CEPR - Using Food Aid To Support, Not Harm, Haitian Agriculture

Using Food Aid to Support, Not Harm, Haitian Agriculture - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/u...
ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

Home Publications Blogs Haiti: Relief and Reconstruction Watch Using Food
Aid to Support, Not Harm, Haitian Agriculture
Multimedia
Using Food Aid to Support, Not Harm, Haitian Agriculture
En Español Wednesday, 07 April 2010 14:42

Other Languages
A new issue brief from CEPR (PDF) proposes that Share
international donors seeking to support Haiti’s agricultural
COLUMNS
sector and provide food to those in need could help Haiti become more
Mark Weisbrot, self-sufficient by purchasing the entire Haitian rice crop over the next Most Popular Tags
Co-Director two years. The paper finds that buying up all of Haiti’s rice should be
close to the amount of food aid for rice that the international community agriculture aid
Dean Baker,
is likely to provide this year, and would provide a tremendous boost to distribution
Co-Director
Haitian farmers, who currently are unable to compete with low-cost rice
imports from the U.S. chemonics
contractors
The paper suggests the aid donors buy the rice at a price that is high
coordination debt
enough to encourage local production. Even though this would have to
be somewhat higher than an average of past years’ market prices, the doctors without
cost would only be between $62.1 million and $82.8 million per year.
borders fao food
Since international donors have committed $5.3 billion in aid for the
next 18 months, or $3.53 billion annually, the cost of buying Haiti’s rice crisis iom john
crop would be only 1.76 to 2.35 percent of committed international aid holmes minustah
funds.
new york times
To see the blog's past coverage of this important issue click here, or ngos partners in
here.
health rainy
season
reconstruction
relief coordination
relocation
reparations
shelter tarps
tents un usaid
Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

1611 Connecticut Avenue, NW, Suite 400, Washington, DC 20009 | 202-293-5380
***This site best viewed using Mozilla Firefox***
1 of 1 08/04/2010 10:54
Issue Brief!"!April 2010
Using Food Aid to Support, Not

Harm, Haitian Agriculture
BY MARK WEISBROT, JAKE JOHNSTON, AND REBECCA RAY *
“It may have been good for some of my farmers in Arkansas, but it has not worked. It
was a mistake … I had to live everyday with the consequences of the loss of capacity to
produce a rice crop in Haiti to feed those people because of what I did.”
--Former President Bill Clinton

March 10, 2010 1
Background
Rice is one of the most important staple foods in Haiti, with per capita
consumption of over 177 pounds per year. Beginning in the 1980s, the
opening up to imported rice in Haiti wiped out thousands of Haitian rice
farmers and brought about a sharp reduction in the percentage of nationally
grown rice consumed by Haitians. At the same time, Haiti became the third
largest market in the world for U.S. rice producers. 2 The U.S. rice crop has
also been subsidized with hundreds of millions of taxpayer dollars annually.
As shown in Table 1, these payments to U.S. farmers peaked at nearly $1.8
billion in 2000.
Table 1 shows the percentage of Haiti’s rice supply that is domestically

