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Cheap food can only be delivered through the most cost-effective and efficient food production systems and so the thinking associated with developing any potential FNS solution and intervention needs to be within a big picture context. (Ian Ivey, February, 2012)

Balancing the Food Bill: the self reliance and import ratio
November 2012

Note: growing imbalance between imports and local production has placed the Caribbean in an increasingly food insecure state; price volatility, climate change and political factors create shocks to the food system; in this food and nutrition security (FNS) charged environment, connecting trade policy to food production capacity must be a top priority.

Understanding the Concepts

Food system: - everything from farm to table integrated food production, processing, distribution and consumption that enhance environmental, economic, social and nutritional health of a community, country or region. Self-reliance: Self in this context must have a community not a family/individual as the lowest common denominator - the degree to which a community, country or region meets some portion of its own food needs. - not to be confused with self-sufficiency, which is where all food is produced, processed, marketed and consumed within a defined boundary. (1) Imports: - to bring or carry in (especially goods or materials) from an outside source/foreign country for trade or sale.

Local farming systems still produce foods to satisfy traditional diets (roots, pulses, fruits), but in decreasing volumes. Globalization and international trade policies have enabled easier access to imported foods, driving the regional import bill at over US$4 billion, and trending upwards. Increasing the degree of food self-reliance must be an important aspect of a community, country or regions food system.

Contents: 1 Understanding the Concepts. 2 Connecting trade policies to the FNS agenda 3 Growing local; perspectives! 4 Policy Intervention Critical Control Points (PICCP). 5 Bottom line! 6 Recommended reading

An array of Fresh Every Day produce offering at a local supermarket chain in Trinidad, Trinidad. (Diana Francis)

Injector3 in a modern hatchery where eggs are vaccinated prior to being hatched. Caribbean Poultry Association (Desmond Ali)

From Farm to Fork , http://njaes.rutgers.edu/health/farmtofork.asp

Caribbean countries have differing capacities and hence priorities for producing food. However they share one common fact despite their resource endowments and level of development, no one country is, or even can be, fully self-reliant in food production. They must rely on the international food market to ensure food security. The issue thus becomes one of clearly defining the self-reliant import ratio and then creating the policy and institutional environment to both achieve and maintain equilibrium and stability.

Food self-reliance, which focuses on maintaining a desirable level of domestic food production in addition to generating the capacity to import from the world market as needed, offers an appropriate and practical strategy for countries to connect and balance FNS and trade policy priorities.

Connecting trade policies to the FNS agenda

While international trade policies and trade agreements have built-in agendas aimed at stimulating production and trade, some analysts conclude that to some extent, they could inadvertently limit developing countries policy space to support their domestic agriculture and food production sector. The United States (US) Block 24 Policy under the Clinton Administration is a stark example of how over-reliance on cheap (subsidised) rice imports from the US can almost completely replace local production. Food security, i.e., decisions on food production, supply systems, influences on choice, utilization, accessibility and affordability, are all affected by world-wide policies and regulatory decisions, often referred to as the geopolicy of food. Therefore, connecting trade policy and strategy to FNS policy and strategy will be to stimulate trade flows between countries, especially for foods of strategic import interest, safeguard producer incomes, especially in relation to production of sensitive FNS commodities and enhance consumers purchasing power (Konandreas 2006(2)).

The Regional Food and Nutrition Security Policy (RFNSP, 2010) is premised on achieving
the optimum degree of self reliance through a strategy of feeding, clothing and housing the population, utilising to the greatest extent possible and feasible, indigenous raw materials, human and natural resources. It however recognises that few households in the Caribbean are totally self-sufficient in meeting their food requirements; most purchase some (or all) of their basic food needs. Hence it calls on governments, international partners and other agencies to play a critical role within a common approach to build capacity for food production and reduce dependence and vulnerability to overseas volatile international food markets. Emphasis was also placed on the need for policy coherence and to translate political statements and policies related to and supportive of good health and nutrition, food production to marketing, into firm action.

Konandreas, P. 2006. Trade and Food Security: Options for Developing Countries. FAO.

Workers tending to crops at the Tucker Valley Mega Farm, Chaguaramas, Trinidad (2009).
Source: Shaliza Hasanali

The locavore (persons who seek to only consume food that is grown less than 100 miles away) or generally, the local food movement has had very long history in Europe, seems to be quickly emerging in Australia and is becoming a relatively new phenomenon in the US, accentuated by food writers and experts.
(Will locavores destroy the planet? by Mick Keogh, Australian Farm Institute, undated)

Growing local; perspectives!

