UN Food and Agriculture Organization (FAO) Director-General Jacques Diouf has called for increased input from the private sector to help fight hunger and ensure food security.
Speaking at an international private sector two-day forum on food security in Milan, the Director General said the FAO estimates that the amount of investment needed in developing countries from Official Development Assistance (ODA) will be 44 billion U.S. dollars annually.
These funds, he added, will be complemented by financing from national budgets and private investments in primary agriculture and downstream services such as storage and processing.
Diouf stated that it was encouraging to see increased interest from the private sector in agriculture. Foreign direct investment (FDI) in that sector tripled during 2000-2007, from 1 billion dollars to more than 3 billion, though the number still accounts for less than 1 percent of the world?s total FDI inflows.
The FAO chief encouraged private companies to take a longer-term view of investment and business opportunities in developing regions rather than focus on immediate needs.
He asked companies to take the extra step to look into countries where they have not ventured before; particularly for input supply, product procurement and agro-industry development.
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Closer cooperation is needed between international companies and smaller or medium-sized local enterprises, including input suppliers, food manufacturers, distributors and retailers which are important intermediaries with primary producers and a major source for rural employment and income growth, said Diouf.
More than 120 chief executive officers and other leaders from the international business community are attending the forum.
The forum offers the private sector an opportunity to advance to the upcoming food summit to be held on Nov. 16-18 in Rome. The Forum has a concrete vision of how businesses can contribute effectively to the fight against hunger and poverty, the FAO says. - GNA
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