New ADB Study Says Higher Farm Productivity Key for Food Security

MADRID, SPAIN - Developing Asia needs to strike a balance between providing immediate relief to shield the poor and vulnerable against rising food prices and in the short-term ensure inputs and credit are available to spur a strong supply response over the coming crop cycles, says a new report from Asian Development Bank (ADB).

The “Food Prices and Inflation in Developing Asia: Is Poverty Reduction Coming to an End?” says in the long-run the notion of food security should move beyond a relatively static focus on food availability to higher productivity. The report is available on ADB’s website.

“As a majority of the poor in developing Asia live in rural areas and depend on agriculture, higher agricultural growth will raise farm output, reduce prices and raise incomes of poorer farm households,” says Ifzal Ali, Chief Economist of ADB.

As yields of food crops in most Asian economies remain low in comparison with other major producing nations, technology improvement has become increasingly important along with efficient use of water, power and other key inputs.

Mr. Ali says farmers will face complex adjustments as they make the transition to new farming systems and technologies.

The report, prepared by ADB’s Economics and Research Department, emphasizes that farmers will need to make the right choices and be provided access to new seeds, modern technology, and credit, and infrastructural facilities.

It adds that the recent surge in global food prices can undermine the region’s efforts to fight poverty and push large numbers of people back below the poverty line.

The report says structural factors like the decline in global stocks of rice and other cereals, rising oil prices and the resultant rise in prices of fertilizers and transportation costs for farm products are key factors behind high and rising food prices.

It urges governments to reevaluate their investment priorities and take steps to boost agricultural productivity to mitigate any longer-term rise in food prices.

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