010

015

020

025

0M

illio

n m

etric

tonn

es

1970 1980 1990 2000 2010Year

Developed Developing

Potato production from 1971-2006

in the developed and developing worlds

Agriculture for Development

www.worldbank.org/WDR2008

PotatoPotato--poverty target areaspoverty target areas

Source: The CIP Vision, 2004

Agriculture based countriesMainly SS-Africa

417 million rural people

Transforming countriesMainly Asia, MENA

2.2 billion rural people

Urbanized countriesMainly Latin America


Agr

icul

ture

’s s

hare

in g

row

th 1

990-

2005

Rural poor/total poor, 2002

The Three Developing Worlds of Agriculture

0 100 %

80%

0

50%

20%

Source: World Bank, 2007. World Development Report 2008: Agriculture for development.







Agr

icul

ture

’s s

hare

in g

row

th 1

990-

2005



0 100 %

80%

0

50%

20%


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

Coastal

Andes

National

Potato production in Peru, 1970Potato production in Peru, 1970--20032003

Potato yields (t/ha)

Promoting Integrated Technology in Promoting Integrated Technology in Bolivia, Ecuador and PeruBolivia, Ecuador and Peru

Papa Andina Initiative purpose

Capacity building to promote innovation to link poor farmers to new market opportunities

Public

Public &

private

Private

Ecuador

Peru

Bolivia

NGO’s, Developmentprojects

Operational

Partners

Public org. at national & locallevels

Market chainactors

Strategic

Partners

Innovation process > Commercial innovation through market chain is the driver for other innovations

Links research and development

Seed production system for native potatoes

Commercial information systems (price info on native potatoes)

IPM for market quality criteria

Post Harvest management to smooth supply

Input provider

Farmer Wholesaler

Processor

Retail

Participants R & D Partner

Participatory Market Chain Approach

How does PMCA work?

InterestInterest

TrustTrust

CollaborationCollaboration

1 ye

arap

prox

.

DiagnosisUnderstand market chain actors, interests, ideas, problems

Participatory analysis of new market opportunitiesWork in thematic groups

Phase 1

Phase 2

Phase 3Develop market driven innovations•new products•new technologies•new institutions

LeadershipLeadership

FacilitationFacilitation

BackstoppingBackstopping

ConsolidationConsolidation ofof createdcreated innovationsinnovations

Isabel Alvarez, owner and chef of “Señorío de Sulco” Restaurant, is an Ambassador of Peruvian potato cuisine

Strategy: Innovations for linking small-scale potato producers to market

Papa Andina InitiativePapa Andina Initiative

TT’’ikapapaikapapa

T’ikapapa sales to Wong supermarket chain

01020304050

2004 2005 2006(Aug)

Tikapapa sales per year (MT)

2004: 14 MT were sold 2005: 38 MT were sold 2006: 50 MT were sold (August)

TT’’ikapapaikapapa 2007 UN SEED Award2007 UN SEED Award

2007 World Challenge Award2007 World Challenge Award

PMCA: Beyond Commercial Innovation

RESEARCH DEMANDSTECHNOLOGICAL INNOVATION

NEW FORMS OF ORGANIZATIONINSTITUTIONAL INNOVATION

NEW MARKET OPPORTUNITIES COMMERCIAL INNOVATION

PMCAT’ikapapa (Other products)

Generation of Comercial Innovations

JalcaJalca ChipsChips®®

Potato chips based on native potatoes

Pepsico-Frito Lay officially launched its

“Lays Andinas”

With Peruvian Minister of Agriculture, Ismael Benavides

RED LATINPAPA

COORDINATING COMMITTEE

SEED SYSTEMSADVANCED GERMPLASM

DISSEMINTATIONINFORMATION & TRAINING

POLICY & REGULATION

Red LatinPapa

A

C

B

www.neiker.net/neiker/papata/

Ejemplo España

Redes Nacionales

Development of sustainable value-chains is essential for improving smallholder incomes







