Food commodity prices haven risen dramatically around the world, with some prices having doubled during the last year. These rising food prices are contributing to growing hunger and social and political unrest. It is costing governments and aid agencies much more to provide food assistance to the most vulnerable, and additional funding will be required to even maintain current levels of assistance.
The rising food prices are caused by a complex set of factors. In recent years, food production has not kept pace with rapidly rising consumption resulting in lower carry over stocks each year. This growing demand is driven by population growth, rapidly rising meat and dairy consumption by a growing Asian middle class which requires much greater amounts of feed grains, and an increasing use of grains for biofuel production. Rising energy prices are driving up the costs of producing and transporting food. Unfavourable weather has reduced production in some parts of the world. The increase in yields has also slowed in recent years.
Most hungry people in the world depend on the market for much of their food, even small scale
subsistence farmers who usually do not produce enough to meet their food needs year round. For the poor that are living on less than a $1 a day, much of their income is spent on food. Rapidly rising food prices will force millions of poor people to reduce the amount and variety of food they consume, reduce their expenditures on health and education, and reduce savings and sell assets leading to further impoverishment.
Governments and aid agencies must provide direct assistance to the most vulnerable to prevent a growing hunger crisis. However, rising food prices mean that budgets do not go as far. Additional funds will need to be found.
The Canadian Foodgrains Bank has estimated that the amount of food aid we can provide will decline by at least 25 percent and probably much more unless we can secure additional funding. We will be appealing to our donors and the Canadian government for additional funding. We need at least $5 million in additional funding to maintain current levels of programming.
It is possible that rising food prices will help poor developing country farmers in the longer-term. This will only happen if targeted investments by governments and aid agencies are made to support small scale farmers, including investments in extension services, roads, and market development.
Otherwise much of the gain from higher prices will be captured by larger scale farmers and the poor will only be left with their hunger.
Media Contact:
Heather Plett
Canadian Foodgrains Bank
204-944-1993 ext. 229
h_plett@foodgrainsbank.ca
Labels: news, press release
