FAO Calls For Food Import Financing Facility for Poorer Countries

As the economic impact of the Ukraine-Russia conflict has reverberated through multiple global channels, FAO is calling for a global Food Import Financing Facility (FIFF) to help poorer countries cope with surging prices.

According to FAO, the conflict could result in as many as 13.1 million more people going hungry between 2022 and 2026, compared to the baseline.

In a video message to a Group of 20 meeting of Finance Ministers and Central Bank Governors in Washington, FAO Director-General QU Dongyu said Wednesday, "The war can have multiple implications for global markets and food security."

The FIFF, which would complement existing mechanisms within the UN system, would be strictly based on urgent needs and limited to low and lower-middle-income net food-importing countries, Qu noted.

Moreover, it is designed to increase future resilience by asking eligible countries to commit to investing more in sustainable agrifood systems.

Qu, who was invited to illustrate the economic consequences of the war in Ukraine, especially on the food security, by Indonesia, the current holder of the G20 presidency, said the FIFF has been stress-tested by FAO for its impact on the global markets and would be convenient to administrate and scale-up.

In his remarks, Qu said: "The lesson learned is that we need to increase agricultural production and productivity in the world while being sustainable."

"It is high time to work together for ending hunger and malnutrition in the world," he added.

It's worth mentioning that Russia and Ukraine are important players in the global food market, with almost 50 countries dependent on them for at least 30 percent of their wheat import needs.