WORLD MEAT CONGRESS
CAPE TOWN
9 SEPTEMBER 2008
REMARKS BY THE AUSTRALIAN HIGH COMMISSIONER
TO SOUTH AFRICA
PHILIP GREEN O.A.M.
AFRICA – THE CATTLE CONTINENT, GLOBAL TRADE, AND THE ROLE OF IMPORT TARIFFS IN ADDRESSING RISING FOOD PRICES
LADIES AND GENTLEMEN
IT IS A GREAT PLEASURE FOR ME TO BE ABLE TO ADDRESS THE WORLD MEAT CONGRESS IN THIS GREAT AFRICAN CITY OF CAPE TOWN. THIS CITY HAS PARTICULAR SIGNIFICANCE FOR AUSTRALIANS, NOT LEAST BECAUSE IT HAS PLAYED ITS PART IN THE STRONG AGRICULTURAL BONDS BETWEEN AUSTRALIA AND SOUTH AFRICA OVER MANY YEARS.
WAY BACK IN THE LATE EIGHTEENTH CENTURY, THE FLEDGLING BRITISH COLONY IN SYDNEY, ESTABLISHED ONLY A FEW YEARS BEFORE, WAS ON THE BRINK OF DISASTER. FOOD SUPPLIES FROM BRITAIN HAD RUN OUT, AND THE CROPS PLANTED LOCALLY BY BRITISH SOLDIERS AND CONVICTS HAD FAILED. THOSE OF US FROM SYDNEY, MY HOME TOWN, ARE TAUGHT THAT IT WAS FROM THIS CITY - CAPE TOWN -THAT SUPPLIES OF GRAIN CAME TO SAVE THE TINY SETTLEMENT THAT HAS NOW BECOME THE CITY OF SYDNEY.
FORTY YEARS LATER, A DIFFERENT CARGO CAME TO CAPE TOWN, EN ROUTE FROM BRITAIN. THIS TIME THE CARGO WAS HUMAN – BRITISH CONVICTS BOUND FOR AUSTRALIA. THE POPULATION OF CAPE TOWN REVOLTED AT THE PROSPECT THAT THE CONVICTS MIGHT STAY IN THEIR LOVELY CITY. AND, PERHAPS WITH MORE DETERMINATION THAN WITH THE GRAIN, CAPETONIANS MADE SURE THAT THE HUMAN CARGO WAS ON ITS WAY QUICKLY TO THE OTHER SIDE OF THE INDIAN OCEAN.
LADIES AND GENTLEMEN
I WANT TO CONGRATULATE THE ORGANISERS OF THIS CONGRESS, AND IN PARTICULAR MR MANIE BOOYSEN OF THE SOUTH AFRICAN MEAT INDUSTRY COUNCIL FOR THE WARM WELCOME AND EFFICIENT ARRANGEMENTS THAT HAVE GREETED US HERE. I KNOW FROM MY CONTACTS WITH MANIE OVER RECENT MONTHS, THAT THE SUCCESS OF THIS CONGRESS IS NO ACCIDENT. HIS ENERGY AND ENTHUSIASM HAVE BEEN AT THE CORE OF THE RESULTS WE SEE TODAY.
UNLIKE MANIE, I AM NOT AN AFRICAN. BUT I HAVE HAD THE GOOD FORTUNE TO HAVE BEEN ASSIGNED TO AFRICA ON FOUR OCCASIONS IN MY CAREER AS AN AUSTRALIAN DIPLOMAT. TO TANZANIA AND ZAMBIA IN THE 1980S; KENYA IN THE 1990S AND HERE IN SOUTH AFRICA THIS DECADE. IN TOTAL, I HAVE SPENT NEARLY HALF MY CAREER ON THIS CONTINENT. OVER THE LAST DECADE, I HAVE HAD THE PRIVILEGE OF SERVING AS THE AUSTRALIAN AMBASSADOR OR HIGH COMMISSIONER TO TEN AFRICAN COUNTRIES.
