Sustainable Economic Development: Food Security Thematic Strategy

Comments are sought on a proposal for Australia to re-join the International Fund for Agricultural Development (IFAD)

Improving food security by investing in agricultural productivity, infrastructure, social protection and the opening of markets is one of the ten development objectives for the aid program. Food security underpins all other development, as without it food insecure populations prioritise food and sustaining their own lives and those of their families over everything else. Australia’s approach to food security is centred on increasing the availability of food through production and improving trade, while also increasing the poor’s ability to access food.

Australia has prioritised three pillars to improve outcomes in food security:

Lifting agricultural productivity through agricultural research and development
Improving rural livelihoods by strengthening markets and market access
Building community resilience by supporting the establishment and improvement of social protection programs.

These three pillars aim to increase the food available in markets and poor households and increase the incomes and employment opportunities of poor men and women. Food security expenditure is expected to grow strongly over the next few years, particularly in Africa, the Middle East, South Asia, and Indonesia. Results in achieving better food security outcomes include reducing the number of people living on less than USD 1.25 a day, reducing the number of people suffering from hunger and achieving opportunities for full and productive employment.

The food security thematic strategy informs Australia’s program decisions in this sector:

Sustainable economic development—Improving food security

What is food security?

Food security exists when populations have access on an ongoing basis to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.

Global food security

The United Nation’s Food and Agriculture Organization (FAO) estimates that nearly one billion people go hungry every day, with two-thirds living in the Asia-Pacific region. In Sub-Saharan Africa almost one in three people suffers from hunger. This ongoing challenge has been compounded by the global food crisis, which in 2008 pushed more than 130 million people back into poverty as the price of staple foods rose by between 50 and 200 per cent. Prices abated somewhat in 2009, but since mid-2010 they have risen above even 2008 levels, pushing an estimated 44 million people back into poverty, according to the World Bank.

This trend of higher food prices is forecast by the United Nations and World Bank as likely to continue for at least the next 10 years. The spike in prices is largely attributable to the failure of global food production to keep pace with growing demand. Population growth, per capita income growth and changing diets, climatic variability, limitations on arable land and water, distorted global food trade, biofuel feedstock demand and falling investment in agriculture in developing countries—especially in agricultural research—are critical factors in this trend.

Global Agriculture and Food Security Program

To help in the fight against hunger, Australia has provided $50 million to a World Bank fund set up in the wake of the food price crisis and global economic downturn of 2008 and 2009.

The fund, known as the Global Agriculture and Food Security Program, provides grants to low-income countries to boost agricultural productivity, help poor rural people increase their incomes and improve long-term food security and nutrition.

So far, the Global Agriculture and Food Security Program has provided grants to twelve countries: Bangladesh, Haiti, Rwanda, Sierra Leone, Togo, Ethiopia, Niger, Mongolia, Cambodia, Liberia, Tajikistan and Nepal.

More information

Global Agriculture and Food Security Program [external site]

Australia’s approach to food security through rural development

The Australian Government has developed a comprehensive approach to food security targeting the immediate needs of the poorest, while also strengthening the foundations of long-term global food security. This response includes emergency food assistance, increased funding for rural development and international collaboration to prioritise food security issues and pursue trade policy reforms.

To play its part in addressing ongoing food insecurity and price volatility, on 12 May 2009, it announced a four-year, $464 million global food security initiative. The initiative aims to assist countries in Asia (est. $182 million), Pacific (est. $66 million) and Africa (est. $100 million). The initiative focuses on:

lifting agricultural productivity
improving rural livelihoods
building community resilience.

Lifting agricultural productivity

Australia is supporting increased agricultural productivity by increasing investments in agricultural research and development. Key strategic partnerships include those with the Australian Agency for International Development (AusAID), the Australian Centre for International Agricultural Research (ACIAR), the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and other centres of Australian expertise.

The Government will also double current funding to the Consultative Group on International Agricultural Research (CGIAR) network. Created in 2006, the CGIAR brings together 15 international research centres to improve coordination and undertake joint research among centres and their partners on agricultural research for development. Collectively, the CGIAR works in 100 countries, utilises 2000 scientists and invests over US$500 million per year in agricultural research. It focuses on all facets of the agricultural sector including environmentally friendly farming techniques and food policies which benefit the poor. Without the CGIAR’s work, it is estimated that developing countries would produce 7–8 per cent less food, world food and feed grain prices would be 18–21 per cent higher, and 13–15 million more children would be malnourished.

Expected outcomes include:

increased productivity of food crops, livestock and fisheries, using environmentally sustainable approaches
strengthened, more targeted international agricultural research, especially through the CGIAR network.

Improving rural livelihoods

Australia is working with other governments, donors and the private sector to influence and inform food policy and market activity including by promoting increased trade and the better functioning of markets that directly benefit the poor.

Examples of programs likely to be supported include:

addressing market failures in the Solomon Islands, Indonesia and East Timor
increasing revenues to Pacific Island Countries through better management of fisheries resources
generating export market opportunities in the Pacific
enhancing regional trade opportunities and private sector participation in food production in Africa through the Comprehensive Africa Agriculture Development Programme.

Expected outcomes include:

increased job opportunities and better returns on goods sold by the rural poor
an increased number of the poor accessing financial services.

Building community resilience

Reducing food insecurity for poor people involves more than increasing food production and making food markets more effective; it is also about expanding the capacity of poor people to access sufficient, nutritious food at all times, including during price shocks. Australia’s focus under this component is to strengthen and/or expand social protection programs so poor people can purchase or access food (est. $120 million).

Examples of programs likely to be supported include:

supporting community-driven development in the Philippines
increasing funding for existing social protection activities in Cambodia
providing social safety nets for the most vulnerable in Burma
extending and strengthening existing social protection programs in Indonesia, East Timor and Bangladesh
better management of coastal fisheries in the Pacific through disaster preparedness and mitigation strategies.

Funding will also be provided in Africa to help build community resilience.

Expected outcomes include:

an increased number of poor men and women accessing resources to buy sufficient and diverse food
improved targeting of beneficiaries through social protection programs
a reduction in the use of adverse strategies during times of economic stress, for example the removal of children from school or the sale of assets.

Quick and cohesive

This $464 million initiative complements the immediate support Australia provided in response to the food crisis in 2008. On 1 May 2008, Australia committed an additional $30 million to the World Food Programme in response to its emergency food aid appeal in order to help meet the immediate needs of those most affected by global food shortages. In July 2008, the then Prime Minister Rudd announced a commitment of $50 million to a World Bank Trust Fund aimed at assisting vulnerable countries cope over the medium term with higher food prices including by encouraging increased agricultural production. The Fund forms part of the World Bank’s Global Food Response Program (GFRP).

The Australian Government is also actively involved in promoting the benefits of open trade and efficient markets, to expand opportunities for farmers in developing countries to maximise returns on their output and improve their incomes. Concluding the Doha Round of multilateral trade negotiations will reduce the distortions to global agricultural trade, especially production and export subsidies in developed countries, which disadvantage farmers in poorer developing countries. At the same time, Australia’s agricultural and food production makes an important contribution to global food supplies.

Related websites

Last reviewed: 3 February, 2012