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According to the Food and Agriculture Organisation (FAO), global food prices decreased by 1.5% between October and November, and were on average 3% lower than in the same month in 2011. The FAO Food Price Index, published today, measures the monthly change in price of commodities such as cereals, dairy products and oilseed, using a point system. In November, food prices averaged 211 points. This is below the previous price peaks in June 2008 and February 2011, and the lowest figure since June 2012 when prices started to climb due to droughts in the US and the Black Sea region. In general, however, food prices remain at a high level, especially for grain: The FAO Cereal Price Index went down slightly to 256 points – but is still up 12% compared to November last year, and only 18 points below the record high of 274 points in April 2008. These figures largely match up with the World Bank’s Food Price Watch report which was published last week. “A new norm of high prices seems to be consolidating. Although we haven’t seen a food crisis such as the one of 2008, food security should remain a priority”, said Otaviano Canuto, the Bank’s Vice President for Poverty Reduction and Economic Management. The FAO also announced today that world cereal production is expected to decrease by 2.8% from last year’s record crop to an estimated 2282 million tonnes. These figures are lower than the forecasts published last month due to new estimates on maize harvests in the Ukraine and Russia, and reduced wheat prospects in Australia and Brazil. World cereal stocks could decline to 495 million tonnes, posing the danger of more volatile food prices. With lower stocks, any unexpected developments create more variability in the prices than would otherwise, Abdolreza Abbassian, a senior FAO economist told Reuters.

Ahead of a global farmland investment conference opening today in London, civil society organisations have called on major agricultural investors to stop facilitating the practice of land grabbing. In a joint press release, Friends of the Earth Europe, together with Anywaa Survival Organisation, GRAIN and Re: Common, urge the banks and pension funds attending the conference to ensure they do not invest in projects which threaten the food sovereignty of the local population. “Communities around the world are struggling to deal with the increasing land grabs. Many small-scale land holders have lost their sole source of income and the consequences for the environment are often disastrous. Yet, investors are gearing up to accelerate the grab of the world’s most fertile farmlands”, said Anne van Schaik, Accountable Finance Campaigner for Friends of the Earth Europe. At the Global AgInvesting Europe 2012 conference, taking place from 3 - 5 December, financial investors and pension funds will gather to explore investment opportunities in agriculture in Africa, Latin America and Russia. The event, attended and sponsored by agribusiness giants such as Bunge and Monsanto, brings together funds with more than USD3 trillion in assets. Earlier this year, Friends of the Earth Europe published the report ‘Farming Money’, which investigated the agricultural investment activities of 29 European banks and pension funds, including Deutsche Bank, Barclays and Allianz: It revealed their contribution to food speculation, as well as the direct or indirect financing of land grabs. Due to ongoing critique, some banks have recently removed agricultural products from their portfolios and committed to refraining from speculating on food prices.

The European Commission has decided to recognise a certification scheme which will see biofuels produced from palm oil labelled as sustainable. The decision, made last Friday, comes despite recent studies by the Commission itself that have proved that the carbon footprint of palm oil biofuels is worse than that of conventional diesel. The approval of the scheme, proposed by the controversial multi-stakeholder initiative of palm oil producers, distributors and some NGOs – The Round Table for Sustainable Palm Oil (RSPO), means that palm oil suppliers will not be required to provide further evidence of compliance with EU sustainability criteria, and can qualify for subsidies. Greenpeace Forest Campaigner Sini Harkki has objected to the decision stating that “The Commission’s decision is disgraceful and smacks of hypocrisy. One day palm oil biodiesel is dirtier than normal diesel and the next day, after a little poking by the industry, the Commission swallows its own words”. Studies commissioned by the EU, including an impact assessment published in October, found that biofuel production can lead to a net increase in carbon dioxide emissions when indirect land use changes (ILUC) are considered. ILUC occur if forests are cleared or peatland is dried to meet the growing demand for biofuels, leading to the release of greenhouse gases. Palm oil biodiesel has the highest ILUC emissions of common biofuels. “Palm oil is driving deforestation, wildlife loss, community conflicts, and accelerating climate change. Instead of greenwashing palm oil, the EU should outright ban its use as a biofuel”, said Robbie Blake, biofuels campaigner for Friends of the Earth Europe (FoEE). Greenpeace and FoEE have called on the Commission to suspend the authorisation of the scheme until ILUC emissions are truly accounted for by law. Last month, the Commission proposed a reporting obligation on greenhouse gas emissions from ILUC. However, these factors carry no legal weight when determining whether biofuels meet EU green transport targets.

The United Nations Conference on Climate Change opened in Doha, Qatar on Monday, with representatives from almost 200 states gathering for the two week event to agree on commitments to cut greenhouse gas emissions. Ahead of the conference, NGOs and research institutions highlighted the pivotal role agriculture plays in international efforts to adapt to and mitigate the effects of climate change. The need to cut emissions from agriculture was confirmed by a recent CGIAR (Consultative Group on International Agricultural Research) study, which revealed that food systems contribute up to 29% of global greenhouse gas emissions, with agricultural production accounting for 80% of these emissions. Bruce Campbell, Head of the CGIAR Climate Change, Agriculture and Food Security research programme expressed concern that “agriculture is still considered a sideshow in the climate arena and a decision has been lacking over several years of UN climate negotiations”. Shefali Sharma from the Institute for Agriculture and Trade Policy (IATP) stressed that “if we truly want to address agriculture emissions, let’s start by setting targets for reducing nitrous oxides and methane from industrial farms and transitioning to agroecological practices”. Observers have expressed concerns over the lack of commitment by governments to make real progress in achieving a new global climate deal: “Most governments continue to support and advance the very policies that are driving the climate crisis, from dirty fossil fuel extraction of oil, gas and coal, to carbon trading, agrofuels and large-scale industrial agriculture”, said Sarah-Jayne Clifton from Friends of the Earth International. Agriculture will also be discussed at various side events at Doha, including a panel on Wednesday that will highlight the pitfalls of the concept of ‘climate-smart’ agriculture, and propose alternative approaches to tackling the climate and agriculture crises, while ensuring the right to food.