I AM, IN MANY WAYS, VERY ATTACHED TO THIS PART OF THE WORLD. I SPEAK THE LINGUA FRANCA OF EAST AFRICA, THE SWAHILI LANGUAGE. AND MY FAMILY LIFE REFLECTS THE TIME THAT I HAVE SPENT HERE. MY WIFE IS A PROUD AFRICAN, AND MY CHILDREN ARE AFRICANS AS WELL AS AUSTRALIANS.
THE CATTLE CONTINENT …
SO, AS SOMEONE WITH SOME EXPERIENCE OF AFRICA, I WANT TO BEGIN TODAY BY EXPRESSING MY VIEW THAT THE CONTINENT THAT YOU HAVE COME TO FOR THIS YEAR’S CONGRESS IS THE LIVESTOCK CONTINENT. THE CONNECTIONS THAT PEOPLE IN AFRICA HAVE TO CATTLE AND TO MEAT ARE STRONGER THAN IN MY HOMELAND, AND I EXPECT STRONGER THAN IN ANY OTHER PART OF THE PLANET.
CONSIDER FOR A MOMENT THE RANGE OF CONNECTIONS WITH THE LAND, AND PARTICULAR WITH LIVESTOCK AND MEAT, THAT AFRICANS CAN BOAST.
FIRST, THE RAISING OF LIVESTOCK IS A PRACTICE THAT IS SHARED BY A VERY HIGH PROPORTION OF AFRICA’S POPULATION. THREE QUARTERS OF AFRICA’S PEOPLE LIVE OFF THE LAND. AROUND 70 PER CENT OF THE RURAL POOR IN AFRICA OWN LIVESTOCK. AND, OVERALL, MORE THAN 200 MILLION AFRICANS RELY ON LIVESTOCK FOR INCOME AND DRAUGHT POWER.
THE ASSOCIATION WITH CATTLE DOES NOT END IN THE COUNTRY-SIDE. URBAN AFRICANS ARE MORE CONNECTED TO RURAL AFRICA THAN THE AVERAGE AUSTRALIAN, AMERICAN OR EUROPEAN IS CONNECTED TO THEIR COUNTRYSIDE. FOR MANY AFRICAN CITY-DWELLERS, THE ESTABLISHMENT OF FARM – CLASSICALLY IN THEIR HOME VILLAGE – IS A KEY LIFE OBJECTIVE.
IN SOME COUNTRIES, THIS OBJECTIVE BECOMES A PASSION. IN BOTSWANA, FOR INSTANCE, THE OWNERSHIP OF CATTLE IS CLOSE TO THE CORE OF SELF ESTEEM, PARTICULARLY FOR MEN. A MAN’S WORTH IS CLOSELY RELATED TO THE NUMBER OF CATTLE THAT HIS KRAAL CAN BOAST. IF EVER YOU HAPPEN TO BE LOST FOR CONVERSATION IN BOTSWANA, ASK ABOUT YOUR BATSWANA FRIEND’S HERD – YOU WILL NEVER FAIL TO RAISE THEIR INTEREST.
FOR A SMALLER GROUP OF AFRICANS – BUT STILL NUMBERING IN THE TENS OF MILLIONS – LIVESTOCK IS, LITERALLY THEIR LIFE’S BLOOD. FROM THE RED SEA IN THE NORTHEAST, THROUGH THE STEPPES OF ETHIOPIA, RIGHT DOWN INTO THE HEART OF TANZANIA, AND ACROSS BEYOND THE SUDAN, THROUGH THE SAHARA INTO WEST AFRICA, MILLIONS OF AFRICANS LIVE AS PASTORALISTS. IN THESE PLACES, MANY WITH UNFORGIVING CLIMATES, THE MOST EFFICIENT WAY TO LIVE IS OFF THE HERD, MOVING AS THE ANIMALS GRAZE.
