South America should take advantage of high food prices to reduce inequality

Santiago, June 9, 2011 (ECLAC-FAO-IICA). Following two days of conversations on the rise in and volatility of food prices, promoted by ECLAC, FAO and IICA in Santiago, Chile, high-level representatives of government of the region agreed that South America should take advantage of current high food prices to reduce inequality and strengthen its strategic position as a supplier of such products to the world.

According to Antonio Prado, Deputy Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), “For the countries of the Southern Cone, exporters of raw materials, the challenge is to take advantage of current high prices to lay the foundation for a more diversified and inclusive economy, handling effectively the volatility and risk associated with exchange rate appreciation. Economic growth should be translated into quality jobs and an equitable distribution of wealth.”

At the present time, South America has enormous opportunities to be a key player in supplying food to the world, but the impact prices have on the most vulnerable cannot be overlooked.

“It is the poorest of the poor who are most negatively affected by the rise in and volatility of food prices, and must be at the center of our public policies. Given its natural resources and knowledge, South America is in a privileged position to meet internal demand for food while consolidating its position as the world’s food basket,” said Alan Bojanic, of the Regional Office of the United Nations Food and Agriculture Organization (FAO).

Another challenge highlighted by the countries, necessary to counter the volatility of agricultural prices, is to create transparent and open markets, after stimulating interregional trade and strengthening the domestic markets of the countries, especially the rural labor market, known for its informal and precarious nature.

Victor M. Villalobos, Director General of the Inter-American Institute for Cooperation on Agriculture (IICA), stated “The cost of the basic family food basket has risen so much in some places that it exceeds the minimum salary. The countries have implemented short- and long-term measures to protect the most vulnerable and expand agricultural productivity in a sustainable manner. However, there is still a need for a regional strategy at the highest level.”

Joint agenda

To meet the challenge posed by rising and volatile prices, and to satisfy growing demand for food in an environmentally sustainable way, there is agreement on the need to apply a combination of agricultural, economic and social policies and increase investment in agriculture and innovation.

Hugo Royg, from the Office of the President of Paraguay, added “How to find ways to ensure access to food for all must be one of the priorities of the debate under way in the region. We must strengthen the linkage between social and economic policies”.

In order to address this and other questions, the countries and international organizations that came together at ECLAC in Chile established a joint agenda with a view to protecting food security in the region and helping South America become a key player in feeding the world.

The agenda calls for strengthening family agriculture and social protection networks, food safety and the creation of mechanism for monitoring and issuing alerts regarding changes in food prices and food security.

Intergovernmental discussions to continue in Central America and the Caribbean

Meetings on rising and volatile food prices will be held next week in the Caribbean (Trinidad and Tobago June 13-14) and Central America (El Salvador June 15-16) as part of a series of 14 seminars on the topic being organized by FAO around the globe.

Present at the Santiago meeting were the Minister of Autonomy of Bolivia, Carlos Romero, the Minister of the Presidency of Paraguay, Hugo Royg, the Deputy Ministers of Agriculture, Rural Development, Family Agriculture, Social Development and Food Security and other high level officials from Argentina, Bolivia, Brazil, Chile, Ecuador, Paraguay, Peru, Uruguay and Mexico, as well as representatives of the Inter-American Development Bank (IDB), The World Food Programme (WFP), the European Union, the Chairmanship of the G-20 and nongovernmental organization associated with the agricultural sector.

For further information:

Diálogo intersectorial de políticas para enfrentar el alza y la volatilidad de los precios de los alimentos: amenazas y oportunidades (Spanish only).

Boletín CEPAL-FAO-IICA Volatilidad de precios en los mercados agrícolas (2000-2010): implicaciones para América Latina y opciones de políticas (Spanish only).

Informe mensual de la FAO Precios de los Alimentos en América Latina y el Caribe (Spanish only).

Guía de la FAO para la acción normativa y programática a nivel país para afrontar el aumento de los precios de los alimentos (Spanish only). 

Press contact:

ECLAC
dpisantiago@cepal.org
(56 2) 210 2040
www.twitter.com/cepal_onu

FAO – Regional Office for Latin America and the Caribbean
Lucas Tavares lucas.tavares@fao.org
(56-2) 923 2314, (56 9) 9802 7300
Cristián Albagly cristian.albagly@fao.org 
(56-2) 923 2176
RLC-prensa@fao.org
www.twitter.com/FAONoticias

IICA
Patricia León patricia.leon@iica.int
(506) 2216 0310
www.twitter.com/IICAnoticias
www.facebook.com/IICAnoticias