NEAT Working Group on East Asian Food Security

Final Report

Tokyo2 July 2009

Introduction
NEAT Working Group (WG) on East Asian Food Security was held inTokyo, Japan on 1-2 July 2009. 22 experts from all ASEAN+3 member
countries, ASEAN Secretariat and the sponsoring organization, the Japan Forumon International Relations, took part in the WG meeting. The WG meeting beganwith opening introductory remarks by Professor OHGA Keiji, Director of thisWG, followed by three Sessions and Wrap–up Session. Topics discussed in eachof three sessions are as follows.
Session I: Global Food Crisis and Food Securityz Factors Contributing to the Hike of Food Prices
z Impacts of Biomass Fuel Policy on Foodz Change of Food Supply-Demand Structurez Lessons Learned from Food Crisis
Session II: East Asian Food Security Cooperation: Reality and Prospect
z Concept of Food Security in East Asiaz East Asia Emergency Rice Reserve (EAERR)z ASEAN Food Security Information System (AFSIS)z ASEAN Integrated Food Security (AIFS) Framework and Strategic Plan ofAction on Food Security in the ASEAN Region (SPA-FS) (Statement onFood Security in the ASEAN Region)z Assessment and Future Direction
Session III: Proposal for the Achievement of Food Security in the Regionz Policy Cooperation – Development Assistance and Cooperationz Common Policy on Trade and Tariff including Food Safety
z Demand and Supply Adjustment and Structural Adjustmentz Consultative Organization in the Region including a Permanent Secretariat
Global Food Crisis and Food Security
Food supply and demand structure is now in the midst of major changes
on global scale. The global food situation should be also discussed in the East
Asian context. In East Asia, traditional rice-based diet has been altered to adiversified/westernized diet symbolized by livestock and wheat products. On thesupply side, small-scale labor intensive farming, which is the common nature of
East Asian agriculture, constantly requires structural reforms.
Prices of grains and other food crops declined after soaring to thehistorical high level. But the food trade embargo and unrest over food shortages
shook a number of countries. Under such a rapidly changing situation, foodsecurity is one of the most important cross-border issues which countries acting
alone are unable to handle and has become the top priority of regional issues in
East Asia which have to be urgently addressed.
The food price hike in 2007-2008 was preceded by a long-lasting robust
market situation which started in 2001-2002. There are significant causes for thehike such as the promotion of biofuels in some countries and the strengthened
linkages between the financial and the commodity markets. However, thepersistent increase of food demand in developing countries supports the floor ofmarket prices. The relatively tight situation may continue for some period until
the investment in food production recovers. In addition, there is a fear that foodprice fluctuation would be severer due to economic turmoil on a global scale aswell as unexpected climatic events.
Food security is often discussed in relation to individual or family
problems. However, it was also a national or regional issue during the food crisisin the early 1970s when the concept of food security was first generated. The
global food crisis in 2007-2008 reminded many political leaders that stable foodavailability has to be one of the most prioritized targets. Low income foodimporting countries were very vulnerable to price instability. One of the mostimportant lessons learnt from the last food crisis was that measures taken bysome exporting countries, such as export restrictions and embargoes, wererecognized as inevitable and sometimes acceptable policy options. This special
feature of the global food market must be kept in the mind of policy-makers.
Although the East Asian food market cannot be isolated from the global
economy, there will be a number of common interests and benefits in taking
region-wide collective measures to achieve its food security. Learning from thelast global food crisis, it is time to study and prepare regional institutional
mechanisms towards a common food market in East Asia.

East Asian Food Security Cooperation: Realities and Prospects
ASEAN+3 countries have already made various efforts to develop theregional cooperation in food security. One of them is East Asia Emergency RiceReserve (EAERR), which is intended to strengthen food security of the peoples
experiencing food shortage due to natural disaster or man-made calamity. TheEAERR pilot project started in FY2004.
Another is ASEAN Food Security Information System (AFSIS), which isan ASEAN and Japan initiative with participation open to China and Korea tofacilitate food security planning, implementation, monitoring and evaluation in
ASEAN countries through the systematic collection, organization, management,
analysis and dissemination of food security data and information. Activities ofAFSIS started in the early 2003.
The EAERR and the AFSIS are expected to be the two main pillars ofEast Asian food security cooperation and to supplement with each other.
The core components of activities under the EAERR are programs torelease rice reserve to countries/areas that need food. The EAERR actuallyreleased stockpiled emergency rice reserve to meet acute and urgent emergency
demand as the first emergency food-aid since 2006.
The current food security cooperation in East Asia has some problems
awaiting solution. For example, the EAERR heavily depends on Japanesecontribution. As for the amount of rice reserve, Japan only provides the stockpileof real rice and declares a large amount of earmarked rice (250,000 ton) incomparison with the total amount of earmarked rice reserve ASEAN countries
declare (87,000 ton). The other countries as well as Japan should increase theircontribution to sustain the EAERR activities.
The concept of food security contains various components including not
only to secure the access to sufficient food but also to achieve food safety,
balanced nutrition and food preference. In addition, various factors, such as
bio-fuel issues, climate change, research and development (R&D) andregulations, should be considered in order to ensure food security in national andregional level.
Proposal for the Achievement of Food Security in the Region
The 11th ASEAN+3 Summit of November 2007 identified food security
issues as one of the areas where the regional cooperation needs to be advanced.