Local food is defined as food produced and consumed within a state or that is consumed less than 400 miles from where it was produced. (5) The RFNSP leans heavily in favour of the local food and eat what you grow approaches to FNS and from a regional perspective, local takes on regional meaning. It seeks to, among other things, keep dependence on food imports (especially prepared/convenience foods) at the absolute minimum with an expectation that dissemination of information on nutrition values of local food commodities compared to those of similar imported foods and introduction and enforcement of truth in labelling rules will sway consumers towards eating local. Keogh cautioned that while local food systems bring many benefits, they can also bring additional costs which should not be overlooked, including environmental consequences associated with an expanded carbon and energy footprint and destruction of natural habitat due to forced changes in land use systems to accommodate pressures to grow more locally. Ivey also cautioned that pursuing food self-reliance comes with a number of risks, including being a high cost producer and/or being hit by a severe hurricane which destroys the bulk of the local food sources. (6)

2008 US Farm Bill New Thinking about the Challenges and the Best Approach for Developing FNS Solutions in the Caribbean Region, Ian Ivey, February 2012
5 6

Policy Intervention Critical Control Points (PICCP): building blocks.

To start, a practical local-import food supply ratio must be determined (based on some clear criteria and process). Once done, then the Hazard Analysis Critical Control Point (HACCP) concept can be applied to define the CCPs for strategic policy intervention aimed at achieving the ratio, spot the potential hazards (i.e., weaknesses and threats) in these areas and to develop strategies to offset, counteract and/or mitigate them in order to maintain balance and stability in the food system.

Defining the Reliance Ratio: local vs import! This action is premised on the assumption that policy makers, business and the ordinary citizen recognised and concede that irrespective of how much investment is made in food production, no country has had or will have the capacity to be fully self-reliant in its food supply.
Reliance builds resilience!

This is the quintessential million dollar question, the answer to which must provide the frame for implementation. Despite the difficulties which this process will face, countries need to arrive, by consensus, at an answer or set of answers that could yield the best possible outcomes for sustainable food and nutrition security. Food security should not mean we need to grow all our own food ourselves. It will be based on the ability of a country to feed itself with the least risk at least in the basic food area - including contracting the growing of food to other countries if they can produce it more competitively. In fact, in delivering its 2013 Annual Budget (Oct. 2012), the Trinidad & Tobago Government announced a partnership initiative with Guyana, the 'Food Security Facility' (FSF), aimed at stimulating agricultural and livestock production; reducing dependence on foreign food imports and stimulating, regionally, the drive for food security in CARICOM. This was in recognition of the countrys growing shortages in suitable land for agricultural diversification to meet current and future needs. This partnership is expected to go a long way towards the regional target of meeting 25% of regional FNS needs by 2015. Ivey suggests that any FNS policy and associated implementation strategy needs to provide a way of minimizing the risks for citizens at the least cost and, in most situations, the best option is likely to be a combination of global, regional, and local options. Among the considerations that need to guide this localimport food ratio should be a combination of:
achieving the least risk and most cost advantageous balance between

One of several shade houses introduced by the Guyanese

food grown within a country and sourced externally.

achieving the greatest level of long-term supply and price stability. paying a small premium to ensure security is achieved.

Government to help local farmers adapt to climate change and by extension, to ensure year-round production of a wide range of high value vegetables, such as, lettuce, cabbages, tomatoes, cucumbers, peppers and celery, some of which were previously being imported.
(Ravena Gildharie, 2012)

Unless FNS policies and initiatives are developed within a long-term overarching goal, i.e., achieving a specified percentage of self-sufficiency in food in a country/region and complementing that with a secure and least-risk outsourced long-term contracted network of supply for the balance, then there is no context within which the FNS policy/initiative is being framed and implemented. (Ivey 2012)

Some Critical Control Points:

Self (growing local) Reliance! The connections between the Caribbean and the rest of the world economically, socially, environmentally, politically- and in all other aspects of human development, have never been as direct, diverse, instant and strong. This inter-dependence also makes the Caribbean vulnerable, an outcome that is driving regional policy makers towards greater resilience, including food self-reliance (as in community, country, region). Flexible food self-reliance policies Konandreas (2006) confirms food self-reliance which does not rule out imports as a component of food security as a good option for balancing domestic food production with imports from world markets, as needed. Flexible food self-reliance policies build-in most likely, worst case and optimistic cases. Such policies offer clear guidelines on the expected scenarios and what would be the most appropriate response towards well-defined and integrated FNS and development objective(s).
Self-reliance policies should target production of foods in which the Policy Lessons from Bangladesh Until the early 1990s, the Bangladesh Government pursued food security using selfsufficiency policy (growing within the country its food needs). In 1993 the policy changed to one of self-reliance (importing food from the world market when prices are cheaper than growing it at home, so as to release land for other uses for which Bangladesh has a comparative advantage). The self-reliance strategy worked well: the private sector was able to import food to make up for the losses in local rice production following natural disasters (e.g., following the disastrous floods, in 1998 and 2004), and when local rice prices exceeded the import price (e.g., from India). Rice is now imported, mainly by the private sector. The strategy broke down during the 2007-08global food price crisis when India and other rice exporters imposed export restrictions and/or bans. Bangladesh found it difficult to import the food it needed and domestic food prices rose rapidly as traders, farmers and consumers, anticipating higher prices, stored rice. This led to increased food insecurity and higher levels of poverty, especially for the poorest and most vulnerable.
Source: Kumar Deb, et al, May 2009.