produced each year, which declined from 47 percent in 1988 to just 15
percent in 2008. The table also shows an increase in the percentage of rice
from external food aid, which rises significantly beginning in 2000 and
varies widely due to natural disasters and other events that have impacted
the country. In 2008, for example, when Haiti was hit by three consecutive
hurricanes and one tropical storm, food aid rose to 13 percent of supply,
more than triple the 4 percent of the previous year.
Center for Economic and
Policy Research
1611 Connecticut Ave, NW
Suite 400
Washington, DC 20009
tel: 202-293-5380
fax: 202-588-1356
www.cepr.net
1
Testimony before the Senate Foreign Relations Committee, cited in Katz 2010.
2
US International Trade Commission (n.d).
* Mark Weisbrot is a co-director and Jake Johnston and Rebecca Ray are research assistants at the
Center for Economic and Policy Research.
CEPR Using Food Aid to Support, Not Harm, Haitian Agriculture!"!2
Food aid has also been based on imported rice, as shown in Table 1; so this, too, competes with
domestic production. In 2008, for the first time, about 13 percent of food aid was from locally
produced rice. But this was too small a percentage to alleviate the overall negative impact on
national production. The January 12 earthquake destroyed much of the economy, and left many
more Haitians dependent on food aid. The overwhelming majority of this food aid is imported rice,
which is driving down the price of domestically produced rice, and threatening to repeat the
destructive history of imported rice in Haiti. To avoid continued harm, and to actually help Haitians
feed themselves, this policy needs to be drastically changed.
TABLE 1
Haiti: Local and Imported Rice Supply, 1990-2008
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
In Percent
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Local 47 38 42 35 33 31 23 25 26 30
Retail 47 38 42 35 33 31 23 25 25 30
Food Aid 0 0 0 0 0 0 0 0 0 0
Imported 53 62 58 65 67 69 77 75 74 70
Retail 53 62 57 65 65 67 75 72 71 65
Food Aid 0 0 1 0 2 2 2 3 3 6
In Metric Tons
Total 149 182 185 206 226 213 274 238 281 322
Local 70 70 78 72 75 66 63 60 72 96
Retail 70 70 78 72 75 66 63 60 71 95
Food Aid 0 0 0 0 0 0 0 0 1 1
Imported 79 112 107 134 151 147 211 178 209 226
Retail 79 112 106 134 147 143 207 171 200 208
Food Aid 0 0 1 0 4 4 4 7 9 18
Subsidies to In Millions of USD
US Rice Farmers 128 631 667 867 715 887 836 814 499 459
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
In Percent
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Local 20 19 22 17 14 18 16 12 16 14 15
Retail 19 19 22 17 14 18 15 12 16 14 13
Food Aid 0 0 0 0 0 0 0 0 0 0 2
Imported 80 81 78 83 86 82 84 88 84 86 85
Retail 77 77 69 82 79 78 80 85 79 82 74
Food Aid 4 4 9 1 7 4 4 3 5 4 11
In Metric Tons
Total 307 318 361 373 437 345 410 471 369 391 404
Local 60 60 78 65 62 63 64 58 58 55 60
Retail 60 60 78 65 62 63 64 58 58 55 54
Food Aid 0 0 0 0 0 0 0 0 0 0 6
Imported 247 258 283 308 375 282 346 413 311 336 344
Retail 235 245 250 305 345 269 328 399 292 320 300
Food Aid 12 13 33 3 30 13 18 14 19 16 44
In Millions of USD
Subsidies to
US Rice Farmers 491 911 1,774 1,423 1,085 1,279 1,130 473 605 337 301
Sources: FAS (n.d.); FSA 2010, Table 35; WFP (n.d.).
A!Harm!Reduction!Strategy!
Although there is much that can and should be done to support Haitian agriculture and the
rebuilding of the economy, it is most important to immediately reduce the harm caused by imported,
subsidized rice. This can be done by having the international community immediately commit to
buying Haitian rice for the next two years. (There are two planting seasons and harvests per year.)
Since food aid was 13 percent of the total rice supply last year, and Haitian rice production is about
15 percent of total supply, buying up all of Haiti’s rice should be close to the amount of food aid –
for rice – that the international community would be expected to provide this year. In fact, national
output might be even lower than in past years because of damage from the earthquake.
There would have to be a commitment to buying the rice at a price that is high enough to encourage
local production. This price should be somewhat higher than an average of past years’ market prices,
since these prices – driven down by imports – have not allowed for sustainable production. This can
be seen from the continual decline of local production over the last 20 years, as shown in Table 1.
Figure 1 shows the difference in monthly price between Haitian and imported rice, at the retail
level. Last year, Haitian rice sold for 50 to 100 percent more than imported rice. Since it is difficult
to find reliable numbers for the producer prices, we assume there that the ratio is similar at the
producer level. The world price for U.S. long-grain rice is approximately $600 per metric ton. If the
premium for Haitian rice is 50 percent, then it would sell for $900 per metric ton; at a 100 percent
premium, a metric ton of locally produced rice would sell for $1,200.
FIGURE 1
Haiti: Domestic and Imported Rice Prices, 2009 – 2010
$1.20 $1.17
$1.08 $1.08 $1.10
$1.07 $1.07 $1.06 $1.07 $1.06
$1.02 $1.03
$0.99
$0.97 $0.98
$1.00
$0.80
USD per Pound
$0.70
$0.60 $0.64
$0.62 $0.63
$0.59
$0.57 $0.55
$0.54 $0.55 $0.53 $0.53 $0.54 $0.55 $0.55
$0.40
$0.20
Imported
Locally Produced
$-
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10
Sources: Coordination Nationale de la Sécurité Alimentaire 2010.

