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Food price bubble, 2007-08

Food price bubble, 2007-08. Source: Data from FAO 2008 and IMF 2008. Sources and features of price increases. Energy cost, biofuel policies Income and population growth Climate shocks Slow agricultural response Market and trade policy Speculation.

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Food price bubble, 2007-08

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  1. Food price bubble, 2007-08 Source: Data from FAO 2008 and IMF 2008.

  2. Sources and features of price increases • Energy cost, biofuel policies • Income and population growth • Climate shocks • Slow agricultural response • Market and trade policy • Speculation

  3. Agriculture, Health, Nutrition during Crisis Marie Ruel and Joachim von BraunInternational Food Policy Research Institute Ministerial Forum on Research for Health Bamako, November 17-19, 2008

  4. Severe impacts of the food price crisis Poor people spend 50-70% of income on food and their wages do not adjust accordingly A 50% increase in food prices in Bangladesh = 25% more prevalence of iron deficiency in women and children (Bouis 2008) Irreversible effects: withdrawal of girls from school, distress sale of productive assets, etc. Number of undernourished increased from 848 mil. in 2003-05 to 923 mil. in 2007 (FAO 2008)

  5. Financial crisis increasing the burden Short-term price relief from lower demand not sufficient for the poor Credit crunch => less capital for agriculture and higher debt burden for small farmers Policy attention diverted away from agriculture Food price crisis now much harder to resolve; meeting the MGDs even more unlikely

  6. Agriculture-health linkages Agricultural Producers (farmers & workers) Agricultural Systems (type, method, practice, location) Agricultural Outputs (qty, qual, price, diversity) Agricultural Supply Chain Labor (energy, time, amount) Environment (water, air, soil) Income (amount, type, control) Access (food, med., health services) Intermediary Processes Policy and Policy Process/Governance Occupational health Water-associated vector-borne diseases (e.g. malaria) Nutrition Food-borne illnesses HIV/AIDS Livestock-related illnesses • Under-nutrition • Diet-related chronic disease Health Outcomes Source: Hawkes and Ruel, WHO Bull. 2006.

  7. Originated with the CGIAR; now includes several health partners, incl. WHO • Goals: • Promote and coordinate scientific and policy research on ag-health linkages • Develop partnerships and draw on mutual strengths between sectors • Develop tools to link ag-hlth in research, policy and practice; disseminate, communicate • Improve health and livelihood of the poor

  8. Research priorities Identified as offering greatest opportunities for synergies between ag-health Diet and nutrition Low-cost, high-quality foods Value chain management of food safety Food-borne diseases Water-borne diseases Irrigation, water quality

  9. Research Prioritie (cont.) Agriculture and livelihood HIV/AIDS Zoonotic diseases Livelihoods Labor, agriculture productivity, livelihoods Occupational health, child labor

  10. Examples of win-win solutions • Biofortification • Homestead food production • Producing fruit/vegetable, animal source foods for improved nutrition • Empowering women • Local procurement of food assistance • Create markets for small farmers - for maternal and child health and nutrition or school feeding programs

  11. Getting the Research Agenda implemented: how? • Governments to formulate policies that create incentives –financial and other- for inter-sectoral collaboration that benefits more than single-sector policies • Bi- and multi-sectoral policy reviews to identify new policies that support cooperation • Health impact assessments to monitor health impacts of new agricultural project s and technologies • Tracing food-agriculture-health links along the food value chain in search of critical control points

  12. Conclusion • Strengthening links between ag-health offers great opportunities for achieving poverty reduction and health goals • But will require: • That agriculture and health experts look beyond the bounderies of their traditional areas of action • Create a holistic approach to human, plant, animal health that improves well-being of millions of people

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