TRIBES LIKE THE WANDERING MAASAI HAVE FORGED INGENIOUS WAYS TO LIVE OFF THEIR CATTLE WHILE MAINTAINING HERD NUMBERS, DRINKING THE BLOOD AND MILK OF THE COW AS A KEY MEANS OF NOURISHMENT.
THE VITAL SIGNIFICANCE OF LIVESTOCK TO THE MAASAI IS REFLECTED IN THEIR LANGUAGE. WHEN GREETING A MAASAI, YOU SHOULD ASK IRARA SUPATI? HOW ARE YOU? THE APPROPRIATE RESPONSE – “EE KIRA SUPATI NAA SUPATI INKISHU O LTUNG'ANAK” – MEANS “WE AND OUR CATTLE ARE FINE”.
IN MANY PARTS OF THE CONTINENT, CATTLE PLAY A KEY PART IN CEREMONIES. WEDDINGS, BIRTHS AND MANY RELIGIOUS FESTIVALS ARE CELEBRATED WITH A MEAL OF MEAT. AND THE SLAUGHTER OF THE ANIMAL BY THOSE PARTICIPATING IN THE FEAST – OFTEN ASSOCIATED WITH RITUAL – IS WIDELY PRACTICED.
HERE IN SOUTH AFRICA, THE CUSTOM OF LOBOLA – BRIDE-PRICE - STILL HAS STRONG RESONANCE. OF COURSE, IN THIS CENTURY, WE ARE NO LONGER TALKING OF WOMEN BEING EXCHANGED FOR CATTLE. BUT, EVEN IF ONLY SYMBOLICALLY, CATTLE ARE NORMALLY GIVEN AS PART OF A MARRIAGE CEREMONY.
IN MY OWN CASE, MY WIFE’S FAMILY STILL PRETENDS TO GRUMBLE THAT, ON OUR MARRIAGE DAY, I TURNED UP WITH A SINGLE GOAT. WITHOUT THE EXCHANGE OF A DECENT NUMBER OF CATTLE, IT IS SAID TO BE A KIND OF MIRACLE THAT OUR MARRIAGE HAS LASTED TWENTY YEARS!
THE VALUE OF MEAT AS FOOD IS NO LESS A PREOCCUPATION FOR AFRICANS. RED MEAT REMAINS A CONTINENTAL PASSION. JUST AS THE NATIONAL FOOD OF SOUTH AFRICA IS THE BRAAI, SO IN KENYA AND TANZANIA THE NATIONAL FOOD IS “NYAMA CHOMA” – SWAHILI FOR ROAST MEAT. AS SOMEONE WHO HAS ENTERTAINED AFRICANS OVER A MEAL A LOT IN THE PAST TWO DECADES, I CAN ASSURE YOU THAT RED MEAT IS THE MEAL OF CHOICE – AT AFRICAN DINNERS, THE CALL ON THE VEGETARIAN SELECTION IS VERY RARE.
.. DISENGAGED FROM THE INTERNATIONAL TRADE
IT IS PARADOXICAL, AND PERHAPS A LITTLE SAD THEN, THAT THIS CONTINENT, WITH ITS PASSION FOR LIVESTOCK AND MEAT, IS IN FACT THE LEAST ENGAGED IN THE GLOBAL MEAT TRADE. WHILE ITS PEOPLE ARE MORE FAMILIAR WITH CATTLE THAN THE PEOPLE OF ANY OTHER PART OF THE WORLD, AFRICA CONTRIBUTES NO MORE THAN TWO PER CENT TO THE GLOBAL LIVESTOCK MARKET.
THE REASONS FOR THIS PHENOMENON ARE NOT HARD TO DISCERN. SOME OF THE PROBLEMS FACED BY THE LIVESTOCK INDUSTRY IN AFRICA – PARTICULARLY DISEASE AND INADEQUATE INFRASTRUCTURE – REPRESENT MAJOR CHALLENGES, AND WILL TAKE TIME AND CONSIDERABLE EFFORT TO OVERCOME.
