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World Bank sets $75m fund for increased food supply

World Bank sets $75m fund for increased food supply
Written by Kabanda Chulu
Monday, February 23, 2009 4:37:58 AM

THE International Finance Corporation (IFC) of the World Bank has established a US$75 million agribusiness fund to support farming and food production in emerging markets like Zambia to increase global food supply.

The IFC would partner with the Altima Partners LLP, which manages the US$625 million Altima One World Agriculture Fund, to create a parallel vehicle that specifically targets emerging markets.

IFC director for global agribusiness Oscar Chermerinski stated that high food prices and their impact on the poor would continue to be a top concern for IFC and the World Bank Group.

He stated that increasing agricultural productivity in a sustainable way was important to expanding global food production.

“Although prices for soft commodities have been declining recently, they remain above historical highs and are likely to rise again in today’s volatile global economic climate. The financial crisis has negatively affected the availability of financing and has increased the cost of credit hence a combination of declining soft commodity prices and increasing cost of credit creates lower incentives for farmers to plant, which can result in global production shortages,” Chermerinski stated.

He stated that IFC’s response would focus on increasing food production by investing in productive farm land in countries with high potential for agriculture and improving productivity.

“Agribusiness private equity funds investing in farmland are just emerging as an asset class. We are glad to work with Altima Partners in creating new opportunities for emerging markets to expand their food production,” stated Chermerinski. “By investing in the Altima fund, IFC is leveraging its resources to stimulate growth in agricultural production in emerging markets of member countries especially least developed ones.”

And Altima Partners LLP senior director Joseph Carvin stated that the new fund would invest in agricultural production land and farm operators that would help increase economies of scale and improve farm productivity by implementing modern technology and best practices.

“We are confident that our combined strengths will be a force for positive change in the agriculture sector and will benefit communities around the world,” stated Carvin.

Labels: AGRICULTURE, FOOD, INTERNATIONAL FINANCE CORPORATION, World Bank

posted by MrK @ 4:36 AM