Food Aid and TradeFood Aid and TradeFood SecurityFood Security

Master CD, IUSS, University of Pavia, 2008/09 Master CD, IUSS, University of Pavia, 2008/09

Paola Fava Paola Fava Maria Elena Ladron de Guevara Maria Elena Ladron de Guevara

Prakash SharmaPrakash Sharma

23 April, 200923 April, 2009

International Master Programme in Cooperation and Development

International Master Programme in Cooperation and Development

Food Aid has been one of the ways to solve food insecurity

problems over the last 60 years

840 million undernourished people in the world

International Master Programme in Cooperation and Development

• Program– In-kind aid– Government to government transfer

• Project– As part of a specific project

• Relief or Emergency– Distributed in emergency situations – Countries facing chronic food insecurity

Food aid: types

International Master Programme in Cooperation and Development

Main donors involved

International Master Programme in Cooperation and Development

• Hunger?

• Political

• Economical

• Commodity Surplus: (i.e. CSSD)

Reasons for receiving Food Aid

The process

• Distribution– Big U.S. shipping companies involved

• Major commodities used as Food Aid – Cereals (90%)– Rice– Course grains

International Master Programme in Cooperation and Development

International Master Programme in Cooperation and Development

Food Prices• Inverse relationship

How does Food Aid affect trade?

International Master Programme in Cooperation and Development

• Emergency Food Aid

-Limited effect

• Food aid can replace commercial imports

International Master Programme in Cooperation and Development

• Dumping

- Undercuts local farmers

• Prices fall:– Benefits food buyers

• Create new tastes and markets

It can destabilize local markets

Food Aid Concerns

• Donor-driven system (promotes domestic interests)

• Can create dependency

• Food Aid management (corruption)

International Master Programme in Cooperation and Development

• Food Aid is not one of the solutions to food insecurity

• Paradox: over 50% of people suffering from hunger are smallholder farmers

Our thoughts..

International Master Programme in Cooperation and Development

Possibilities

International Master Programme in Cooperation and Development

• Weather-resistant seeds

• Encourage transparency within governments

• The usage of local markets

• Food diversity

• Financing research for sustainable approaches and infrastructure

Thank you!Thank you!

International Master Programme in Cooperation and Development