Webmail: PlaNet www.pl.net
0800 752638
Planet Communications— delivering socially and environmentally conscious internet and media services since 1992.
PlaNet News & Views
|
|
|
Posted on 27-2-08 Hungry Feedup
By Julian Borger, The Guardian, February 26 2008
The United Nations warned yesterday that it no longer has enough money to
keep global malnutrition at bay this year in the face of a dramatic upward
surge in world commodity prices, which have created a "new face of
hunger". "We will have a problem in coming months," said Josette Sheeran,
the head of the UN's World Food Programme (WFP). "We will have a
significant gap if commodity prices remain this high, and we will need an
extra half billion dollars just to meet existing assessed needs."
With voluntary contributions from the world's wealthy nations, the WFP
feeds 73 million people in 78 countries, less than a 10th of the total
number of the world's undernourished. Its agreed budget for 2008 was
$2.9bn (£1.5bn). But with annual food price increases around the world of
up to 40% and dramatic hikes in fuel costs, that budget is no longer
enough even to maintain current food deliveries.
The shortfall is all the more worrying as it comes at a time when
populations, many in urban areas, who had thought themselves secure in
their food supply are now unable to afford basic foodstuffs. Afghanistan
has recently added an extra 2.5 million people to the number it says are
at risk of malnutrition. "This is the new face of hunger," Sheeran said.
"There is food on shelves but people are priced out of the market. There
is vulnerability in urban areas we have not seen before. There are food
riots in countries where we have not seen them before."
WFP officials say the extraordinary increases in the global price of basic
foods were caused by a "perfect storm" of factors: a rise in demand for
animal feed from increasingly prosperous populations in India and China,
the use of more land and agricultural produce for biofuels, and climate
change.
The impact has been felt around the world. Food riots have broken out in
Morocco, Yemen, Mexico, Guinea, Mauritania, Senegal and Uzbekistan.
Pakistan has reintroduced rationing for the first time in two decades.
Russia has frozen the price of milk, bread, eggs and cooking oil for six
months. Thailand is also planning a freeze on food staples. After protests
around Indonesia, Jakarta has increased public food subsidies. India has
banned the export of rice except the high-quality basmati variety. "For
us, the main concern is for the poorest countries and the net food
buyers," said Frederic Mousseau, a humanitarian policy adviser at Oxfam.
"For the poorest populations, 50%-80% of income goes on food purchases. We
are concerned now about an immediate increase in malnutrition in these
countries, and the landless, the farmworkers there, all those who are
living on the edge."
Much of the blame has been put on the transfer of land and grains to the
production of biofuel. But its impact has been outweighed by the sharp
growth in demand from a new middle class in China and India for meat and
other foods, which were previously viewed as luxuries. "The fundamental
cause is high income growth," said Joachim von Braun, the head of the
International Food Policy Research Institute. "I estimate this is half the
story. The biofuels is another 30%. Then there are weather-induced erratic
changes which caused irritation in world food markets. These things have
eaten into world levels of grain storage. "The lower the reserves, the
more nervous the markets become, and the increased volatility is
particularly detrimental to the poor who have small assets."
The impact of climate change will amplify that already dangerous
volatility. Record flooding in west Africa, a prolonged drought in
Australia and unusually severe snowstorms in China have all had an impact
on food production. "The climate change factor is so far small but it is
bound to get bigger," Von Braun said. "That is the long-term worry and the
markets are trying to internalise it."
The WFP is holding an emergency meeting in Rome on Friday, at which its
senior managers will meet board members to brief them on the scale of the
problem. There will then be a case-by-case assessment of the seriousness
of the situation in the affected countries, before the WFP formally asks
for an increased budget at its executive board meeting in June.
But the donor countries are also facing higher fuel and transport costs.
For the biggest US food aid programme, non-food costs now account for 65%
of total programme expenditure.
Global impact: Where inflation bites deepest
1 United States The last time America's grain silos were so empty was in
the early seventies, when the Soviet Union bought much of the harvest.
Washington is telling the World Food Programme it is facing a 40% increase
in food commodity prices compared with last year, and higher fuel bills to
transport it, so the US, the biggest single food aid contributor, will
radically cut the amount it gives away.
2 Morocco 34 people jailed this month for taking part in riots over food
prices.
3 Egypt The world's largest importer of wheat has been hard hit by the
global price rises, and most of the increase will be absorbed in increased
subsidies. The government has also had to relax the rules on who is
eligible for food aid, adding an extra 10.5 million people.
4 Eritrea It could be one of the states hardest hit in Africa because of
its reliance on imports. The price rises will hit urban populations not
previously thought vulnerable to a lack of food.
5 Zimbabwe With annual inflation of 100,000% and unemployment at 80%,
price increases on staples can only worsen the severe food shortages.
6 Yemen Prices of bread and other staples have nearly doubled in the past
four months, sparking riots in which at least a dozen people were killed.
7 Russia The government struck a deal with producers last year to freeze
the price of milk, eggs, vegetable oil, bread and kefir (a fermented milk
drink). The freeze was due to last until the end of January but was
extended for another three months.
8 Afghanistan President Hamid Karzai has asked the WFP to feed an extra
2.5 million people, who are now in danger of malnutrition as a result of a
harsh winter and the effect of high world prices in a country that is
heavily dependent on imports.
9 Pakistan President Pervez Musharraf announced this month that Pakistan
would be going back to ration cards for the first time since the 1980s,
after the sharp increase in the price of staples. These will help the poor
(nearly half the population) buy subsidised flour, wheat, sugar, pulses
and cooking fat from state-owned outlets.
10 India The government will spend 250bn rupees on food security. India is
the world's second biggest wheat producer but bought 5.5m tonnes in 2006,
and 1.8m tonnes last year, driving up world prices. It has banned the
export of all forms of rice other than luxury basmati.
11 China Unusually severe blizzards have dramatically cut agricultural
production and sent prices for food staples soaring. The overall food
inflation rate is 18.2%. The cost of pork has increased by more than half.
The cost of food was rising fast even before the bad weather moved in, as
an increasingly prosperous population began to demand as staples
agricultural products previously seen as luxuries. The government has
increased taxes and imposed quotas on food exports, while removing duties
on food imports.
12 Thailand The government is planning to freeze prices of rice, cooking
oil and noodles.
13 Malaysia and the Philippines Malaysia is planning strategic stockpiles
of the country's staples. Meanwhile the Philippines has made an unusual
plea to Vietnam to guarantee its rice supplies. Imports were previously
left to the global market.
14 Indonesia Food price rises have triggered protests and the government
has had to increase its food subsidies by over a third to contain public
anger.
|
