IFC in the Agricultural Sector September 2011

1. IFC in the Agricultural Sector September 2011

2. IFC’s Approach in Agriculture is Part of Integrated World Bank Group Action Plan • Key Elements of the IFC Global Agribusiness Strategic Action Plan (ASAP) • IFC ASAP a Collaborative WB-IFC Effort with full integration of WB and IFC Agribusiness Teams World Development Report 2008 WBG Agriculture Action Plan FY 10-12 Differentiated approaches for: Agriculture based countries (mainly SSA and Asia): GDP growth through agriculture Transforming countries (e.g., China, India, Indonesia, Morocco): Higher value products and linkages with the non-farm economy Urbanized countries (e.g., Brazil, Ukraine, Russia): Contribution to global food supply, reduced rural poverty, growth in export crops and increased food safety Five areas of joint focus: Raise agricultural productivity Link farmers to markets and strengthen value chains Reduce risk and vulnerability Facilitate agricultural entry and exit and rural non-farm income Enhance environmental services and sustainability Food Financial Crisis SOURCE: World Development Report 2008: Agriculture for Development; World Bank Group Agriculture Action Plan FY10-12

3. Agribusiness – IFC’s Strategic Priority • Development Impact • IFC investments made directly in the agricultural sector during FY11 are expected to: • provide direct employment to 150,000 people, including 60,000 women, • reach 870,000 farmers (equivalent to 4.4 million people supported) • Reach about 90,000 micro, small, and medium enterprises. • IFC Development Goal Targets: • FY11: 200,000 farmers reached • FY14: 800,000 farmers reached Target

4. IFC’s Strategic Objectives in Agriculture • Contribute to Enhancing Food Security (e.g. increased investment, enhanced productivity) • Contribute to Enhancing Economic Development and Inclusiveness (e.g. focus on smallholders, women, risk management) • Make Environmental and Social Sustainability a business driver (e.g., resource utilization and efficiency)

5. Areas of Focus • Enhance productivity through improved access to key agricultural inputs, dissemination of best practices, investment in modern and sustainable farming • Help mitigate price and weather-related shocks through developing and rolling out risk management products • Support agri SMEs access to finance, access to market and access to technology and inputs through agricultural and financial intermediaries and service providers • Reduce post harvest waste and losses through improved agricultural practices, logistics and infrastructure

6. Input producers and distri-butors Food Processors Distribu-tors Retailers Traders Integrated Agribusiness Value Chain Approach Investment Climate Infrastructure, PPPs Consumers Farmers Financial/Risk Management Products Advisory/Technical Assistance 6+ billion Environmental and Social Ecosystem Services

7. Enhanced IFC Environmental and Social Framework and Tools

8. Revised Performance Standards & Procedures • Introduced requirement to reduce energy/water intensity • Lowered GHG threshold for reporting to 25,000 tons CO2 equivalent per year • Increased attention to supply chain (labor and critical habitats) • Adopted Free Prior Informed Consent for Indigenous Peoples • Changes to Categorization System (both real sector and FIs) • Adopted new regime of information disclosure throughout the project cycle, including ESAP's implementation progress and DOTS.

9. Early E&S Risk Assessment and Screening Tool • Country-level • National policy (international conventions, agricultural policy) • Legal framework/Enforcement (labor law, environmental regs, land rights/tenure) • Physical and human infrastructure (transport, health, education) • Sector/Project-level • Workforce (wages, working conditions, sub-contractor suppliers) • Client reputation • Land ownership/tenure/disputes • Current and previous land use (no primary forest conversion) • Environmental assets/services (biodiversity, water, etc)

10. Thank You