D-8 To Focus On Private Sector-led Initiatives for Food Security

Kuala Lumpur, Malaysia | February 25, 2009 by D-8 Secretariat

D-8 to zoom in on practical and specific projects as seed banks, fertilizers and animal feeds

The three-day D-8 ministerial meeting on food security beginning Wednesday (25/2) is crucial to kick-start private sector-led initiatives to create seed banks, ensure supply of quality fertilizer and animal feed.

Rather than grandiose projects, it is good for D-8 to zoom in on these practical and specific projects as seed banks, fertilizers and animal feeds are critical inputs to ensure increased agricultural outputs. The organization can also help member nations to partly achieve self-sufficiency in agriculture.

An encouraging aspect of the meeting hosted by Malaysia will be presentations from the private sector. Conglomerate Sime Darby will give a presentation on seed banks, Felda (feedstock) and Petronas (fertilizer). This is because as in all programmes, the private sector has to play a pivotal role in undertaking projects which will ensure food security in Islamic nations along with support from governments and international organisations.

Towards this end, there will be a business leaders’ meeting involving chief executive officers and representatives of companies, organisations, Food and Agriculture Organisation (FAO) and chambers of commerce from D-8 countries.

Hopefully, this will lead to D-8 countries and companies producing these agricultural inputs in areas or countries where they have comparative advantage.

Food to feed the world’s hungry is getting much more expensive with the problem particularly acute in the poorer Islamic states such as Bangladesh, Pakistan and several African nations. Hence, the three-day D-8 meeting, to be opened by Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi on Wednesday, is undoubtedly a definitive step towards implementing these agricultural projects.

D-8 members must work towards pooling resources to take effective follow-up actions. They must also endeavour to step up agricultural collaborations as well as trade and investment linkages which at this stage are not too encouraging for greater business networking among member states.

During the D-8 Summit in July last year, it was held against a backdrop of crippling food and energy crises. While oil prices have now dropped sharply, food supply is still inadequate in poor Muslim countries. Abdullah then pushed for the D-8 to address food security quickly which consequently led to the upcoming ministers meeting.

Muslim nations must respond to the Prime Minister’s call positively as prices of essential food commodities have been steadily on the rise for quite some time. According to news reports, a famine cannot be discounted in the Islamic world. If and when this happens, member countries must be ready to take quick action to help those in need.

At this juncture, what is vital is to implement capacity-building programme to ensure food security among member states besides setting up financing mechanisms to ensure a steady supply of food. It is encouraging to note that the projects being mooted so far for the meeting are both practical and can be implemented relatively quickly.

For instance, firms can invest in Islamic countries that own vast tracts of agricultural land, enjoy an abundance of water but lack of infrastructures and skilled labour.

Indonesia is a case in point.

Home to the world’s largest Muslim populace, Jakarta can start renting out land for agricultural purposes such as seed and fertilizer production and for breeding cattle as soon as possible. With the right investments, Malaysia too can be home to agricultural projects undertaken for D-8 countries.

Given the magnitude of the task at hand, it is vital for governments and private sector to move quickly to undertake cross-border projects quickly.

This will help raise food supply and provide basic foods to poor people in Islamic countries and to those in need.

Resources from a D-8 fund can also be disbursed to encourage joint ventures in agricultural production.

A severe lack of food can lead to a political crisis, something that some Muslim nations are grappling with domestic unrest can do without. Food production must be increased to avert conflict.

The ministerial meeting in Kuala Lumpur is therefore crucial to get D-8 countries to get their acts together and effectively address food shortages in a comprehensive manner. Ministers are expected to unveil and adopt a joint action plan known as the “KL-Statement: Initiatives to Address Food Security by D-8 countries.”

There is no quick-fix solution but they must join hands to resolve the issue. Otherwise, they will be courting disaster, both economically and politically.

Pushing For Three Initiaves For Food Security

During the meeting it is expected that D-8 will push the momentum of three crucial initiatives related to food security.

The three initiatives involving the creation of seed banks, the production and supply of quality fertilizers and animal feed, had been identified as critical inputs that could ensure the increased production of quality agro products in the Developing Eight (D8) countries.

Malaysia, as a host of the D8 Ministers Meeting on Food Security, has lined-up a host of relevant meetings and activities where delegates will get their act together to deliberate and tie-up any loose-ends for the implementation of the initiatives.

Among the objectives of the meetings are to create modalities for private sector-led cooperation among member countries in agricultural projects, increase agricultural trade and strengthen capacity building and technical cooperation. Malaysia’s Agriculture and Agro-Based Industry Minister Datuk Mustapa Mohamed said participants would focus their deliberations on private sector-led proposed initiatives on large-scale production and supply of animal feed, fertilizers and seed banks development.

“The projects to be implemented under the three initiatives by the private sectors are expected to take into account the requirements of all D8 countries.

“This cooperation will ensure a more efficient scale of production as D8 countries will undertake production in areas where they have a comparative advantage,” he said.

As part of the meetings, a Business Leaders’ Meeting will be held tomorrow involving chief executive officers and representatives of companies, food and agriculture organisation (FOA) and chambers of commerce and industry from D8 member countries. Issues to be discussed include the challenges of the global economic crisis and food security as well as creating a conducive environment for private sector cooperation.

“We expect the private sector to present specific project proposals which may not be new projects but could also be existing projects where the companies now offer to expand their production to cater the demand and requirement of D8 countries,” said Mustapa.

He said the D8 private sectors would also have the opportunity to further explore and identify areas of cooperation that could be further developed based on various resources available in each member country.

“The opportunity for establishing business networking among the D8 countries will be invaluable to the private sectors,” he said.

At the end of the meetings, a joint action plan known as “KL-Statement: Initiatives to Address Food Security by D-8 countries” is expected to be adopted by the D8 members.

SOURCE: BERNAMA

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