UN FAO: High food prices, urgent measures required

Addressing the first Global Agro-Industries Forum in New Delhi, along with the heads of UNIDO and IFAD, Dr Diouf highlighted the important role that agro-industry had to play in overcoming these problems.

“World food prices have risen 45 percent in the last nine months and there are serious shortages of rice, wheat and maize,” Dr Diouf said.

A combination of factors, including reduced production due to climate change, historically low levels of stocks, higher consumption of meat and dairy products in emerging economies, increased demand for biofuels production and the higher cost of energy and transport have led to surges in food prices.
UNIDO’s Director-General, Kandeh K. Yumkella, said: “Climate changewill impose great stresses on the world’s ability to feed ever growingpopulations. This challenge brings new threats to arable land areas,livestock rearing and fisheries through droughts, water shortages andpollution of land, air and sea. It is, after all, agricultural andlivestock production that provide the raw materials that are basic tohuman existence – especially food.”

The President of IFAD, Lennart Båge, told the conference that in recentyears, a number of developing countries have become net importers offood. In countries from Bangladesh to Zambia, nearly 40 per cent of thepopulation was undernourished. “The explosive and rapid rise of foodprices is worsening their situation,” Båge said.

“With greater investment in agriculture and rural development, theworld’s 400 million smallholders could mobilize their under-utilizedpotential, not only to improve their own nutrition and incomes but toenhance national food security and overall economic growth,” the IFADPresident said.

Potential of agro-industry

Dr Diouf said: “It is essential to increase agricultural investment inwater control and infrastructure and to facilitate small farmer accessto inputs, so they can raise their productivity.” He stressed theimportance of effective marketing and processing systems foragricultural products.

“Agro-industry helps preserve foodstuffs, add value and reducepost-harvest losses; it enables products to travel longer distances,including to the rapidly expanding cities,” he noted. “For its part,agro-industry generates demand for agricultural products and holds vastpotential for off-farm rural employment. It also adds significant valueto farm production, whether for domestic or export markets.”

The Global Agro-Industries Forum, being held from April 8-11, hasattracted over 500 participants from 120 countries. Both government andprivate sectors are represented and there are also participants fromNGOs and farmer organizations.