Based on the quantities in Table 2, the cost of purchasing all locally produced rice for food aid
would be between $54 million and $72 million per year. We can add a margin of 15 percent, to
account for the fact that past rice prices have been unsustainable, with national production declining;
and to take into account any unanticipated costs in distribution. This would bring the total to
between $62.1 and $82.8 million. International donors have committed $5.3 billion for the next 18
months, or $3.53 billion on an annual basis. The cost of buying Haiti’s rice crop is therefore only 1.8
to 2.3 percent of international aid funds.
TABLE 2
Annual Cost Estimate, Purchasing Haitian Rice Crop
Price Ratio of Local to Imported Rice:
1.5 2.0
World price for U.S. long-grain rice (USD/metric ton) $600 $600
Price of Haitian rice (per metric ton (USD)) $900 $1,200
Annual production (metric tons) 60,000 60,000
Cost of Annual Haitian Rice Crop (USD) $54 million $72 million
With a 15% Premium* $62.1 million $82.8 million
Source: Authors’ calculations, FAO 2010b, FAS (n.d.). *See text.
Of course there would be many details that would have to be worked out in order to make sure that
these purchases at the producer level did not disrupt existing distribution networks. Fortunately,
many of Haiti’s farmers are organized into co-operatives, networks, and other organizations.
International donors could, and should, work with these organizations and farmers to develop a plan
for buying up the locally produced rice and distributing it as food aid.
Also, rice is just one crop, and this is just the beginning of the aid that will be needed to develop
Haiti’s agricultural sector. The United Nations’ Food and Agricultural Organization (FAO) has
estimated that Haiti will need $73.2 million for the current planting season; only $22.4 million has
been raised and allocated so far. 3 The international community should move quickly to provide this
necessary aid, including funds for seed and fertilizer, repair of irrigation, tools and other agricultural
inputs.
But the international community should commit immediately to purchasing Haiti’s rice crop, so as
not to repeat the errors of the past. Haitian farmers would then know that they can produce at a
price that will cover their costs of production. The details of distribution can be worked out before
the first harvest. Since there are funds allocated in relief plans to providing food aid during this time
period by importing a similar amount of rice in any case, the additional cost of buying the Haitian
rice crop is considerably less than the $82.8 million, or 2.3 percent of committed funds, cited above.
This is a very small price to pay in order to ensure that international aid actually helps Haiti feed
itself, instead of hurting Haitian agriculture as in the past.
As President Clinton also noted last month, "Every time we spend a dollar in Haiti from now on we
have to ask ourselves, 'Does this have a long-term return? Are we helping them become more self-
sufficient? ... Are we serious about working ourselves out of a job?'" 4
3
FAO 2010a, OCHA 2010.
4
Gross 2010.
References:
Coordination Nationale de la Sécurité Alimentaire (no date). “Fiches hebdomadaires.” Port-au-
Prince: CNSA. Online database, accessed 2 April 2010.
http://www.cnsahaiti.org/Fiches%20hebdomadaires/pmarche.html.
FAO (Food and Agriculture Organization). 2010a. “Seeds and tool kits delivered to 68 000
households in Haiti.” Rome: United Nations Press Release, 31 March. Accessed 5 April 2010.
http://www.fao.org/news/story/en/item/41058/icode/.
FAO (Food and Agriculture Organization). 2010b. “The FAO Rice Price Update - March 2010.”
Rome: United Nations. Accessed 5 April 2010.
http://www.fao.org/economic/est/publications/rice-publications/the-fao-rice-price-update/en/.
FAS (Foreign Agricultural Services). (no date). “Production, Supply and Distribution Online.”
Washington, DC: United States Department of Agriculture. Online database, accessed 2 April 2010.
http://www.fas.usda.gov/psdonline/.
FEWS NET (Famine Early Warning System Network). 2010. “Haiti Emergency Market
Mapping/Analysis- Rice.” Port-Au-Prince: FEWS, 24 February.
http://www.fews.net/docs/Publications/Haiti_EMMA_Report_2010_Rice.pdf.
FSA (Farm Services Agency). 2010. “Commodity Credit Corporation Budget Essentials: CCC Net
Outlays By Commodity & Function.” Washington, DC: United States Department of Agriculture.
Accessed 2 April 2010. http://www.fsa.usda.gov/Internet/FSA_File/pb11_tbl35.pdf.
Gross, Samantha. 2010. “Clinton asks groups to make Haiti self-sufficient.” Associated Press. 25
March.
http://www.google.com/hostednews/ap/article/ALeqM5gKIwJdtwwiDTwRfEMQ_Mm602cm8w
D9ELVTQ80.
Katz, Jonathan. 2010. “With cheap food imports, Haiti can't feed itself.” Associated Press. 20 March.
http://news.yahoo.com/s/ap/20100320/ap_on_re_la_am_ca/cb_haiti_earthquake.
OCHA (Office for the Coordination of Humanitarian Affairs). 2010. “Flash Appeal: Haiti Revised
Humanitarian Appeal (January - December 2010).” Rome: United Nations. Accessed 5 April 2010.
http://ocha.unog.ch/fts/reports/daily/ocha_R32sum_A893___1004050205.pdf.
US International Trade Commission. (no date). “Interactive Tariff and Trade DataWeb.” Online
database, accessed 5 April 2010. http://dataweb.usitc.gov/.
WFP (World Food Program). (no date). “International Food Aid Information System.” Rome:
United Nations. Online database, accessed 2 April 2010. http://www.wfp.org/fais/.
Tag:agriculture - CEPR http://www.cepr.net/index.php/tag/agriculture/
Home
Multimedia
Tag:agriculture
1. Bill Clinton Apologizes for Past Rice Policies
En Español
2. Agricultural Support Needed, But Who From?
Other Languages
3. Preval: Food Aid Risks Damaging Economy
COLUMNS 4. Food Aid Undermines Local Producers
5. Exodus From PaP Puts Pressure on Rural Communities

Mark Weisbrot,
Co-Director Powered by Tags for Joomla
Dean Baker,
Co-Director

1 of 1 08/04/2010 10:58
Bill Clinton Apologizes for Past Rice Policies - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/bi...

Home Publications Blogs Haiti: Relief and Reconstruction Watch Bill Clinton
Apologizes for Past Rice Policies
Multimedia
Bill Clinton Apologizes for Past Rice Policies
En Español Monday, 22 March 2010 11:35

Other Languages
Jonathn Katz reports for the AP that Clinton apologized in Share
a statement to the Senate Foreign Relations Committee on
COLUMNS
March 10:
Mark Weisbrot, Most Popular Tags
Co-Director "It may have been good for some of my farmers in
Arkansas, but it has not worked. It was a mistake...I had agriculture aid
Dean Baker, to live everyday with the consequences of the loss of
Co-Director capacity to produce a rice crop in Haiti to feed those
distribution
people because of what I did; nobody else." chemonics
Chief humanitarian coordinator for the UN, John Holmes, echoed this contractors
statement, telling the AP:
coordination debt
"A combination of food aid, but also cheap imports have ... doctors without
resulted in a lack of investment in Haitian farming, and
borders fao food
that has to be reversed."
crisis iom john
The article notes that while these criticisms have been coming from aid
holmes minustah
groups for years, "world leaders focused on fixing Haiti are admitting for
the first time that loosening trade barriers has only exacerbated hunger new york times
in Haiti and elsewhere."
ngos partners in
To read the entire article, click here. To see past coverage of this issue health rainy
and the effects of imported rice on Haiti, see this or this.
season
Tags: agriculture bill clinton rice policy
reconstruction
relief coordination
relocation
reparations
shelter tarps
tents un usaid

1 of 1 08/04/2010 10:59
Agricultural Support Needed, But Who From? - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/a...

