Germany and India are tied in a long-lasting partnership. On the occasion of 60 years of diplomatic relations between these two countries, the year of Germany in India entitled “StadtRäume – CitySpaces” is celebrated from autumn of 2011 to autumn of 2012. Even though the focus is on cities, I see a link to rural areas and to agriculture. What would be agriculture without consumers and what would be consumers without agriculture?
For lively cities with creative people, we need equally lively rural areas with equally creative people. Since they are the ones making sure that sufficient, good, healthy and affordable food ends up on the consumer’s plate with their daily dedicated work on the field and in the shed. Agriculture and the food industry are thus central economic sectors, which produce food as a “mean to live” and thereby contribute to secure a fundamental human right: the right to food.
India and Germany are partners also and are specially tied in a strategic partnership in regards to food security in agricultural and food industry. Why? On the one hand, India is among the largest agricultural producers worldwide. India is ranking first in the production of milk, second with regards to rice and sugar and third in the production of wheat. At the same time, India is expected to be home to around 1.7 million people in 2050, which amounts to almost 20% of the total world population of 9.5 billion according to UN estimates. Even if the population will decrease from around 2065, India will remain the most populous country on the planet.
On the other hand, Germany is the most important agricultural producer within the European Union and the third largest agricultural exporter worldwide. Above all, Germany is leading in the development of technologies to modernise agricultural production and food processing. This is greatly appreciated in India and therefore constitutes an essential component of bilateral cooperation.
The world and countries with agricultural potential in particular – India and Germany among them– are facing tremendous challenges. The international community has set out ambitious goals with the UN Millennium Development Goals in 2000. Goal number one aims to halve the proportion of people living in extreme poverty and hunger by 2015. Even though the absolute number has slightly decreased, more than 900 million people suffering from hunger worldwide are still alarming. In addition to that, the world population is expected to increase by around one third until the middle of the century. Hence, we are collectively facing the challenge not only to cater for almost one billion people currently suffering from hunger, but also to feed another three billion people. According to estimates a 70% increase of agricultural production is required to achieve this goal.
I am assured that agriculture needs to be put on top of the agenda. Since the food crisis in 2008/2009, this point of view is becoming more and more prevalent. The setting of priorities in international bodies such as G8, G20, FAO, World Bank or OECD supports this evaluation. Agriculture is the backbone of almost every state. This applies to India in particular, where 70%of the population live in rural areas and 50% are employed in the agricultural sector. Therefore, agriculture must be promoted. Furthermore, research must actively contribute to it by making use of the scarce agricultural resources in a sustainable, efficient as well as climate- and environmentally friendly way.
Small farmers need to be enabled to work better and more effectively through knowledge transfer and guidance to more modern and efficient production techniques. In India it is mostly they who generate agricultural production. In addition to the public advisory system, private companies and research institutions can also contribute to this. An important think tank in this respect is the Swam in a than Research Foundation in Chennai, founded by the father of the green revolution Prof. Swam in a than, which is actively supporting the Indian agricultural sector.
The union of small farmers in association, based on the concept of helping people to self-help would be a practicable way to support small farmers. Credit associations could contribute to the financing of investments and commodity associations could help to facilitate the marketing and sales of agricultural products collectively. Moreover, a functioning infrastructure is indispensable. It covers sufficient and appropriate storage facilities, well developed transport routes and access to information on markets and prices for farmers. The integration of farmers into the value-added chain will play a decisive role in achieving sustainable and sufficient production in agriculture.
We must always make us aware about the worth of foodstuffs. This applies to India, where a substantial amount of food is stored and transported inappropriately after the harvest and is thereby loss for the people. But this also applies to Germany, where food is often wasted and eventually littered by the consumer after the purchase. As the Minister for Agriculture and Consumer Production, I take this very seriously and I remind people in my country that their shopping and consumer habits should take into account a responsible handling of food.
Investments into agriculture and the food industry can set the directions for more and better foodstuffs. We also see this as an important approach to bilateral cooperation between Germany and India. German know-how as well as German technologies are demanded in India. Be it seed, animal genetics, food-processing and packaging machinery – in all product groups, German suppliers are among the top of the world. Thus, there are numerous fields of cooperation between the German and Indian economy.
