FAO’s Initiative on Soaring Food Prices in

Asia and the PacificP.K. Mudbhary

Chief, Policy Assistance Branch

FAO Regional Office for Asia and the Pacific

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Workshop and Advanced Briefing for FAO Representatives2- 6 February 2009Bangkok, Thailand

PRESENTATION OUTLINE

I. Food prices and government response in Asia

II. FAO’s response – the Initiative on Soaring Food Prices (ISFP)

III. FAO ISFP in Asia & the PacificIV. FAO’s collaboration with regional

organizations: ISFP and beyond

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Food prices and government response in

Asia

S. 4

GIEWS global information and early warning system on food and agriculture

FAO Initiative on Soaring Food Prices

Selected cereal prices in Asia

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S. 5

GIEWS global information and early warning system on food and agriculture

FAO Initiative on Soaring Food Prices

Governments responded to high prices with different measures

Reduced food tariffs and taxes Subsidized food prices and expanded safety net programs Released stock and increased food import Imposed export control Supported input distribution, etc.

The measures were short-term and costly High budgetary and foreign exchange cost Measures prevented high prices from being transmitted to farmers

Structural and long-term challenges remain unaddressed

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S. 6

GIEWS global information and early warning system on food and agriculture

FAO Initiative on Soaring Food Prices

Major policy responses to high prices in Asian countries

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FAO’S response - the Initiative on Soaring Food

Prices (ISFP)

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FAO Initiative on Soaring Food Prices

OBJECTIVES

increase food availability

boost smallholder productivity

contribute to longer-term food security by addressing underlying drivers of the crisis

(Launched in December 2007 and fully expanded after the High-level conference to translate the commitments into action)

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FAO Initiative on Soaring Food Prices

FEATURES

partnership country driven catalytic diversified targets smallholders tests best approaches

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FAO Initiative on Soaring Food Prices

FINANCING estimated global need through 2009: US$ 1.7 billion ISFP financing as of 19 January 2009:

Total funds received:101.9 million (including 35.9 million FAO funds) Agreements signed: 41.2 million Projects in pipeline: 72 million

Main sources: FAO Technical Cooperation Projects Donors: Austria, EC, Haiti, multilateral, Netherlands, Spain, Sweden,

Switzerland, Tajikistan, UK,, Italy, Japan, Sierra Leone, Spain, Sweden, Switzerland, Tajikistan, UNDP, UNOCHA, World Bank

EC food facility for response to food crisis FAO is implementing agency for 12 countries, three from Asia, during the

first phase

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FAO Initiative on Soaring Food Prices

MAIN ACTION ELEMENTS

inter-agency assessment missions country action plans:

input supply (seeds, fertilizer, etc.) small-scale irrigation linking farmers with markets reducing crop losses supportive policies

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FAO Initiative on Soaring Food Prices

Modalities of ISFP Response

UN Secretary-General established UN High-Level Task Force on Food Security Crisis (April 2008): a unified response

The Task Force produced Comprehensive Framework for Action (CFA), a global strategy and action plan with major FAO contributions (July 2008), which has two objectives:1. Improve access to food and nutrition support and take immediate steps

to increase food availability, 2. Strengthen food and nutrition security in the long-run by addressing

underlying factors driving food crisis Inter-agency cooperation between FAO –World Bank, ADB, EC and other

UN agencies Collaboration with regional organizations (SAARC and ASEAN), and NGOs

and bilateral donors in support of national governments High Level Meeting on Food Security for All Madrid (Spain) 26-27 January

2009 to review progress since June Conference and agree on future priorities

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FAO ISFP in Asia & the Pacific Region

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FAO ISFP - Asia and Pacific RegionACHIEVEMENTS AND ACTIVITIES TO DATE

7 interagency assessment missions (identification of needs; proposals for contribution to national action plans)

Input supply, technical and policy assistance taking place in 17 countries

Regional brainstorming at RAP – 25 April 2008

Two regional TCP projects

Three country projects (Afghanistan, Nepal and Pakistan) completed for EC Food Facility

