United Nations humanitarian chief meets with key officials on Ethiopia's food crisis

(Addis Ababa, Ethiopia, 3 September, 2008): On the final day of this three-day visit to Ethiopia, United Nations Under-Secretary-General and Emergency Relief Coordinator John Holmes chaired a meeting with the head of the Ethiopia Commodity Exchange, World Bank representatives, key UN agencies and non-governmental organisations (NGOs) to discuss the effects of rising food prices in that country.

Participants highlighted the need for better investment to encourage agricultural productivity and emphasized the vital necessity of the Productive Safety Net Program. They stressed investment in rural development and also discussed the challenges presented by Ethiopia's high population growth.

Ethiopia presents a glaring example of the challenges posed by rising food prices. In certain areas of the country, prices have increased up to 500 percent over the last year, " Mr. Holmes said. " Given the complexity of issues there is a need for strong partnership among all relevant stakeholders to ensure the most comprehensive and coordinated policies to respond to both the challenges and opportunities resulting from food price rises. "

Holmes met with the group in his capacity as the Coordinator of the High Level Task Force on the Global Food Security Crisis. Between July 2007 and July 2008, the food component of Ethiopia's consumer price index leapt an estimated 91 percent with wheat and maize prices an estimated 171 percent higher than a year earlier. Rising food prices, along with limited availability of local market food stocks, created adverse market shocks that together with drought conditions are exacerbating national food insecurity. Some specific drivers of food price hikes in Ethiopia are an increase in demand of cereals due to population growth, rapid urbanization, and an overall increase in consumption due to successful economic growth. Re-current droughts and the consequent reduction in crop production have also played a major role in the crisis.

For further information, please call: Stephanie Bunker, OCHA-New York, +1 917 367 5126, mobile +1 917 892 1679; Elisabeth Byrs, OCHA-Geneva, +41 22 917 2653, mobile, +41 79 473 4570; Gregory Beals, OCHA-Ethiopia, + 251 011 5444162, mobile - + 251 911 25234