FAO calls for import finance facility for poorest countries at G20 meeting


FAO calls for import finance facility for poorest countries at G20 meeting

April 24, 2022


FIFF aims to increase global agricultural production, productivity

The Food and Agriculture Organization of the United Nations (FAO) is calling for the establishment of a Global Food Import Financing Facility (FIFF) to help the poorest countries cope with the surge in prices following the war in Ukraine, according to a press release from the organization.

The FIFF, which also aims to sustainably increase global agricultural production and productivity, is one of six policy proposals developed by FAO in response to the crisis.

Russia and Ukraine are major players in the global food market, with nearly 50 countries depending on them for at least 30% of their wheat import needs. Russia is also a major fertilizer exporter. In 2020, it ranked the top nitrogen fertilizer exporter, second potassium supplier and third phosphorus fertilizer exporter. Energy prices also increased, mainly due to market conditions.

With the COVID-19 pandemic already squeezing budgets, the conflict in Eastern Europe has pushed the FAO food price index to an all-time high, hitting vulnerable people the most. Rising fertilizer prices, meanwhile, are jeopardizing future harvests globally.

According to FAO simulations, the conflict could lead to up to 13.1 million additional people suffering from hunger between 2022 and 2026, compared to the reference scenario.

“War can have multiple implications for global markets and food security,” FAO Director-General QU Dongyu said in a video message to a Group of 20 meeting of finance ministers and governors. central banks in Washington.

The FIFF, which would complement existing mechanisms within the UN system, would be strictly based on urgent needs and limited to low- and middle-income net food-importing countries, Qu said.

In addition, it is designed to increase future resilience by asking eligible countries to commit to investing more in sustainable agrifood systems. Qu said that the FIFF has been stress tested by the FAO for its impact on global markets and that it would be convenient to administer and expand.

“The lesson learned is that we need to increase agricultural production and productivity around the world while being sustainable,” Qu said at the meeting. “It is time to work together to eradicate hunger and malnutrition in the world.”

Qu was asked to illustrate the economic consequences of the war in Ukraine, particularly on food security, by Indonesia, the current holder of the G20 presidency.

TheCattleSite News Desk

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