The direction to sustain food security in the region was elaborated in Cha-am,
Thailand at the 14th Summit of ASEAN member states on 1 March 2009. The
Summit adopted ASEAN Integrated Food Security Framework (AIFSF) andStrategic Plan of Action on Food Security in the ASEAN Region (SPA-FS). All
experts in the WG meeting generally supported the AIFS and SPA-FS proposal.
However, many participants observed that it is unclear how the current
activities of the EAERR and the AFSIS are related to the AIFSF. The AIFSF
has potentiality as a comprehensive framework for food security because its
scope is broader than those of the EAERR and the AFSIS. Therefore how theAIFSF can utilize activities of the EAERR and the AFSIS at present should bemade clearer.
Significant expansion of the EAERR is needed to increase humanitarianand public stockpiles, thereby reducing hunger and poverty and ensuring humansecurity. Many participants emphasized that we should take measures tostimulate agricultural production in developing countries, including policies toimprove productivity, to encourage investment, to promote agriculture that
preserves ecosystems, to establish logistic system, and to invest in R&D.
For the twin-truck approach to reduce poverty and hunger, we must
make efforts to encourage new rural business, green-tourism, micro loans, andrural infrastructure development
An idea of common policy on trade and tariffs including food safety wasproposed at the meeting. Many experts expressed interests in this idea andsupported the necessity to continue to elaborate the idea and to discuss thepossibility of Common Agricultural Policy in the region, which includes;
1. Establishing rules for sensitive items, such as rice, and other important foodarticles with the WTO to correct imbalances in trade regulations (restriction onfood export controls) and to restrict speculative investment. ASEAN-Japan
Comprehensive Economic Partnership (AJCEP) Agreement balances tradeliberalization and agricultural cooperation and seeks to build a consensus onestablishing rules for sensitive items. It also encourages support for poor ruralvillage, joint effort between agricultural cooperatives, and efforts to strengthen
food security and bio-energy.
2. Funding the Asian Common Agricultural Policy (ACAP) by profits generated
by relaxing restrictions on trade in rice, wheat, and other common staples.

Member countries contribute to this fund according to GDP levels.
3. Direct payment to farmers as a redistribution system, to provide compensation
for the multi-functionality of agriculture.
4. Establishing a body to discuss “East Asia Codex Alimentarius” in ASEAN+3
to strengthen the function of FAO/WHO for Asia.
5. Establishing an Asian-version of Good Agricultural Practice (GAP) anddissemination of scientific knowledge.
6. Including (1) Common rules to balance food security and bio-fuels policies,(2) Supply-Demand adjustment in the Asian rice market, and (3) Structuraladjustment for farm management growth, in the ACAP.
All participants supported the idea to set up a Consultative Organization in
ASEAN+3 countries including a Permanent Secretariat to advance common
food security policies in East Asia.
ASEAN+3 countries need to further promote dialogue to share common
understanding on the challenges we are now facing and on the prospect ofmutual cooperation we should advance in the field of food security.
Policy Recommendations
1. We should promote East Asian Food Security cooperation and build regional
institutional mechanisms towards a common food market in East Asia because
there will be a number of common interests and benefits in taking region-widecollective measures.
2. We should further develop the regional cooperation in the EAERR and theAFSIS, which are expected to be the two main pillars of East Asian foodsecurity cooperation and to supplement with each other. Not only Japan but also
the other countries should increase their contribution to sustain the EAERR
activities which now heavily depend on Japanese contribution. Significant
expansion of the EAERR is needed to increase humanitarian and publicstockpiles, thereby reducing hunger and poverty and ensuring human security.
How the AIFSF adopted by the ASEAN Summit in 2009 can utilize activities ofthe EAERR and the AFSIS at present should also be made clearer.
3. We should take measures to stimulate agricultural production in developingcountries, including policies to improve productivity, to encourage investment,
to promote agriculture that preserves ecosystems, to establish logistic system,and to invest in R&D. For the twin-truck approach to reduce poverty and hunger,
we must make efforts to encourage new rural business, green-tourism, microloans, and rural infrastructure development.
4. We should pursue the possibility of Common Agricultural Policy. In thisregard, a Consultative Organization in ASEAN+3 countries should be set up,
including a Permanent Secretariat to advance common food security policies in
East Asia.