US embassy cable - 04ROME2331

UNCLAS  ROME 002331 
 
SIPDIS 
 
 
FROM U.S. MISSION IN ROME 
 
STATE FOR PRM/P, EUR/WE, EUR/NE, AF, EAP/K, EUR/CACEN, NEA, 
EB/TPP/ABT, WHA, WHA/USOAS AND IO/EDA BEHREND/KOTOK 
USAID FOR DA/USAID SCHIECK, AA/DCHA WINTER, AA/AFR, DCHA/FFP 
LANDIS, PPC/DP, PPC/DC 
USDA/FAS FOR U/S PENN, CHAMBLISS/TILSWORTH/GAINOR 
GENEVA FOR RMA AND NKYLOH/USAID 
BRUSSELS FOR PLERNER 
NAIROBI FOR REDSO 
USUN FOR MLUTZ 
NSC FOR JDWORKEN 
OMB FOR TSTOLL 
E.O. 12958:  N/A 
TAGS: EAID, EAGR, AORC, PREF, KUNR, WFP, UN 
SUBJECT: 2003 GLOBAL FOOD AID: BARELY COPING WITH 
EXTRAORDINARY NEEDS - EVEN LESS SANGUINE FORECAST FOR 2004 
 
REF: (A) ROME 002196 
 
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SUMMARY 
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1. WFP has released its annual Global Food Aid report 
entitled "2003 Food Aid Flows," which highlights, despite a 
year of extraordinary emergencies, the steady downward trend 
in total food aid tonnages, particularly since 1999.  For 
2004, international prices for food aid commodities continue 
their steady climb upwards, and ocean freight rates are at a 
record high. High prices for food aid commodities and 
transport mean plainly and simply reduced tonnage for 
beneficiaries, and food aid pipelines for a number of major 
operations are increasingly precarious, as per WFP. When a 
comparable price spike occurred in 1996 and 1997, donor food 
aid contributions dropped to their lowest level since the 
start of international food aid programs in the 1950s. As 
WFP's Jim Morris (ref A) told the Annual Session of the WFP 
Executive Board last month, "a donation to WFP (in 2004) 
will buy markedly less food today than any time since the 
mid 1990s." Population growth, declining land and water 
resources, nutrition needs associated with HIV/AIDS, and the 
high incidence of natural and man-made disasters, will this 
year almost certainly create a number of unpalatable choices 
for donors, implementing agencies, and recipient countries 
alike. 
 
2. "2003 Food Aid Flows" records that deliveries worldwide 
this past year totaled 10.2 million tons, 830,000 tons under 
the average annual tonnage delivered over the decade 1993- 
2002. Over the past five years, tonnage levels are as 
follows: 1999, 15.0 million tons; 2000, 11.3 million tons; 
2001, 10.9 million tons; 2002, 9.7 million tons. The small 
increase in 2003, 10.2 million tons, factors in the 
extraordinary international efforts associated with Iraq. 
Deliveries by the United States decreased by 8 percent, from 
6.2 million tons in 2002 to 5.7 million tons in 2003. The EC 
and its member states provided 2.2 million tons of food 
assistance in 2003, compared with 1.4 million tons in 2002. 
 
3. Eight countries - Ethiopia, Iraq, North Korea, Sudan, 
Bangladesh, Eritrea, Angola and Zimbabwe - received over 
half of all global food aid. The remaining 50 percent was 
divided among 91 recipients. In 2003, food aid channeled 
multilaterally reached a record level of 49 percent of 
global food assistance, making WFP the world's predominant 
food aid handler. End summary. 
 
-------------------------------------- 
Regional analysis - Sub-Saharan Africa 
-------------------------------------- 
 
4. Driven by extraordinary emergency requirements in both 
the Horn and southern Africa, sub-Saharan Africa received 
some 5.2 million tons of food aid in 2003, 51 percent of 
world-wide deliveries. Seventy-eight percent of the food 
assistance to the region (4.1 million tons) was emergency 
food aid. Eleven percent was sold on the market. All food 
aid was provided to sub-Saharan Africa on a fully grant 
basis. Fourteen percent was procured through local 
 
purchases, 16 percent provided through triangular 
transactions (i.e., food aid purchased in one developing 
country for use in another developing country), and the 
remaining 70 percent was transferred directly from the donor 
countries. Main recipients in 2003 were: Ethiopia, almost 2 
million metric tons (19 percent of 2003 world-wide 
deliveries and 38 percent of the deliveries to sub-Saharan 
Africa); Angola, 280,000 mts; Zimbabwe, 280,000 mts; and 
Sudan, 250,000 mts.  Malawi, Kenya, Mozambique, Uganda, 
Zambia and Tanzania each received more than 100,000 mts. 
The main donors were the United States (55 percent), the 
European Union (Commission and Member States) (30 percent), 
Japan (5 percent) and Canada (2 percent). WFP delivered 62 
percent of the emergency food aid and 33 percent of the 
project (i.e., targeted, grant, development) food aid 
provided to sub-Saharan Africa in 2003. Food aid flows to 
sub-Saharan Africa (1999-2002) are as follows: 1999, 2.8 
million tons; 2000, 4.0 million tons; 2001, 3.6 million 
tons; and 2002, 3.0 million tons. 
 
