For the first time in history, the Canadian government has decided that none of its food aid for foreign delivery must be purchased in Canada.
On April 30, international co-operation minister Bev Oda announced that as part of Canada’s response to a global poverty crisis because of soaring food prices, Canada is “untying” its aid. It will allow food to be bought in the region where the aid is needed or in other lower-cost locations.
“This means that Canadian dollars will go farther and be more effectively used,” she told the House of Commons.
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Aid groups applauded the announcement.
Jim Cornelius, executive director of Winnipeg-based Canadian Foodgrains Bank, said a key requirement is that aid dollars “be used as efficiently as possible.”
The ability to buy locally or regionally will make dollars stretch, he said, while boosting developing world farmers.
Until several years ago, 90 percent of food aid had to be purchased in Canada, a relic of the days when food aid was aimed in part at removing surplus products from the Canadian market.
It was changed to 50-50 several years ago under pressure from aid groups who argued that sourcing food in Canada meant higher food and transport costs. Buying locally also would be a boost to developing world agriculture.
However, Canada becomes one of the few countries that totally disconnects its domestic food production system from food aid commitments.
In the United States, 100 percent of food aid must be purchased from American farmers or agribusiness companies.
In Canada, farm leaders greeted the unexpected news with some skepticism.
Canadian Federation of Agriculture president Bob Friesen noted the Americans are not playing by the same rules.
He said it is important that aid purchases, if not tied to Canada, be made in developing countries from farmers and not from multinational grain companies in those countries nor from cheaper product suppliers including the U.S.
“It is important that this policy not just be a reward to corporations or cheaper cost producers or greater subsidizing producers who are our competitors,” said Friesen.
National Farmers Union president Stewart Wells took a harder line.
He said a policy that cuts Canadian farmers out of the queue for supplying aid means they are “being punished for the mistakes of others.”
The mistakes include supporting crop use for biofuel production and allowing international agencies including the World Bank and the World Trade Organization to promote policies that undermine local food sovereignty.
Wells said advocates of untied aid should publish a list of where the food aid would be bought if not from Canadians.
“The list would give Canadians and Canadian farmers some assurance that the foodstuffs were actually being purchased from farmers close to the affected regions and were not coming off the nearest multinational boat in any given harbour,” Wells said.
