Ec response to food price crisis
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EC Response to Food Price Crisis. Prague, February 2009 Marc Debois. EC Response to Food Price Crisis. Two main lines: Mitigate negative effects on poorest consumers . Assistance can take various forms: Food assistance Macro-economic assistance Safety nets

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EC Response to Food Price Crisis

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Ec response to food price crisis

EC Response to Food Price Crisis

Prague, February 2009

Marc Debois


Ec response to food price crisis1

EC Response to Food Price Crisis

Two main lines:

  • Mitigate negative effects on poorest consumers. Assistance can take various forms:

    • Food assistance

    • Macro-economic assistance

    • Safety nets

  • Encourage agricultural supply response. Assistance a.o.:

    • Input provision

    • Supportive physical and institutional structure

    • Longer term: agricultural sector reforms, research etc.


Financial responses to food price crisis

Financial responses to ‘Food Price Crisis’

Several Instruments (short-medium response):

  • Humanitarian Instrument:

    • Upfront use of existing budget

    • Additional allocation of €140 million

  • FSTP

    • Re-allocations in 2008 → € 50 million

    • Allocated to 12 priority countries

  • 10th EDF, B-envelope

    • Mobilization of € 200 million

    • Allocated to 30 ACP countries

    • Mainly macro-economic response and urban safety nets

  • Food Facility

    • € 1 billion


Food facility approval process

Food Facility – Approval Process

  • 18 July – Commission Proposal

  • 4 December EP approval

  • 16 December Council approval

  • 31 December – Publication in OJ


Characteristics food facility 1

Characteristics Food Facility (1)

Aim:

  • rapid and direct response to the volatile food prices in developing countries, addressing primarily the period between emergency aid and long-term development cooperation.

    Primary objectives:

    • Encourage a positive supply response of the agricultural sector

    • Support activities to respond rapidly and directly to mitigate the negative effects of volatile food prices

    • Strengthen the productive capacities and the governance of the agricultural sector


Characteristics food facility 2

Characteristics Food Facility (2)

Eligible Measures:

  • Measures to improve access to agricultural inputs and services;

  • Safety net measures;

  • Other small-scale measures aiming at increasing production based on country needs: microcredit, investment, equipment, infrastructure and storage; as well as vocational training and support to professional groups in the agricultural sector.

    Eligible Entities:

  • DCI list of entities

  • ‘appropriate balance’ between IO/ROs and others


Commitment and payment appropriations x 1000

Commitment and Payment Appropriations (x € 1000)


Programming 1

Programming (1)

Overall Plan:

  • Coverage:

    • List of target countries

    • Indicative allocations

    • Indication of measures and eligible entities

  • Target dates:

    • Sent to DCI Committee 18/2

    • DCI Committee 3/3

    • Commission Decision 18/3


Programming 2

Programming (2)

First set of Measures

  • Will precede overall plan (agreement EP-Council-Commission)

  • Coverage:

    • Measures for value of about € 315 million

    • 23 countries

    • Only with IOs

  • Foreseen Timing:

    • Send to DCI Committee 2/2

    • DCI Committee meeting 17/2

    • Commission Decision 5/3


Programming 3

Programming (3)

Second set of measures

  • Coverage:

    • Most of remaining countries

    • Most of remaining 2009 commitments

    • Mix of eligible entities

      • IOs/ROs

      • NSA + EU national agencies (call)

      • National Governments (incl. BS)

      • other

  • Timing: after overall plan agreement (March)


Programming 4

Programming (4)

At later stage:

  • 2009 – Some commitments through Regional Organisations

  • Commitments for 2010 budget (€ 170 million):

    • January 2010

    • Will need faster operations → where feasible budget support


Implementation 1 general aspects

Implementation (1) – General Aspects

  • AIDCO Task Force

  • Support to be concluded by end 2011 (incl. last payments)

    • Short-term activities

    • Distinct (first) phase of longer-term activities

  • Country/region-specific approach, following needs assessments and plans


Implementation 2

Implementation (2)

Monitoring

  • By implementing agencies

  • UN HLTF (central + country level)

  • EC:

    • Task Force + Delegations

    • Additional ROM exercise

    • Special Study 2009

      Reporting

  • Interim Report on measures taken: December 2009

  • Annual Report on Development Cooperation

  • Final report – no later than 31 Dec. 2012


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