---- 
Asia 
---- 
 
5. Food aid deliveries to Asia amounted to 2.4 million tons 
in 2003, 24 percent of global deliveries, of which 57 
percent was emergency relief. DPR Korea was the main 
recipient country (965,000 mts), followed by: Bangladesh, 
450,000 mts; Indonesia, 240,000 mts; Afghanistan, 230,000 
mts; and Philippines, 100,000 mts. The major donors were: 
the United States (36 percent); the Republic of Korea (22 
percent); EU Commission and member states (13 percent); 
China (10 percent); Canada (6 percent); and Japan (5 
percent). WFP delivered 50 percent of the emergency food aid 
and 28 percent of the project food assistance. Food aid 
flows to Asia (1999-2002) are as follows: 1999, 5.0 million 
tons; 2000, 3.2 million tons; 2001, 4.1 million tons; 2002, 
3.8 million tons. 
 
---------------------------- 
Middle East and North Africa 
---------------------------- 
 
6. Food aid deliveries to the countries of the Middle East 
and North Africa in 2003 amounted to 1.4 million metric 
tons, 14 percent of global deliveries. Emergency and project 
food aid together represented 90 percent of deliveries. 
Seventy-three percent of the food assistance to the region 
was provided through multilateral channels, 17 percent 
through NGOs and 10 percent bilaterally. The major donors 
were the United States (78 percent); Japan (4 percent); 
United Kingdom (3 percent); European Commission (3 percent); 
and Germany (2 percent). The main recipient countries were: 
Iraq, 1.3 million tons; Jordan, 150,000 mts; and the 
Palestinian Territories, 68,000 mts. WFP provided 81 percent 
of the emergency food aid and 60 percent of the project food 
assistance. Note. The Iraq numbers (and the overall global 
food aid numbers) do not include the food commodities 
purchased commercially through the UN Oil-for-Food (OFF) 
operations. End note. Food aid flows to this region 1999- 
2002 are as follows: 1999, 500,000 tons; 2000, one million 
tons; 2001, 900,000 tons; 2002, 700,000 tons. 
 
--------------------------------------------- -------------- 
 
Eastern Europe and Commonwealth of Independent States (CIS) 
countries 
--------------------------------------------- -------------- 
 
7. The deliveries to Eastern Europe and Commonwealth of 
Independent States (CIS) countries in 2003 amounted to 
750,000 mts, 7 percent of global food deliveries. Emergency 
and project food assistance together accounted for 56 
percent of overall deliveries. Thirty-two percent of the 
food aid was channeled through NGOs, 23 percent was provided 
multilaterally and 45 percent bilaterally. The main 
recipient countries were: Ukraine, 200,000 mts; Tajikistan, 
100,000 mts; Serbia and Montenegro, 80,000 mts; the Russian 
Federation, 80,000 mts; and Georgia, 60,000 mts. The major 
donors were the United States (57 percent), the Russian 
Federation (27 percent), and the EU Commission and member 
states (12 percent). WFP delivered 87 percent of the 
emergency food aid, but was not involved in project 
assistance. Food aid flows to this region 1999-2002 are as 
follows: 1999, 5.4 million tons; 2000, 2.3 million tons; 
2001, 1.3 million tons; and 2002, 1.0 million tons. 
 
---------------------------------- 
Latin America and Caribbean region 
---------------------------------- 
 
8. Latin America and the Caribbean received 470,000 metric 
tons of food assistance in 2003, 5 percent of global 
deliveries. 67 percent was channeled through NGOs, 19 
percent was provided multilaterally and 14 percent 
bilaterally. Half the food aid delivered was sold on the 
market; all food aid to the region in 2003 was provided on a 
fully grant basis. The main recipient countries were: 
Bolivia 130,000 mts; Peru, 70,000 mts; Honduras, 70,000 mts; 
Haiti, 60,000 mts; Guatemala, 60,000 mts; and Nicaragua, 
50,000 mts. The major donors were the United States (91 
percent); EU Commission and member states (3 percent); and 
Japan (2 percent). WFP delivered 77 percent of the emergency 
food aid and 17 percent of the project food assistance. Food 
aid flows to Latin America and the Caribbean 1999-2002 are 
as follows: 1999, 1.2 million tons; 2000, 828,000 tons; 
2001, one million tons; and 2002, 1.2 million tons. 
 
