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Aid: Japan's US$50m Response To Rising Food Prices

Japan's response to rising food prices in developing countries

The issue of rising food prices is among the most important agenda at the G8 Hokkaido Toyako Summit to be held next week. Japan has announced various assistances in response to the needs of developing countries in short as well as medium to long terms.

Considering the situation in many developing countries that remains to be serious, the Government of Japan decided on a new food aid package of approximately 50 million dollars to be implemented by October, in addition to approximately 200 million dollar food aid that was already implemented or announced this year.

With this food aid, Japan's total assistance in food and the agricultural sector committed since January 2008 at various occasions including the Fourth Tokyo International Conference on African Development (TICAD IV) and the FAO High-Level Conference on World Food Security, reaches approximately 1.1 billion dollars (details attached).

Japan's commitment on food aid and measures to increase agricultural output in developing countries (announced since January 2008) Total: 1.094billion dollars

1. Grant food assistance: 253 million dollars (2008)

Assistance for Africa and Afghanistan (supplementary budget): 51.24 million dollars (disbursed) Food aid (KR): 189.1 million dollars (including 100 million dollars announced at the end of April and 50 million dollars announced today)

Disbursed: 76.04 million dollars

In process: 113.06 million dollars

Other food assistance: 6 million dollars (disbursed) Contribution to WFP: 6.76 million dollars (disbursed)

2. Assistance to agricultural sector: 841 million dollars (Assistance for Africa was announced at TICAD IV.)

(1) Grant and technical assistance for Africa: 230 million dollars (over 5 years)

(2) Yen loans for agriculture projects for Africa: up to 480 million dollars (over 5 years)

(3) Grant assistance for underprivileged farmers (fertilizer and equipments (2008)): 60 million dollars (announced at the FAO High-Level Conference)

Disbursed: 10 million dollars

In process: 50 million dollars

(4) Contribution to CGIAR: 12.87 million dollars (2008)

Disbursed: 6.45 million dollars In process: 6.42 million dollars

(5) Contribution from Japan's trust fund at the World Bank: 42 million dollars

Special grant to rural development projects in Africa: 20 million dollars

- Contribution to CGIAR: 20 million dollars

- Support for the establishment of CAADP trust fund: 2 million dollars

(6) Other support for agricultural productivity in Africa by the Ministry of Agriculture, Forestry, and Fisheries: 6.19 million dollars (2008)

- Study on improved technical method for land and water development/management to increase agricultural output; in particular rice: 1.85 million dollars Contribution to IWMI trust fund: 101 thousand dollars Examination for local cultivation technique and feasibility study of NERICA crop: 150 thousand dollars Training courses for promotion of organizing farmers: 194 thousand dollars

- Improve NERICA, develop and introduce drought resistant crops, improve soil fertility and enhance development of human resources for agricultural research: 1.13 million dollars

- Contribution to FAO Japan trust fund: 871 thousand dollars

- Promoting Rice Cultivation in Africa through Small Scale Irrigation to WFP Japan trust fund: 1.89 million dollars

(7) Other support for agricultural productivity (outside of Africa) by the Ministry of Agriculture, Forestry, and Fisheries: 10.19 million dollars (2008)


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