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FAO: Financial Crisis Could Deepen Food Crisis

00:00AM Oct 15, 2008

Pro Farmer Editors


United Nation's Food and Agriculture Organization (FAO) Director-General Jacques Diouf warned the global financial crisis could increase the risk of another food crisis occurring next year. He said protectionist trade measure must be avoided.

According to the latest issue of FAO's Crop Prospects and Food Situation report, production this year is forecast to increase 4.9 percent to a record 2 232 million tonnes. However some 36 countries around the world are still in need of external assistance as a result of crop failures, conflict or insecurity, or continuing local high prices, the report noted.

"The great uncertainty now enveloping international markets and the threat of global recession may tempt countries towards protectionism and towards reassessing their commitments to international development aid,” Diouf said. "It would be unfortunate if this were to be the case and the recently mobilized political will towards enhanced international support for developing country agriculture were to evaporate."

Link to full statement by FAO.