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Feeding Hunger and Insecurity © ACF © A HungerBriefing Watch Publication JanuaryPaper 2009 Feeding © ACF / S. Hauenstein Swan © Hunger and Insecurity The Global Food Price Crisis A summary of Action Against Hunger research in Ethiopia, Sierra Leone, Central African Republic and Liberia n 2007 and 2008 international food and oil prices Key Messages Isoared causing riots in over 30 countries, threaten- Even though global food prices are falling, local ing to undo any progress made towards Millennium prices have continued to increase or have re- Development Goals 1 and 4 – eradicating hunger and mained at their inflated level for most vulnerable under-five child mortality. In this report, Action Against countries Hunger looks at the impact these global trends had on Despite no clear increase in severe malnutrition, malnutrition and food security. Despite cereal prices high prices consistently forced families to adopt falling on the global market, recent surveillance shows damaging coping strategies to maintain staple that food commodity prices have remained high or in- food consumption; ‘seasonality’ shows that this creased in 32 of the 36 vulnerable countries monitored can have long-term implications for poverty, vul- (WFP 2008c). Action Against Hunger’s assessments nerability and malnutrition in Ethiopia, Sierra Leone, Central African Republic Context matters; urgent funding is needed to trans- and Liberia revealed that the high cost of food in 2008 late global policy into effective responses address- did not conclusively result in an immediate increase ing the needs of those most affected and most in acute malnutrition1 at the national level, but had a vulnerable significant and consistent impact on livelihoods and Interventions must be inclusive, coordinated and dietary diversity in all four countries. The findings pre- comprehensive, addressing both agricultural pro- sented in this report underscore the urgent need for an duction and nutrition in tandem, both in the short immediate, effective and unified response to hunger. and long-run at the global, national and local level Action Against Hunger / Action Contre la Faim (ACF) is a global humanitarian organization committed to saving the lives of malnourished children while providing families with access to safe water and long-term solutions to hunger. Action Against Hunger www.actionagainsthunger.org Feeding Hunger and Insecurity © ACF © igh global food commodity prices translated, in triggering a regular seasonal spike in malnutrition. Hvarying degrees, into higher domestic food pric- Worries that high global prices may have a similar es, increasing the number of undernourished people effect prompted Action Against Hunger to launch a from 850 million in 2005 to 963 million in 2008. While number of country studies to better understand how the rise in prices may come to the benefit of net food high and volatile food commodity prices affect house- sellers, for the majority of small-scale farmers, rural hold food security and malnutrition. Four basic ques- farm workers and the urban poor in less developed tions were asked: Do high global food prices translate countries who are net food buyers, the global in- into local increases in malnutrition? Are all countries creases were an additional threat to their survival. equally affected? How do the effects of high prices vary within a specific context? Was the response Substantial evidence shows that high food prices good enough? The case studies presented in this during the annual hunger season prompt damaging briefing paper answer each question in turn. household behaviour as families struggle to survive, Figure 1: Changes in food and oil prices between January 2007 and November 2008 350 FAO Food Prices Index 300 250 Crude oil (normal price) 200 Wheat (index based on US Gulf 150 price, baseline Jan 2007) 100 Indexed price Rice (FAO index) 50 Maize (index based on US Gulf 0 price, baseline Jan 2007) 2 Jul-07 Jul-08 Jan-07 Mar-07 May-07 Sept-07 Nov-07 Jan-08 Mar-08 May-08 Sept-08 Nov-08 Source: FAO 2008b Action Against Hunger www.actionagainsthunger.org Feeding Hunger and Insecurity The ‘Old Face’ of ‘New Hunger’: the quality and, later, the quantity of food consumed. Maintaing staple food consumption at the expense Seasonal Deprivation Volatile food commodity prices are not new to poor of more micronutrients-dense foods, like eggs, meat households. Literature on ‘seasonality’ describes reg- or milk, can result in micronutrient deficiencies, ular, yet unpredictable, fluctuations in various dimen- a weakened immune system and, if prolonged, sions of welfare and poverty, from births to deaths, weight loss, causing malnutrition rates to rise. As milk production to malaria, often stemming from intra- food insecurity intensifies, more households adopt annual climatic variations (figure 2a). Despite a mul- damaging, irreversible coping strategies such as titude of possible interventions, many of the world’s selling