Home Publications Blogs Haiti: Relief and Reconstruction Watch Agricultural Support
Needed, But Who From?
Multimedia
Agricultural Support Needed, But Who From?

Other Languages
The FAO and other experts have warned that support for Haiti's Share
agricultural sector is key to increasing food security and ensuring
COLUMNS
recovering from the earthquake. Despite this, the agricultural program remains
Mark Weisbrot, only 20% funded, according to OCHA. Most Popular Tags
Co-Director
FAO Director-General Jacques Diouf traveled to Haiti over the weekend and agriculture aid
Dean Baker,
began distributing seeds and fertilizers to farmers. By June the FAO "plans distribution
Co-Director
to reach 180,000 smallholder farming families with 1,500 tonnes of seeds and
fertilizers." chemonics
contractors
USAID is also collaborating with the Haitian government in support of the
coordination debt
agricultural sector. According to USAID, "Last week, USAID signed an
agreement with the Government of Haiti to identify USAID and its WINNER doctors without
(Watershed Initiative for National Natural Environmental Resources) project as a
borders fao food
strategic partner in the Cul-de-Sac, Cabaret, Mirbalais, Archaie and Gonaives
regions of Haiti. The project aims to prepare the maximum amount of land crisis iom john
possible for planting in the next six weeks. WINNER will work with 200 farmer holmes minustah
associations and train 800 "master farmers."
new york times
The "WINNER" program was signed in 2009, and is a five-year, $126 million ngos partners in
program that is being implemented by Chemonics International.
health rainy
While efforts to increase food security, and prepare for the planting season are season
clearly needed, the role of Chemonics International raises some questions.
reconstruction
Chemonics is a subsidiary of ERLY Industries, which is also the parent relief coordination
company of American Rice Inc. American Rice was perhaps the largest relocation
benefactor of the influx of "Miami rice" in the 80s and 90s in Haiti, wiping out
reparations
thousands of Haitian farmers who could not compete with the cheaper,
subsidized imported rice. American Rice Inc. officials were found to have paid shelter tarps
bribes in 1998-1999 to custom officials in order to avoid import tariffs (already
tents un usaid
by then some of the lowest in the hemisphere due to IMF and World Bank
policies). Chemonics has close ties to USAID, and relies on government
contracts for over 90% of its revenue.
Chemonics has been tapped by USAID in Afghanistan as well, in an effort to

improve the agricultural sector. Chemonics received a $153 million contract in
2003.
In 2005 the Government Accountability Office found that Chemonics had failed
to "address a key program objective", and that "consequently, during its first 15
months, the project`s progress in strengthening Afghanistan`s market chain
was limited."
Despite this, Chemonics received a contract in 2006 for $102 million. Once
again, the USAID Inspector General found significant problems with the
program:
Chemonics reported results for all eight indicators for the first year
of the program. However, the audit identified that for two of the
eight indicators, reported results fell considerably short of intended
results. Targets had not been established for the other six
indicators making it difficult to tell how well the project was
1 of 2 08/04/2010 11:00
Agricultural Support Needed, But Who From? - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/a...
proceeding. In addition, Chemonics did not have documentation to

adequately support reported results for six indicators. In two of the
six cases, the support was inadequate, while in four cases there
was no support at all. For example, Chemonics had inadequate
support for the reported result that 1,719 individuals had received
short-term agricultural training, and no support for the reported
result that project activities had generated an economic value in
excess of $59 million. In addition, the audit found that a major
program activity—the Mazar foods initiative—was behind schedule.
This $40 million initiative to cultivate 10,000 hectares for a
commercial farm was not finalized in time to take advantage of the
summer planting season as initially planned.
Chemonics has also received over $20 million dollars through USAID for relief
work in Haiti and up to $50 million through USAID/Office for Transition
Initiatives for Haiti related work.
Tags: afghanistan agriculture chemonics contractors fao gao usaid

2 of 2 08/04/2010 11:00
Preval: Food Aid Risks Damaging Economy - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/p...

Home Publications Blogs Haiti: Relief and Reconstruction Watch Preval: Food
Aid Risks Damaging Economy
Multimedia
Preval: Food Aid Risks Damaging Economy

