Global Food Prices and ECHO Evolves

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1 Global Food Prices and ECHO Evolves

2 What is the Global Food Crisis? Food Costs have soared resulting in a larger percentage of peoples income going to feed themselves.

3 Ripple Effect Net exporters hoard food crops for fear of selling current excess now and needing to import later at higher prices. Speculators see the shortages and, betting on the price going up, buy futures at an accelerated rate which drives prices even higher.

4 1 year (3/07-3/08) Price Increases Maize (Corn) 31% Rice 74% Soya 87% Wheat 130% Most of the poor are net consumers and suffer greatly from this sudden increase in the cost of food.

5 Percentage of Income spent on food USA 9.8% India 53% Tanzania 71% These are 2006 figures BEFORE the 08 food crisis!

6 Drought in USA & Europe Iowa produces more maize than the entire continent of Africa In July 2012 Global food prices increased 10% over previous month due to drought - WB Maize and Soybean reached all-time high WB 220% increase in sorghum prices in South Sudan in 2012

7 Why has the cost of food suddenly gotten so expensive? No one can say that we did not inform (the world) well ahead of time unfortunately, it is a general trend in the world: we react (only) when the crisis is already here. Jacques Diouf, FAO Director FAO held World Food Summits in 1996 and 2002, attended by over 100 heads of state, to draw attention to food security.

8 High Fuel Costs affects transport, machine operation and fertilizer costs

9 Natural Disaster and Drought

10 Global Increase in Demand for Milk and Meat

11 Increase in use of grain for biofuels

12 Government policies that discriminate against small scale farmersinfrastructure, investment, access to credit, etc.

13 In 1980 s, 20% of overseas development assistance went to agriculture, by 2006 this had dropped to 2.9%

14 Direct Impact on Health: 100 million more people added to the 850 million that lack purchasing power and are plagued with hunger and chronic malnutrition 2 billion people suffering from nutrient deficiencies 177 million children affected by chronic malnutrition million children dying each year from causes related to malnutrition

15 Impact on Future: Increase in Negative Coping Mechanisms eating less and/or lower quality food selling assets and livestock diverting family money from health and education Malnutrition expected to increase significantly in Sub-Saharan Africa in the next 30 years One episode of severe malnutrition in a child under 5 yrs. can reduce their cognitive ability for LIFE! Impact on the future of a country.

16 Other Problems Only 7% of arable land in Africa and 4% of arable land in SSA is irrigated (compared to 38% in Asia) 40%-60% of food produced is lost annually due to poor storage

17 Role of Agriculture Agriculture development is the most effective way to combat poverty and pull (developing populations) up into a higher level of food security. 7 in 10 people around the world depend on agriculture for food and income. -Warren Buffet

18 So how is ECHO evolving to address the changing world?

19 Connect you with great ideas and innovations Moringa

20 Studies from Iowa State University and Rodale Institute show that organically grown crop rotation (4 crops with cover crops) produced over 31% increase in yield during a drought year than traditional cropping systems and with up to 88% reduction in N and herbicides than traditional western cropping rotations each year low tech natural farming systems are not just an option for the poor, they work!

21 Train you in the skills needed to make a difference

22 Connect you with organizations and individuals that can add to your skills

23 Looking to resource seeds on a regional level Conduct relevant research that will help small scale agriculture Regional presence to both gather and disseminate information Expand focus from production to marketing as well can t ignore the economics Improve data access internet and mobile phones

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