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RUEHRC/DEPT OF AGRICULTURE WASHDC
RUEHZO/AFRICAN UNION COLLECTIVE
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RUEHZL/EUROPEAN POLITICAL COLLECTIVE
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RUEHKO/AMEMBASSY TOKYO 8531
RUEHBR/AMEMBASSY BRASILIA 0980
RUEHNE/AMEMBASSY NEW DELHI 2314
RUEHKA/AMEMBASSY DHAKA 0061
RUEHSG/AMEMBASSY SANTIAGO 0232

UNCLAS SECTION 01 OF 05 USUN NEW YORK 000897 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR EB/TPP/MTA AND IO/EDA 
AID FOR ODP/BMD 
 
E.O. 12958: N/A 
TAGS: EAGR EAID ECON EFIN ENRG SENV UN
SUBJECT: SYG BAN'S SEPTEMBER 25 HIGH-LEVEL EVENT ON THE FOOD CRISIS 
AND CLIMATE CHANGE 
 
¶1. (SBU) Summary.  Discussion of the global food price crisis 
dominated UN Secretary-General Ban Ki-moon's September 25 high-level 
event on food security and climate change.  Ban committed to 
providing leadership on the food crisis through the High-Level Task 
Force process, and stated that policy changes needed to resolve the 
crisis have been too slow in coming.  World Food Programme (WFP) 
Executive Director Josette Sheeran said the world is "not out of the 
woods" on emergency food assistance needs, and appealed to countries 
to voluntarily exempt humanitarian food shipments from export 
restrictions and unreasonable taxes.  Japanese Prime Minister Aso 
reconfirmed the G8 leaders statement calling for a global 
partnership on food security.  Indian Minister of State for External 
Affairs Anand said India's decision to implement an export ban had 
"not been a happy one", but added that the country has been quietly 
responding to humanitarian food requests from Africa. 
Representatives from Bangladesh, India, and Timor-Leste noted their 
countries have had difficulties procuring food on commercial 
markets. International Fund for Agricultural Development (IFAD) 
President Lennart Bage proposed the creation of international 
guidelines to ensure that investment in agriculture in developing 
countries is economically and socially sustainable.  On climate 
change, SYG Ban and representatives of Denmark, Indonesia, and 
Poland described in similar terms the four outcomes they said would 
be needed to ensure a successful outcome at the upcoming UNFCCC 
conference in Poznan.  There was very little discussion of biofuels 
at the event.  Senior representatives from 30 governments and eight 
international organizations participated in the meeting (see paras 
19-20); U.S. Director for Foreign Assistance and USAID Administrator 
Henrietta H. Fore represented the USG.  End Summary. 
 
SYG Ban's Remarks 
----------------- 
 
¶2. (U) In his remarks at the opening and closing of the evening 
event, Ban noted the global food crisis is far from over and that 
commodity prices remain significantly higher than in previous years. 
As a result, the number of vulnerable people is continuing to 
increase, with UN data suggesting that more than 900 million people 
are hungry, 75 million more than before the crisis.  The nutritional 
status of millions of children is further declining and constitutes 
a "moral outrage", Ban said. 
 
¶3. (U) The poor and hungry are "looking at us for leadership and 
solutions," Ban continued, "we must not fail them."  The cost of 
inaction will be devastating and felt all over the world in the form 
of sharp increases in migration, social and political instability, 
losses of investment opportunities and stunted economic growth.  It 
is therefore critical to reverse the negative trend of chronic 
underinvestment in the agricultural sector, strengthen markets, 
improve fair trade, and ensure that the 400 million smallholder 
farmers around the world will benefit. 
 
¶4. (SBU) Ban committed to providing leadership on the food issue 
through the High-Level Task Force process.  Policy changes needed to 
resolve the crisis have been too slow in coming, Ban said, and the 
Task Force has made concrete policy proposals in its Comprehensive 
Framework for Action aimed at improving global food security.  He 
encouraged participants to implement these proposals urgently and 
"hold ourselves and each other accountable for making real 
progress." 
 