assets and livestock, or borrowing at high poorest people continue to face an annual ‘hunger interest rates using their land and future harvest as season’ in the build up to the local harvest period. collaterals. Fluctuations in food prices are compounded by lack The impacts of high food prices do not always of access to formal credit and inadequate storage manifest in an immediate rise in malnutrition, but facilities forcing households to sell produce rapidly can have catastrophic consequences in later years. after the harvest at low prices, to repay expensive Seasonal hunger is the ‘father of famine’. Individuals debts contracted in the hunger season, pay school and communities are frequently forced to gamble their and hospital fees and to avoid losing a significant future welfare to live today, which often has serious proportion of the harvest to pests and decay. The repercussions for livelihoods in later months/years. same farmers then return to the market only months Steadily depleted assets can increase household later to buy food back at new higher prices. Seasonal vulnerability to seasonal and global price rises in later increases in food prices exhibit a clear link with acute years as coping mechanisms become more limited. malnutrition. This phenomenon is not new. Figure Even if followed by a good harvest, the legacy of a past 2b shows the correlation between malnutrition and hazard may remain as assets cannot be fully restored changes in staple food prices in Ghana 1988/89 as immediately. The household will remain vulnerable to the seasons progressed. Poor people throughout the future shocks. It is this debilitating, downward spiral developing world remain trapped by this annual cycle of seasonal suffering that preceded the food crises of seasonal deprivation. in Malawi (2001/02) and Niger (2005), where food crises occurred in years when harvests were better When faced with seasonal food price increases, than or only marginally below the average. poor families almost universally react by restricting Figure 2a: Malnutrition, malaria and rainfall in Figure 2b: Seasonality in food prices and Niger 2007 malnutrition in northern Ghana 1988/89 8 SAM 180 0.35 Malnutrition 52 7 Malaria 160 Millet price 50 140 6 Rainfall 120 0.30 48 5 100 4 46 80 £ / kg 3 60 0.25 44 Rainfall (mm) (% of year total) 2 40 42 1 SAM and malaria cases 20 Malnourished children (%) 0 0 0.20 40 0 10 20 30 40 50 J F M A M J J A S O N D Hunger period Harvest 3 Week Month Source: WHO Source: Devereux 1992 Action Against Hunger www.actionagainsthunger.org Feeding Hunger and Insecurity Figure 3a: Percentage of families adopting each Figure 3b: Percentage of families adopting each coping strategy in Malawi in 2002 and 1999 coping strategy in Ethiopia in 2006 Rationed food Rationed food Cut spending Cut spending Sold assets Sold assets Borrowed Borrowed Migrated Migrated 2002 Informal help 1999 Informal help 0 20 40 60 80 100 0 20 40 60 80 100 Source: Devereux et al 2008 What’s New? Understanding the seasonal dimensions of poverty almost identical to those adopted during the hunger implies two important questions when examining the season (and famines). Each case study reveals that Global Food Price Crisis. Did high food prices cause households consistently reduced their diets in both an increase in malnutrition? If not did global food price quantity and diversity, a finding that is also supported rises force people to adopt damaging coping strate- by studies conducted in 2008 by FAO and WFP in gies paving the way for future nutritional crises? some of the countries most vulnerable to global price shocks (see figure 4). There is a danger that the high The response to the former is mixed. Action Against food prices in developing countries may continue to Hunger’s research indicates malnutrition rates in- impact millions of households already threatening to creased definitively in a number of districts in Ethi- slip into greater poverty. It is beyond doubt that high opia, but statistics are unavailable or inconclusive global food commodity prices in 2007/08 will continue for Central African Republic, Sierra Leone and Li- to have serious implications for livelihoods and micro- beria. However, the coping strategies used by the nutrient malnutrition and could trigger a slow-onset poor in response to high global food prices are crisis if appropriate action is not taken today. Figure 4: Coping mechanisms employed in five countries as a response to rising food prices in 2008 Eating less quality/ Yemen less preferred foods Reducing portion sizes Tajikistan Reducing the number of meals Pakistan Give preference to children Lesotho Purchase food on credit Liberia Rely on help from friends and family 0 20 40 60 80 100 Percentage of households 4 Source: LVAC 2008, WFP July 2008, FAO 2008a, Government of Tajikistan 2008 and WFP 2008 Action Against Hunger www.actionagainsthunger.org Feeding Hunger and Insecurity So far, the response has not been good enough.
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