Other Languages
Haitian President Rene Preval arrives in Washington today Share
and is set to meet with President Obama on Wednesday.
COLUMNS
Reuters reports on one of the key messages that will come from
Mark Weisbrot, Preval: Most Popular Tags
Co-Director
Donations of food and water have proved a lifeline for more agriculture aid
Dean Baker, than 1.2 million people displaced by the quake, but Preval
Co-Director told a news conference on Monday the aid could in the long
distribution
term hurt the economy of the poorest country in the chemonics
Western Hemisphere.
contractors
"I will tell him (Obama) that this first phase of assistance coordination debt
is finished," said Preval, standing in front of the ruined
doctors without
presidential palace in Port-au-Prince.
borders fao food
"If they continue to send us aid from abroad -- water and crisis iom john
food -- it will be in competition with the national Haitian
holmes minustah
production and Haitian commerce," he said.
new york times
Today, Greenwire reports on the agricultural sector in Haiti, and
how it will be affected by reconstruction plans. The article points out that ngos partners in
the US is much more supportive of food aid then increasing local health rainy
production:
season
In its most recent budget request, the U.S. Agency for
reconstruction
International Development (USAID) proposed spending
$1.2 billion globally on helping poor farmers grow more relief coordination
food, while asking Congress for $4.2 billion for food aid, relocation
almost all of which will be spent on purchases from
American farmers. Most recently, USAID was helping reparations
agriculture officials boost Haiti's production of mangoes --
shelter tarps
for export to the United States.
tents un usaid
The article also notes that while 20 years ago Haiti provided itself with
most of its food, it now imports nearly 75% of food needs. Greenwire
reports on the role of the international community in this
transformation:
The World Bank and International Monetary Fund have

been threatening for years to cut off financing if the
Haitian government pays for irrigation, fertilizers or
equipment for its poor farmers. And in 1995, as a
condition for restoring President Jean-Bertrand Aristide to
power after he was ousted by a military coup, the United
States forced Haiti to adopt the lowest food import tariffs
in the hemisphere, to provide U.S. farmers another
market. A flood of cheap, heavily subsidized U.S. rice
eventually pushed domestic varieties from the
marketplace, and Haitian landowners fired thousands of
workers.
Greenwire notes the importance of support for the agricultural sector in

the wake of the earthquake. One problem that Patrick Belizaire, who
1 of 2 08/04/2010 11:01
Preval: Food Aid Risks Damaging Economy - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/p...
runs the Cooperative Farm Initiative for Haiti, notes is a lack of labor
to work the land. The mass exodus from Port-au-Prince therefore
provides an opportunity to put people to work farming. While some
agencies have supported this, Greenwire notes that “most aid workers
dismiss any suggestion that displaced people could be put to work in
agriculture.” The article continues:
This type of talk is deeply frustrating to the Haitians who

stayed on the farms. Here, cooperative members showed
dismay when told that the international community wants
to put displaced city dwellers to work making T-shirts and
jeans instead of growing food. They reject notions that
incorporating new workers into the farm economy will
inevitably lead to conflict.
"The only time we have frustration is when we can't get

help," said Delivoix Velarus, a member of the co-op. "But
when the help is there, we are extremely happy about it.
We would be extremely happy and would welcome them
with open arms."
There have been numerous reports that the price of imported rice has
increased since the earthquake, while prices for local rice has dropped.
The price discrepancy is stark, the AP reports that the price of a
55-pound bag of local rice is $60, while US rice costs about $36. For
more on the effects of rice aid on local production, click here.
Tags: agriculture imf usaid world bank

2 of 2 08/04/2010 11:01
Food Aid Undermines Local Producers - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/f...

Home Publications Blogs Haiti: Relief and Reconstruction Watch Food Aid
Undermines Local Producers
Multimedia
Food Aid Undermines Local Producers
En Español Friday, 26 February 2010 18:37

Other Languages
The AP reports today on the effects of US rice on Haitian Share
farmers:
COLUMNS
Subsidized U.S. rice has flooded Haiti for decades. Now,
Co-Director after the Jan. 12 quake, 15,000 metric tons of donated
U.S. rice have arrived. agriculture aid
Dean Baker,
Co-Director With planting season right around the corner, and experts warning of distribution
another food crisis, how this US rice is affecting farmers is of the utmost
chemonics
importance. The AP reports that the price of a 55-pound bag of local rice
is $60, while US rice costs about $36. The article states: contractors
The U.S. Agency for International Development, which has coordination debt
been working in Haiti for decades, is providing more than doctors without
$400 million in earthquake aid with U.S. taxpayers set to
borders fao food
give some $113 million in food aid alone this year.
crisis iom john
But U.S. farmers also stand to benefit from the holmes minustah
earthquake.
new york times
Last year, Washington paid farmers some $12.9 billion in ngos partners in
subsidies, which critics say have unfairly deflated
international prices. That makes it harder for poorer
health rainy
nations to develop their economies by expanding markets season
abroad.
reconstruction
Paul O'Brien of Oxfam America says the lessons of the relief coordination
harm of flooding a country like Haiti with subsidized rice relocation
should have been learned a long time ago.
reparations
"The days are gone when we can throw up our hands in
shelter tarps
terms of unintended consequences; we know now what
these injections can do to markets," he said. "The question tents un usaid
we want asked is what is being done to guarantee
long-term food security for Haitians."
Although USAID says that it undertakes studies to determine the

consequences of US food aid on local producers, AP reports:
Whelan [USAID spokeswoman] would not respond,

however, when asked what the analyses had determined in
Haiti.
Currently, USAID has a contract with Chemonics to monitor the food

prices in Haiti. Chemonics is a subsidiary of ERLY industries who is also
the parent company of Comet Rice. According to a Washington Office on
Haiti report, as reported by Food First:
RCH began operations in September 1992 when former

World Bank official and post 1991 coup leader Marc Bazin's
regime signed a nine year development aid contract with
RCH. RCH's corporate parent is Comet Rice. Comet Rice
has been the largest importer of rice in Haiti for many
1 of 2 08/04/2010 11:01
years. The flood of its imported "Miami rice" in the 1980s,

much of it supported by U.S. tax dollars through various
AID and USDA programs, drove thousands of small scale
Haitian rice farmers out of business. Corn and other grain
production also declined due to the importer's marketing
techniques.
The FAO, in coordination with the Haitian government, does have an

agricultural plan however it remains inadequately funded. The FAO
warned two weeks ago that only 8% of the $23 million needed has
been funded. Today the most recent UN OCHA report confirms that
nothing has changed:
"The Agriculture secor remains only 8 percent funded.

