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How £50m in UN food aid for starving went to buy wheat from Glencore
More than £50m of World Food Programme aid to feed the starving has ended up in the hands of a London-listed commodities trader run by billionaires, despite a pledge by the United Nations agency to buy food from "very poor farmers".

Glencore International, which buys up supplies from farmers and sells them on at a profit, was the biggest single supplier of wheat to the WFP over the last eight months, the Guardian can reveal.

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Details of the dealings with Glencore, which controls 8% of the global wheat market, emerged a year after the head of the WFP committed to buying food from local farmers.

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Over the last eight months Glencore has sold wheat worth $78m (£50m) to the WFP, according to details of contracts published on the agency's website.

In the biggest single deal, the WFP bought $22.5m of Glencore wheat in July last year to feed Ethiopians in one the worst famines in recent memory. The WFP also bought Glencore wheat, sorghum and yellow split peas for Kenya, Djibouti, Bangladesh, Sudan, North Korea and Palestine. Last month the WFP spent $10.8m on wheat for drought-stricken Djibouti.



"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet
by Melanchthon on Tue Feb 7th, 2012 at 07:25:23 PM EST
[ Parent ]
Glencore was the World Food Programme's most viable option
It is hard, in fact, to see what else WFP could have done. A big purchase of $22.5m was made from Glencore in July, which is when famine was declared in the Horn of Africa.

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The problem is that humanitarian aid is typically hand to mouth and last minute, which forces agencies to buy on international markets at their peak, as Chatham House fellow Rob Bailey points out. What is needed is for donors to look further ahead and cough up money in time. At the moment, WFP has a $150m revolving fund with which it is allowed to buy ahead to anticipate crises, small stuff compared with the $1.23bn total it needed to feed the starving in 2011. It would be good, too, if its programme to buy from small farmers locally and improve storage capacity in poorer countries were bigger.



"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet
by Melanchthon on Tue Feb 7th, 2012 at 07:32:21 PM EST
[ Parent ]
This just shows the absurdity of UN food aid. If the idea is to feed the poor, the UN should of course buy the cheapest wheat they can find. But if the task is to subsidise poor farmers, they might just as well just hand out checks to them.

To me it seems it's all been muddled in true aid-inudstrial complex style, where it's about being "nice" without thinking of the consequences. And indeed, the PR trick works, with the media catching on the "evil big corporation angle" so popular amoing fasionable leftists who have no idea what the role of corporations actually are, only that they are evil. Then they head out shopping "chic" goods from those very same corporations.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Wed Feb 8th, 2012 at 08:17:18 AM EST
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The task is not to subsidise poor farmers, but to encourage local production by paying a decent price for produce - as opposed to the EU and the US subsidising their farmers and subsidising the export of grain that ends up undercutting local farmers in the countries it goes to. Feeding the hungry is not a matter of handing out the cheapest food available, but of local agriculture finding incentives to produce more and better food.

That should be the overall strategy - but, in the case of a famine like the Horn of Africa, buying up large stocks on the world market may be necessary to ensure survival rations for large numbers of people at a moment of crisis.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Feb 8th, 2012 at 10:06:55 AM EST
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