Governments need to take immediate positive steps to alleviate the deepening world food crisis which has triggered recent unrest in developing countries due to mounting food scarcity and rising food prices, says a leading Charles Sturt University (CSU) academic.

 

Professor Kevin Parton, from the CSU Faculty of Business, said that an urgent multi-pronged approach is needed to bring immediate and lasting relief to populations, particularly in developing nations.

 

“Internationally, two things need to happen,” Professor Parton said. “Firstly, the urban poor need to be assisted through income transfers or food distribution programs.

 

“Secondly, farmers in developing countries need to be assisted to produce more food through investment in the development of new agricultural technologies.

 

“Developed countries like Australia can provide aid to assist with both of these types of program. This is a most opportune time for Australia to move towards the millennium development goal for foreign aid to be 0.7 per cent of national gross domestic product (GDP), from the current level of about 0.3 per cent.

 

“Next, the distorting effects of agricultural trade barriers and agricultural subsidies of the developed countries need to be reduced.  These subsidies force down returns to producers in the developing world. There is a real need for more effort devoted to successfully completing the Doha-round of World Trade Organisation (WTO) negotiations. With more political will, Australia could lead the world to a brighter trade future by driving the Doha negotiation process forward,” he said.

 

“Finally, it needs to be recognised that in an attempt to keep down energy prices the subsidised production of bio-fuels in the United States (US) and Europe has spilled over into increased food prices. Clearly, there are political trade-offs in these countries. Assisting domestic consumers of fuel comes at the cost of increased prices of food for all, including the poor in the developing world.”

 

Professor Parton says the world food crisis has resulted from a shortage of food supplies relative growing demand, particularly from India and China. This is caused by a combination of factors including poor grain harvests caused by abnormal weather conditions such as prolonged drought across Australia, and recent record rain and floods in the grain producing regions of the US.

 

“The increase in energy prices is another problem, particularly in the US.  As crude oil prices have risen, demand for ethanol as a bio-fuel for cars has become more competitive.  The US government has subsidised farmers to grow maize for bio-fuel, and this has resulted in less maize available for food.  In some circumstances it has also resulted in less wheat and soybeans, as maize for bio-fuel has been grown to replace them.

 

“Higher energy prices have also pushed up the costs of producing food because fertiliser and fuel for running farm equipment both cost more.”