BUT IN THIS PERIOD OF AFRICA’S HISTORY - WHERE IN OTHER WAYS THE CONTINENT IS STABILISING, PROGRESSING, AND PLAYING A LARGER ROLE IN GLOBAL COMMERCE – WE SHOULD RECOGNISE THAT THESE CHALLENGES MAY WELL BE OVERCOME, POSSIBLY SOONER THAN WE EXPECT.
THE EXPERIENCE OF OTHER AGRICULTURE SECTORS SUGGESTS THAT, WITH THE RIGHT PLAN, AFRICAN COUNTRIES CAN OVERCOME INFRASTRUCTURAL CHALLENGES TO PLAY THEIR NATURAL PART IN GLOBAL TRADE. I HAVE SEEN AT FIRST HAND THE HIGH STANDARDS OF THE CUT FLOWER AND FRESH VEGETABLE PRODUCTION IN COUNTRIES LIKE TANZANIA AND KENYA. PREPARING SUPERMARKET-READY HORTICULTURE PRODUCE FOR AIR SHIPMENT OVERNIGHT TO EUROPE IS NO SIMPLE BUSINESS. AFRICAN SUCCESSES IN THAT FIELD ENCOURAGE MY VIEW THAT THE DEVELOPMENT OF A MORE WIDESPREAD EXPORT MEAT INDUSTRY IN AFRICA IS BY NO MEANS OUT OF THE QUESTION, THOUGH IT WILL TAKE TIME. CERTAINLY, AFRICA’S SHARE OF THAT TWO PER CENT OF THE GLOBAL TRADE MUST, AND I BELIEVE WILL, GROW.
AFRICANS THEMSELVES ARE FOCUSSED ON THEIR AGRICULTURAL INDUSTRIES IN NEW AND DYNAMIC WAYS. IN JUNE LAST YEAR, KOFI ANNAN BECAME THE CHAIR FOR THE ALLIANCE FOR A GREEN REVOLUTION IN AFRICA. HE HAD PREVIOUSLY CALLED FOR, AND I QUOTE, A “NEW UNIQUELY AFRICAN GREEN REVOLUTION – A REVOLUTION THAT IS LONG OVERDUE, A REVOLUTION THAT WILL HELP THE CONTINENT IN ITS QUEST FOR DIGNITY AND PEACE”. HE HAS SINCE BEEN WORKING HARD WITH LOCAL AFRICAN PARTNERS TO COMPREHENSIVELY TACKLE THE CHALLENGES HOLDING BACK HUNDREDS OF MILLIONS OF AFRICA’S SMALL SCALE FARMERS.
I SHOULD ALSO SAY THAT THE PROSPECTS OF AFRICA’S FURTHER ENGAGEMENT WITH THE GLOBAL MEAT TRADE, AND AGRICULTURE MORE GENERALLY, WOULD BE ADVANCED SOONER IF MORE RESOURCES WERE DEVOTED TO THE ISSUE. CURRENTLY THE GLOBAL RESOURCES PROVIDED TO SUPPORT AGRICULTURAL PRODUCTION IN THE RICH DEVELOPED COUNTRIES FAR OUTWEIGH THE RESOURCES DEVOTED TO THE PROMOTION OF AGRICULTURE IN AFRICA OR ELSEWHERE IN THE DEVELOPING WORLD.
IT IS PROBABLY WELL KNOWN TO THIS AUDIENCE THAT THE VALUE OF AGRICULTURAL SUBSIDIES PAID BY THE RICH NATIONS TO THEIR OWN FARMERS EXCEEDS 270 BILLION DOLLARS PER ANNUM. BY CONTRAST, THE TOTAL AMOUNT PROVIDED TO AFRICA IN DEVELOPMENT AID BY ALL DONORS IS ONLY IN THE REGION OF 40 BILLION DOLLARS. AND ONLY A FRACTION OF THAT IS SPENT ON AGRICULTURE.
