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Growing middle classes in developing countries are increasing the demand for dairy foods, agricultural products, and protein sources. Hunger afflicts approximately one billion people on a daily basis. Contributing nearly 40% to the total global value of agriculture output, livestock supports the livelihoods and food security of approximately one billion people. However, prices are expected to strengthen with economic recovery over the medium term, a double-edged sword affecting farmers and consumers unevenly across countries.
Over the period 2009-2018, an expected economic recovery, renewed food demand growth from developing countries and emerging biofuel markets are expected to be underlying drivers of agricultural commodity prices and markets, the OECD and UN estimate. Alongside the economic impact of rising food prices, this translates into food insecurity and possibly instability in less developed or vulnerable regions.
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| Food security impacts developing countries, as in India for example, in terms of affordability and in meeting increasing food demand as its economy and population continue to grow rapidly. With India’s upcoming projected water shortages, experts believe that improving the water productivity of agriculture will solve many of the water-related challenges across the country. China is also included in that scenario. China and India both face different types of food, water and resource challenges, which require unique targeted solutions relative to agricultural production. |
| For other countries, food emergencies currently affect 33 countries around the world, according to the UN’s Food and Agriculture Organization. Governments understand that food insecurity raises the potential for political instability and civil unrest. While many of the food-stressed countries are in Africa, it also includes a portion of the Middle East with its unique need to import food. After 2008 when food prices soared, several Gulf countries developed plans to buy farms abroad to export food back home. Of the $144 |
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billion needed in agriculture investment between 2010 and 2030, half of it is expected to come from the private sector, according to a top Arab agriculture official.
In least developed countries, structural problems exist which limit their capacity to produce. Also in these countries, population continues to rise rapidly with domestic production unable to keep pace. For both less developed and developing countries, when food prices rise because of high energy prices as in 2008, the population is harder hit by higher prices as food consumption takes a larger share of their household incomes. This is a recipe for civil unrest, undesirable shadow economies, and a reversing of past economic or development gains. |
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To meet the food demand of the 550-million population expected in Arab states, $144 billion in investment will be needed between 2010 and 2030 to bridge the gap.
Resources for further information:
Food and Agriculture Organization of the United Nations
http://www.fao.org/ |
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