The food price crisis and what to do about it

The past few weeks have been inundated with news about escalating food prices on the world markets. This is in addition to the perennial issue of food shortages that has dogged many of the developing countries for decades. Along with water, food is the first and foremost basic necessity in life. The whole concept of human rights revolves around the issue of food because where there is no food there is no life. And where there is no life all other rights cease to exist and/ or have no meaning or relevance.

So I think that the issue of food deserves the international media attention that it has been accorded in recent weeks and that there should be a more concerted effort by governments to reduce or eliminate the problem of escalating food prices and ongoing food shortages. I am not a food economist and therefore my grasp of the underlying issues and concept may be a bit tenuous or faulty. But to my defence and credit, I was born in a farming family and lived most of my early childhood in a faming community. During their time, both my grandfather and my father were farmers of significant reputation and status in their communities. So I have more than a rudimentary understanding of what it means to produce food and to feed others.

My own sense of this whole issue is that there are two distinct and separate problems which need to be addressed. The one issue is of shortage. As far as I am aware this problem has been going on since the dawn of history and is a factor of many causes – natural and man-made. The lengthy draught which led to Jacob’s brothers travelling to Egypt to purchase grain is an example of a natural cause of food shortage. President Robert Mugabe’s land redistribution programme in Zimbabwe which resulted in the collapse of the agricultural industry and the consequent food shortages is a good case of the unnatural or man-made causes. Given that this problem has been with us from the beginning of the ages and will probably be with us at the end of time, I feel that I am not qualified nor am I able to do any justice to the subject.

The other issue is cost of food or its affordability. This implies that whilst the food is actually available, the price at which it is being sold is higher than what the people can afford. From that broader and general perspective, affordability may have little or no impact on availability. However at a micro (or individual) level, unaffordable price levels do often result in unavailability or shortages of food stuffs. If you cannot afford the food, then your shelves will be empty of that food stuff. In that context, therefore, the issue of price has a bearing on the issue of availability and this, in turn, impacts on the issue of the right to life. I felt I should share my views on the issue of cost of food or affordability in this week’s blog.

First, let me start by stating the somewhat obvious. The problem of high price or affordability of food is a man-made problem and is therefore, at best, avoidable or, at worst, resolvable. Economists tend to agree that, in its most basic and ideal form, price is a factor of supply and demand. Low supply and high demand result in higher prices while high supply and low demand lowers prices. In my view, food is one item that is so clearly susceptible to the vagaries and effects of supply and demand. This is because food is a basic necessity for every creature – human, animal or plant – large or small, rich or poor.

Population growth will always assure demand for more food. Past and ongoing efforts to slow down population growth has had limited success. In the developed countries, the effects of family planning (such as smaller families) have been neutralised by the effects of longevity. People are living much longer than before. In the developing countries, wars, poverty and disease play a significant part in keeping population growth in check but this is neutralised by the generally high birth rates. So the world population continues to explode spurring a higher and greater demand for food. That demand inevitably places higher pressures on the supply side leading to increased food prices.

So what is the solution? In my view, the solution is to establish and maintain a reasonable balance between supply and demand. However, as the demand side is that much more complex to lend itself to adequate and equitable controls, more focus must be given to the supply element. That is ensuring that there is enough food. But how do you ensure there is enough food available? The simple answer is by investing more in food production – in agriculture. There is little doubt in mind that investment in food production has declined quite considerably in most developing countries.

I mentioned earlier that I grew up in a farming community. My grandfather was one of the first beneficiaries (if you can call it that) of the colonial efforts at land redistribution. He was allocated a farm in Chesa African Purchase Area, Mount Darwin in the north-eastern part of Zimbabwe. Even though I was still young, I can distinctly remember that there was a high level of technical and administrative support that was available to my grandfather and the other farmers in the area. There were agricultural extension officers to provide expert advice on cropping and livestock management. Even the private sector played an important role of providing agricultural inputs such as seeds, fertilisers and chemicals on competitive terms and conditions.

During the rainy season, the fields would be lush green with healthy crops – maize, groundnuts, cotton and tobacco. The farmers would harvest enough food to sale on the market and earn enough money to educate their children including and up to university. There was always enough food left over until the next harvesting season. I remember attending agricultural shows and field days at which farmers show-cased their produce. In between cropping seasons, my grandfather, like other enterprising farmers, grew vegetables for the family and for sale to other farmers. He even grew wheat on the wetlands that dotted the farm which, when harvested, was pounded and baked to make very delicious and healthy bread. When my grandfather passed away, my father took over the farm and he similarly thrived for a long period in his life.

Sad to say all that seems to have gone. Today most, if not all, the farmers in Chesa are struggling. They may still grow just about enough crops to feed themselves and their families but they hardly make enough to sell on the market. With draughts occurring much more frequently than before and with Aids taking its toll on the young and active members of the farming communities, the farms are shells of their past and the farmers are now more susceptible to bouts of hunger. The recent land redistribution in Zimbabwe has spawned an even larger number of poor and hungry farmers.

I believe governments have to focus attention and energies back to farming and to food production. This requires a holistic approach that aligns land provision to land utilisation and productivity. As land is a finite resource, it is important that it is made available to those people that are able to effectively utilise it. It is equally important that those who have the land are provided with the means and support to increase and optimise production levels. This should include the provision of training facilities for farmers, extension services and access to financial resources. The private sector can and should play a significant part in all these areas.

In developed countries, farmers are treated with a great deal of respect and are given a lot of support by their governments including subsidies in inputs and price protection. In developing countries, we need to accord such respect and support to our farmers. We have to recognise that farmers are ultimately responsible for feeding the millions of people who have drifted into urban areas. If those urban people are not properly fed, they will soon rise up and start fighting their governments such as has been the case in Haiti, Senegal and other countries. It’s a scenario that governments can ill afford to encourage, much less to ignore.