World Hunger: Food Aid

vs. Sustainable Agriculture

Matt SingerConor Sullivan

United States and Food Aid

Agricultural Trade Development Assistance Act (PL480) 1954

President Dwight D. Eisenhower

“…lay the basis for a permanent expansion of our exports of agricultural products with lasing benefits to ourselves and peoples and peoples of other lands.”

Donors and Recipients

Source: Cornell University

Donors and Recipients (cont.)

Source: Cornell University

Why Food Aid?

Source: Cornell University

Types of Food Aid

Program Food Aid Subsidized food is given to a country by

a donor

Recipient sells this food for a profit

Profit used by recipient country for various purposes

Project Food Aid Donor country sends food and services

to recipient country at no charge

Recipient country uses food and services to aid in food production projects

Use food to feed workers (Food For Work) Sell food to fund project

Emergency Food Aid Aid sent to country in response to a

disaster (usually natural)

Not meant to be long term

Done for free

Program Food Aid in Somalia

Somalia?

Somalia?

Somalia!

Somalia (cont.) Self reliant in food grain until early 1970

Food aid imports start to increase

Main imports are cereals Wheat Rice Maize

Food Aid Imports

Source: “Food Aid: Economic Effects in Somalia”

Food Aid Imports (cont.)

Reasons for rapid increase in food aid

Rapid population growth? Domestic food production can’t keep up

Economic development?

Increasing per capita income? More money available to buy food

Food Aid Imports (cont.)

Reasons for rapid increase in food aid

Rapid population growth? Domestic food production can’t keep up

Economic development?

Increasing per capita income? More money available to buy food

+3.5%/year

- 0.3%/year

Food Aid Dependence?

Source: “Food Aid: Economic Effects in Somalia”

Reasons for Food Aid Dependence in

Somalia

The Disincentive Effect Low prices of food from food aid sources

make local producers less competitive

Local producers stop producing as much food to cut losses

Food aid required to fill the gap

Disincentive Effect (cont.)

Source: “Food Aid: Economic Effects in Somalia”

Disincentive Effect (cont.)

Source: “Food Aid: Economic Effects in Somalia”

1970-1974 1975-1979 1980-19840

100

200

300

400

500

600

700

ImportsConsumptionProduction

Changes in Consumption Pattern

Domestic staple grains being replaced by imported ones via food aid Sorghum/Maize Rice/Wheat

Disincentive effect shifts consumption Domestic grains can’t compete with

imports

Consumption rates increase

Family Expenses in Mogadishu

19.40%

9.70%

Family Expendetures

Imported GrainDomestic GrainOther

Source: “Food Aid: Economic Effects in Somalia”

Family Expenses in Mogadishu (cont.)

47.00%

32.00%

21.00%

Imported Grains

WheatRiceSpaghetti

Source: “Food Aid: Economic Effects in Somalia”

Bad Domestic Policy Subsidizing food aid imports for consumers

furthers disincentive effect Producers can’t compete

Lack of coordination of aid deliveries furthering disincentive effect Increased risks & uncertainties for producers

Relatively unmonitored use of “counterpart funds”

Program Food Aid in Somalia: Summary

Pros Increased supply of food to consumers Decreased price of food to consumers Revenue generated for donor country

Cons Disincentive effect for domestic

production Shifts in consumption patterns Potential misuse of “counterpart funds” Dependence

What is Sustainable Agriculture?

Healthy for consumers & animals

Does not harm the environment

Humane for workers

Provides a decent wage to farmers

Supports/Enhances the community

Types of Organic Farming Pure Organic Farming:

“A type of organic farming in which crops are produced with the help of different kind’s organic fertilizers and different kinds of biological natural insecticides without any interference of inorganic fertilizers or chemicals is called as pure organic farming.”

Integrated Organic Farming:“A type of farming in which development of crops from natural resources having the complete nutritive value and also manage to prevent the crops or plants from pest is known as integrated organic farming.”

http://www.ers.usda.gov/Briefing/Organic/Gallery/organicdemand.htm

Cuba: Case Study of Sustainable Agriculture

Where Is Cuba?

There Is Cuba!

History of Reform

1959 Revolution

U.S. trade embargo

Soviet bloc

1989 collapse of trading

Soviet bloc Imported hybrid seeds, agrichemicals,

machinery, & petroleum Exported Cuba’s main crop: sugarcane Three times as much land was used for

sugarcane than for food crops 80% was large scale farming 20% was small scale farming

1989 Collapse Trading between Cuba & Soviet bloc

stopped Farming slowed down 80% drop in fertilizers & pesticides 50% drop in petroleum Food shortage “Special Period of Peacetime”

Transformation Happens High Input to Low Input Pesticides replaced with

microbial products & used natural enemies

Fertilizers replaced with earthworms, compost, animal & green manures

Machinery replaced with animal traction such as horses and oxen

Cuba’s fertilizer use intensity

http://earthtrends.wri.org/updates/node/306

Farmers started implementing old farming techniques that previous generations used when growing crops

They started using earth friendly fertilizers & pesticides in their daily routine

“Linking People With the Land” 1993 began using Basic Units of

Cooperative Production (UBPCs)

Starting off Fresh!

Average Food Production per Capita in Cuba

http://earthtrends.wri.org/updates/node/306

State Ruled Farms1992

CCSCPAUnaffiliatedState

UBPC comes into play1997

CCSCPAUnaffiliatedStateUBPC

Key Steps to become a Sustainable Farm

Agroecological technology instead of chemicals

Fair prices for farmers Redistribution of land Greater emphasis on

local production

Sustainable Agriculture in Cuba: Summary

PROS Environmental

Friendly Farmers make

money The crop itself is

better

CONS Low Productivity Takes more man

power More expensive

Sources Barrett, Chris. “Food Aid After Fifty Years: Recasting Its Role”. Cornell

University: Department of Applied Economics and Management. 15 April 2004. Powerpoint.

Farzin, Hossein. “Food Aid: Positive or Negative Economic Effects in Somalia?” The Journal of Developing Areas 25.2 (1991):

261-282. Web. Hall, Darwin C., Brian P. Baker, Jacques Franco, Desmond A. Jolly.

“Organic Food and Sustainable Agriculture “Contemporary Political Issues 7:4 (1989): 47-72.

Rosset, Peter M. Hunger for Profit: The Agribusiness Threat to Farmers, Food and the Environment. New York: Monthly Review Press, 200.