With around 160 million hectare, India has the second largest amount of farmland available worldwide. Machine processing is only used on 10% of the land. Agricultural engineering companies from Germany could contribute to making efficient use of the potential yield with customized, also locally produced, technology. Europe’s biggest harvester producer is already active in India and other German companies are preparing joint ventures and direct investments. German technology can also be of great use for the improvement of storing facilities and the marketing of yields.
India, as the greatest milk producer, would like to optimise the milk yield of animals. German cattle breeding companies could assist with their animal genetics and are already in contact with Indian animal breeding associations. India also has the goal to make use of modern technology in the food industry. The production is aimed to be modernised and optimised, in order to meet both food product standards and the quality expectations of consumers. German firms are also present in this segment in the Indian market, they use trade fair on site and offer customised products. Furthermore, trade represents an important link between producers and consumers. A large German trading company brings its know-how into the Indian market and ensures that a variety of foodstuffs – both fresh and processed – is delivered to the consumer without quality losses. The Indian market is of great interest to German companies which contribute their strength.
As the Federal Minister for Food, Agriculture and Consumer Protection, my first visit to the Asian continent in November 2010 led me to India. I have spoken to my colleagues in the Indian Ministry of Agriculture and we agreed to support the engagement of companies of both countries politically. Therefore, I have used my stay in New Delhi to present the offer for cooperation in a business forum together with the German companies which accompanied my trip. In addition to the interest and desire on both sides to deepen the cooperation, the forum concluded that a good legal framework and a positive investment climate are the basic requirements for any type of economic engagement. A dialogue with the involvement of the governments of both countries is therefore a matter of mutual interest.
An excellent framework for this dialogue is the bilateral working group Agrar, which was agreed and introduced in 2003 by the German and Indian Ministries of Agriculture and subsequently extended to include the topics nourishment in 2009 and consumer protection in 2010. The working group is chaired by the Parliamentary State Secretary in the Federal Ministry of Food, Agriculture and Consumer Protection (BMELV) Dr. Gerd Müller from the German side and from Indian side by Special Secretary Shri Prabeer Kumar Basu in the Department of Agriculture and Cooperation. In the second meeting of the working group in September 2010 in India, a thematic list of fields of cooperation was compiled: plant breeding, animal genetics, agricultural engineering, organic farming, milk processing, refrigeration and packaging technology are among them. Moreover, the BMELV will take part in two food fairs in India in November 2011 with joint company exhibitions, which are “Annapoorna - World of Food” and “BioFach India”. India will present itself again on “Fruit Logistica” and on “Anuga” in October 2011 in Cologne as well as in the partner country of “Biofach 2012” in Nuremberg. We also pursue a cooperation based on a partnership above this level, in which both countries can contribute their strengths.
In order to implement all these initiatives we need a functioning trade system. Trade – be it local, regional or global – can contribute to securing food supplies. I believe that market access as well as the extension of trade and value-added chains play a key role in achieving this. It is important that farmers also profit from the positive impacts of trade: the access of farmers to markets must be improved. Farmers need to receive a fair share of the prices received on the respective markets.
The finalisation of the Doha Development Round would represent an important contribution to the integration of agriculture into the global markets. Therefore, the German Federal Government supports the speedy and balanced conclusion of the Doha Development Round, which must aim for fair trade conditions for all. Preconditions for trade are functional markets and specifically the transparent formation of prices. Therefore, I welcome the initiative of the French Presidency of G8 and G20, set to have the topic of price volatility on agricultural commodity markets on the agenda: more market transparency is necessary for foodstuffs so that it is not subject to excessive market speculations.
India is our strategic partner in the solution of global questions of climate and environmental protection, energy supply and food security. With the adopted voluntary guidelines on the “right to food” from all member states of the FAO in 2004, a good foundation for responsible government action in the global fight against hunger has been created. I assure that Germany and India share numerous goals in the fight against hunger and they contribute to investments into agriculture and the food industry with their partnership-based cooperation.
Agriculture is a source of life. We must not let it dry out!
Agriculture connects continents. We must not let this connection split!
Agriculture creates well nourished and happy satisfied. We must not jeopardise this satisfaction!
Agriculture provides jobs to people. We must not leave this gift unused!
Agriculture is a key to success. Therefore we rely on partnership-based cooperation between Germany and India.