Emergency Food Assistance 
------------------------- 
 
¶5. (U) WFP Executive Director Josette Sheeran reported that the 2008 
harvest has been good, but that the world is "not out of the woods" 
with respect to food insecurity.  The cost of the WFP's program has 
doubled from $3 billion to $6 billion over the last year, Sheeran 
said, and countries are preparing for another difficult year in 
¶2009.  If nations could voluntarily exempt humanitarian food 
shipments from export restrictions and unreasonable taxes, it would 
do much to ensure that the emergency food aid system would work. 
 
USUN NEW Y 00000897  002 OF 005 
 
 
Rising shipping costs and tight food markets are making the WFP's 
job extremely difficult, Sheeran noted.  The WFP recently attempted 
to purchase food for its Zimbabwe program from Brazil, but transport 
costs were prohibitive. Liberia President Johnson-Sirleaf said her 
country had not anticipated the substantial increase in rice prices, 
which had been particularly painful since Liberia is dependent on 
rice imports.  She acknowledged the real solution is increased 
domestic production 
 
¶6. (U) World Bank President Robert Zoellick noted that if donors 
could make small changes in the way they provide food aid, including 
by employing risk management tools, establishing a credit line for 
WFP, increasing WFP core funding, and making multi-year donations, 
the efficiency of the emergency food assistance system could rise by 
20 percent.  Japanese PM Aso noted that, at their Hokkaido Summit, 
G8 leaders had pledged to expand emergency assistance and work to 
remove export restrictions on humanitarian food shipments. 
 
Strains in International Food Markets 
------------------------------------- 
 
¶7. (U) Sheeran noted that many countries are having difficulty 
purchasing food on international markets because of rapidly rising 
prices and the small percentage of some staples traded 
internationally.  There has been some easing of export restrictions 
because of the harvest season, Sheeran said, but they may come back. 
 Bangladesh Chief Advisor Ahmed noted that his country had lost 
15-17 percent of its rice crop in 2008 to floods and cyclones, and 
in response, had asked donors to provide food aid in lieu of money. 
When the government tried to buy food on the commercial markets, 
contracts were not honored because prices rose between the contract 
signing and shipping date.  Ahmed said poor developing countries 
like Bangladesh need some way to access food stocks, perhaps via a 
global food bank. 
 
¶8. (U) Brazilian Foreign Minister Amorim acknowledged that his 
country had become a large net exporter in a short period of time, 
and is now the world's second largest producer of soybeans despite 
Brazil's tropical climate.  He said he is not in favor of export 
restrictions, but added that the single biggest disincentive to 
expanding world food supplies is the subsidies of rich countries. 
Even if the Doha trade round is successful, Amorin said, the U.S. 
and EU would still be spending $15 and $38 billion annually in 
trade-distorting subsidies respectively. 
 
¶9. (U) Indian Minister of State for External Affairs Sharma noted 
that global food inventories remain low, at levels not seen since 
the 1960s.  "It is not a question of availability of money," Sharma 
said.  "The problem is availability of food."  India is a large 
producer of food, but productivity is low with enormous post-harvest 
losses due to a lack of storage facilities and agro-processing 
industries. He said that India's decision to implement an export ban 
had "not been a happy one", but had been needed to ensure that 1.1 
billion people in India had food security.  Nonetheless, Sharma said 
that India has been quietly responding to humanitarian food requests 
from Africa.  Sharma declared that the Doha trade round would not be 
able to move forward "unless and until the interests of subsistence 
farmers in developing countries are protected."  Argentinean   noted 
that developed country agricultural subsidies have discouraged 
investment in agriculture and are the main reason for the food 
crisis. 
 
