Major world food and agriculture companies pledged on Friday to pour more funds into farming in poor countries to boost food security but they stopped short of proposing precise sums.
The world needs to invest $83 billion a year in agriculture in developing countries to stamp out hunger and feed a projected population of 9.1 billion by 2050, up from 6.8 billion now, the United Nations' Food and Agriculture Organisation (FAO) says.
Seeking to drum up private sector support, FAO brought together leading food and agribusiness companies -- including Nestle, Unilever and Cargill, for a two-day meeting in Milan, ahead of a summit on food security in Rome next week.
"We stand ready to invest meaningfully to help build national capacities in applied agriculture and food systems research and technology transfer in developing countries," business leaders said a final declaration after the forum.
"We also recognise and embrace the need to take a longer term view of investment and business operations in developing regions, since the global challenge of food security requires sustained commitment," they said.
Business leaders said their existing multi-million dollar investments in sustainable agriculture in developing countries were part of strategies to boost reliable long-term supplies and reduce costs as well as setting the stage for expansion in new markets.
Last year's food price spikes were a wake-up call for food companies and, with price volatility expected to remain high, major firms have stepped up investments in farming to ensure they do not get caught off guard again.
FAO says foreign direct investment (FDI) in farming tripled to over $3 billion between 2001 and 2007 but that still was less than one percent of total world FDI inflows.
The figure also pales when compared with the $44 billion a year of official development assistance that FAO urges world leaders to agree to spend to help poor nations feed themselves.
JUST FOR PROFIT?
Business leaders said their efforts would become more effective if they work together with public bodies, governments and international organisations -- even though some admitted such partnerships have not always been easy.
"On the private side we get sometimes a bit frustrated: it takes a long time, it's very bureaucratic. On their (public) side, they think we are here just trying to exploit for profit reasons," John Atkin, Chief Operating Officer Crop Protection at Syngenta, the world's largest agrochemicals maker, told Reuters.
Paul Naar, Vice President of U.S. agribusiness giant Cargill , called on governments to encourage free trade with developing countries, without artificial barriers aimed at ensuring food self-sufficiency in separate countries.
Industry captains stopped short of setting an ambitious goal of eradicating hunger in the world, but said they would help to reduce food insecurity by providing inputs and technical expertise to boost farming output in developing countries.
"I feel more comfortable with an objective which says we will reduce the food insecurity, because I don't think that in a short period of time we can really eliminate it," Peter Brabeck, chairman of the world's biggest food group, Nestle, told reporters.
The number of hungry people has risen to a record 1.02 billion this year, up 100 million from 2008, the U.N. says.
The final declaration of the business meeting steered clear of thorny issues like the use of genetically modified crops and use of crops for biofuels, which critics say has helped drive food prices to record highs last year.
Source: newsroom - meattradenewsdaily.co.uk
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