In Brief

WORLD FOOD PRICES SOAR - ARE BIOFUELS TO BLAME?

The rapid rise in basic food prices is being linked to biofuels production, among other drivers.

Food prices rose by more than 40 percent in 2007. The main reasons include high energy prices, climate change, higher food demand and the increasing use of biofuels. According to Josette Sheeran, Executive Director of the UN World Food Programme, the problem is here to stay, and will have an impact on international trade in agricultural products.

In addition to calling for increased funding for the World Food Programme, Sheeran said more land should be used to grow food rather than biofuels. According to Sheeran, "governments need to look more carefully at the link between the acceleration in biofuels and food supply and give more thought to [biofuels policy]." Her comment came at the heels of discussions of an EU-wide target to increase the amount of biofuels used in vehicle fuel in order to combat climate change (see Bridges Trade BioRes, 25 January 2008, http://www.ictsd.org/biores/08-01-25/story1.htm). There is a similar new US law that calls for an increase in the amount of biofuels used in vehicle fuel.

The UN Food and Agriculture Organisation (FAO) and the European Bank for Reconstruction and Development (EBRD), for their part, recently made a proposition for how to deal with the problem of rising food prices. According to these institutions, the "significant untapped agricultural production potential" in Eastern Europe, Kazakhstan, Russia and Ukraine should be unlocked through increased public-private partnerships to facilitate agricultural investment. According to the FAO and EBRD, 23 million hectares of suitable agricultural land has been withdrawn from production in this area of the world. At least 13 million hectares could be returned to production without significant environmental cost. Jacques Diouf, Director-General of the FAO, said that if institutional and financial constraints currently limiting production in the region were to be removed, its cereal output and contribution to world exports would grow to above the seven percent increase in grain production needed between 2007 and 2016.

ICTSD Reporting; "UN Sees More Hunger, Unrest Over Food Inflation," Reuters, 10 March 2008; "EBRD and FAO Call For Bold Steps to Contain Soaring Food Prices: Moves Needed Now to Unlock Unused Agricultural Potential in Eastern Europe," FAO Newsroom, 10 March 2008; "Investment Could Moderate Skyrocketing World Food Prices," Environment News Service, 12 March 2008.

MEETING FOCUSES ON FUTURE OF WHALING COMMISSION

Plans to lift a ban on whaling were reportedly discussed in a closed-door meeting of the International Whaling Commission (IWC). Under the deal, nations would be allowed to resume coastal whaling. However, they would have to stop killing whales near Antarctica, which Japan currently does on 'scientific' grounds, although the meat then is channelled to the market.

Commercial whaling was banned in 1986 when many whale populations were at the brink of collapse. The ban was intended as a moratorium to allow scientists to determine the scope of the problem and how it could be managed. Environmentalists and anti-whaling nations such as Britain and Australia have sought to keep the ban in place, while whaling nations such as Japan and Norway have spearheaded efforts to get the ban removed, and discussions at the IWC have become increasingly inflamed.

The inter-sessional meeting of the IWC, held in London from 6-8 March, focused on the future of the IWC, seeking ways to move forward in a cooperative way. "The IWC has in recent years shown increasing signs of polarisation and has reached something of an impasse. That is why the Annual Meeting in Anchorage last year decided to hold this London meeting," said the meeting Chair. Reportedly the spirit at the meeting was cooperative, with participants discussing proposals for improving the way the IWC work, such as: reducing the use of voting; ensuring adequate notice of matters to be considered to reduce surprises; employing cooling off periods when difficulties arise; and using small negotiating groups.

The IWC annual meeting will be held in Santiago, Chile, in June this year.

"Secret Plan to Let Japan Resume Whaling," THE INDEPENDENT, 9 March 2008; "Ice Thaws But Little Else Moves at Whaling Meeting," REUTERS, 8 March 2008.

STARBUCKS TO PROMOTE RWANDAN COFFEE

Starbucks, the international coffee chain, has announced that it will market a unique high-quality coffee from Rwanda. Rwanda is hoping development benefits will flow from this partnership, based on coffee beans that are subject to a Geographical Indication (GI).

Starbucks is to source an exclusive blend of coffee, called 'Rwanda Blue Bourbon,' from a country in which coffee farming was decimated by the 1994 genocide. The chain intends to increase the quantity of its coffee originating in Africa and sees the Rwandan coffee as a marketable response to consumer demands for coffee which is not only high in quality but can also be identified with a specific region or country. The GI associated with the Rwandan coffee means that there is a restriction on the use of the name to a specific place of origin and production method, as in the case of Champagne from France.

Last year, Ethiopia chose another path by deciding to trademark its Sidamo and Harar beans, rather than relying on GIs (see Bridges Trade BioRes 6 July 2007; http://www.ictsd.org/biores/07-07-06/story2.htm). Ethiopia is hoping that the trademarks will bring higher returns for the farmers and lead to more surplus returning to the farming communities from sales by the Starbucks chain. Similarly, the Rwandan farmers are hoping that the purchase by Starbucks of their produce will assist development in their communities.

Rwandan Ambassador to the US Zac Nsenga said the aim of the growers in Rwanda is 'to produce sustainable quality coffee in sustainable quantities while maintaining standards. They are looking for lasting partnerships with Starbucks. In doing this, they aim at achieving sustainable livelihood for their families.' The US Agency for International Development (USAID) has been involved by partnering with Rwandans to upgrade the coffee-farming and coffee-processing infrastructure.

'Starbucks to Sell Exclusive Rwanda Coffee In Europe,' PLANET ARK, 10 March 2008; 'Java Rwanda: Starbucks to Sell Rwandan Coffee,' FOX NEWS, 1 March 2006; 'Product Spotlight: Coffee with a conscience,' FOOD PROCESSING; 'U.S., Starbucks, Rwanda Coffee Partnership Equals Success,' USINFO, 11 April 2006.