THAT MEANS THAT AFRICANS HAVE AN INTEREST IN GLOBAL TRADE ARRANGEMENTS THAT GOVERN THE TRADE IN MEAT. JUST AS THEY ALREADY HAVE A SUBSTANTIAL INTEREST IN THE OUTCOME OF INTERNATIONAL TRADE NEGOTIATIONS IN OTHER FIELDS, NOTABLY COTTON AND GRAINS.
DOHA, MEAT, AND AFRICA
SO WHERE ARE WE IN GLOBAL TRADE NEGOTIATIONS, AND THE DOHA ROUND IN PARTICULAR?
WELL, THE FIRST KEY POINT THAT I WOULD MAKE IS THAT FROM THE PERSPECTIVE OF AUSTRALIA – AND NOT WITHSTANDING THE MANY CASSANDRAS WHO CLAIM TO THE CONTRARY – THE DOHA ROUND IS BY NO MEANS OVER.
MUCH SUBSTANTIAL PROGRESS WAS MADE AT THE JULY WTO MINISTERIAL MEETING, WITH ONLY A FEW ISSUES LEFT UNRESOLVED.
CONCLUDING THE ROUND REMAINS AUSTRALIA’S TOP TRADE PRIORITY. CERTAINLY, IT WOULD BE A BIG MISTAKE TO GIVE UP NOW.
WE ARE FLEXIBLE ABOUT HOW THE NEGOTIATIONS GET BACK ON TRACK, BUT WE DO NEED TO MOVE QUICKLY. AND WE URGE OTHERS TO ENSURE THAT THEIR FOCUS REMAINS ON CONCLUDING THE ROUND,.
CERTAINLY AUSTRALIA WILL CONTINUE TO BE ONE OF THE MOST ACTIVE PARTICIPANTS IN THE NEGOTIATIONS.
BUT WE CAN ONLY MAKE PROGRESS IF THE KEY PLAYERS SERIOUSLY RE-ENGAGE AND DO SO QUICKLY. THE REALITY IS THAT ONLY A SMALL NUMBER OF ISSUES REMAIN TO BE RESOLVED, AND THEIR RESOLUTION IS NOT BEYOND OUR CAPABILITY.
IN THE NEGOTIATIONS, THE OPENING OF AGRICULTURAL MARKETS TO TRADE HAS BEEN ONE OF THE THORNIEST ISSUES. AND THE JULY MINISTERIAL DEMONSTRATED THIS AGAIN, WITH THE TRIGGER FOR THE BREAKDOWN OF THIS MEETING BEING THE EXTENT TO WHICH DEVELOPING COUNTRIES SHOULD OPEN THEIR AGRICULTURAL MARKETS.
ONCE WE HAVE A WAY FORWARD ON THIS ISSUE, AUSTRALIA BELIEVES THAT WE CAN MOVE QUICKLY TO FIND SOLUTIONS TO THE OTHER OUTSTANDING AGRICULTURE ISSUES.
GIVEN THE PERSISTENTLY HIGH LEVELS OF PROTECTION IN AGRICULTURAL TRADE IN BOTH DEVELOPED AND DEVELOPING COUNTRIES, AGREEMENT ON AGRICULTURE IS CRUCIAL TO THE SUCCESS OF THE DOHA ROUND, AND TO FURTHER ECONOMIC PROSPERITY AND OPPORTUNITY.
WHY THE CONCLUSION OF THE ROUND IS SO IMPORTANT
IN CASE THERE IS ANYONE IN ANY DOUBT, THE BENEFITS OF A SUCCESSFUL OUTCOME IN THE DOHA ROUND ARE VERY CLEAR.
