Johannesburg — THE emergence of the biofuels industry as a competitor for agricultural land is driving regional economies around the world to seek new opportunities and partnerships to feed their populations, according to European Union (EU) ambassador to SA Lodewijk Brië t.

Announcing the EU investment programme for the Southern African Development Community (SADC) agri-industry on Friday, Bri ë t said he hoped the initiative would assist in creating strategic partnerships and opportunities that would go a long way to reducing the negative impact of increasing food and agricultural commodity prices internationally.

The European Commission delegation to SA has made close to € 1,3m available through the EU-SADC Investment Promotion Programme that has been set up to link EU-based investors to SADC-based producers, especially in the agri-industry.

Providing incentives and support to agriculture, most notably to food crop production and processing, was crucial at a time of looming food shortages, the EU commission said.

Briët said the world's challenges were becoming complex as it was facing a growing population; there had been a rise in living standards, particularly in Asia, with ensuing dietary changes, rising agricultural input and freight costs linked to an increasing oil price.

Meanwhile, some countries were experiencing difficult weather conditions arising from climate change, which were threatening production areas.

In the search for answers, the EU would support the Agri-Industry 2008 exhibition, which is expected to bring together various sector forums and business during May 5-9 in Dar es Salaam, Tanzania.

It is believed that the exhibition would provide a platform for new partnerships to be forged between producers, investors and financiers.

It would also help facilitate the development of sustainable and meaningful trade, business and investment partnerships between enterprises in southern Africa and the EU countries.

The top five sectors being targeted are: horticulture, fruit and vegetables; livestock and dairy; cereals, beans and nuts; fisheries and aquaculture; as well as export crops such as tea, coffee, cotton and sugar.

A comprehensive sector profile had been prepared for each of the 14 SADC countries participating in the event, said Bri ë t.