Water Productivity in the Agricultural Sector Water Resource Efficiency Workshop 16 – 17 June 2011, EEA, Copenhagen Maite M. Aldaya Consultant, UNEP Associate, WFN Copyright by Arjen Y. Hoekstra, 2009. The presentation can be freely used for educational purposes, but not for commercial purposes. When using this presentation or pieces from it, due credit should be given to the author. 1

The water footprint is an indicator of water use that looks at both direct and indirect water use. The water footprint of a nation is defined as the total amount of water that is used to produce the goods and services consumed by the inhabitants of the nation. The water footprint of a nation has two components. The internal water footprint is defined as the water use within the country in so far it is used to produce goods and services consumed by the national population. The external water footprint of a country is defined as the annual volume of water resources used in other countries to produce goods and services imported into and consumed in the country considered. 2

The water footprint is an indicator of water use that looks at both direct and indirect water use. The water footprint of a nation is defined as the total amount of water that is used to produce the goods and services consumed by the inhabitants of the nation. The water footprint of a nation has two components. The internal water footprint is defined as the water use within the country in so far it is used to produce goods and services consumed by the national population. The external water footprint of a country is defined as the annual volume of water resources used in other countries to produce goods and services imported into and consumed in the country considered. 3

► volume of rainwater stored in the soil Green water ► volume of rainwater stored in the soil Blue water ► volume of fresh surface or groundwater The water footprint is an indicator of water use that looks at both direct and indirect water use. The water footprint of a nation is defined as the total amount of water that is used to produce the goods and services consumed by the inhabitants of the nation. The water footprint of a nation has two components. The internal water footprint is defined as the water use within the country in so far it is used to produce goods and services consumed by the national population. The external water footprint of a country is defined as the annual volume of water resources used in other countries to produce goods and services imported into and consumed in the country considered. 4

Producing more goods and services using less water… Water efficiency The accomplishment of a function, task, process, or result with the minimal amount of water feasible (m3/product units) Water productivity Ratio of the volume of benefit, i.e. output, service or satisfaction to the amount of water used in the production process (product units/m3) The water footprint is an indicator of water use that looks at both direct and indirect water use. The water footprint of a nation is defined as the total amount of water that is used to produce the goods and services consumed by the inhabitants of the nation. The water footprint of a nation has two components. The internal water footprint is defined as the water use within the country in so far it is used to produce goods and services consumed by the national population. The external water footprint of a country is defined as the annual volume of water resources used in other countries to produce goods and services imported into and consumed in the country considered. 5

The water footprint concept ► The WF is an indicator of water use that looks at both direct and indirect water use of a consumer or producer. ► Water use is measured in terms of: - water volumes consumed (evaporated or otherwise not returned) - polluted per unit of time ► Geographically explicit ► A WF can be calculated for: - process - product - consumer - group of consumers (e.g. municipality, province, state, nation) - producer (e.g. a public organization, private enterprise) The water footprint is an indicator of water use that looks at both direct and indirect water use. The water footprint of a nation is defined as the total amount of water that is used to produce the goods and services consumed by the inhabitants of the nation. The water footprint of a nation has two components. The internal water footprint is defined as the water use within the country in so far it is used to produce goods and services consumed by the national population. The external water footprint of a country is defined as the annual volume of water resources used in other countries to produce goods and services imported into and consumed in the country considered. [Hoekstra et al., 2011] 6

National water accounting framework Internal water footprint External water footprint WF of national consumpt. Water use for export Virtual water import for re-export Virtual export + = WF within nation import Virtual water budget Consumption Export Traditional statistics on water use (withdrawals) Production Import

Water footprint of Spain Distinctive aspects: Integration of hydrological, ecological and economic aspects Socio-political and institutional drivers pending Participation of the stakeholders-farmers. WIN-WIN solution In Spain the policy of ‘more crops and jobs per drop’ has to change to ‘more cash and care of nature per drop’ Is this feasible?