More resources are needed to ensure that seeds can be
purchased ahead of the planting season in March in order
to prevent longer-term dependency on food assistance."
Tags: agriculture chemonics comet rice fao food aid food

crisis us rice usaid

2 of 2 08/04/2010 11:01
Exodus From PaP Puts Pressure on Rural Communities - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/e...

Home Publications Blogs Haiti: Relief and Reconstruction Watch Exodus
From PaP Puts Pressure on Rural Communities
Multimedia
Exodus From PaP Puts Pressure on Rural Communities
En Español Wednesday, 24 February 2010 09:47

Other Languages
COLUMNS

Co-Director
agriculture aid
Dean Baker,
Co-Director distribution
chemonics
contractors
coordination debt
doctors without
borders fao food
crisis iom john
holmes minustah
new york times
ngos partners in
health rainy
season
reconstruction
relief coordination
relocation
reparations
shelter tarps
tents un usaid
1 of 2 08/04/2010 11:03
The Los Angeles Times reports on the stress that the Share
exodus of hundreds of thousands of Haitians from Port-au-
Prince has put on rural communities. This is especially significant with
the planting season fast approaching and supplies hard to come by and
money even tighter than usual. The Times reports:
Villagers are near the breaking point as they try to

accommodate tens of thousands of displaced city dwellers
just when they would be putting their precious resources
into preparing for planting. In desperation, some have
resorted to eating their meager seed stocks or killing their
chickens and goats to feed the influx, rather than keeping
them to sell.
Fertilizer is expensive and seeds for cereal crops are in

short supply because of damage to the seaport in the
capital and wary buying by wholesalers. Farming areas
southwest of Port-au-Prince were also devastated by the
7.0 quake, which ruined whole towns, such as Leogane,
near the epicenter, and damaged vital irrigation channels.
The UN's most recent update reports that:
The number of people who have left Port-au-Prince for

outlying departments has increased to 597,801 people
from the previous figure of 511,405. The increase in
figures mainly relates to Grand-Anse and Sud
departments, where an additional 21,000 and 63,000
people, respectively, have been registered.
The FAO has recently warned that of the $23 million earmarked for the
agricultural sector of the original $575 million flash appeal, only around
8% has been funded.
One plan for dealing with the increased stress in rural communities is
being implemented by Partners in Health with the agricultural wing of
Zanmi Lasante, PiH's partner organization in Haiti. As PiH notes:
PIH/ZL plans to help relieve the looming food crisis by

pushing up this season’s first harvest date. The goal is to
have a significant yield of crops in three months – several
weeks earlier than a normal growing season. Zanmi Agrikol
(ZA), the agricultural arm of ZL, will be in charge of the
initiative.
In order to do this, the team has come up with a

two-phase plan.
During phase one, the team identified 300 acres of fallow

farmland where it has already begun plowing fields and
planting a crop of precocious (fast growing) corn. The goal
is to get food to the local community as soon as possible.
To read more about the plan, read the whole article here.
Tags: agriculture fao food crisis partners in health planting
season zanmi agrikol

2 of 2 08/04/2010 11:03
Tag:food crisis - CEPR http://www.cepr.net/index.php/tag/food-crisis/
Home
Multimedia
Tag:food crisis
1. Food Aid Undermines Local Producers
En Español
2. Exodus From PaP Puts Pressure on Rural Communities
Other Languages
3. Earthquake Causing Another Food Crisis?
COLUMNS 4. UN "alarmed" at Lack of Support for Agricultural Needs
Powered by Tags for Joomla

Mark Weisbrot,
Co-Director
Dean Baker,
Co-Director

1 of 1 08/04/2010 11:04

Home Publications Blogs Haiti: Relief and Reconstruction Watch Food Aid
Undermines Local Producers
Multimedia
Food Aid Undermines Local Producers

Other Languages
The AP reports today on the effects of US rice on Haitian Share
farmers:
COLUMNS
Subsidized U.S. rice has flooded Haiti for decades. Now,
Co-Director after the Jan. 12 quake, 15,000 metric tons of donated
U.S. rice have arrived. agriculture aid
Dean Baker,
Co-Director With planting season right around the corner, and experts warning of distribution
another food crisis, how this US rice is affecting farmers is of the utmost
chemonics
importance. The AP reports that the price of a 55-pound bag of local rice
is $60, while US rice costs about $36. The article states: contractors
The U.S. Agency for International Development, which has coordination debt
been working in Haiti for decades, is providing more than doctors without
$400 million in earthquake aid with U.S. taxpayers set to
borders fao food
give some $113 million in food aid alone this year.
crisis iom john
But U.S. farmers also stand to benefit from the holmes minustah
earthquake.
new york times
Last year, Washington paid farmers some $12.9 billion in ngos partners in
subsidies, which critics say have unfairly deflated
international prices. That makes it harder for poorer
health rainy
nations to develop their economies by expanding markets season
abroad.
reconstruction
Paul O'Brien of Oxfam America says the lessons of the relief coordination
harm of flooding a country like Haiti with subsidized rice relocation
should have been learned a long time ago.
reparations
"The days are gone when we can throw up our hands in
shelter tarps
terms of unintended consequences; we know now what
these injections can do to markets," he said. "The question tents un usaid
we want asked is what is being done to guarantee
long-term food security for Haitians."
Although USAID says that it undertakes studies to determine the

