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Policies that subsidize Food Consumption

Policies that subsidize Food Consumption. Text extracted from The World Food Problem Leathers and Foster, 2004. http://www.lastfirst.net/images/product/R004548.jpg. Food Subsidies. Popularity of subsidies: Donor countries with burdensome surpluses Donors directly feed famine victims

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Policies that subsidize Food Consumption

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  1. Policies that subsidize Food Consumption Text extracted from The World Food Problem Leathers and Foster, 2004 http://www.lastfirst.net/images/product/R004548.jpg

  2. Food Subsidies • Popularity of subsidies: • Donor countries • with burdensome surpluses • Donors • directly feed famine victims • Exporters • Farmers • Food distributors • Input suppliers • Shippers • Developing countries • Military • Industry • Politicians • Removal of food subsidies • Can result in riots http://www.uni-mainz.de/Organisationen/SORC/images/arbore/1foodaid2.jpg

  3. Marketwide food subsidies • Egypt • lowered the cost of food for everyone • Bread, flour, pulses, sugar, tea, cooking oil • kept undernutrition to minimum • Inefficiency • Waste • Bread used for livestock feed • Lower industry investment • Government money used to import food • Overconsumption of wheat • Government paid higher price than consumers would have • Up to 17% of Government budget used for subsidies http://www.ardia.net/dan/photos/egypt-al-bread%20II.jpg

  4. Subsidies for the needy • Income targeting • Sri Lanka restricted rice subsidies to low income households • Half of households qualified • Self-targeting • Subsidies on food with low demand • Cassava, yams, maize, sorghum, millet http://biology.queensu.ca/~arnoldh/sri%20market.jpg Sri Lanka market

  5. Subsidies for the needy • Supplemental Feeding • Direct distribution to pregnant women, infants • Positive results • Severely malnourished benefit most • Must be combined with health care • Problems • Food shared with non-target family members • Nutritional timing important for pregnancy, preschoolers http://gbgm-umc.org/umcor/photos/malawi/richardlord/balamanjasffeedingchildren.jpg

  6. Subsidies for the Needy • Ration Cards • Allow purchase of food at below market price • Food Stamps • Pay market price for food • Must buy food stamps • price varies with income • Food for Work • Often work to improve agricultural infrastructure http://www.humanitarianinfo.org/DPRK/mediacentre/photo%20gallery/Activities/Food/FoodAgriculture.asp Food for work project, North Korea

  7. Food Aid • Important in famine relief • Best if purchased in country • Problems with giving food: • Shipping costs high • 89% value of the food • Medical care more critical • Not self-sustaining • Food sometimes used as cash • Children don’t benefit • Depresses farm prices in country • Disincentive to agriculture Food aid for Indonesia Earthquake victims, 2005 http://www.iabc.or.id/photos_aceh.htm

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