------------------------------------- 
Other salient food aid facts in 2003 
------------------------------------- 
 
9. Other highlights of the report are as follows: 
 
-    The United States provided 56 percent of all global 
  food aid. However, deliveries by the United States (all 
  programs) decreased by 8 percent, from 6.2 million tons in 
  2002 to 5.7 million tons in 2003. U.S. food aid levels 1999- 
  2001 are as follows: 1999, 9.5 million tons; 2000, 7.0 
  million tons; 2001, 6.8 million tons; 
-    The EC and its member states provided 2.2 million tons 
  of food assistance in 2003, compared with 1.4 million tons 
  in 2002. EC and its member states food aid levels 1999-2001 
  are as follows: 1999, 3.7 million tons; 2000, 2.2 million 
  tons; 2001, 2.1 million tons; 
-    In 2003, emergency food aid deliveries (all spigots) 
  reached a record level of 6.8 million tons, or 67 percent of 
  the global deliveries; 
-    Relative to 2002, deliveries funded by the European 
 
  Commission (not including the member states) increased by 90 
  percent (from 585,875 tons in 2002 to 1.1 million tons in 
  2002), those by the Republic of Korea by 26 percent and 
  those of Japan by 39 percent. Deliveries by Canada increased 
  by 52 percent; deliveries by the United Kingdom rose by more 
  than threefold. The deliveries of Norway went up by a factor 
  of four, and food aid deliveries by Italy increased by 7 
  percent. However, food aid from China decreased by more than 
  30 percent, (i.e., from 200,000 mts to 100,000 mts), and 
  Australia's donations by two-thirds (from 300,000 mts to 
  100,000 mts); 
-    Eight countries - Ethiopia, Iraq, North Korea, Sudan, 
  Bangladesh, Eritrea, Angola and Zimbabwe - received over 
  half of all global food aid. The remaining 50 percent was 
  divided among 91 recipient countries; 
-    932,000 metric tons of food aid provided in 2003 was 
  procured through local purchases; 
-    94 percent of global food aid in 2003 was on full grant 
  terms (9.6 million tons), while only 6 percent (600,000 tons 
  were provided on concessional terms; 
-    Of the 10.2 million tons of commodities constituting 
  food assistance in 2003, 1.9 million tons were sold 
  (monetized) and 8.3 million tons directly distributed to 
  final beneficiaries; 
-    96 percent of global food assistance (some 9.9 million 
  tons) in 2003 went to developing countries, of which 5.3 
  million tons (52 percent) went to least developed countries 
  (LDCs); and finally, 
-    In 2003, food aid channeled multilaterally reached a 
  record level of 49 percent of global food assistance (nearly 
  5 million tons against an overall total 10.2 million tons 
  delivered - all spigots), making WFP (at 4.6 million tons) 
  the world's predominant food aid handler. 
 
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Comment 
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10. Globally, there is an increasing trend to use food aid 
to target people rather than providing import substitutions. 
Food aid procurements in developing countries are on the 
increase. Targeted food aid flows in both emergency and 
development settings are now driven more by case-by-case 
assessment of the urgency of human problems and are 
increasingly provided on a multilateral basis or through 
NGOs. WFP is the dominant player in the delivery of 
worldwide emergency food aid, handling 63 percent in 2003. 
 
11. For 2004, international prices for food aid commodities 
continue their steady climb upwards, and ocean freight rates 
are a record high. High prices for food aid commodities and 
transport mean plainly and simply reduced tonnage for 
beneficiaries, and food aid pipelines for a number of major 
operations are increasingly precarious, as per WFP. When a 
comparable price spike occurred in 1996 and 1997, donor food 
aid contributions dropped to their lowest level since the 
start of international food aid programs in the 1950s. As 
WFP's Jim Morris told the Annual Session of the WFP 
Executive Board last month, "a donation to WFP (in 2004) 
will buy markedly less food today than any time since the 
mid 1990s." Population growth, declining land and water 
resources, nutrition needs associated with HIV/AIDS, and the 
high incidence of natural and man-made disasters, will this 
year almost certainly create a number of unpalatable choices 
 
for donors, implementing agencies, and recipient countries 
alike. Hall 
 
 
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2004ROME02331 - Classification: UNCLASSIFIED