Agricultural Investment and Virtual Global Food Reserves


This past June, world leaders met in Rome to respond to the troubling food crisis which has dragged millions of the world’s most vulnerable into poverty. The Rome Summit called for global action in regard to increased food aid, the elimination of export bans, and extra seed and fertilizer provisions for small farmers. In addition to these short term solutions, leaders also urged their "development partners" to invest in agricultural research for long term food security. An IFPRI policy brief written by Shenggen Fan and Mark Rosegrant concluded that investing in agriculture is key to addressing the current food price crisis. They estimate that spending an additional $14 billion per year could boost African agricultural production by 7.5 percent annually through 2015.   Unfortunately, agreeing and acting upon the Rome Summit recommendations has proved to be difficult.  Almost one month later, the world food crisis was at the top of the agenda at the Group of Eight summit meeting in Japan last week. The cause of rising food prices has long been attributed to rising demand for food and feed, high oil prices, and biofuels. However, an IFPRI policy brief written by Joachim von Braun and Maximo Torero identifies the malfunctioning of world grain markets as an additional driver of the world food crisis.  The brief proposed a "virtual global food community" that could provide emergency reserves and calm markets while avoiding the high storage costs, slow transactions, and risky price increases of traditional reserves. The G8 released a food security statement that mentioned a similar type of plan: "We will explore options on a coordinated approach on stock management, including the pros and cons of building a ‘virtual’ internationally coordinated reserve system for humanitarian purposes." Although the statement was not a firm commitment to the stockpile approach, it nevertheless urged other countries "with sufficient food stocks to make available a part of their surplus for countries in need, in times of significantly increasing prices and in a way not to distort trade."

 del.icio.us  Stumbleupon  Technorati  Digg 

 
Trackbacks
  • No trackbacks exist for this entry.
Comments

  • 16 Jul 2008, 4:56 AM Peter Salonius wrote:
    It is astounding that the July 15 posting entitled:

    'Agricultural Investment and Virtual Global Food Reserves'

    appears only to recognise attempting to increase SUPPLY by boosting "food aid","agricultural production", and "agricultural research" ---- while completely disregarding the efficacy of reducing DEMAND by the initiation of meaningful population reduction programs.

    This methodology is tantamount to BLINDLY 'continuing to mop water off the floor while leaving the tap running full blast'.

    I would appear that the

    -International Food Policy Research Institute-

    believes that we can continue to pull food production 'rabbits' out of the 'magic hat' for ever while the global horde continues to produce children at a rate that worsens the problem of food DEMAND every day.

    On a planet where cultivation agriculture has been UNSUSTAINABLY degrading soil productivity for 10,000 years, the

    -International Food Policy Research Institute-

    is clearly stuck in the paradigm of recommending:

    - UNsustainable solutions for ending hunger

    Peter Salonius
    Research Scientist
    Natural Resources Canada
    Fredericton, New Brunswick
    CANADA E3B 5P7
    Reply to this
Leave a comment

Submitted comments will be subject to moderation before being displayed.

 Enter the above security code (required)

 Name

 Email (will not be published)

 Website

Your comment is 0 characters limited to 3000 characters.