Support for Smallholders Key to Addressing Food Crisis

Contact: Richard Elliott, Senior Media Manager, Tel.: +41 (0)79 201 8127, richard.elliott@weforum.org

• Farmers need resources for next planting season
• Experts are optimistic about solving the problem
• Larger private companies need to partner with governments, multilateral organizations and civil society organizations to help small farmers increase their yields and get products to market
• For more information on the meeting, visit http://www.weforum.org/Africa2008
• More information on the Business Alliance Against Chronic Hunger Forum Initiave

Cape Town, South Africa, 5 June 2008 – Governments, multilateral organizations and aid agencies should ensure that African smallholders receive the inputs they need for the next planting season and create the conditions for sustained growth in agriculture to defuse what Jacob G. Zuma, President of the African National Congress (ANC), South Africa, called a “time bomb” of food prices that could lead to an “uprising” should the poor be “cut out from buying food”.

Despite the critical nature of the challenge, panellists at a session entitled “Food Insecurity: A Perfect Storm” at the World Economic Forum on Africa in Cape Town, South Africa, seemed optimistic. “The most important thing is to get the resources to farmers for the next season,” said Thorleif Enger, President and Chief Executive Officer of Yara International, Norway. “We have seen in Malawi that it can happen quickly.” Added Zuma: “I hope that we are all sensitized. If we are, we will be talking about something else next year.”

More than 800 participants from 50 countries are participating in the 18th World Economic Forum on Africa that runs through Friday. The discussion on food insecurity took place concurrently with the United Nations food summit in Rome that has reportedly reached a consensus among world leaders to boost investment in agriculture as well as food aid. The debate in Cape Town focused on medium- and long-term solutions to the problem.

Monty Jones, Executive Director of the Forum for Agricultural Research in Africa, Ghana, emphasized “empowering smallholders to make sure they can access information and outside inputs and have their voices heard”, he said. “If that happens, I foresee a considerable increase in production.”

The private sector is already working with small farmers to move in this direction and can do more in partnership with governments, multilateral agencies and civil society organizations, said Gareth M. Ackerman, Chairman of Pick 'n Pay Holdings, South Africa, and Aliko Dangote, President and Chief Executive Officer of Dangote Group, Nigeria, a Co-Chair of this year’s World Economic Forum on Africa.

Ackerman suggested more partnerships between large and small retailers to help “shorten supply lines”. He added that, “in India the bulk of food is produced on plots of less than one hectare and they feed their population. Africa needs to follow the same path.” Dangote described efforts by his company to provide loans, supply fertilizer and build silos for small farmers. “I suggest that we give them loans,” he said. “If not, they will not survive.”
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