Speech by Princess Máxima at the ‘Working Together for International Food Stability’ Conference
The Hague, 1 November 2012 (Dutch)
Your Excellency, Mr. Moerland, ladies and gentlemen,
It won't come as news to you that the world's population is growing and that all these people need more and more protein. Neither will it surprise you that the world is facing the effects of climate change. And I hope you are also aware that around the world 180 million children under the age of five are not getting the nutrition they need. The result is a lower IQ later in life, which in turn lowers GDP by 2 to 3 per cent. So it won't surprise you when I say that farmers need to increase and improve their yields, and to farm more sustainably. And that their harvest needs to be better distributed around the world.
But one thing may actually come as a surprise. Despite the fact that farmers need to feed the world, in developing countries they get hardly any help from banks and insurers. So they have no money to bridge the periods between sowing and harvesting their crops. And they get no financing to help them expand their business or make it more sustainable. So they are unable to buy new equipment, learn new farming methods or build up stocks for when market prices rise.
This has to change. Otherwise we'll never achieve food security. Fortunately, we have reason to be optimistic. Research shows, for example, that Africa has immense agricultural potential, much of which has yet to be harnessed. Not only can more land be used for growing crops, but yields and returns can be significantly boosted too. Take soya for example. In Africa, returns on soya are around 32%, compared with 82 per cent in Europe. So in Africa they can be doubled at the least. Farmers can't do this on their own, of course. Food stability is about more than just crop and livestock farming. We're also talking about energy, infrastructure and market access. But it all starts with farmers.
There is plenty to be gained here, especially now that the entire global community is waking up to the importance of food stability. Investing in agriculture is a smart move. According to the International Finance Corporation, one euro invested in agriculture is two to three times more effective in fighting poverty than one euro invested in any other sector. So I'm delighted that Rabobank is doing so much for agriculture in so many countries. I am a firm believer in farmers' cooperatives in developing countries ─ although they still often have a bad reputation in Africa.
As an advocate of inclusive finance, I wouldn't be worth my salt if I had nothing to wish for. Ladies and gentlemen, there are three things we need to pay more attention to. First and foremost, a farmer is more than just an entrepreneur. He ─ or she ─ is married, has children and lives in a house. If our hypothetical farmer's wife is sick he works less. If he's unable to put any money aside, his children can't go to school. If he lives in a shack his health suffers and he is less productive. We can only truly help a farmer in a developing country if we look beyond his business to his life and his needs. Compare it to a tractor. There's no point in filling it up with petrol if it has no wheels. Farmers not only need credit but also a savings account, current account, pension scheme, health insurance and all the other services that help them earn money, build up savings, manage funds, invest in the future and protect themselves against unexpected setbacks. Just like us, in fact. And just like everyone else.
A second matter that deserves more attention, ladies and gentlemen, is the role of women and young people. Let me start with women. We know that agricultural labour is mostly done by women.
We also know that if female farmers had access to the same resources as their malecounterparts, the number of undernourished people in the world would fall between 100 and 150 million. And we know that children benefit most if their mother is the breadwinner - she gives them a better home, feeds them and sends them to school. In other words, we desperately need financial products specifically designed for women.
And this brings me to the role of young people. The number of young people in Africa, for example, is growing rapidly. And one thing is certain - they can't all work in the cities. So we have to make farming attractive to them. And that can certainly be done, for instance by giving them access to banks, insurers and cooperatives.
Ladies and gentlemen, the third and final topic that deserves more attention is the role of small farmers - or smallholders - in developing countries. They have been written off far too often and for far too long. The claim is made that they are too insignificant to play a part in the fight against hunger. That they are too ignorant to learn new farming methods. And that they are too small for a place in the value chain. But in reality, we desperately need smallholders in our pursuit of greater food security. Why is that? Because smallholders work on approximately half of all agricultural land. Because smallholders perhaps have the most to offer in terms of efficiency gain. And because smallholders are still buying more food than they sell. If they become more productive, their food security will also grow. But there is yet another reason for paying more attention to smallholders. Studies by the World Bank show that smallholders can grow certain crops more efficiently than larger farmers. So big is not always beautiful.
Ladies and gentleman, I am asking for more attention to be paid to smallholders, to women and young people and to the person behind the farmer. As I have already said, I commend Rabobank and all those involved for the good work they do. That work is desperately needed. But let's not forget that only 2 per cent of adults in these countries have health insurance. That only 6 per cent of farmers are insured against a poor harvest. That in rich countries 89 per cent of adults have a bank account, compared with 41 per cent in developing countries - and I'm not even touching on the percentage in the world's poorest countries.
But figures don't speak as loudly as personal experiences. So let me give you an example. In Rwanda I once spoke to a farmer who had been able to buy a cow thanks to micro credit from Banque Populaire. This had greatly improved his life. He could feed his family, build his own house and send his child to university. I asked him whether there was anything else he wanted. 'Keep believing in me, that's all I ask' was his reply. So let's keep believing in farmers in developing countries - it's our duty.
Thank you.