FIRST, AT A TIME WHEN THE GLOBAL ECONOMY IS FACING SOME SERIOUS CHALLENGES, AN OUTCOME TO THE ROUND WOULD PROVIDE A MUCH-NEEDED BOOST. OVER THE PAST SIXTY YEARS, WORLD TRADE HAS BEEN GROWING AT THREE TIMES THE PACE OF WORLD OUTPUT. EACH NEW ROUND BRINGS IMPETUS TO WORLD TRADE, AND THAT DYNAMIC DRIVES GLOBAL ECONOMIC GROWTH. IT IS JUST THIS SORT OF BOOST THAT THE WORLD’S ECONOMY NEEDS AT THIS TIME OF GLOBAL UNCERTAINTY.
SECOND, AN OUTCOME OF THE ROUND WILL PROVIDE SIGNIFICANT BENEFITS TO DEVELOPING COUNTRIES. IT IS CALCULATED THAT AN OUTCOME WOULD CUT IN HALF THE AMOUNT PAID IN IMPORT TARIFFS GLOBALLY, AND THAT DEVELOPING COUNTRIES WOULD CONTRIBUTE ONLY ONE THIRD OF THE SAVINGS, BUT RECEIVE TWO THIRDS OF THE BENEFITS.
THIRD, AN OUTCOME WILL AND HELP ADDRESS GLOBAL FOOD PRICE CONCERNS. THE DEAL ON THE TABLE IN GENEVA WOULD HAVE SEEN AGRICULTURAL TARIFFS IN THE EU, JAPAN AND THE US CUT BY UP TO 70 PER CENT.
THERE IS MUCH TO GAIN FOR RED MEAT PRODUCERS. BEEF IN PARTICULAR REMAINS A HIGHLY PROTECTED COMMODITY, AND SUPPORT FOR BEEF PRODUCERS BY SOME OECD COUNTRIES HAS TRENDED UP OVER THE LAST DECADE.
ACCORDING TO THE MAGELLAN PROJECT, ELIMINATING THIS PROTECTION COULD GENERATE AS MUCH AS FOUR BILLION DOLLARS ANNUALLY IN EXTRA PROFITS, WITH MOST OF THE BENEFIT ACCRUING TO DEVELOPING COUNTRIES.
OF COURSE AUSTRALIA WOULD STAND TO BENEFIT FROM AN OUTCOME TO THE ROUND. AS AN EFFICIENT, LOW SUBSIDY, AGRICULTURAL PRODUCER, WE HAVE LONG ADVOCATED FREER TRADE IN AGRICULTURE.
BUT THE TRUTH IS THAT WE ALL STAND TO GAIN– THAT IS THE CORE PREMISS ON WHICH INTERNATIONAL TRADE NEGOTIATIONS ARE BASED. AUSTRALIA IS KEEN TO PLAY ITS PART IN THE CONCLUSION OF THE DOHA ROUND, AND LOOKS TO OTHERS TO JOIN US IN PRESSING AHEAD FOR A RESULT THAT WILL BE GOOD FOR ALL TRADING NATIONS - AND PARTICULARLY GOOD FOR THE DEVELOPING NATIONS IN AFRICA.
THE IMPLICATIONS OF A FAILURE TO REACH AN OUTCOME TO THE ROUND ARE ALMOST TOO SERIOUS TO COUNTENANCE.
FOOD SECURITY AND HIGH FOOD PRICES – THE ROLE OF IMPORTS
BEFORE I CLOSE, I WANT TO ADDRESS ONE OF THE KEY CHALLENGES FACING YOUR INDUSTRY, AND THE ROLE THAT INDIVIDUAL NATIONS’ TRADE POLICY CAN PLAY IN SEEKING TO ADDRESS IT.
HERE IN AFRICA, JUST AS AROUND THE WORLD, THERE IS A FOCUS – AND A VERY REAL CONCERN – AT THE COST OF FOOD. PRICES ARE RISING, AT THE SAME TIME AS CONSUMERS ARE HURTING IN OTHER WAYS – WITH HIGHER FUEL PRICES, AND THE COST OF FINANCE (NOTABLY HOUSEHOLD MORTGAGES) ALSO INCREASING. GOVERNMENTS ARE LOOKING FOR SOLUTIONS TO THIS COMBUSTIVE SET OF CHALLENGES.
