US$5.6 million from IFAD for agricultural development

Rome, 25 May 2012 – The International Fund for Agricultural Development (IFAD) will provide US$5.6 million grant to the Democratic Republic of Timor-Leste to improve food security for poor maize growing households. This is the first time that IFAD is extending a grant  to Timor-Leste to engage in agricultural development.

The financing agreement for the Maize Storage Project was signed on 14 May  by Mariano Assanami Sabino, Minister for Agriculture and Fisheries, Timor-Leste and Ronald Hartman, Country Programme Manager of IFAD.

Timor-Leste remains one of the poorest countries in the world with estimates that half the population live below the poverty line and around two-thirds are considered food insecure. Almost 70 per cent of the total workforce in the country is involved in agriculture, with the majority working on subsistence farms. Low crop productivity, lack of infrastructure and rapid population growth contributes to the food insecurity situation where poverty remains endemic. Households often face up to three months without staple foods such as rice or maize during the ‘hungry season’.

Maize-growing households are one of the most vulnerable populations in the country. High post-harvest storage losses intensify Timor-Leste’s low food production. More than 30 per cent of stored maize is lost to rodent and weevil damage as farmers store the maize in trees. When it is stored in their houses, it is near wood burning fires. The smoke generated from the stove flows onto the maize stored above, which is used to combat pests. There are high health and safety hazards associated with the fire and smoke.

The Timor-Leste Maize Storage Project is an agricultural development opportunity with the potential to substantially improve the food security situation of poor and hungry families in the country’s farming areas. With this new project in place, maize production will be dramatically increased as farmers will have more incentive to adopt higher-yielding maize varieties. The  aim of the project will be to reduce losses of maize stored on-farm through increased availability of proper storage facilities and improved post-harvest practices.

The IFAD project is expected to benefit approximately 23,000 households and target the economically active poor in the districts of Aileu, Manufahi, Manatuto, Ainaro and Viqueque.

Press release No.: IFAD/37/2012

The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested almost US$14 billion in grants and low-interest loans to developing countries through projects empowering about 400 million people to break out of poverty, thereby helping to create vibrant rural communities. IFAD is an international financial institution and a specialized UN agency based in Rome – the United Nations’ food and agriculture hub. It is a unique partnership of 168 members from the Organization of the Petroleum Exporting Countries (OPEC), other developing countries and the Organization for Economic Co‑operation and Development (OECD)