Maravi

FAO warns of possible food crisis

FAO warns of possible food crisis
Written by Kabanda Chulu
Thursday, February 12, 2009 2:15:17 AM

FOOD and Agricultural Organisation (FAO) senior economist Concepcion
Calpe has warned that the world might face another food crisis this year owing to reduced planting due to falling prices and lack of finance for fertilisers.

And Calpe has projected that developing countries would spend US$343 billion this year on food imports alone, which is a 35 per cent increase from the US$245 billion that was spent last year.

Releasing the 2009 food outlook report, Calpe stated that riots and instability would again capture the headlines because the global financial crisis had encroached on the agricultural market resulting in farmers to cut down on planting due to lower prices and lack of funds to buy fertilisers.

“Under the current gloomy prospects for agricultural prices, high input costs and more difficult access to credit, farmers may cut their plantings, which might again result in a tightening of world food supplies,” Calpe stated. “There is a false sense of food security and food price increases are expected in the 2009-2010 harvesting season that will result in more severe food crises than those experienced recently.”

She explained that lower production and higher prices in 2009 would add to developing countries’ problems in obtaining sufficient credit and foreign exchange to buy agricultural commodities.

“Export finance is becoming more difficult to obtain, with banks tightening up the conditions for issuance of letters of credit, however, developing countries will in 2009 spend US $343 billion on food imports alone, which is a 35 per cent increase from the US$245 billion that was spent last year,” stated Calpe.

In 2008, agricultural commodities jumped to a record high, hence triggering food riots in Haiti, Egypt, Senegal, Bangladesh, among other countries, and this development prompted appeals for food aid for more than 30 countries in sub-Saharan Africa.

Labels: FAO, FOOD, HUNGER

posted by MrK @ 2:12 AM