Water footprint of Spain Water footprint of Spain (46 Km3) (2004) 84% 9% 7% Internal WF (inside Spain) 13 Km3 (28%) External WF (in other countries) 33 Km3 (72%) 96% 4% 99% 1% Agricultural Urban Industrial Source: based on Garrido et al. (2010)

Water productivity in agriculture (Spain) Water apparent productivity and blue and green water footprint of crop production in Spanish agriculture (2002) Source: Garrido et al. (2010)

Water productivity in agriculture (Spain) Most blue water irrigation in Spain is used for low value crops: 10% of the blue water (mainly groundwater) produces 80% of the economic value of irrigated agriculture 80% of the blue water produces low value crops Total water use in agriculture by crop productivity range as percent of volume and value added (2001-2002) Source: Aldaya et al. (2008)

Water footprint of Spain Livestock economic relevance has increased during the last decade; Most livestock is exported (mainly pork) while grown with imported fodder (virtual water); Increased water dependency. Crop-related virtual water imports by country of origin Source: Garrido et al. (2010)

Food (virtual water) trade drivers Virtual water trade mitigates drought cycles (acts as a counter- cyclical effect) Virtual water trade is mainly a consequence of agricultural (crop and livestock) policies: boosts water and land productivity favours specialisation and efficiency permits more efficient use of available green water Enables a closer connection of water uses in the basin with global water use

Decoupling economic growth from water use Water footprint and virtual water trade per gross domestic product Source: Garrido et al. (2010)

Water footprint of Spain WF Guadiana river basin - green and blue (surface and groundwater) - related economic analysis 50 100 150 200 25 Km PROVINCES LOWER GUADIANA FORMER LOWER GUADIANA II OR TOP DOMAIN UPPER GUADIANA MIDDLE GUADIANA GREEN WATER BLUE SURFACE WATER BLUE GROUNDWATER Source: Aldaya and Llamas (2008) BADAJOZ CÁCERES CUENCA TOLEDO SEVILLA ALBACETE CÓRDOBA HUELVA CIUDAD REAL 1286 93 835 905 745 142 74 43 34 21 10 3 TOP DOMAIN Spanish regulation (2008) requires including the WF analysis in the River Basin Management Plans according to the EU WFD.

Water footprint in Spain Incorporating the Water Footprint and Environmental Water Requirements into policy: Reflections from Doñana Region (Spain) (Aldaya et al., 2010)

Water footprint of Spain Water footprint into policy Spain is the first country that has included a water footprint analysis into governmental policy making in the context of the EU Water Framework Directive (WFD) (2000/60/EC). In 2008 the Spanish Government approved a regulation requiring the water footprint analysis for the development of the River Basin Management Plans according to the EU WFD (BOE, 2008). Recently Spanish regulation about sustainable tourism mentions the water footprint (Plan FuturE 2010) (BOE, 2010)

Water footprint of Spain Conclusions 1. The WF is a good method for IWRM, but needs further refinements 2. The food (virtual water) trade is usually driven by comparative advantages. The relative scarcity of water may not be a relevant driver. 3. Socio-political factors in water management might be as important as the environmental and economic ones. An equilibrium between utilitarian and intangible values is necessary. 4. Spanish situation suggests that it is time to change (in industrialized and emerging countries) from a policy of ‘more crops per drop’ to a policy of ‘more cash and care of nature per drop’ The cultural per capita water for food requirement (CWRF) is calculated based on actual food consumption patterns. Annual consumption of various food items over 1961-2003 is obtained from FAOSTAT (FAO, 2006). Basic CWRF is estimated to lie around 300 m3 cap-1 y-1. Subsistence CWRF ranges from 505 to 730 m3 cap-1 y-1. These two numbers correspond to low and high subsistence levels respectively. The low subsistence level is determined by using the lower limits of food consumption for various food groups in the food pyramid, while the high subsistence level is determined by using the upper limits. CWRF at the high subsistence level is more than double the basic CWRF. The cultural CWRF in the early 1960s was lower than the basic CWRF. The year 1961 is the last year of the so-called “three bad years”, -> calamities -> deaths of tens of millions directly caused by starvation. In 1961, the Chinese government started to introduce a series of new economic policies known as “readjustment, consolidation, filling-out, and raising standards” to boost agricultural production. Per capita water requirement for food (CWRF) has increased about 3.5 times between 1961 and 2003, largely due to an increase in the consumption of animal products. Although steadily increasing, the CWRF of China is still much lower than that of many developed countries. Additionally, 3 scenarios were analysed, for low, medium and high levels of modernization, using projections of China’s future population from United Nation, 2006.

