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Europe’s collapsing grain mountain fuels food scare

The UN鈥檚 World Food Summit in Rome has pledged to halve malnutrition within
20 years. But, as Fred Pearce reports, many delegates at last week鈥檚 meeting
argued that too much faith is being placed in scientific fixes

THE decline of Europe鈥檚 grain mountain since the early 1990s has pushed
the world to the brink of a food crisis, the Food and Agriculture Organization
warned the summit. Global food stocks are approaching their lowest levels for
more than 20 years.

The FAO estimates that stocks of grains such as wheat, rice and maize stand
at 15.5 per cent of annual consumption. This is up 1 per cent from a year ago,
but is still below the safety threshold of 17 to 18 per cent recommended by the
FAO in the early 1970s. Wheat stocks, which formed the bulk of Europe鈥檚 grain
mountain, have fallen since the mid-1980s, from nearly half of annual
consumption to just 28 per cent.

Stein Bie, director of research at the FAO, conceded that improved
communications and famine warning systems may allow the FAO to reduce its grain
stock safety threshold. 鈥淲e might perhaps bring it down to 15 per cent,鈥 he
said. Keeping the threshold unnecessarily high can be damaging if a drop in
stocks below the official level triggers a panic rise in grain prices.

But even a lowered threshold is likely to be crossed, as the FAO predicts
further declines in grain stocks. The World Bank told the summit that without
large stocks of grain there could be a 鈥渞eduction of food aid commitments鈥 from
rich nations.

The stance of the FAO and the World Bank is opposed by European governments,
which argue that freer global markets in foodstuffs will ensure global food
security. Britain鈥檚 overseas aid minister, Baroness Chalker, attacked the FAO
for failing to 鈥渃reate the right enabling political and economic environment for
food security鈥.

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