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Image header Agence Europe
Europe Daily Bulletin No. 11308
Contents Publication in full By article 12 / 16
EXTERNAL ACTION / (ae) mediterranean

EBRD announces €300 million for agricultural development

Brussels, 05/05/2015 (Agence Europe) - The United Nations Food and Agriculture Organization (FAO), the European Bank for Reconstruction and Development (EBRD) and the Union for the Mediterranean (UfM) have announced that they are joining forces “to mobilise public and private investment” in order to improve agricultural production and food security in the Mediterranean. This is an “essential” task, a joint press release states, because “most of the countries produce insufficient quantities of food”, the FAO, EBRD and UfM stated at a forum which opened in Barcelona on Tuesday 5 May.

The three organisations point to the fact that “the region imported (in 2013) 29 million tonnes of wheat. It is increasingly dependent on imports of basic products like cereals, sugar and vegetable oil, which provide the majority of calories consumed”. According to the organisations' data, “imports of agricultural food products in the region increased by US$69 billion, in other words 63% from 2002 to 2013. Alongside this, exports have increased five-fold since 2000, reaching US$31 billion, which particularly reflects spectacular rises in deliveries of fruit and vegetables to the Middle East and North Africa markets”. What is more, the transport of cereals “can represent a cost that is four times above the global average”. The organisations add that “although the Mediterranean region may historically have been a rich pool of agriculture, its natural resources are up against growing constraints”. The region's population “is expected to see strong growth, reaching 30 million people by 2030”. The climate makes the picture worse, with rainfalls that could decrease 10% to 40% by 2050, according to the organisations' forecasts.

The two-day conference in Barcelona, which brings together “high level public policy officials, and representatives from financial institutions, the private sector, research centres and academic circles” is an “opportunity” to discuss “possible collaboration”. “The development of local fruit and vegetable production for export” is expected from the conference, as well as the diversification of imported products. A “stronger regional integration of agricultural markets would help the countries address the supply-side shocks and would diminish fluctuations in food prices”, the three organisations state.

The EBRD has made its action “a priority” and has announced its intention to invest “over €300 million in agri-food businesses” in the region (our translation throughout). (Fathi B'Chir)