Expanding Food Production in the Medium Term 
-------------------------------------------- 
 
¶10. (U) Food and Agriculture Organization (FAO) Director-General 
Diouf noted that the FAO, working with the World Bank and WFP, has 
identified the most pressing needs for raising agricultural 
production in most countries.  In response, the FAO has issued a 
$1.7 billion appeal to purchase seeds, fertilizer, and other 
agricultural inputs for poor countries.  The core problem, Diouf 
noted, is that in many countries the cost of inputs has risen more 
 
USUN NEW Y 00000897  003 OF 005 
 
 
than the cost of food, reducing sharply the incentive to increase 
production.  In fact, Diouf said that production by developing 
countries has risen only one percent in the past year.  Bangladesh 
Chief Advisor Ahmed said that, in Bangladesh, fertilizer prices are 
a bigger problem than seed prices.  Even after recent decreases in 
energy prices, fertilizer is still $1000 per ton, he noted.  The 
world should focus on how to get a quantum leap in agricultural 
productivity in poor countries, Ahmed said. 
 
¶11. (U) EC President Barroso described the proposed EU Food 
Facility, now under consideration by the European Council and 
Parliament, under which the EU plans to make available Euros 1 
billion to increase agricultural production in developing countries 
by expanding access to agricultural inputs, with a focus on small 
farmers.  The facility would help poor countries, including in 
Africa, be "part of the solution", Barroso said, and the EU intends 
to execute the program through UN agencies.  Barroso said he expects 
the Council and Parliament to approve the facility soon.  Diouf 
noted the FAO has high hopes for the facility. 
 
¶12. (U) World Bank President Zoellick noted the current crisis 
provides an opportunity to create a "green revolution" in Africa. 
Under five percent of cropland is irrigated in Africa, Zoellick 
said, and only 11 percent of cropland is planted with enhanced 
seeds, compared to 40-50 percent in Asia.  Investments in irrigation 
systems, agricultural research and development, and infrastructure 
could lead to substantial productivity gains.  Japanese PM Aso noted 
that the clear importance of research and development into new crop 
varieties, and described Japan's successful experience with its 
Nerica rice variety in Tanzania. 
 
¶13. (U) Malawi President Bingu Wa Mutharika described his country's 
experience subsidizing agricultural inputs, which he termed an 
"uphill battle" in the face of opposition from the international 
financial institutions.  Malawi has tripled maize production in the 
last three years and also enjoys a "tremendous surplus" of rice, 
beans, and other crops that it is able to sell to its neighbors. 
The government is planning to develop a 10-20 kilometer "green belt" 
of irrigated cropland around Malawi's lakes and rivers, which should 
enable the country to expand its exports of rice, Bingu Wa Mutharika 
said.  However, heavy post-harvest losses remain a problem in 
Malawi, and the government is introducing small, metallic grain 
silos to increase food security at the local level.  Bingu Wa 
Mutharika acknowledged that the government can't continue its 
subsidies forever, and is developing an exit strategy as farmers 
sell more and have higher incomes. 
 
Guidelines on Private Agricultural Investment 
--------------------------------------------- 
 
¶14. (U) IFAD President Bage noted that his organization is currently 
replenishing its funds and hopes to raise $5 billion for the next 
five years.  "The era of cheap food is over", Bage said, and private 
investment is now flowing into developing countries, many of which 
have a comparative advantage in food production.  Bage also 
suggested that the international community needs to create 
guidelines so that investment in agriculture in developing countries 
is economically and socially sustainable and brings development 
benefits to communities.  The guidelines could set out best 
practices in order to harness as beneficially as possible the 
private sector investment in agriculture. 
 
Climate Change--Expectations for Poznan 
--------------------------------------- 
 
¶15. (U) SYG Ban, Danish PM Rasmussen, Indonesian Foreign Minister 
Wirajuda, and Polish Under Secretary of State Schnepf made similar 
comments outlining their expectations for the December 2008 
Conference of Parties ministerial of the UN Framework Convention on 
Climate Change (UNFCCC) in Poznan.  Each described four outcomes 
they said would be needed to ensure a success in Poznan: 
 
 
USUN NEW Y 00000897  004 OF 005 
 
 
--Agreement on a detailed, concrete work program for 2009 (Rasmussen 
added that the work program should include fixed deadlines); 
 
--Agreement on a shared vision for a 2009 agreement, including on a 
sufficient institutional architecture; 
 
--Implementation of a fully operational and funded adaptation fund; 
 
--A "clear signal" that developed countries are ready to discharge 
their responsibilities on reducing their emissions and funding 
mitigation activities, which will help developing countries consider 
appropriate responses. 
 
