By: Tjada McKenna,Director, Private Sector and Innovation Office, Bureau for Food Security
At the World Economic Forum (WEF) in Davos, Switzerland, Administrator Shah proudly announced USAID’s support for the WEF’s New Vision for Agriculture initiative. This initiative is led by 17 global companies, including Archer Daniels Midland, Cargill, Coca-Cola, DuPont, General Mills, Kraft Foods, Monsanto, PepsiCo, and Wal-Mart to name a few that are Industry Partners of the Forum. The goal of this initiative is to utilize market-based solutions to increase production by 20%, while decreasing emissions by 20% and reducing the prevalence of rural poverty by 20% every decade.
Today, nearly 1 billion people go hungry everyday – half of them farmers – and malnutrition needlessly robs people of their potential to contribute to their families, their communities and society as a whole. Three-quarters of the poor live in rural areas, most relying on agriculture for their livelihood, with women contributing the bulk of farm labor. And now, these farmers face even tougher constraints as the world must produce more with less and the agriculture sector is entering a new era marked by scarcer resources, greater demand and higher risks of volatility partly owing to global climate change.
Standing alongside the CEO’s of Unilever and Monsanto, Administrator Shah committed USAID, through the U.S. Government’s Feed the Future (FTF) initiative, to promote the development of innovative, large-scale private sector partnerships in FTF focus countries to achieve significant impact on global hunger and malnutrition. This approach will bring together farmers, local businesses, supply chain companies, global corporations, local and national governments and civil society to promote sound investments in agriculture. USAID will support these partnerships by leveraging its own investments in agriculture-led growth in key corridors or breadbasket regions in FtF countries.
For example, USAID through FtF is supporting Tanzania’s Kilimo Kwanza Growth Corridor with an equity investment of $2 million in the Corridor’s $50 million catalytic fund, and is considering additional annual investments up to $10 million. The fund will help open up partnership opportunities for private investment in rural infrastructure (irrigation and rural roads), processing, research and training, institutional capacity building, and nutrition and is expected to leverage nearly $500 million in private sector investment.
In an effort to combat malnutrition, USAID also signed an Memorandum of Understanding with DSM Nutritional Products to work together to improve dietary quality across the developing world, starting with rice fortification in rice staple food countries such as Bangladesh, Cambodia, Ghana, Mali, Senegal, and Tanzania. DSM is a global material and life sciences company and a leader in the fields of human and animal nutrition with 70 years of innovative product development and application technology in vitamins and nutrient fortification. USAID will also tap into DSM’s expertise in efforts to improve the nutritional value, shelf-life, and nutritional test methods of food aid commodities.
Work together with FTF focus country governments, USAID will continue to promote the development of dynamic new partnerships directly with the private sector by facilitating the work of both local and private companies who want to contribute to new models of agriculture-led development. We stand ready to build new partnerships based on jointly defined priorities and focused choices to transform agriculture and drive food security.