SUPPORTING FARMERS IN THE CURRENT
FOOD CRISIS
106. UN Secretary-General Ban Ki-Moon has urged
countries to seize "an historic opportunity to revitalise
agriculture" as a way of tackling the food crisis.[219]
DFID is building on this approach through its proposed International
Partnership for Agriculture and Food.[220]
A key priority during the current food crisis is working out how
best to support farmers to help them to benefit from higher food
prices. Some farmers are benefiting from the higher prices they
can charge for their produce, but given the soaring cost of fertiliser
(which has increased by over 40%) and the fact that they too must
purchase food for their families, many are losing out. As Lawrence
Haddad told us, "Allowing [smallholder farmers] to respond
to food price increases in ways that drive down prices for all
but allow them to increase their own profits [...] is win-win".[221]
107. Problems such as the high risk of crop failure
and lack of access to markets may dissuade small farmers from
seeking to scale up their outputs.
Joachim von Braun of the International Food
Policy Research Institute suggested that possible ways to assist
small farmers included: training farmers in new crops and production
techniques; improving their access to finance, especially microfinance;
building infrastructure; and developing domestic market institutions,
such as commodity exchanges, to make markets more efficient and
transparent to farmers in remote areas.[222]
Dr Edward Clay of the ODI warned that further
fluctuations needed to be prepared for: a sudden price drop or
correction, following the current peak, would alter farmers' circumstances
once more.[223] It
is possible that some kind of insurance scheme for farmers could
help incentivise poor farmers to increase their productivity by
reducing the risks they face from price fluctuations and crop
failure.
108. We believe that making
small-scale agriculture a more reliable economic venture is key
to improving food security over the longer-term. Helping poor
farming communities insulate themselves against economic and other
shocks such as extreme weather events will require a whole range
of development inputs, including: adaptation to climate change;
improvements to global trade rules; and the development of new
technologies that help ensure reliable yields. But we believe
that agencies such as DFID can also support specific interventions
that will help farmers increase their productivity, including:
training in new crops and production techniques; improved access
to finance; building infrastructure; and developing domestic market
institutions, such as commodity exchanges. We recommend that DFID
also explore opportunities for insurance schemes for poor farmers
that could help mitigate the risk in increasing their outputs
or developing commercial ventures. We
will explore agricultural development further in our current inquiry
into DFID's Departmental Annual Report 2008.
GENETIC MODIFICATION
109. The debate about the use of genetically
modified (GM) technology has been reinvigorated by the current
food prices increases. Around 100 million hectares, or about 8%,
of the world's cultivated land are sown with genetically modified
organisms.[224] Countries
are divided in their support for GM: supporters, such as the USA
and Brazil, argue that the technology can contribute to increased
yields and help crops withstand climactic variability. Supporters
also point to possible nutritional benefits: staple crops in developing
countries, such as cassava, can be fortified with vitamins, minerals
and protein to provide a whole day's nutrition requirements from
one meal.[225] The
UK Government is more measured in its approach to GM foods. The
Minister told us "I do not think they are going to be a magic
bullet which solves the issue of rising food prices, but they
are going to have a contribution to make."[226]
He believed that, ultimately, the decision about whether to use
GM crops as a response to the food crisis should be made by individual
countries:
"We do need to allow developing countries to
make their own judgments about whether or not to allow GM crops
to be planted. As well as funding the initial research into different
types of GM crops, we are also providing support through the UN's
Environment Programme to help developing countries develop their
own ability to manage the decision as to whether or not to allow
their own people to use GM crops."[227]
We agree that it should be for developing
countries to decide whether to explore the use of genetically
modified crops as a response to the current food crisis. We commend
DFID for helping fund initial research into different types of
GM crops so that countries can make an informed decision on the
basis of reliable information.
183 Ev 78 Back
184
WFP, 'Co-operation among UN Rome-based agencies' (prepared for
the Executive Board Annual Session, Rome 4-8 June 2007) Back
185
Ev 91 Back
186
Q 26 Back
187
Ev 82 Back
188
Q 84 Back
189
Ev 69 Back
190
Poverty Reduction Strategy Papers
(PRSPs) are prepared
by governments through a participatory process involving the World
Bank, the IMF, donors and civil society. Back
191
Ev 69 Back
192
Ev 61 Back
193
Ev 82 Back
194
Q 82 Back
195
WFP, 'Co-operation among UN Rome-based agencies' (prepared for
the Executive Board Annual Session, Rome 4-8 June 2007) Back
196
Ev 46 Back
197
Ev 91. The other pilot countries are Vietnam, Cape Verde, Albania
and Uruguay. Back
198
UN, 'Delivering as One: Report of the Secretary-General's High-Level
Panel' (November 2006) Back
199
Ev 91 Back
200
Q 30 Back
201
Ev 77 Back
202
Ev 61 Back
203
Q 86 Back
204
'Greener and leaner - how the west could stave off disaster',
The Guardian, 31 May 2008 Back
205
'All agree there is a food crisis. But the argument is how to
deal with it', The Independent, 4 June 2008 Back
206
Ev 51-52 Back
207
Q 102 [Jonathan Lingham] Back
208
International Development Committee, Fourth Report of Session
2005-06, Private Sector Development HC 921 and International
Development Committee, Seventh Report of Session 2007-08, DFID
and the African Development Bank HC 441 Back
209
Ev 51. Asia's 'green revolution' over the last 30-40 years has
resulted in sustained agricultural development and improvements
in productivity-although there is debate over whether this period
of increased output is slowing. Back
210
'The end of abundance?' Financial Times, 2 June 2008 Back
211
'UK urges global action on food prices', speech by Douglas Alexander,
3 June 2008. Available online at http://www.dfid.gov.uk/news/files/Speeches/alexander-world-food-speech.asp
Back
212
DFID Press Releases: 22 April 2008, 'UK announces aid package
to tackle rising food prices' Back
213
Ev 45 and DFID Press Release, 6 June 2008, 'CGIAR receives £130
million for agricultural research' Back
214
DFID Press Release, 6 June 2008, 'CGIAR receives £130 million
for agricultural research' Back
215
Q 66 Back
216
Qq 66 and 98 Back
217
Ev 61 Back
218
For further details, see the Global Alliance for Improved Nutrition's
(GAIN) website, http://www.gainhealth.org/system/files/2008-05-02-malnutrition-safety-net.pdf
Back
219
BBC Online, 'UN sets out food crisis measures', 3 June 2008 Back
220
See Paragraph 80 Back
221
Ev 61 Back
222
Ev 60. Microfinance is defined as credit, savings, insurance and
money transfer services for relatively poor people. Back
223
Ev 57 Back
224
'The end of abundance', Financial Times, 2 June 2008 Back
225
'GM crops may provide day's worth of nutrition in one meal', The
Herald, 1 July 2008 Back
226
Q 120 Back
227
Q 120 Back