Walter Wafula & Agencies
23 July 2008
The European Commission has created a billion Euro emergency fund to help developing countries condense the rising and hard-hitting high food prices.
The fund which is equivalent to Shs2, 500 billion is expected to give priority to food production solutions including; improving access to farm fertilisers and seeds, as well as focusing on safety net measures aimed at improving productive capacity in agriculture.
Speaking at a meeting to form the "rapid response facility" in Brussels, last week, Mr José Manuel Barroso President of the European Commission (EC), said: "The impact of high food prices is particularly severe for the world's poorest populations. It may put at risk our progress towards the Millennium Development Goals and exacerbate tensions in poor countries, namely in Africa."
In Uganda, increased demand for local food from countries like Southern Sudan, Kenya, Rwanda and Tanzania as well as rising oil prices have fueled high food prices. The attractive markets are forcing many farmers to sell their food to these countries which are offering higher prices for food crops.
The result of the unplanned trade has forced many poor Ugandan families to kick off some meals off their menus while have cut there consumption to a meal per day.
Mr Barroso added, the fund, aims to generate a strong and rapid agricultural supply response.
"It is an act aimed at increasing agricultural production in developing countries to combat the effects of soaring food prices. Such an increase in supply is necessary to fight rising food prices world-wide," Mr Barroso said, according to communication from the EC to the press.
Louis Michel, Commissioner for Development and Humanitarian Aid, commented: "This major cash injection will help raise agricultural production in these countries by providing farmers there with the means, such as more seeds and fertilizers, to make a difference across the medium and long term. This is Europe responding in real-time with effective actions. This is Europe responding with effective solutions to help farmers in Africa and in other developing regions."
The commission however, noted that the new situation could also provide a window of opportunity to stimulate a supply response from farmers in developing countries.
"It offers new income-generating opportunities to bring rural communities out of poverty by providing incentives for investments and productivity improvements." expects the positive results of this assistance to include an increase in agricultural production and food security in assisted countries, reduced malnutrition rates and reduced food price inflation.
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