european commission dg development ec responses to soaring food prices philip mikos – dg...

European Commission DG Development

EC Responses to Soaring Food Prices

Philip Mikos – DG Development

Policies for the Sustainable management of natural resources


Contents

Setting Food Price Developments Political Scenery

EC Response Communication COM321 Developing Countries: Non-Paper

Response Instruments Humanitarian Instrument FSTP EDF 10 – B-envelope Food Facility


Setting – Price Developments


Setting – Political Scene

UN HLTF FAO Conference 3-5 June EP Resolution 22 May Council Conclusions 20 June G8 Leaders 7-9 July UN GA, 22-25 Sept


EC Response – COM 321

‘Tackling the Challenge of rising food prices. Directions for EU action’

On causes, prospects and impacts (EU and global)

Elements for EU response: Actions to mitigate the effects of price increases

in the short-medium term (intra-EU) Actions to enhance agricultural supply in the long

term (intra-EU) Actions to address the crisis at international level:

DDA conclusion Scale up humanitarian contribution Providing development support


EC Response – DEV Non-Paper

Proposes EU response strategy with aim to significantly reduce the negative effects of the food price rises on the poorest consumers in developing countries, while at the same time encouraging a positive supply response from farmers in these countries.

Short, medium and long term actions, including: Short: humanitarian response, financing of consumer

needs, policy dialogue Medium: expansion safety nets, rapid provision agricultural

inputs Long: agricultural investments, sustainable safety nets, risk

management


Instruments – Humanitarian Assistance

Upfront mobilisation of resources Additional allocation of € 140 million for

food assistance -> € 363 million for 2008

To cover additional costs related to increase in food prices (and transport costs)

Working through International Organisations and NGOs


Instruments – FSTP 2008

First response from development instruments through reallocation of 2008 funds (€ 50 million)

Allocated to 12 priority countries Coverage:

Safety nets/ social transfers Agricultural production measures

DCI Committee July; Commission Decision August


Instruments – EDF 10 B-envelope

Up to Euro 200 million; additional allocation 30 countries

Highly vulnerable Hit by food price increases (Balance of Payments

effect)

Mainly used for ‘fiscal compensation’ and urban safety nets

Budget support or project support (range of possible actors)

EDF Committee of 24 September -> Commission Decision in course of October


Instruments – Food Facility ?

EC proposal, adopted by Commission 18 July

Co-decision procedure Parliament: Mitchell Report with

amendments voted on 7 October Discussions ongoing in Council Main Issues

Budget Heading Comitology Implementing Organisations


Food Facility - Objectives and Scope

Aim: rapid and direct response to the increased food prices in developing countries

Primary objectives: Encourage a positive supply response of

the agricultural sector Support activities to respond rapidly and

directly to mitigate the negative effects of high food prices in line with food security objectives


Food facility – Key features of EC Proposal

Short-term: in-between emergency and long-term development cooperation

Time-bound: operational in two years (2009 and 2010), using 2008 and 2009 budget commitments

€ 1 billion; Focus on agricultural supply response; in

some countries safety nets (preferably productive)

Contracts with International and Regional Organisations


Food facility - Implementation

List of target countries Differentiated approach, dependent on development

contexts and impact of soaring food prices in target countries

Eligible activities: Improve access to agricultural inputs and services Safety net measures (aiming at maintaining/improving

agricultural productive capacity, and addressing the basic food needs of the most vulnerable populations)

Activities per country identified in collaboration with International and Regional Organisations


Food Facility - Indicative Time-schedule

Assumes successful discussions EP- Council-COM in weeks to come

September – December : technical preparations for Commission Decision

December: Adoption Regulation by co-legislators, entry into force Regulation

Late December: implementing Commission Decision

Early 2009: contracting and start implementation of first measures

european commission dg development ec responses to soaring food prices philip mikos – dg...

Documents