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BIZCHINA> Review & Analysis
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Why China is crucial to world food security
(China Daily)
Updated: 2008-05-15 10:05 The United Nations in China would like to express its sympathy for the thousands of people who have lost lives and been affected by the earthquake which struck Southwest China on Monday. We are deeply concerned and are closely monitoring the situation with special attention to the reports of growing numbers of additional causalities. We stand ready to support the Chinese government's efforts to provide relief assistance to the victims of this tragedy as well as to assist longer-term rehabilitation efforts in affected areas. For us, it is very hard to predict now how bad the impact of the calamity will be and what kinds of impact it will have on China, especially at a time when the world is sliding into a food crisis. Whatever happened, China still played a very important role in the world's food security. Last week Premier Wen Jiabao said that "China is deeply concerned about food security", and announced that the government would give $2 million to the United Nations World Food Program (WFP) in response to the extraordinary difficulties it is facing as a result of rising food prices. This brings China's donation to WFP in 2008 to $4.5 million: the largest donation ever made by China to WFP for use in other developing countries. The premier also said that by ensuring China can provide sufficient food for its population of 1.3 billion people, the country is making a major contribution to world food security. At a moment when world food security is facing unprecedented challenges from rising prices, China's role is fundamental. Over the past year the Food and Agriculture Organization (FAO)'s food price index has risen by 57 percent. On the international market, the price of staple foods like wheat and rice has more than doubled. Shoppers from Beijing to Boston to Brussels have seen their grocery bill rise rapidly. For the wealthier consumers, who spend 10 to 20 percent of their income on food, that means cutting back on the number of times they eat at restaurants, or on desserts and other treats. But for people who were just able to make ends meet last year, the increases in prices of basic foods such as bread and rice are disastrous. The people who spend more than half of their income putting food on the family table are now faced with the prospect of cutting back on more nutritious foods like meat and dairy. The very poorest - those who survive on 50 cents a day - have started to reduce the number of meager meals they eat each day. The WFP's executive director has called the effect a "silent tsunami". Like the tsunami that swept across the Indian Ocean in December 2004, this wave of high prices knows no borders. It is bringing a surge of suffering to poor people across the globe and its effects such as increased malnutrition and poverty will be felt for years to come. What has caused this dramatic change in food prices? Firstly, demand for food has changed. Once upon a time, grains like wheat, corn and rice, were used mainly as food for people. Today, however, these simple foods are also used to produce feed for animals and ethanol for biofuels. Secondly, high crude oil prices have impacted the cost of producing food. Unfortunately, few farmers are reaping the benefit of high food prices since the cost of fertilizers, fuel for their machinery and transport to market have also risen, meaning their profit margins have decreased. (For more biz stories, please visit Industries)
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