¶16. (U) Korean Prime Minister Han noted that his country has adopted 
a new national vision of low-carbon green growth.  Korea has also 
proposed an "East Asia Climate Partnership" under which it would 
make available $200 million to help Asian countries formulate carbon 
reduction policies and implement pilot projects.  The partnership 
recognizes that many of the big emitters are Asian countries, Han 
noted.  Korea would also like to host a "Rio +20" conference in 
¶2012.  In response, Indian Minister of State Sharma stated that with 
1.1 billion people, India has the lowest global per capita 
consumption of energy, and therefore would not be a leader on 
mitigation efforts. 
 
¶17.  (U) Antigua and Barbuda PM Spencer, speaking on behalf of the 
G77, said there "needs to be a change in mindset among developed 
countries" concerning the urgency of responding to climate change. 
Developed countries need to show determination to maintain 
temperatures within two degrees of pre-industrial levels.  The EU 
has showed progress, Spencer said, but there has been no change in 
the position of other developed countries.  The UNFCCC adaptation 
fund needs to be a priority; efforts to establish a fund at the 
World Bank "send a negative signal."  Developed countries appear to 
be stalling in the UNFCCC negotiations rather than making honest 
attempts to reach agreements.  The consequences of this approach 
will be dire, Spencer said, and there is an urgent need to send the 
right political message. 
 
Comment 
------- 
 
¶18. (SBU) There was surprisingly little discussion of biofuels as a 
contributor to the global food crisis compared to the substantial 
attention paid to the issue during the June 2008 High-Level 
Conference on Food Security.  Indian Minister of State for External 
Affairs Sharma raised biofuels in the context of food availability, 
noting briefly that the issue wasn't the increase in ethanol 
production, but rather the diversion of 150 million tons of grain. 
Chilean President Bachelet said simply that the world needs to focus 
more attention on second generation biofuels made from grass and 
seaweed. 
 
List of Participants 
-------------------- 
 
¶19. (U) Government representatives participating in the event 
included Burkina Faso President Blaise Compaor; Chilean President 
Michhle Bachelet Jeria; Liberian President Ellen Johnson-Sirleaf; 
Malawi President Dr. Bingu Wa Mutharika; Timor-Leste President Jos 
Ramos-Horta; Antigua and Barbuda Prime Minister W. Baldwin Spencer; 
Bangladeshi Chief Advisor Fakhruddin Ahmed; Danish Prime Minister 
Anders Fogh Rasmussen; Grenada Prime Minister Tillman Thomas; 
Japanese Prime Minister Taro Aso; Korean Prime Minister Han 
Seung-soo; Brazilian Foreign Minister Celso Luiz Nunes Amorim; 
German Foreign Minister Frank-Walter Steinmeier; Indonesian Foreign 
Minister Hassan Wirajuda; Italian Foreign Minister Franco Frattini; 
South African Foreign Minister Nkosazana Dlamini Zuma; Indian 
Minister of State for External Affairs Anand Sharma; Spanish 
Secretary of State for Foreign Affairs Angel Lossada; U.S. Director 
of Foreign Assistance and USAID Administrator Henrietta H. Fore; UK 
Secretary of State for International Development Douglas Alexander; 
 
USUN NEW Y 00000897  005 OF 005 
 
 
Argentina Deputy Foreign Minister Victor Taccetti; French Minister 
for European Affairs Jean-Pierre Jouyet; and Polish Under Secretary 
of State for Foreign Affairs Ryszard Schnepf. 
 
¶20. (U) Non-governmental participants included Secretary-General Ban 
Ki-moon (host); World Bank President Robert Zoellick; World Food 
Programme Executive Director Josette Sheeran; Food and Agriculture 
Organization Director-General Dr. Jacques Diouf; IFAD President 
Lennart Bage; African Union President Jean Ping; European Commission 
President Jos Manuel Barroso; and Miguel d'Escoto Brockmann, 
President of the 63rd General Assembly. 
 
Khalilzad