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A bold approach to reducing global food insecurity is vital,
according to Nestlé Chairman Peter Brabeck-Letmathe. Speaking at the
Private Sector Forum held on November 12 and 13 in Milan, Mr
Brabeck-Letmathe is focusing on the plight of 'reducing food
insecurity' - emphasising that it is not just about taking measures
to produce more food, it is also about taking measures that actually
change expectations and lead to sound long-term food security.

The United Nations Food and Agriculture Organisation (FAO), which is
working together with the Italian city of Milan and the organisers of
the Universal Exposition on the theme 'Feeding the Planet, Energy for
Life' in 2015, created the Forum to give participants an opportunity
to exchange views about the challenges, risks and possible drivers of
a future food crisis, while aiming to identify concrete solutions in
which companies can contribute. As the largest gathering organised
for the private sector by the FAO, this earmarks a new consensus
among food officials on the need to generate ideas from this sector.

The FAO estimates that the world will need until 2050 to boost
agricultural investment by $83bn (nearly CHF 84bn) a year to feed a
growing population. Most of the money will come from the private
sector, from small farmers to big agribusinesses. To address this,
Nestlé has announced it will invest more than $100m (around CHF 110m)
over the next decade to farmers in Côte d'Ivoire and Ghana - which
together account for 60% of the world's cocoa output - to supply 38
million higher quality, disease-resistant plants to rejuvenate their
farms and increase productivity. The Cocoa Plan, announced in
October, aims to help address the key issues facing the cocoa farming
communities that Nestlé works with.

At the Forum, Mr Brabeck-Letmathe stressed more needs to be done with
a need for a broad strategy. He said: "Whatever the tools, there are
high expectations for a strong leadership role from the FAO. There is
also a willingness of the private sector to be actively involved and
to participate, where it actually can add value."
He continued: "We have to be aware that the challenge we are facing
in the years to come goes far beyond the food insecurity for the one
billion people that go hungry to bed. We therefore have to be quite
bold when discussing solutions." In understanding the long-term
economic and social challenges the world faces, Mr Brabeck-Letmathe
added that there are five major challenges to overcome long-term
global food insecurity. He explained that the first is producing the
necessary quantities of basic calories and proteins in a sustainable
way, which is also within the restrictions of water and arable land.

Secondly, Mr Brabeck-Letmathe said it is necessary to generate
reliable incomes for farmers, avoiding the approach with increasing
subsidies and artificially high prices. Next, he believed that
focusing on the affordability of food for low-income consumers is
necessary. Highlighting the quality of food, including safety, is
also an important role for industry. Finally, with accessibility - in
supplying food at the right time, in the right form, at the right
place - is another important task for companies.

But more importantly, Mr Brabeck-Letmathe stated that the most
important challenge to sustainable production of food is water. In
finding ways to overcome an unsustainable use of water in farming, he
said: "We as a company were involved from the very beginning, and see
a role for private companies with its own efforts and advice within
the context of such a strategy."

He added that the second major challenge is being able to provide
better and more stable incomes for farmers and rural workers. A
solution would include creating a role for private companies to help
farmers have access to markets over longer distances, while also
maintaining higher value-added products, access to finance and
inputs.
Nestlé has focused on these issues head on through its approach to
business, Creating Shared Value.

The Company has committed to help farmers throughout the world,
especially in developing countries, in an effort to improve the
global food supply chain. To date, Nestle works with more than
600,000 farmers providing them with technical assistance to increase
production, improve food quality and build rural infrastructure.
Also, Nestlé is consistently developing lower-cost food products and
distribution systems so that those on lower incomes have greater
access to iron and vitamin-fortified products.

Conclusions from the Private Sector Forum will be submitted to the
FAO World Summit on Food Security 2009, on November 16-18 in Rome.

Related information:
FAO website
Creating Shared Value: The Cocoa Plan
The Cocoa Plan website
Creating Shared Value: Micronutrient fortification

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Read more in News & Features and Creating Shared Value


 
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