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REGIONAL TCP PROJECTS

“Regional Support to Alleviate the Impact of Soaring Food Prices on Most Affected Vulnerable Farming Populations of Asia – Pacific Region” (TCP/RAS/3204 - $458,000 – 1 year)

“Monitoring Food Market Development as Rapid Response to ISFP Implementation” (Regional TCP Facility $94,340 – 10 months)

FAO IFSP - Asia and Pacific Region

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Regional Support to ISFP activities at the country level (TCP/RAS/3204)

Objectives• Support countries to increase agricultural production through

enhanced supply of inputs, while ensuring timeliness, full transparency, quality of inputs and access to those most in need;

• Assist countries in setting up effective monitoring and evaluation mechanisms to assess the impact of activities to address the soaring food prices situation;

• Support inter-agency assessments at the national level on the impact of the food crisis, the development of country action plans and the detailed formulation of recommended projects;

• Provide coordination services at regional/subregional level; identify scope for synergy, lessons learned and potential for upgrading and further development of national initiatives; and

• Strengthen regional and subregional organizations to better address and monitor the food security situation in the region.

Regional Support to ISFP activities at the country level (TCP/RAS/3204)

Activities• Technical support and supervision missions• Regional workshop• Mission to assess implementation and follow-up

programming• Project implementation support – Timor Leste• Technical and operational support

Monitoring Food Market Development and Rapid Response to ISFP Implementation – TCP Facility

Objectives• To monitor the dynamic changes in the food markets

(price fluctuations, market conditions, policy actions, etc.) in the Asia Pacific Region;

• To provide periodic analyses of important market and policy issues related to food security in RAP member countries in order to assist policy makers in decision‑making; and

• To continue the wide dissemination (website, email) of market information and analysis through the “Asia Pacific Food Situation Update” (APFSU) to governments, embassies, international organizations, related institutions.

Monitoring Food Market Development and Rapid Response to ISFP Implementation – TCP Facility

Activities/ Outputs• A network of trade and market correspondents in

selected countries.• A database of food and input prices (both domestic

and international)• A monthly newsletter with analysis of international and

domestic food prices, indicators and any changes relating to food/agriculture market and policy for stakeholders’ decision-making.

FAO’s collaboration with regional organizations:

ISFP and beyond

Regional strategies and programmes Partnership with the SAARC Secretariat Process of formulating regional strategies

RTWG and NTWG Country Position papers for seven countries Synthesis and further consultations Identification of Project ideas Development of Project Concept Notes Colombo Summit declaration on food security Conference involving development partners

Proposed Areas for Regional Cooperation in SAARC

Broad Clusters of PCNs Identified Priority Projects

A. Productivity, Sustainability and Income Enhancement

• Enhancing productivity of small farmers in marginal and unfavorable areas / regions

• Enhancing and sustaining production and productivity in favourable areas

• Technical and policy support towards conservation and efficient use of land, water and bio-diversity resources

• Promoting rational/balanced use of agricultural inputs (fertilizer, agro-chemicals)

B. Pre and Post-Harvest Loss Reduction and Value Chain

Management

• Prevention of pre and post harvest losses, through appropriate interventions, and value chain development

Broad Clusters of PCNs Identified Priority Projects

C. Ensuring Bio-Security

Development / Updating of national SPS Standards in line with CODEX Development/up-gradation of Accredited Laboratories in SAARC RegionInstitutionalization of a SAARC mechanism/ network on control of Trans-Boundary Plant and Fish Diseases•Support/assistance in capacity-building in the areas of food safety, quality and standards

D. Agricultural Trade and Marketing for Food Security

Support /assistance for capacity-building in analysis and formulation of agricultural trade policies for ensuring food security

Proposed Areas for Regional Cooperation in ASEAN

• ASEAN Integrated Food Security (AIFS) Framework

• Strategic Plan of Action on ASEAN Food Security (SPA-FS)

• Convergence Matrix to align CFA Outcomes and Activities/ Sub-Activities under ASEAN SPA-FS

• Planned Regional Conference

THANK YOU

www.fao.org/isfp

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