Conclusions Producing more goods and services….. ….with less water .…with less impact The cultural per capita water for food requirement (CWRF) is calculated based on actual food consumption patterns. Annual consumption of various food items over 1961-2003 is obtained from FAOSTAT (FAO, 2006). Basic CWRF is estimated to lie around 300 m3 cap-1 y-1. Subsistence CWRF ranges from 505 to 730 m3 cap-1 y-1. These two numbers correspond to low and high subsistence levels respectively. The low subsistence level is determined by using the lower limits of food consumption for various food groups in the food pyramid, while the high subsistence level is determined by using the upper limits. CWRF at the high subsistence level is more than double the basic CWRF. The cultural CWRF in the early 1960s was lower than the basic CWRF. The year 1961 is the last year of the so-called “three bad years”, -> calamities -> deaths of tens of millions directly caused by starvation. In 1961, the Chinese government started to introduce a series of new economic policies known as “readjustment, consolidation, filling-out, and raising standards” to boost agricultural production. Per capita water requirement for food (CWRF) has increased about 3.5 times between 1961 and 2003, largely due to an increase in the consumption of animal products. Although steadily increasing, the CWRF of China is still much lower than that of many developed countries. Additionally, 3 scenarios were analysed, for low, medium and high levels of modernization, using projections of China’s future population from United Nation, 2006.

Conclusions Water efficiency and productivity - Framework to inform and support decision-making - Inform water allocation decisions - Awareness raising - Promote product transparency - Eco-efficiency (operational and supply chain) - Benchmarking Challenges - Database improvement (industrial blue water consumption) - Uncertainties (data used and accounts) - Communication (volumes and impacts) - Governance (good governance structure for implementation) - Water-pricing policies (incentives for efficient water use, role CAP) The cultural per capita water for food requirement (CWRF) is calculated based on actual food consumption patterns. Annual consumption of various food items over 1961-2003 is obtained from FAOSTAT (FAO, 2006). Basic CWRF is estimated to lie around 300 m3 cap-1 y-1. Subsistence CWRF ranges from 505 to 730 m3 cap-1 y-1. These two numbers correspond to low and high subsistence levels respectively. The low subsistence level is determined by using the lower limits of food consumption for various food groups in the food pyramid, while the high subsistence level is determined by using the upper limits. CWRF at the high subsistence level is more than double the basic CWRF. The cultural CWRF in the early 1960s was lower than the basic CWRF. The year 1961 is the last year of the so-called “three bad years”, -> calamities -> deaths of tens of millions directly caused by starvation. In 1961, the Chinese government started to introduce a series of new economic policies known as “readjustment, consolidation, filling-out, and raising standards” to boost agricultural production. Per capita water requirement for food (CWRF) has increased about 3.5 times between 1961 and 2003, largely due to an increase in the consumption of animal products. Although steadily increasing, the CWRF of China is still much lower than that of many developed countries. Additionally, 3 scenarios were analysed, for low, medium and high levels of modernization, using projections of China’s future population from United Nation, 2006.

Thanks! The cultural per capita water for food requirement (CWRF) is calculated based on actual food consumption patterns. Annual consumption of various food items over 1961-2003 is obtained from FAOSTAT (FAO, 2006). Basic CWRF is estimated to lie around 300 m3 cap-1 y-1. Subsistence CWRF ranges from 505 to 730 m3 cap-1 y-1. These two numbers correspond to low and high subsistence levels respectively. The low subsistence level is determined by using the lower limits of food consumption for various food groups in the food pyramid, while the high subsistence level is determined by using the upper limits. CWRF at the high subsistence level is more than double the basic CWRF. The cultural CWRF in the early 1960s was lower than the basic CWRF. The year 1961 is the last year of the so-called “three bad years”, -> calamities -> deaths of tens of millions directly caused by starvation. In 1961, the Chinese government started to introduce a series of new economic policies known as “readjustment, consolidation, filling-out, and raising standards” to boost agricultural production. Per capita water requirement for food (CWRF) has increased about 3.5 times between 1961 and 2003, largely due to an increase in the consumption of animal products. Although steadily increasing, the CWRF of China is still much lower than that of many developed countries. Additionally, 3 scenarios were analysed, for low, medium and high levels of modernization, using projections of China’s future population from United Nation, 2006. OBSERVATORIO DEL AGUA WATER OBSERVATORY