SPC statement at World Food Summit

Over the past few decades Pacific Islanders have become increasingly reliant on imported staples such as rice, flour and noodles and are vulnerable to global price increases as a result. This is especially true for atolls where limited land, water and poor soils make it difficult to grow much beyond breadfruit, taro and coconuts. Reliance on imported food has also caused deterioration in the diets of Pacific Islanders and rates of obesity and diabetes are amongst the highest in the world. The current crisis could lead to further deterioration if consumers respond by switching to cheaper, lower quality food items.

Transport costs associated with importing produce represent a significant proportion of input costs in the Pacific given the distance of most Pacific Islands from major markets. Increasing fuel prices are therefore exacerbating the situation. Recent natural disasters in some countries, for example cyclone Gene in Fiji and landslides and flooding in Papua New Guinea have also affected domestic production.

However, the current crisis also presents the Pacific with an opportunity. Many Pacific Islands are blessed with a rich diversity of traditional staples such as taro, cassava, sweet potatoes, breadfruit and yams which are not as important in global trade as some of the imported commodities on which we’ve come to rely. Increased production of these local foods could help to limit the impact of rising prices.

Our leaders are responding to the current situation by calling on people to grow more local foods. President Manny Mori of the Federated States of Micronesia maintains that ‘for too long our children have been fed on rice as staple food because of the convenience of preparation and storage. We have neglected our responsibility and even contributed to their lower health standards by failing to teach them to appreciate the natural food and bounty of our islands’. Fiji has just launched a “Plant Five a Day” campaign in an effort to encourage more people to plant in their gardens.

In the short term significant increases in agricultural production are unlikely and other remedial measures such as reductions in import duties and targeted transfers will be necessary to prevent price increases having detrimental impacts on the diets and wellbeing of Pacific Islanders. Price controls are used extensively in the Pacific and whilst they may help to reduce or delay the impact of rising prices, they may have perverse impacts by damaging retailer incentives and margins and affecting food supply as a result.

As elsewhere in the world the poorest members of society, in particular the urban poor, are likely to be the most adversely affected as they spend a greater proportion of their income on food. In Fiji, for example the poorest 10 percent of the population spend between 50-65% of their income on food whereas the richest 10 percent spend less than 20 percent on food.

Rural households tend to spend a much greater proportion of their income on root crops and are likely to be able to substitute traditional crops more easily in response to higher prices. Farmers may benefit from the general increase in food prices as consumers substitute towards locally grown foods, but this may still not be sufficient to offset the prices increases for food items that farming households purchase. We have not observed significant sustained increases in the prices of traditional staples yet.

Subsistence farmers, who have relied less on markets in the past, due to poor infrastructure or unreliable transport, may also be better equipped to deal with the current situation as they have had to be more self-sufficient out of necessity. The communal land-ownership structure and strong cultural obligations of giving and sharing in the Pacific also provides an important safety net for the most vulnerable in many communities.

In the longer term Pacific Island Governments and donors need to reverse the declining investment in the agricultural sector and recognise the role it plays in safeguarding food security in the face of volatile global food prices. Farmers will respond to the incentives of higher food prices provided they have the means to do so. This will require strategies to address the well recognised constraints to expanding agricultural production including strengthening extension services, increasing access to planting material, improving rural infrastructure such as roads and post harvest storage facilities, improving information services and addressing constraints in accessing land. National and international support for research and development in the agriculture and forestry sectors in the Pacific has been inadequate over a number of decades and this needs to be reversed if countries are to capitalise on the opportunities represented by high global food prices.

Pacific Islands are also at the forefront in facing the impacts of climate change. Significant proportions of the population in Pacific Island Countries and Territories live in coastal areas. Increased coastal erosion, contamination of groundwater from saltwater intrusion and storm surges will undermine food production especially in atoll countries such as Tuvalu and Kiribati. Ocean warming and coral bleaching will also reduce the productivity of coastal fisheries on which many island communities rely as a source of food and income.

Demographic pressures will also increase demand for food with populations expected to grow from 9.5 million to around 14 million in the next 20 years.

Adapting to these changes by identifying crops and varieties suitable for new environmental conditions and developing strategies to deal with new pests and diseases also necessitates significant investment in the agricultural sector.

For generations we relied on our land to provide us with sufficient food to meet our needs. Lifestyle changes, a desire for convenience and a world of cheap imports has eroded this to a certain extent. The current rise in food prices does not come without its costs but it also provides Pacific Island Countries and Territories with the opportunity to recognize the importance of our own domestic agricultural sectors and give them the priority they deserve. In doing so we will better equip our countries with the ability to handle current and future external shocks, whilst at the same time contribute to improving the health of our people.