consequences of US food aid on local producers, AP reports:
Whelan [USAID spokeswoman] would not respond,

however, when asked what the analyses had determined in
Haiti.
Currently, USAID has a contract with Chemonics to monitor the food

prices in Haiti. Chemonics is a subsidiary of ERLY industries who is also
the parent company of Comet Rice. According to a Washington Office on
Haiti report, as reported by Food First:
RCH began operations in September 1992 when former

World Bank official and post 1991 coup leader Marc Bazin's
regime signed a nine year development aid contract with
RCH. RCH's corporate parent is Comet Rice. Comet Rice
has been the largest importer of rice in Haiti for many
1 of 2 08/04/2010 11:05
years. The flood of its imported "Miami rice" in the 1980s,

much of it supported by U.S. tax dollars through various
AID and USDA programs, drove thousands of small scale
Haitian rice farmers out of business. Corn and other grain
production also declined due to the importer's marketing
techniques.
The FAO, in coordination with the Haitian government, does have an

agricultural plan however it remains inadequately funded. The FAO
warned two weeks ago that only 8% of the $23 million needed has
been funded. Today the most recent UN OCHA report confirms that
nothing has changed:
"The Agriculture secor remains only 8 percent funded.

More resources are needed to ensure that seeds can be
purchased ahead of the planting season in March in order
to prevent longer-term dependency on food assistance."
Tags: agriculture chemonics comet rice fao food aid food

crisis us rice usaid

2 of 2 08/04/2010 11:05

Home Publications Blogs Haiti: Relief and Reconstruction Watch Exodus
From PaP Puts Pressure on Rural Communities
Multimedia
Exodus From PaP Puts Pressure on Rural Communities
En Español Wednesday, 24 February 2010 09:47

Other Languages
COLUMNS

Co-Director
agriculture aid
Dean Baker,
chemonics
contractors
coordination debt
doctors without
borders fao food
crisis iom john
holmes minustah
new york times
ngos partners in
health rainy
season
reconstruction
relief coordination
relocation
reparations
shelter tarps
tents un usaid
1 of 2 08/04/2010 11:05
The Los Angeles Times reports on the stress that the Share
exodus of hundreds of thousands of Haitians from Port-au-
Prince has put on rural communities. This is especially significant with
the planting season fast approaching and supplies hard to come by and
money even tighter than usual. The Times reports:
Villagers are near the breaking point as they try to

accommodate tens of thousands of displaced city dwellers
just when they would be putting their precious resources
into preparing for planting. In desperation, some have
resorted to eating their meager seed stocks or killing their
chickens and goats to feed the influx, rather than keeping
them to sell.
Fertilizer is expensive and seeds for cereal crops are in

short supply because of damage to the seaport in the
capital and wary buying by wholesalers. Farming areas
southwest of Port-au-Prince were also devastated by the
7.0 quake, which ruined whole towns, such as Leogane,
near the epicenter, and damaged vital irrigation channels.
The UN's most recent update reports that:
The number of people who have left Port-au-Prince for

outlying departments has increased to 597,801 people
from the previous figure of 511,405. The increase in
figures mainly relates to Grand-Anse and Sud
departments, where an additional 21,000 and 63,000
people, respectively, have been registered.
The FAO has recently warned that of the $23 million earmarked for the
agricultural sector of the original $575 million flash appeal, only around
8% has been funded.
One plan for dealing with the increased stress in rural communities is
being implemented by Partners in Health with the agricultural wing of
Zanmi Lasante, PiH's partner organization in Haiti. As PiH notes:
PIH/ZL plans to help relieve the looming food crisis by

pushing up this season’s first harvest date. The goal is to
have a significant yield of crops in three months – several
weeks earlier than a normal growing season. Zanmi Agrikol
(ZA), the agricultural arm of ZL, will be in charge of the
initiative.
In order to do this, the team has come up with a

two-phase plan.
During phase one, the team identified 300 acres of fallow

farmland where it has already begun plowing fields and
planting a crop of precocious (fast growing) corn. The goal
is to get food to the local community as soon as possible.
To read more about the plan, read the whole article here.
Tags: agriculture fao food crisis partners in health planting
season zanmi agrikol

2 of 2 08/04/2010 11:05
Earthquake Causing Another Food Crisis? - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/ea...

