Media Advisory no.: MA/07/08

Rome,  3  July 2008 – A number of countries in Asia, Africa and Latin America have already moved to take advantage of a $US200 million initiative by the International Fund for Agricultural Development (IFAD) to assist poor farmers hardest hit by high food prices.

They include Haiti, Dominican Republic, Nicaragua, Honduras, Benin, Cote d’Ivoire, Yemen, Mauritania, Kenya and Mozambique. Most, but not all the countries that have requested the facility are net food importers.

IFAD President Lennart Båge announced the loan reallocation facility on April 25. It is designed to provide an immediate boost to agricultural production in the developing world in the face of high food prices and low food stocks.

It is estimated that food production needs to rise 50% by 2030. The UN has called for proportion of Official Development Assistance for agricultural production and rural development to triple immediately from the current level of less than 3%.

The world’s 450 million family farms can play a crucial role in meeting this demand as well as contributing to their families and their country’s food security.

The IFAD US$200 million facility allows for the reallocation of non-disbursed balances from existing loans and grants to meet immediate needs for food production. As such, farmers in the poorest countries of the world can rapidly increase their short-term agricultural output to help ease the impact of high import prices.  

Examples of how IFAD’s $US200 million is being used

Africa

In Benin, IFAD has financed a programme to boost agricultural production by 30% and to commercialise village food surpluses. The $US680,000 intervention will support the increased productivity of short-cycle crops such as Nerica rice and maize.

In the Côte d’Ivoire IFAD is supporting the government’s National Rice Programme by providing US$3 million in seeds and fertilizers for 10,000 small farmers. It is expected they will produce 70,000 tonnes of rice or 35% of the national programme. 

In Ghana a fast track pilot initiative is being implemented to improve the effectiveness of public-private partnerships (PPP) in maize and soybean value chains. This initiative has attracted approximately US$2 million additional funding from the private sector

In Mauritania US$315,000 has been reallocated to augment food production as part of the Government’s intervention programme on food prices (April-September 2008). The IFAD funds come from two existing programmes and will go towards the purchase and distribution of seeds and the establishment of cereal banks in poor rural areas.

Americas

In Haiti, the poorest country in the Western Hemisphere, IFAD is making available US$10-15 million to distribute seed and strengthen seed multiplication programmes, mainly for hill-side small-scale producers.

In Nicaragua and Honduras, additional resources (US$1.22 million and US$2.25 million respectively) will provide support for small-scale producers to increase the production of basic grains including corn, rice, beans and sorghum.

In the Dominican Republic a rural development and food security project of up to US$20 million is being designed by the Ministry of Agriculture in collaboration with IFAD and the Food and Agriculture Organisation. It will expand production of beans and rice and enhance value chains of coffee, cocoa and organic banana.  Financial and technical assistance will provide support for improved production, processing and value-added as well improving access to local and international markets.

Middle East

In Yemen, IFAD has given US$1.5 million to support a government emergency intervention to boost local grain production this year and next. 

The Syrian Government has established an "Agricultural Support Fund" to assist small farmers and herders. IFAD is preparing to support the government by reallocating funds from an IFAD loan to provide improved seeds, fertilisers and animal feed.

Asia

IFAD is in discussions with the Government of Cambodia to extend the current completion and closing dates of current programmes so as to reactivate the agriculture component of a loan to help vulnerable families respond to rising food prices.

IFAD and the Government of the Philippines are examining a new initiative to support input supply and distribution.

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IFAD was created 30 years ago to tackle rural poverty, a key consequence of the droughts and famines of the early 1970s. Since 1978, IFAD has invested more than US$10 billion in low-interest loans and grants that have helped over 300 million very poor rural women and men increase their incomes and provide for their families. IFAD is an international financial institution and a specialized United Nations agency. It is a global partnership of OECD, OPEC and other developing countries. Today, IFAD supports more than 200 programmes and projects in 81 developing countries and one territory.