1. Regional Learning Session on Sustainable and Inclusive Marketing Arrangements Towards Increasing Farmers’ Market Power 9-11 May 2013 Manila Vedini Harishchandra Southeast Asia Department Asian Development Bank

2. Importance of Agriculture Sector Growth in ASEAN Source: Asian Development Bank Key Indicators 2011, Asian Development Outlook 2012, ADB, FAO ASEAN Countries Population Growth Rate GDP per capita Agriculture GDP per capita growth rate Agriculture Employment (%)(US$)(%) (2010) Cambodia1.57973.380 Lao PDR1.71,0481.070 Myanmar1.1876-- Vietnam1.11,1834.070 Brunei Darussalam2.032,648-- Indonesia1.22,9493.038 Malaysia1.38,3735.614 Philippines1.92,1402.640 Singapore1.843,7833.0- Thailand0.64,6133.842

3. Smallholder Access to Markets: Challenges Lack of policy, regulatory support and institutional framework Poor provision of access to credit Inadequate provision of rural infrastructure that reduces postharvest losses and transport costs, and shortens transit time, while increasing overall rural mobility Lack of access to value-responsive markets Lack of access to agricultural information and market data High transaction costs Lack of inclusion of smallholder farmer groups into value chains Lack of opportunities for increased private sector engagement

4. Agriculture Sector Performance Enhancing Priorities Source: ADB-RSDD ProductivityProductivity - Increase production and productivity of food commodities in a sustainable way ConnectivityConnectivity - Improve linkages between food producers and consumers; input and output markets ResilienceResilience - Enhance the resilience of social and ecological systems against the effects of climate change

5. ADB’s overall Agriculture and Natural Resources Priorities Pro-poor investments focused on rural infrastructure, sustainability, climate resilience, and inclusive economic growth, to achieve the objective of poverty reduction. Some of ADB’s SE Asia investments are in: Rural infrastructure and connectivity Environment and natural resources management Irrigation efficiency and water resources management Public-private partnership Regional cooperation and integration

6. Example… Infrastructure for Rural Productivity Enhancement Sector Project (INFRES) – Philippines INFRES Project aimed to increase agriculture productivity by improving rural infrastructure such as farm to market roads, communal irrigation systems and potable water systems. Household Income: Average household income grew by 49%, on-farm income grew by 60% and non-farm income by 35%. Agriculture Productivity: The rice yield increased from 3.28mt/ha to 3.53mt/ha and corn from 1.96mt/ha to 2.42mt/ha. Distribution of Gains: INFRES contributed to reduction in poverty by 24.44 percentage points; exceeding the target by 11 percentage points. Source: Benefit and Impact Assessment of the Infrastructure for Rural Productivity Enhancement Sector (INFRES) Project

7. Sector Investments Loans and Grants as of 2012 Agriculture and natural resources sector: Sovereign Projects - 21,453 million Grant Projects – 1,081 million Technical Assistance -776 million Regional technical assistance – 247 million

8. Some examples AGRARIAN REFORM COMMUNITIES PROJECT IIPhilippines QUALITY & SAFETY ENHANCEMENT OF AGRI PROD & BIOGAS DEVT PROJECTVietnam TONLE SAP POVERTY REDUCTION AND SMALLHOLDER DEVT PROJECTCambodia NORTHERN RURAL INFRASTRUCTURE DEVELOPMENT SECTOR PROJECTLao SUSTAINABLE AQUACULTURE DEVT FOR FOOD SECURITY & POVERTY REDUCTIOIndonesia PARTICIPATORY IRRIGATION SECTOR PROJECTIndonesia CAPACITY BUILDING AND LIVELIHOOD ENHANCEMENT OF POOR WATER USERSIndonesia AGRIBUSINESS DEVELOPMENT PROJECTBangladesh COMMERCIAL AgricultureNepal AGRICULTURE MARKET INFRASTRUCTURE PROJECT SECOND CROP DIVERSIFICATION PROJECTBangladesh IMPROVING SMALL FARMERS' ACCESS TO MARKET IN BIHAR AND MAHARASHTRAIndia AGRIBUSINESS INFRASTRUCTURE DEV'T. INVESTMENT PROG-TRANCHE1 & IIIndia RAISING INCOMES OF SMALL AND MEDIUM FARMERS PROJECTNepal HIGH MOUNTAIN AGRIBUSINESS AND LIVELIHOOD IMPROVEMENT PROJECTNepal Decentralized Rural Infrastructure and Livelihood ProjectNepal SECOND RURAL INFRASTRUCTURE IMPROVEMENTBangladesh FARM ROADS TO SUPPORT POOR FARMERS' LIVELIHOODSBhutan PARTICIPATORY SMALL SCALE WATER RESOURCES SECTOR PROJECTBangladesh

9. Agribusiness Development Assistance for Smallholders in Mindanao Objective : The Project’s long-term objective is an improvement of the income of smallholders in Mindanao. Funding : 8.8million Primary Beneficiaries : The project will benefit about 2,000 smallholders (at least 50% will be women) by improving their access to capacity building, technical training, finance, infrastructure and other support Project Components : 1 Support for start-up agribusinesses for smallholders:This component will provide management, technical and financial support for smallholders in three provinces of Mindanao. 2 Establish an apex institution for smallholders:The grant implementation unit (GIU), will study viable options to establish an apex institution to support smallholders during and after the project. 3 Prepare feasibility studies for increasing agribusiness development for smallholders: This component will explore ways to increase the number of smallholders with access to technical, management, and financial services to improve their livelihoods from agribusinesses.

10. Conclusions Focus: Inclusiveness Sustainability Green agriculture infrastructure Key Constraints: Lack of enabling environment to attract needed investments in agriculture Poor policy, legal, regulatory and institutional framework to support samllholder farmers Poor delivery and absorption capacity Inadequate support for agribusiness development Insufficient extension support and infrastructure Response: Policy/program support Productive Infrastructure/enhanced connectivity Climate change resilience

11. Thank you