UN: URGENT AID NEEDED TO AVERT GLOBAL FOOD CRISIS
ROME, APRIL 14, 2008 (AKI) - The United Nations has appealed to its members and international institutions for up to 1.7 billion dollars in urgent aid in a bid to avert a looming global food crisis.
The UN's Food and Agriculture Organization said additional annual funding of between 1.2 and 1.7 billion dollars was needed to support poor farmers and increase production.
In an alarming report released on Friday, the FAO said 37 countries were facing a food crisis and the cereal bill of the world's poorest countries would rise by 56 percent in 2007-2008, after a 37 percent increase last year.
The FAO report echoes concern expressed by the International Monetary Fund this week that rising food prices will worsen poverty and put further strain on a global economy already hard hit by a financial crisis.
The UN agency said in Africa's low-income countries, price increases could be as high as 74 percent in the current fnancial year, due to higher oil prices, freight rates and cereal prices.
“Food price inflation hits the poor hardest, as the share of food in their total expenditures is much higher than that of wealthier populations,” said Henri Josserand from the FAO’s global information and early warning system.
“Food represents about 10-20 percent of consumer spending in industrialised nations, but as much as 60-80 percent in developing countries, many of which are net food importers.”
The price of bread, rice, maize, oil and others basic foodstuffs has increased sharply in several developing countries, despite policy measures, including export restrictions, subsidies, tariff reductions and price controls.
Food riots have recently been reported in Egypt, Ethiopia, Indonesia, Madagascar, the Philippines, Haiti and other countries in the past month.
In Pakistan and Thailand, army troops have been deployed to avoid the seizure of food from the fields and from warehouses.
By the end of March prices of wheat and rice were about double their levels of a year earlier, while those of maize were more than one-third higher, according to the FAO report.
But the FAO said there may be a 2.6 percent increase in food production in 2008 and that could ease the situation.
“Should the expected growth in 2008 production materialise, the current tight global cereal supply situation could ease in the new 2008/09 season,” the report said.
But much will depend on the weather, FAO cautioned, recalling that at this time last year prospects for cereal production in 2007 were far better than the eventual outcome.
It said unfavourable climatic conditions had devastated crops in Australia and reduced harvests in many other countries, particularly in Europe.
“Favourable climatic conditions will be even more critical in the new season because world cereal reserves are depleted,” the report said.
According to FAO’s forecast, world cereal stocks are expected to fall to a 25-year-low of 405 million tonnes in 2007/08, down 21 million tonnes, or 5 percent, from their already reduced level of the previous
Chief News Editor: Sol Jose Vanzi
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