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Call for more Responsible Investments to Eradicate Poverty

23 January 2013

GLOBAL - The German Minister of Food, Agriculture and Consumer Protection, Ilse Aigner, and the Food and Agriculture Organization Director-General José Graziano da Silva have called for a significant increase in responsible investments in agriculture to eradicate hunger and feed a growing world population.

Left to right: Ken Ash, OECD, Minister Ilse Aigner and FAO head José Graziano da Silva in Berlin. [PHOTO: FAO}

Investments in agriculture are still too low in those regions where rural poverty and hunger are most severe, Ms Aigner and Mr Graziano da Silva stressed after meeting ahead of the Agriculture Ministers' Berlin Summit 2013 on 19 January, FAO reports.

"We need to concentrate our efforts on the farmers. Farmers are the key players in the rural environment and here lies the greatest potential for generating added value – both in terms of economic development and in guaranteeing food security in these countries," said Ms Aigner. "The German government spends over 700 million euros each year on food security and rural development in developing countries. One of the goals here is to achieve sustainable yield increases. This is done by promoting locally based training and education, for example, and we have initiated a number of important agricultural training schemes."

"Agricultural investment has long shown itself to be one of the most effective and sustainable means for reducing hunger and poverty. We need to invest more. And, equally as important, we need to invest better," said Mr Graziano da Silva. "It is up to national governments, assisted by the international community, to create conditions where farmers can invest more and to increase their own investments in ways that generate economic and social benefits, as well as environmentally sustainable results."

At present, around 870 million of the world's poorest people, or one in eight, are suffering from hunger and have inadequate access to food. Most of them live in rural areas in developing countries.

Responsible agricultural investments

Ms Aigner and Mr Graziano da Silva called upon governments to contribute to the development of guidance for responsible agricultural investments, an issue that will be discussed by governments, civil society and private sector representatives at the Committee on World Food Security.

Investments in agriculture should target the poor in the rural areas of those countries, the minister and the FAO head said.

Investments should also help to make the agricultural and food systems less vulnerable, more equitable, less wasteful and more environmentally friendly.

The world's more than one billion farmers should be at the centre of new investment strategies, because they are, by far, the largest investors in agriculture, after public and foreign private investors. Farmers in 76 low- and middle-income countries invest almost 170 billion dollars a year in their farms - about $150 per farmer, according to FAO estimates. That represents three times as much as all other sources of investment combined - including public investment, foreign private sector investment and official development assistance.

Special attention should be paid to smallholder farmers, who need support to overcome barriers that prevent them from producing more food, saving and investing, and coping with new challenges and risks related to climate change.

Ms Aigner and Mr Graziano da Silva underlined that farmers need a supportive environment that makes agriculture attractive for investments. They need good governance, clear and fair incentives, and access to good infrastructure, public services and information in rural areas. National governments should ensure that these conditions are in place.

Good governance of large-scale investments, often by international investors, is necessary to ensure that the rights and livelihoods of local communities are protected and the degradation of natural resources is avoided.

TheCattleSite News Desk

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