Agr

icul

ture

’s s

hare

in g

row

th 1

990-

2005



0 100 %

80%

0

50%

20%


0

5

10

15

20

25

1962 1972 1982 1992 2002

year

kg/c

ap/y

ear

Central America

Africa South ofSahara

Low -IncomeCountries

Low -Income FoodDeficit

Regional trends in potato consumption

Source: FAOSTAT

Tremendous growth over last decade in area planted to potato

in Sub-Saharan Africa (SSA)Major African Field Crops Area Growth

1994-2005 (source www.faostat.org)

80

100

120

140

160

180

200

220

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Years

Sweet potatoesPotatoesBeans, dryYamsWheatCassavaRice, paddyMaize

Scott et al. (2000) prediction 250% increase in SSA potato demand between 1993 & 2020 on target!

Percent change in crop production of staple food crops in SSA, 1994-2004

(3 yrs average)

0 20 40 60 80 100 120 140

1

% change

WheatSweetpotatoesRicePotatoesMaizeCassavaBarleyBananas

Source: FAOSTAT

Most of the growth was in the ECA

Sub- region

Share of

areaASARECA 71%

SADC 21%

CORAF 8%

Source: www.faostat.org

Ware Potatoes 80%

Seed Potatoes 10% Waste 10%

Ware Potatoes used as boiled vegetable 85%

Processing 15%

Chips 90% Crisps 10%

Utilization of potatoes in the ECA countries

Predominant technology

http://rds.yahoo.com/_ylt=A9gnMiYH1EBF2mQA.f2jzbkF;_ylu=X3oDMTBsNXZtZnJjBHNlYwNwcm9mBHZ0aWQDSTk5OV83Mw--/SIG=137s0702q/EXP=1161962887/**http%3a/www.tufts.edu/communications/stories/storyimages/potato%2520chips%252012.jpg

Growing Demand for chips in ECA

• Growing urbanization– 34% today– 47% in 2015

• Growing # of fast food restaurants

• Growing tourism• Change in eating habit in

favour of chips

Methodology

From 2004 to 2006, a marketing survey was carried out in Burundi, Ethiopia, Kenya, Rwanda, Tanzania and Uganda

...

...

Results showed that• Smallholder farmers have a

high potential to access national and regional potato chips markets.– Growing demands for chips– Availability of high yielding

varieties with processing quality

– Profitability of processing into chips

– The potential for chips industry to grow

– Favorable trade tariffs

Benefits of using improved varieties, Uganda 2004

Cost item Kapchorwa MubendeTraditional Improved Traditional Improved

Inputs 162 462 177 407Labor 197 279 158 255Total Cost (US$/ha)

359 741 335 662

Yield (t/ha) 8.5 20.0 7.5 17.5Unit cost of production (US$/ton)

44.9 37.1 44.6 37.8

Net Margins ($/ha)

126 399 138 441

Farmers earn at least US$400/ha from improved vars. as compared to US$130/ha from traditional varieties

A Masaai group in Kenya supply Steers and Njoro canning with processing potatoes about 8 tons/week

Receive >US $2000/acre/year

From barley they get about $US 200/year/acre

Ware Potatoes 80%

Seed Potatoes 10% Waste 10%

Ware Potatoes used as boiled vegetable 85%

Processing 15%

Chips 90% Crisps 10%

Utilization of potatoes in the ECA countries

Predominant technology

http://rds.yahoo.com/_ylt=A9gnMiYH1EBF2mQA.f2jzbkF;_ylu=X3oDMTBsNXZtZnJjBHNlYwNwcm9mBHZ0aWQDSTk5OV83Mw--/SIG=137s0702q/EXP=1161962887/**http%3a/www.tufts.edu/communications/stories/storyimages/potato%2520chips%252012.jpg

SSA potato production, area and yield trends


Aeroponic Seed Production

Women potato farmers being trained in the “Select the Best” positive selection technique in Kenya

Most of the growth was in the ECA

Sub- region

Share of

areaASARECA 71%

SADC 21%

CORAF 8%








Agr

icul

ture

’s s

hare

in g

row

th 1

990-

2005



0 100 %

80%

0

50%

20%


PovertyPoverty

To halve the proportion of population in extreme poverty between 1990 and 2015 – that the population living in poverty be less than 15% by 2015

