Initiative on soaring food prices now covers 54 countries

Rome, 9 July 2008 – FAO has just approved a series of projects in 48 countries (see list below) for a total value of US$ 21 million to help small farmers and vulnerable households mitigate the
negative effects of rising food and input prices.

The projects will provide farmers with agricultural inputs as of this month for an expected duration of one year. Funded by the Technical Cooperation Programme – i.e. FAO’s own resources – they
are part of FAO’s Initiative on soaring food prices (ISFP).

With six countries already benefiting for a total amount of nearly US$ 2.8 million (Burkina Faso, Côte d’Ivoire, Haiti, Mauritania, Mozambique and Senegal), FAO’s own funding
under the Initiative on soaring food prices now covers 54 countries.

The immediate objective of these projects is to ensure the success of the next planting seasons and, in the longer term, demonstrate that by increasing the supply of key agricultural inputs,
such as seeds and fertilizers, small farmers will be able to rapidly increase their food production.

Increased food production would help cushion small farmers, who often have to buy part of their food from markets with rising food prices and would, hopefully, lead to a surplus production that
could be sold, increasing their income and facilitating the access to food of the rural and urban population.

A salutary catalytic effect

The provision of seeds, fertilizers and other agricultural inputs to small farmers is intended to encourage donors, financial institutions and national governments to support the provision of
inputs on a much larger scale, according to FAO experts who stress that their Initiative is intended to produce a salutary catalytic effect that will encourage development partners to
contribute to similar projects, but on a larger scale.

According to FAO, countries most affected, especially in Africa, will need at least a total of US$1.7 billion to start reviving agricultural systems that have been neglected for several
decades. And this amount is just for immediate and short term measures during 2008-2009.

The unprecedented hike in food prices, which rose 52 percent between 2007 and 2008, has had severe economic, social and political consequences in poor countries. And high prices of agricultural
inputs have become a major obstacle to developing countries’ efforts to increase agricultural production. For the period January 2007 to April 2008, fertilizer prices in particular shot up at a
much faster rate than food prices.

Anticipating the widespread impact and grave nature of soaring food prices, in December 2007, FAO launched its Initiative on soaring food prices to help vulnerable countries put in place urgent
measures to boost food supplies by ensuring the success of their agricultural campaigns and to provide policy support to improve access to food.

The 48 new countries benefiting from FAO’s drive are: Afghanistan, Angola, Armenia, Bangladesh, Barbados, Belize, Benin, Bhutan, Burundi, Cambodia, Cameroon, Central African Republic,
Comoros, Democratic Republic of Congo, Djibouti, Dominica, Eritrea, Grenada, Guinée, Guinée-Bissau, Guyana, Honduras, Jamaica, Kenya, Kyrgystan, DPR Korea, Lesotho,
Madagascar, Mali, Mongolia, Nigeria, Nepal, Nicaragua, Pakistan, Philippines, Rwanda, St Kitts and Nevis, St Vincent and the Grenadine, Sierra Leone, Sri Lanka, Sudan, Suriname, Swaziland,
Tchad, Timor-Leste, Togo, Yemen, Zambia.

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