Peter Duggan, Strategic Information Services, Bord Bia

In a recent report compiled by the FAO, they argue that food insecurity levels have reached levels not seen since the 1970s. The regions in the world that are at the greatest risk of undernourishment are those regions which are dependent on food imports. Typically, a countries capacity to import food is linked to their export earnings and capital inflow in the form of foreign direct investment, and foreign aid. The economic crisis has exacerbated the food import capacity of many developing region across the globe.

The FAO predict that undernourishment levels will reach almost 1.02 billion people in 2009. Sub-Saharan Africa and the Asian & Pacific region account for almost 90% of the total.

In 2009, capital inflow levels are expected to be almost half the level seen in 2008 at $43 billion according to the FAO. This rate of decline is even greater if compared to 2007, when capital inflow levels were measured at $184 billion. Considering that the FAO calculated that domestic staple food prices were some 17% higher in real terms than two years previously, the risk of food insecurity amongst developing nations which have a dependence on food imports is in uncharted territory.

It is clear that investment is needed to rejuvenate the agricultural sector, in particular the cereal sector. The rate of official development aid for agriculture from governments has dropped from 20% in 1979 to just 5% in 2007. The report warns that unless the agricultural sector can become more efficient, the number of people becoming under nourished will increase as other uses for food supplies such as biofuels will place additional pressure on global cereal demand.

To access the report: Click Here