G-8 to call for study on food reserve system: draft+

TOKYO, June 9 Kyodo -
Group of Eight leaders meeting July 8-10 in L'Aquila, Italy, will call for a
study on an international food stockholding system as a means to limit price
volatility and ensure food security, according to a draft of a post-summit
joint statement on global food security.

In a session involving five emerging countries and Africa, the leaders will
urge regulators to closely monitor speculative movements in commodity markets
to fend off price volatility, a negative factor to sustainable economic growth
and development, says the draft statement, a copy of which was obtained Tuesday
by Kyodo News.
Referring to the ''Global Partnership for Agriculture and Food Security,'' the
leaders of the G-8, the five emerging economies and Africa will ask the U.N.
Food and Agriculture Organization and other food-related bodies to ''enhance
their activities'' and ''strengthen their coordination'' as a way to increase
global governance of food security, which the draft says is key to defeating
hunger and malnutrition, especially in Africa and Asia.
''Effectiveness of a system of stockholding in dealing with humanitarian
emergencies or as a means to limit price volatility needs to be explored,
especially on the feasibility and administrative modalities,'' the undated
draft says, alluding to a strategic grains reserve concept advocated at last
year's G-8 summit in Japan.
''We task the relevant international institutions (to be identified) to provide
us with evidence allowing us to exert responsible strategic action on this
specific issue.''
At present, average food prices are still 17 percent higher than in 2006 and 24
percent higher than in 2005. Soaring prices have thrown an additional 115
million people into hunger, according to the FAO.
At the Italy summit, the leaders of the G-8, the so-called Group of Five
countries of Brazil, China, India, Mexico and South Africa plus Africa will
''reject protectionism'' and call for advancing farm trade liberalization to
strengthen food security, according to the draft.
''We support the benefit of open markets, acknowledging the crucial importance
of rejecting protectionism, and avoiding trade distortions and monitoring
commodity markets with special attention to factors potentially affecting price
volatility, including speculation,'' it says.
''To this end, we recognize the importance of an ambitious, comprehensive and
balanced conclusion of the Doha Round'' of trade liberalization negotiations
under the World Trade Organization.
The WTO talks -- the successful conclusion of which would give a boost to the
slumping world economy -- have been stalled as developed and emerging economies
remain at odds over how to reduce trade barriers in core areas of agricultural
and manufactured goods.
Along with food security, the G-8 leaders are expected to focus on the world
economy, climate change, development and regional issues of common concern such
as Afghanistan, Iran and North Korea.
To strengthen global governance of food security and ensure its foundation on
authoritative and widely recognized scientific grounds, the leaders of the G-8
and the G-5 plus Africa will request that the role of the U.N. High Level Task
Force for food safety and the Committee on World Food Security, an
intergovernmental panel of the Rome-based FAO, be increased.
The reform processes of the FAO and the Consultative Group on International
Agricultural Research must also be sustained ''with a sense of urgency,'' the
draft says.
The leaders will call for the development of second-generation biofuels made
from nonfood materials, it says. The use of corn and other staple crops for
biofuels has been a key factor behind the rise in crop prices.
''Policies should encourage that biofuels are produced and used in an
environmentally sustainable manner with a strong emphasis on the development
and commercialization of second-generation biofuels,'' the draft says.
The leaders will call for an increase in world food production and investment
in agriculture, as well as ensuring access to adequate food to the most
vulnerable populations, the draft says, declaring, ''Food security, agriculture
and nutrition must remain high on the political agenda.''
''Policies should promote the integration of farmers, especially smallholders,
into national, regional and international markets by reducing barriers to
trade, improving access to market information and business training, improving
governance and increasing investment in rural development, transportation,
processing and storage facilities,'' it says.
==Kyodo