Thursday, August 21, 2008

Food aid deliveries in 2007 were the lowest since 1961

In the midst of the greatest food crisis in decades, the World Food Program last week published a report with sobering data relating to the world’s commitment to food aid. The document examined food aid flows in 2007 and reported, "Food aid deliveries continued to decline in 2007, reaching the lowest level since 1961."

The W.F.P. estimated global food aid deliveries in 2007 at 5.9 million tonnes, down 15% from 7 million tonnes the year before. Food aid deliveries declined in six of the past eight years since 1999, when deliveries registered their recent high at 15 million tonnes. Food aid deliveries were nearly as low as last year in 1973, when the world experienced a food crisis as well.

"There is an urgent need to reverse this trend," W.F.P. said. "The resources available for food assistance need to increase to take immediate actions to address the serious negative effects of the higher food prices on hunger and malnutrition across the world. As a result of higher food prices, vulnerable populations, including children and women in rural and urban areas, are eating less and eating less well. They are also reducing expenditures on education and health and possibly selling productive assets to cope with the higher food prices. These consequences are long lasting, sometimes covering a lifetime. Food assistance is needed to prevent these effects."

Each category of food aid – emergency, project and program – declined in 2007. Of the 5.9 million tonnes of food aid deliveries in 2007, 3.7 million tonnes were for emergency distribution, 1.4 million tonnes were for project distribution and 0.9 million tonnes were for program support. Emergency food aid is destined for free distribution to victims of natural or manmade disasters. Project food aid supports specific poverty-reduction and disaster-prevention activities and is usually distributed directly to target populations, though some food may be sold on the open market to raise funds for the relevant projects in a process known as monetization. Program food aid is usually supplied on a government-to-government basis as a resource transfer for balance-of-payments or budgetary support.

Emergency food aid delivered in 2007 was 14% less than in 2006. Project food aid declined 16% from 2006, and program food aid deliveries dropped 17% from the year before.

The W.F.P. said the decline in food aid deliveries between 2000 and 2007 may be explained partly by rising prices. "If 2000 prices had prevailed in 2007, it would have been possible to deliver 6.6 million tonnes of maize, rice and wheat, which is nearly double the actual deliveries (of those commodities) in 2007," the W.F.P. explained. Also adversely affecting food aid deliveries were rising energy costs. "Thus, for given budgets, fewer tons of food aid can be delivered."

The increases in food aid funding announced in recent weeks – principally the $755 million raised by the W.F.P. and $950 million as committed by President Bush – aimed primarily to ensure food aid volume is not reduced from earlier budgeted volumes. Additional resources were expected to be required in the next several years as the world seeks to rebuild badly diminished grain stocks.

The U.S. remained the principal food aid donor in 2007, accounting for 2.6 million tonnes of the 5.9 million tonnes delivered. The European Union and its member states accounted for 1.5 million tonnes in delivered food aid.

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