countries/region have some comparative advantage with its current production practices, prices and technology. Although domestic production of some of these foods may not be competitive with imports, strategic decisions need to be made to support production of a costeffective minimum quantity of a few selected crops for the food system.

There are options to provide such specialized support from farm to fork through Green Box policies. These seek to alleviate production and marketing bottlenecks, enhance agricultural services and develop social and human capital in the food system. Under Special and Differential Treatment, CARICOM countries have access to production support policies, i.e., generally available investment subsidies, agricultural input subsidies and support to producers to encourage diversification.
Establish flexible production policies for key short-term crops that allow

countries to switch to imports when world prices are lower than domestic costs and resume local production when imports become either more costly or scarce.

Increasing the degree of food self-reliance built on flexible productionimport policies must be an important aspect of a community, country or regions food system. However, if not properly monitored and managed, there is the distinct possibility that local production could either not resume seamlessly, or would resume at a much reduced capacity. Building intelligence and early-warning systems are therefore essential to complement flexible policies. Constant monitoring of prices and policies on international markets for the foods of strategic interest to the selfreliance policy and mechanisms to trigger a resumption of local production will be critical for effective policy management.

Import (world market) Reliance Trade matters for food security. The average person in CARICOM spends US$180 each year on only food imports.(7) The largest annual per capita spending on imports was on beverages, spirits, vinegar (US$32.62); cereals milling products (US$23.81); and dairy, eggs and honey (US$19.82). Increasingly, trade and trade policies do not only influence the availability of food at the global level, but also production and food imports, including food aid, at the national level.( 8 ) Konandreas (2006) was clear on the strategic importance of imports in the food system. Hence, trade policy and strategy should be closely connected to FNS policy and strategy in order to stimulate trade flows on important food imports, i.e., those food products that are critical to FNS. Caribbean countries have traditionally used trade policy, such as lowering or removal of import duties, to make food imports more affordable. In fact, the most recent action taken in this regard was in Trinidad where on 15 November, the Government made approximately 7,000 food items have been made VAT- free. The Government maintained that several items on the list were included in an effort to lower food prices and curb food-price inflation and to alleviate the suffering of the most vulnerable.( 9 ) A quick glance at the list would reveal a number of food items of extra-regional origin, such as, pancake mixes, soya products, French fries, salad dressings, etc., and several that would not necessarily be counted as basic food items. "More than 70% of goods on grocery shelves are imported and these will be zero-rated, so there should be significant relief. The items on the list were those deemed by the Ministry as goods that would ordinarily be found in a typical household basket. The VAT-free measure was not necessarily meant to remain in perpetuity but the intention was to build domestic food security, and then when the local food production sector had reached that comfortable mass then the system would be reevaluated. Trinidad and Tobago Trade Minister, Vasant Bharath, (October 2012) In a region of small-island developing states with already substantial trade deficits and where only US$0.46 is earned from food exports for every US$1 spent on food imports(10),heavy reliance on food imports is not a sustainable option.
Ibid.

Some Items in the Trinidad and Tobago Governments VAT-free Food Initiative
Cereals (only cornflakes was 0-rated at present) Pancake mixes Pancake syrups Jams Tea Creamers Flavoured milk drinks Drink mixes Juices (only citrus juices are 0-rated) Snacks Cakes Custard powder Canned vegetables Pasta sauces Soups/soup mixes Corned mutton Luncheon meats Canned salmon Viennas (non-chicken) Batter/breadcrumbs Pholourie mix Flavoured rice Cake mixes/frosting Almond essence (vanilla essence is 0-rated) Canned fruit Fruit cocktail Soya chunks/minced Soya drinks Instant oatmeal Sweeteners Mayonnaise Barbecue sauce Pepper sauce Seasonings Coconut milk powder Massala Salad dressing Olives/capers Relish/dill/pickles Hot chow French fries Frozen potato Hamburger patties Sausages/bacon Processed meats Hams Smoked chicken Smoked turkey Hot dogs Bologna Frozen foods Ice cream Yogurt Desserts

