ROUNDTABLE I HIGH FOOD PRICES: causes, consequences and possible solutions

NORWAY
Statement by Ms Sigrid Hjørnegård, Political Adviser to the Norwegian Minister for Agriculture and Food
ROUNDTABLE I HIGH FOOD PRICES: causes, consequences and possible solutions
ROME 4 June 2008

Excellencies,

Ladies and Gentlemen, I welcome this opportunity to speak on behalf of the Norwegian delegation on the topic of high food prices. They have already caused unrest in different parts of the world. The trend is likely to continue and this Summit and in particular this Roundtable session gives us a good opportunity to discuss and hopefully reach forward looking conclusions.

Chairperson,

The CAUSES of this situation are, as shown in the FAO report, many and diverse. They have, however, all occurred at the same time, thus re-enforcing each other.  I wish to highlight in particular the welfare growth and the change in consumer and dietary patterns in the rapidly growing economies in Asia. Climate change, both felt today and anticipated tomorrow, is another important factor. A third, and highly relevant factor, is the poor stock situation for a number of important cereals. FAOs report shows that stocks are likely to be at their lowest for 25 years by the end of this year.

Chairperson,

The CONSEQUENCES of soaring food prices are equally diverse. But, as with most crises, the weakest are hit the hardest this time also. This is of course intolerable and cause alone for both urgent and longer term measures. We are already witnessing unrest and riot as a direct consequence of the crisis. This goes to show the close relationship between food security and peace.

There is also a more positive consequence of the rising food prices, the possibility of increased profitability in agricultural production. We know that more than 70 % of the poorest make their living from agriculture. A more permanent rise in food prices will in itself contribute to increased production. It could also contribute to increased efficiency and development of agriculture. However, it is important that the increase in prices actually results in increased profitability for the individual farmer. It is equally important that it is based on a sustainable development of production and that small-scale farmer are benefiting from this growth. But, I also wish to stress that those who are unable to afford food in the present acute crises should be given the necessary assistance.

Now, Chairperson, I am turning to the POSSIBLE SOLUTIONS.

The solutions to these issues must be as diverse and varied as the problems facing us. There is –fix, no ‘one-size-fits-all’, solution to this, as we are all well aware of. We must make a holistic approach our starting point. Indeed, our response requires a set of both short-term and long-term measures. A main point for Norway is to make use of already agreed upon Plans of Action and other relevant instruments. Some good examples are the World Food Summit Plan of Action, the five-years-later Hunger Alliance and the WEHAB areas agreed to in Johannesburg. And we have the VG RtF. Being in Rome and in FAO, I wish to emphasize in particular the role of FAO and the expectations we have to the ongoing reform process. This also has bearing on the more long term prospects for food security. We have an historic opportunity to reform FAO and renew our collective commitment to global food security. Norway stays committed to this process and will participate fully in all its proceedings. We must not lose the momentum, as is also clearly shown by the consequences of high food prices.

Thank you!