Home Publications Blogs Haiti: Relief and Reconstruction Watch Earthquake
Causing Another Food Crisis?
Multimedia
Earthquake Causing Another Food Crisis?
En Español Thursday, 18 February 2010 13:13

Other Languages
Last week the FAO announced its worry that immediate Share
agriculture needs were not being adequately funded, there
COLUMNS
is also evidence of rising prices for basic foods such as rice. Following
Mark Weisbrot, up on these reports, Inter-Press Service reports today on the likelihood Most Popular Tags
Co-Director of an emerging food crisis in post-earthquake Haiti:
agriculture aid
Dean Baker, "Everybody needs to understand the need to act right now,
Co-Director otherwise the planting season will be lost," Geri Benoit,
distribution
Haiti's ambassador to Italy and the Rome-based UN food chemonics
agencies, told IPS.
contractors
coordination debt
IPS reports that is not just the FAO but NGOs on the ground sounding
the alarm: doctors without
borders fao food

"Food could become the next catastrophe," says
anti-poverty NGO ActionAid. "People affected by the crisis iom john
earthquake leaving urban areas, a forthcoming food price holmes minustah
hike and a long-term underinvestment in rural areas and
agriculture could all spell disaster again.” new york times
ngos partners in
The benefits of investing in agriculture are immense, as IPS reports:
health rainy
One dollar invested in agriculture will produce 40 to 60
dollars worth of food in Haiti, FAO estimates. season
On the other hand, the consequences of not doing enough are enormous,
reconstruction
as Beniot told IPS: relief coordination
“you miss the planting season and for us this means you relocation
lose 60 percent of food production."
reparations
Tags: fao food crisis
shelter tarps
tents un usaid

1 of 1 08/04/2010 11:06
UN "alarmed" at Lack of Support for Agricultural Needs - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/u...

Home Publications Blogs Haiti: Relief and Reconstruction Watch UN
"alarmed" at Lack of Support for Agricultural Needs
Multimedia
UN "alarmed" at Lack of Support for Agricultural Needs

Other Languages
As UN agencies met in Rome to discuss the response to the Share
earthquake in Haiti, General Jacques Diouf, of the Food and
COLUMNS
Agriculture Organization issued a stark warning:
Co-Director “At a time when Haiti is facing a major food crisis we are
alarmed at the lack of support to the agricultural agriculture aid
Dean Baker, component of the Flash Appeal,”
The UN issued a flash appeal for $575 million after the earthquake, $23
chemonics
million of which was for the agricultural program, however, Diouf added:
contractors
"[O]nly 8 per cent of this sum has so far been funded."
coordination debt
and:
doctors without
"The economic and social reconstruction of Haiti requires a borders fao food
revival of food production and massive investment in rural
areas."
crisis iom john
holmes minustah
Tags: fao food crisis
new york times
ngos partners in
health rainy
season
reconstruction
relief coordination
relocation
reparations
shelter tarps
tents un usaid

1 of 1 08/04/2010 11:07

CEPR - Using Food Aid To Support, Not Harm, Haitian Agriculture

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CEPR - Using Food Aid To Support, Not Harm, Haitian Agriculture

Uploaded by

Copyright:

Available Formats

Using Food Aid to Support, Not Harm, Haitian Agriculture - CEPR http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/u...

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

En Español Wednesday, 07 April 2010 14:42

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

Using Food Aid to Support, Not

--Former President Bill Clinton

Table 1 shows the percentage of Haiti’s rice supply that is domestically

Sources: Coordination Nationale de la Sécurité Alimentaire 2010.

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

COLUMNS 4. Food Aid Undermines Local Producers

5. Exodus From PaP Puts Pressure on Rural Communities

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

En Español Monday, 22 March 2010 11:35

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

En Español Monday, 15 March 2010 15:45

Chemonics has been tapped by USAID in Afghanistan as well, in an effort to

proceeding. In addition, Chemonics did not have documentation to

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

En Español Monday, 08 March 2010 16:44

The World Bank and International Monetary Fund have

Greenwire notes the importance of support for the agricultural sector in

This type of talk is deeply frustrating to the Haitians who

"The only time we have frustration is when we can't get

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

En Español Friday, 26 February 2010 18:37

Although USAID says that it undertakes studies to determine the

Whelan [USAID spokeswoman] would not respond,

Currently, USAID has a contract with Chemonics to monitor the food

RCH began operations in September 1992 when former

years. The flood of its imported "Miami rice" in the 1980s,

The FAO, in coordination with the Haitian government, does have an

"The Agriculture secor remains only 8 percent funded.

Tags: agriculture chemonics comet rice fao food aid food

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

En Español Wednesday, 24 February 2010 09:47

Mark Weisbrot, Most Popular Tags

borders fao food

crisis iom john

new york times

Villagers are near the breaking point as they try to

Fertilizer is expensive and seeds for cereal crops are in

The UN's most recent update reports that:

The number of people who have left Port-au-Prince for

PIH/ZL plans to help relieve the looming food crisis by

In order to do this, the team has come up with a

During phase one, the team identified 300 acres of fallow

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

COLUMNS 4. UN "alarmed" at Lack of Support for Agricultural Needs

Powered by Tags for Joomla

Home | Research Topics | Events | Jobs/Internships | Contact | Site Map

ABOUT US PRESS CENTER PUBLICATIONS ISSUES EXPERTS RESEARCH TOOLS CONTACT

En Español Friday, 26 February 2010 18:37

Although USAID says that it undertakes studies to determine the

Whelan [USAID spokeswoman] would not respond,

Currently, USAID has a contract with Chemonics to monitor the food

RCH began operations in September 1992 when former

years. The flood of its imported "Miami rice" in the 1980s,