Regional Food Security and Trade Policy in Southeast Asia: The Role of ASEAN Alexander C. Chandra and Lucky A. Lontoh June 2010, Policy Brief, Trade Knowledge Network. 9 Government press releases
8

UN Comtrade data on the ratio of Food exports to Food imports (2008-2010). Food items considered were (HS 96): 2,3,4,504,7,8,1902,1904,1905,20,9,1901,1903,21,22,23,10,11.
10

The Minister rightly noted that the market will determine actionpeople are the ones who can choose where and what to buy. But we will provide the information to the market to help influence informed decisions." Given the general conclusions that the average CARICOM consumer has a preference for extra-regional food imports, use of such policy measures must be also seek to encourage consumption of food imports that are nutrition dense, while discouraging over-consumption of empty calories. However, it has been observed that even where food prices are lowered across the board, a relatively high proportion of spending still goes towards the unhealthier food items items which seem to benefit more from the initiative to lower food prices as a FNS priority. Policies should therefore also recognise the importance in knowledge-enhancing aspects of consumer empowerment that contribute to appropriate use of current as well as added purchasing power. Safety Nets the buffer zone! At the national level safety nets should be provided in the short to medium-term while adjustments are made for food security priorities and international trade variability. These can be financed through the avenues previously outlined. Preferably, safety nets should exist in the form of providing access to funding for household and urban food-production systems (e.g. backyard farming, grow-box, micro-farming). These both improve consumption patterns that support healthy eating and reduce the financial strain on the government in promoting local agriculture and food security. Also, given consumer expenditure in these areas, new avenues for entrepreneurship and business development will be created. Care must be given in the approach so as to not eliminate incentives for existing small-medium scale producers who largely rely on retail/household markets. In that regards, their production should be realigned with production options that cannot be readily met in a household setting (e.g. fruits, root crops, novelty foods, high value agricultural products). The homeless and other marginalised groups should be incorporated in food-for-work or communal production systems.

Small scale food production in St. Kitts (Emontine Thompson) and St. Vincent (Lennox Lampkin) (Photos: IICA St. Kitts and Lennox Lampkin)

Balancing the Food System: the self reliance and import ratio

Bottom Line
Food prices will continue to rise. Countries will resort to export bans as supplies of basic commodities become tight. But not all countries can secure food from farm to fork using only local resources. No Caribbean country can achieve full self-reliance in most of its needs in the six recommended food groups. FNS policies will therefore need to be balanced, flexible, integrated and resilient! Sourcing some food needs on world markets - imports will have to factor into FNS policies for a stable and balanced food system. Agriculture and trade policies must also be complementary, providing the space for selfreliance policies to build local capacity for food production in selected products deemed strategic to their food systems.

Recommended Readings: B.C.s Food Self-Reliance Can B.C.s Farmers Feed Our Growing Population? B.C. 2006. Ministry of Agriculture and Lands www.agf.gov.bc.ca/resmgmt/Food_Self_Reliance/BCFoodSelfReliance_Report. pdf Konandreas, P. 2006. Trade and Food Security: Options for Developing Countries. FAO. Kumar Deb. u., M. Hossain and S. Jones, May 2009.Rethinking Food Security Strategy: Self-sufficiency or Self-reliance, published by Published by UK Department for International Development (DFID) www.bracresearch.org/publications/monograph_dfid3.pdf Thomson, A., and Metz, M. 1998. Implications of Economic Policy for Food Security: A Training Manual. Food and Agriculture Organisation. FAO. www.fao.org/docrep/004/x3936e/X3936E00.htm> von Braun et al. 2008. High Food Prices: The What, Who, and How of Proposed Policy Actions. www.ifpri.org/sites/default/files/publications/foodpricespolicyaction.pdf Ng, F. And Aksoy, A. 2008. Food Price Increases and Net Food Importing Countries: Lessons from the Recent Past. http://onlinelibrary.wiley.com/doi/10.1111/j.15740862.2008.00350.x/full Walker, A. 2009. Integrating into the Global Economy. Trade Negotiations Insights. Vol 7. No. 10. December 2008/January 2009. World Bank. 2008. Agriculture and Poverty Reduction.

Research/ Content: Editor:

Brent Theophille Jeanelle Clarke Diana Francis

The views and opinions expressed herein, errors and omissions are those of the author and not necessarily those of Inter-American Institute for Cooperation on Agriculture (IICA), the Technical Centre for Agriculture and Rural Cooperation (CTA) or the Caribbean Regional Agricultural Policy Network (CaRAPN) an IICA-CTA initiative in the Caribbean.

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