Winners or losers in the new food reality? / Multinationals profiting out of the food crisis (ActionAid)

Winners or losers in the new food reality? / Multinationals profiting out of the food crisis

ROME, Italia, June 3, 2008/African Press Organization (APO)/ — The renewed interest in supporting agricultural development announced by a number of world leaders this morning is positive news but there are increasing concerns that multinationals are simply profiting out of the food crisis, says international development agency ActionAid.

“The announcements today hopefully represent a change of direction from the IFI’s structural adjustment policies aimed at eliminating domestic price support to inputs and credit, said Magdalena Kropiwnicka, ActionAid’s food policy analyst.

“But businesses look set to profit from the crisis and those who are losing out once again are the poor and vulnerable.

High food prices provide enormous benefits to transnational agribusinesses who are recording record profits while using the food price crisis as an opportunity to gain wider control over developing countries’ agricultural input markets such as seeds and fertilizers. 

“We are not surprised that all the agribusinesses such as Cargil and Monsanto are here in Rome – using the food price crisis to push for genetically modified food production,” said Luca De Fraia, Policy Director, ActionAid Italy.

ActionAid welcomes governments’ renewed commitment to agriculture and support for badly needed inputs, but these must be matched by long term investment in developing countries’ public research, based on the use and protection of local biodiversity and putting the interests of small holders first. 

“The solutions promoted by agribusinesses have rarely led to increased food self-sufficiency but rather to increased corporate dependency and indebtedness,” said Kropiwnicka.  “Assuring local ownership to agricultural solutions is the key to success.”

“It’s shameful that this new wave of support neglects the vital role of women in national food production in developing countries – which stands at between 60-80%,” she added. “This needs to be urgently addressed by governments.”

“While ActionAid appreciates the commitments on agricultural investment, we are concerned that this new strategy may lead to extra profits for TNCs. This is a paradox! Companies are simply profiting from the crisis they helped to generate.”

SOURCE : ActionAid