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Development policy proposals Food price crisis
Soaring food prices have brought poverty, hunger and malnutrition to millions throughout the developing world in the last few years. In 2007 the number of undernourished people in the world rose to 923 million according to FAO estimates – most of them in South Asia and Sub-Saharan Africa.
After dramatic price rises in late 2007, prices eased in the second half of 2008. But, despite record production figures, prices are still very high in some developing countries, affecting access to food for low-income population groups.
EU responses
The commission has responded quickly:
- additional €140m in humanitarian aid authorised in 2008
- additional €50m made available from food security thematic programme
- additional €200m in emergency funding from the 10th EDF
- proposal to set up a special €1bn food facility – now in operation
Food facility
The €1bn food facility (see EU regulation 1337/2008) will enable the EU to respond rapidly to problems caused by soaring food prices in developing countries. Operating over a 3-year period from 2009-2011, the fund will bridge the gap between emergency aid and medium to long-term development aid. Its chief objectives are to:
- encourage food producers to increase supply
- deal directly with the effects of volatile food prices on local populations
- increase food production capacity and improve the way agriculture is managed in the longer term.
In concrete terms, it will support:
- measures to improve access to agricultural inputs and services including fertilizers and seeds – with special attention to local facilities and availability
- safety-net measuresto maintain or increase agricultural production capacity and help meet the basic food needs of the most vulnerable populations, including children
- other small-scale production-boosting measures based on countries’ individual needs – microcredit, investment, equipment, infrastructure and storage – and vocational training and support for agricultural professionals.