THE TWIN ISSUES OF FOOD PRICE RISES AND FOOD INSECURITY ARE GLOBAL PROBLEMS. BUT THEY ARE MORE ACUTE IN THE DEVELOPING WORLD, INCLUDING HERE IN AFRICA. LET ME EXPLAIN WHY. IN THE DEVELOPED WORLD, THE PRICE OF FOOD ROSE BY JUST OVER 5 PER CENT IN THE YEAR TO FEBRUARY 2008. IN THE DEVELOPING WORLD, IT ROSE BY 14 PER CENT - NEARLY THREE TIMES AS MUCH. SO FOOD PRICES ARE RISING EVEN FASTER IN THE DEVELOPING WORLD THAN THEY ARE ELSEWHERE.
FURTHER, IF WE LOOK AT THE CONTRIBUTION OF FOOD TO THE CONSUMER PRICE INDEX IN VARIOUS COUNTRIES, WE FIND THAT FOOD IS MORE SIGNIFICANT TO CONSUMERS IN THE DEVELOPING WORLD THAN IT IS TO THE DEVELOPED WORLD. FOOD CONTRIBUTES AROUND 15 PER CENT TO THE CPIs OF THE RICH COUNTRIES, BUT NEARLY 40 PER CENT TO THE CPIs OF DEVELOPING NATIONS.
THAT MEANS THAT THE OVERALL IMPACT OF THE RISE IN FOOD PRICES IS MUCH MORE DAMAGING IN DEVELOPING COUNTRIES THAN IT IS IN THE WEST.
THERE ARE MANY AT THIS CONFERENCE WHO ARE BETTER EQUIPPED THAN I AM TO IDENTIFY THE CAUSES OF HIGHER FOOD PRICES. BUT IT SEEMS CLEAR THAT KEY FACTORS INCLUDE RISING GLOBAL DEMAND DUE TO ECONOMIC GROWTH AND EXPANDING POPULATIONS, PARTICULARLY IN DEVELOPING COUNTRIES SUCH AS CHINA; FALLING AGRICULTURAL PRODUCTIVITY GROWTH; THE INCREASING USE OF FOOD PRODUCTS FOR ENERGY; POOR SEASONS; AND THE RISING COST OF INPUTS TO AGRICULTURE (NOTABLY FUEL AND FERTILISER).
MANY OF THESE FACTORS LOOK LIKELY TO PERSIST, SO IT IS A REASONABLE ASSUMPTION THAT CURRENT HIGH FOOD PRICES WILL REMAIN A FEATURE OF THE GLOBAL ENVIRONMENT FOR SOME TIME TO COME. IN AFRICA, WHERE CONSUMERS CAN LEAST AFFORD TO DEAL WITH PRICE RISES, AND WHERE FOOD INSECURITY IS MOST ACUTE, THE PROBLEM IS PARTICULARLY FELT.
IN EACH COUNTRY, GOVERNMENTS AND OTHER NATIONAL ACTORS WILL NEED TO ASSESS HOW THEY SHOULD REACT TO HIGHER FOOD PRICES – TO WHAT EXTENT THEY REPRESENT A CHALLENGE TO PREVIOUS WAYS OF MANAGING PRODUCTION AND TRADE IN FOOD, AND HOW INDUSTRY AND GOVERNMENT POLICIES AND PRACTICES SHOULD CHANGE. MANY OF THE POSSIBLE MEASURES ARE LONG TERM – INVOLVING RESEARCH AND DEVELOPMENT, THE NEED FOR CAPACITY BUILDING. OTHERS AT THIS CONFERENCE ARE BETTER PLACED TO COMMENT ON THEM THAN AM I.
