G20 to focus on food crisis
In the past few years, farmers in the EU got used to talk of funding being transferred towards sustainable growth, competitiveness, environment, and energy — and away from agriculture.
The Common Agricultural Policy was to be toppled from its top spot in EU spending plans; building a low carbon economy to tackle climate change was seen as more central to Europe’s prosperity.
So it came as a surprise for some when the President of France, Nicolas Sarkozy, put agriculture towards the forefront of global policies this week.
France has the 2011 presidency of the G20 discussion forum, where it will urge 20 of the world’s largest economies to bring in tougher rules on speculative trading of food and other commodities, which it blames for pushing world prices to record levels.
When G20 farm leaders meet today, Sarkozy is calling for action to deal with extreme price volatility, and will call for increased public and private investment in agricultural research, processing, capacity, storage, logistics and access to markets.
He said it was a mistake that public investment in agriculture dropped from 15% in the mid-1980s to no more than 5% today.
The French say the G20 farm ministers in Paris this week must avoid the 21st century becoming the century of hunger.
Irish farmers can take heart from the rising priority for agriculture and can hope with some confidence that will again be the case 12 months from now, when EU ministers make final decisions on the Common Agricultural Policy for the next seven years.
France won’t sign a G20 agreement that doesn’t mention regulation of financial markets for agricultural commodities, believing that these markets cause much food price volatility.
Irish farmers who are still suffering from the dairy price slump of 2009, or having to cope with huge year-to-year swings in feedstuff or fertiliser prices, will welcome any moves to reduce volatility.
However, French hopes that this week will see a first step towards global governance of agriculture look far-fetched, because of the gulf in thinking between world powers. The Americans, Brazil and Argentina say new technology, such as genetically modified crops, will feed the world, but the EU is wary of GM crops. The Americans are also worried that setting up emergency food stocks in hungry countries, as proposed, might affect their exports.
The French want countries to disclose their food stocks, but admit that other European countries don’t agree. The Chinese also prefer to keep details of how to feed their 1.4 billion people to themselves. Britain and Australia have reservations about market regulation. Russia doesn’t want export restrictions.
Everything points to yet another ineffective international meeting on feeding the world.
However, the EU can still play their part, and set a good example in the coming year, with a farmer-friendly CAP to encourage production to match ever-increasing global demand.
Having put his cards on the table now on how world food output can be boosted 70% by 2050, as the planet’s population climbs to 9.2 billion, President Sarkozy has also committed himself to fighting for a strong agriculture policy in Europe.
Ireland doesn’t have a seat at the G20, but will be ready to support him around the table in Brussels talks on agriculture over the next year.
