Changes to Canadian Food Aid Rules Sought

WINNIPEG - Jan 17/05 - SNS -- The Canadian Foodgrains Bank is seeking changes to the way the Canadian government buys primary agricultural commodities for shipment as food aid -- switching from buying 100% Canadian to at least 25% of shipments from developing countries.

In an open letter, Jim Cornelius, Executive Director, says, "Two of the (world's) four major food aid donors have already made similar changes to their food aid rules. Australia permits up to 67% of their food aid to be sourced in developing countries. The European Union sets strict developmental criteria for developing country purchases and has averaged about 25% sourcing in developing countries.

"The Foodgrains Bank proposes Canadian rules similar to those of the European Union. Only the U.S., whose many times larger food aid program is part of their farm legislation, does not permit any developing country purchases."

Cornelius said the concept is supported by those farmers who regularly donate parts of their crops to the Canadian Foodgrains Bank, but is strongly opposed by the National Farmers Union, which wants Canadian-funded food aid purchases to directly benefit the Canadian industry and not the agriculture industry in developing countries.

"Canadian food aid purchases of various commodities represent less than 1% of Canadian production," argues Cornelius. "The changes we are seeking would only fractionally reduce even these already minor purchases. The impact on Canadian commodity prices and Canadian farmers' wallets will be minimal. On the other hand, the positive benefits for hungry people and developing country farmers will be significant.

"We believe that Canadians want their donations and aid dollars to be used as efficiently and effectively as possible to address hunger and poverty."