BUT AS A GOVERNMENT REPRESENTATIVE, THE CONTRIBUTION THAT I WOULD MAKE IS THAT GOVERNMENT POLICY ON IMPORTS PRESENTS ITSELF AS A RELATIVELY SIMPLE MECHANISM TO EASE THE IMPACT OF HIGHER FOOD PRICES. HERE IN AFRICA, IMPORT TARIFFS ON AGRICULTURAL GOODS, INCLUDING MEAT, CONTINUE TO BE PREVALENT. IN SOME CASES, THEY ARE HIGH. IN SOUTH AFRICA, FOR EXAMPLE, THE TARIFF ON RED MEAT PRODUCTS IS AROUND 40 PER CENT. SIMILARLY, RED MEAT PRODUCTS ENTERING THE EAST AFRICAN CUSTOMS UNION FACE A TARIFF OF 25 PER CENT.
THERE ARE A RANGE OF FACTORS TO CONSIDER, OF COURSE, IN THE WAY THAT EACH COUNTRY SETS ITS TARIFFS FOR AGRICULTURAL PRODUCE. I DO NOT DISCOUNT THE IMPORTANCE OF DEVELOPING NASCENT INDUSTRIES, PARTICULARLY IN AFRICA; AND I AM CONSCIOUS OF THE ROLE THAT TARIFFS STILL PLAY IN SOME COUNTRIES IN AFRICA AS A SOURCE OF MUCH-NEEDED REVENUE.
THE POINT I WOULD MAKE, HOWEVER, IS THAT WE ARE FACED WITH A NEW SITUATION IN THE INTERNATIONAL TRADE IN FOOD. PRICES ARE HIGH, AND LOOK SET TO REMAIN SO. FOR DEVELOPING COUNTRIES, INCLUDING IN AFRICA, THAT HAS IMPLICATIONS NOT ONLY FOR THE COSTS TO CONSUMERS, BUT IN SOME CASES, THE ABILITY OF POPULATIONS TO GAIN ACCESS TO FOOD. IN EXTREME CASES, THE COST OF FOOD MIGHT HAVE IMPLICATIONS FOR BROADER ISSUES OF POLITICAL STABILITY.
IN THIS NEW SITUATION, IT WOULD BE PRUDENT FOR GOVERNMENTS TO LOOK AFRESH AT A RANGE OF MEASURES THAT MIGHT AMELIORATE THE RISE IN FOOD PRICES AND CONTAIN THEIR EFFECTS. ONE OF THESE WOULD CERTAINLY BE THE IMPORT TARIFFS IMPOSED ON FOOD PRODUCTS.
IMPORTS CAN COMPLEMENT DOMESTIC PRODUCTION BY MAKING UP ANY SHORTFALL; AND SUBDUING PRICE INCREASES. IMPORTS AND DOMESTIC PRODUCTION SHOULD WORK TOGETHER TO ENSURE THAT COMMODITIES LIKE MEAT RETAIN A PRESENCE AT REASONABLE PRICE – RATHER THAN RISKING CONSUMERS DEFECTING TO OTHER FOOD SOURCES. THAT WOULD SEEM TO BE IN THE INTERESTS OF ALL PARTIES HERE – EVERYONE IN THE MEAT SUPPLY CHAIN CAN BENEFIT IF THE DEMAND FOR THE PRODUCT CONTINUES TO GROW.
CONCLUSION
LADIES AND GENTLEMEN
IT HAS BEEN A PRIVILEGE FOR ME TO HAVE THE OPPORTUNITY TO CONTRIBUTE TO YOUR DISCUSSIONS AT THIS PEAK GLOBAL INDUSTRY MEETING.
I TRUST THAT I HAVE MADE A CONTRIBUTION THAT WILL BE BENEFICIAL TO THIS SESSION AND TO THE CONGRESS.
IN CLOSING, I WOULD LIKE TO CONCLUDE WHERE I BEGAN. I TRUST THAT WHEN NEXT GREETED BY A MAASAI, YOU ARE ABLE TO RESPOND “EE KIRA SUPATI NAA SUPATI INKISHU O LTUNG'ANAK” - THAT YOU AND YOUR CATTLE ARE INDEED WELL.