Potato production and poverty in ChinaPotato production and poverty in China

Area growth rates for major Chinese field crops

40

60

80

100

120

140

160

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Years

Groundnuts, with shellPotatoesMaizeRice, paddyWheatSweet potatoesMillet

Source: FAOSTAT in http://faostat.fao.org\, January 8th 2007

http://faostat.fao.org/

0

1000

2000

3000

4000

5000

6000

1961 1965 1970 1975 1980 1985 1990 1995 2000 2005

years

Area

[100

0 ha

]

0

2

4

6

8

10

12

14

16

18

Yiel

d [to

n/ha

]

Planting area (1000 ha)

Yield (ton/ha)

Sources of data:1) Data of 1961 to 1981 come from the statistics of FAO2) Data of 1982 to 2005 come from the China Agricultural Statistics3) The data were corrected by Xie Kaiyun

Potato production 1961-2005

Potato trends

1996 2000 2005

Area harvested (ha)

3,739,747 4,725,366 4,883,500

Yield (MT/ha) 14.19 14.03 15.04

Production quantity (MT)

53,078,698 66,318,167 73,461,500

0

5

10

15

20

25

30

Virus

Late blight

Clean seed

Bacterial wilt

National average(14.5 t/ha)

+ 6.0 tons

+ 5.1 tons

+ 2.8 tons+ 0.6 tons

Yield(t/ha)

Potato yield gap analysis (expert panel)

Source: a) Keith Fuglie. 2007. Research Priority Assessment for the CIP 2005-2015 Strategic Plan: Projecting Impacts on Poverty, Employment, Health and Environment.b) Yearbook of China Agricultural Statistics. 2005

Late blightLate blight most important constraint in potato production in China (Fuglie 2007)

Savings from reduced fungicide use using a resistant cultivar in China

Nature of savings AmountFungicide (mt) 34,743

Water (million m3) 7

Value of fungicide saved (million USD) 521

Value of labor saved (million USD) 87

Total savings (million USD) 608

Constraints by Province

Source: Fuglie 2007

Fam Freq Female Male396141 0.10 PW-88.6065 TXY.6396108 0.08 GRANOLA TXY.2396110 0.08 GRANOLA TXY.11396125 0.08 MARIELA TXY.6396156 0.08 BRDA TXY.11396129 0.05 MONALISA TXY.6396130 0.05 MONALISA TXY.11396149 0.05 ACHIRANA TXY.6396157 0.05 FREGATA TXY.2396096 0.03 BOGNA TXY.2396098 0.03 BOGNA TXY.11396100 0.03 G7445 TXY.2396109 0.03 GRANOLA TXY.6396126 0.03 MARIELA TXY.11396136 0.03 PW-88.6065 TXY.2396138 0.03 PW-88.6065 TXY.11396144 0.03 SERRANA TXY.2396145 0.03 SERRANA TXY.6396146 0.03 SERRANA INDIA-1039396148 0.03 ACHIRANA TXY.2396150 0.03 ACHIRANA TXY.11396151 0.03 BEROLINA TXY.2396152 0.03 BEROLINA TXY.6396159 0.03 FREGATA TXY.11

INorthern Single-crop region

Central Double-crop region

Souh-west Mixed Region

Breeding for virus resistance in China

Food Security and Income

IYP MissionIYP Mission

To increase awareness of the importance of the potato as a food in developing countries, and promote research and development of potato- based systems as a means of contributing to the achievement of the United Nations Millennium Development Goals (MDGs)

0

100000

200000

300000

400000

500000

600000

Potatoes Maize Wheat Rice

Source: FAO, 2005

Potato consumptionPotato consumption (million(million--tones)tones)

Potato production shift

Source: FAOSTAT

THE CUZCO CHALLENGE

Potato Science for the Poor

Documents

A Global Perspective of Potato Production in Emerging Markets presentations... · Strategy: Innovations for linking small-scale potato producers to market. Papa Andina Initiative