Wednesday 17 October 2012

New Tool Checks Food Affordability


Agribusiness giant DuPont has modified the Global Food Security Index to account for the impact of changes in global food prices at a national level where price fluctuations impact most directly.


Commissioned by DuPont and developed by the Economist Intelligence Unit (EIU), the Price Adjustment Factor captures the impact of changing food prices and income growth over time. In response to the rising cost of food, mainly in June of this year, the Index recorded a slight decline in food security globally.  The interactive tool is available online at www.foodsecurityindex.eiu.com.

DuPont Executive Vice President James C. Borel says this tool will help understand the root causes of hunger. “The ramifications of this year's drought are far reaching.  Knowing where the impact is the greatest can help focus our collective efforts where they are needed most.”

The World Bank estimates that global food price spikes in 2008 pushed 44 million people below the poverty line globally, most of them in poor countries.  In the United States, almost 15 percent of households experienced food insecurity in 2011, up 11 percent before recent price jumps.

“Many factors affect food prices, from rising demand in emerging markets to abrupt changes in the weather,” said EIU Global Forecasting Director Leo Abruzzese.  “The new Price Adjustment Factor tool will assess, quarterly, the impact of price changes on a country’s ability to afford food.  High and volatile prices can impact food security by limiting consumers’ purchasing power and calorie consumption.”

Seventy eight percent of U.S. corn acres have been affected by drought; some farmers can’t afford to feed livestock and the cost of commodities is at record highs.  While this year’s drought has been devastating to farmers, the United States Department of Agriculture (USDA) has reported the 2nd largest corn crop globally, in addition to the 2nd and 3rd highest rice and soybean crops respectively.


Monday 15 October 2012

Feed production increases


Speaking at the Food and Agriculture Organization of the UN, in Rome, Alltech vice president Aidan Connolly, presented the results of the 2011 Alltech Feed Tonnage Survey, along with results from previous surveys, showing a steady increase in feed production year on year.



The 2011 survey, covering 128 countries, put the total feed at 873 million tonnes. The 2012 survey, due to be published soon and covering more than 130 countries, is expected to show a further increase. For 2013 however, Connolly, presenting at the IFIF-FAO joint meeting, predicted a contraction in the region of 3 – 5%, driven by the following three factors:

1. Continued global recession affecting protein consumption.
2. The conversion of large amounts of feed stocks and materials into biofuels.
3. Reduced feed supply due to a global drought, specifically in the US.

In addition, a mycotoxin survey, also carried out by Alltech, indicates that the surviving US harvest will be highly contaminated with up to 37 different mycotoxins, due to crop vulnerability from adverse weather conditions. The resulting percentage contraction in feed production will then be determined by the ability of integrated food producers, farmers and food companies to pass on the increased feed material cost to consumers, without any loss in overall consumption levels.

“We are facing into a completely new era for the agriculture industry where, for the first time in history, feed production for 2013 will be lower than for 2012, and it is clear that efficiency in converting feed into food will be more critical to food companies than ever,” said Connolly.

FAO bullish on hunger reduction


If countries step up their efforts to reduce hunger, the Millennium Development Goal of halving the proportion of hungry people by 2015 can still be reached, FAO Director-General José Graziano da Silva told the opening session of the Committee on World Food Security (CFS) today.

Graziano da Silva said that important progress has been made in cutting the number of hungry people by 132 million since 1990. The proportion of the hungry also fell in the developing world from 23.2 percent to 14.9 percent.

He expressed concern that still around 870 million people are hungry and that hunger has risen in Africa and the Near East. Progress in reducing hunger has stalled since 2007, he said.

"As we renew and increase our commitment to reach the Millennium Development Goal for hunger reduction, let's look beyond it, towards the total eradication of hunger because, when it comes to hunger, the only acceptable number is ‘zero'," Graziano da Silva said.

CFS is the foremost inclusive platform for all stakeholders to work together and recommend policies that will promote food security and nutrition for all. The inter-governmental body is open to participation by civil society, the private sector, international and regional organizations and philanthropic institutions concerned with food security and nutrition. As many as 18 government ministers are expected to attend this year's session.