In an article published in the journal ‘Nature Geoscience’ earlier this week, scientists have warned that the excessive extraction of groundwater for agricultural irrigation is one of the main reasons for the decline in groundwater levels. At a global level, groundwater depletion contributes to rising sea levels and a lack of water for food production. The authors concluded that the depletion is a frequent problem in large groundwater systems, both in semi-arid and humid regions. “Aquifers are reservoirs of enormous dimensions, but groundwater recharge is very slow”, said Professor Aeschbach-Hertig, Managing Director of the Heidelberg Center for the Environment and co-author of the article. The situation is extremely serious in dry areas with intensive farming, such as parts of India, China and the United States. Sustainable food production can only be achieved in these areas if groundwater levels are stabilised. In order to solve this problem, a transformation is needed in the way groundwater systems are valued, managed and characterised. Solutions must also be adapted to regional conditions. According to the authors, strategies such as water diversion and artificial groundwater recharge cannot compensate excessive extraction. “Purely technical approaches have not been successful. We must introduce more comprehensive economical, political and legal measures”, explained Professor Aeschbach-Hertig.

Stakeholders from civil society, government, business and science are currently gathering in Berlin for the First Global Soil Week. Taking place from 18-22 November, the aim of the conference is to find solutions to soil degradation: Worldwide, more than 24 billion tons of fertile soil are being lost each year. Erosion, the sealing of soil surfaces and desertification are all increasing. Over the four day event, participants will discuss the key issues and develop action plans for sustainable soil management. Topics such as the economics of land degradation, the challenges of raising soil awareness and the Voluntary Guidelines on Land Governance will be addressed in a series of dialogue sessions, panels and other events. With soils being essential for the production of over 90% of the world’s food, the link between soils and food security will also be discussed. In the run-up to the event, Professor Klaus Töpfer, Executive Director of the Institute for Advanced Sustainability Studies (IASS), organiser of the conference, warned that “Available fertile agricultural land is decreasing and, at the same time, we need to ensure food security of almost nine billion people”. The Global Soil Week is intended to serve as a platform to initiate follow-up actions on land and soil-related decisions made at the UN Conference on Sustainable Development (Rio+20) and takes place within the framework of the UN Food and Agriculture Organisation’s Global Soil Partnership.

In a new report published on Tuesday, the Food and Agriculture Organisation (FAO) warns that export-oriented, large-scale land acquisition could threaten food security in developing countries by replacing existing food production for local markets. The report comprises cases studies on agriculture-related foreign direct investment in nine countries, among them Brazil, Ghana, Senegal, Thailand and Uganda. It found that investment projects in which local farmers play an active role and maintain control over their land while using the investors’ capital, technology and marketing expertise were most beneficial to local economies and social development. “While a number of studies document the negative impacts of large-scale land acquisition in developing countries, there is much less evidence of its benefits to the host country. For investments involving large-scale land acquisition in countries where land rights are unclear and insecure, the disadvantages often outweigh the few benefits to the local community” conludes Pascal Liu from the FAO’s Trade and Markets Division. The report debunks the myth that these land deals generate employment for the local population: Several case studies showed that fewer jobs were created than initially promised, with demand for labour decreasing over time. Even the low-skilled jobs were given to non-locals. Foreign investors acquired the best plots of land with high soil fertility, irrigation and good market access, often leading to the displacement of local farmers and pastoralists, as well as the degradation of natural resources. The FAO stressed that investment in agriculture is needed – around 80 billion US dollar per year – to feed more than nine billion people in 2050. But “it is important that any international investment should bring development benefits to the receiving country if those investments are to be ‘win-win’ rather than ‘neo-colonialism”, said David Hallam, Director of the FAO’s Trade and Markets Division.

According to a new study conducted by scientists from Stanford University, global warming could reduce mountain snowpack in the Northern Hemisphere over the next century, threatening water supplies for drinking water and agricultural irrigation. The study, which was published in ‘Nature Climate Change’, analysed the impact of climate change on snowpack in the west of the United States, Alpine Europe, Central Asia and the Himalayas using different scenarios which encompass a rise in global temperatures between two and four degrees. The researchers concluded that there would be less snow accumulation in most regions. “We can infer that should these physical climate changes occur in the future, there would be impacts on water supply for agriculture and for human consumption and for natural ecosystems if the water storage and management systems are not adapted to those changes”, said Stanford University’s Climate Expert Noah Diffenbaugh who led the study. This could have negative effects, for example on agricultural production in California, the nation’s leading agricultural exporter, which is dependent on snowpack for crop irrigation. The study found that early spring snowmelt could lead to flooding and overflowing reservoirs in winter, while less water would be available in spring and summer, when water demand in agriculture is strongest. A lack of water later in the year could also worsen droughts, increase the number of insect pests and lead to species extinctions, both in the United States and elsewhere.

According to the Food and Agriculture Organisation (FAO), global food prices decreased by 1% from September to October. In addition, when comparing food prices from the first ten months of 2012 with the same period last year, prices are, on average, 8% lower. The FAO Food Price Index, published today, measures monthly price changes in a food basket consisting of commodities such as cereals, dairy products and oilseed. Food prices averaged 213 points in October, down two points from September. This is still below the previous price peaks in June 2008 and February 2011, 224 and 238 points respectively. However, prices are still dangerously close to the level of the 2007/2008 food price crisis. FAO Director-General José Graziano da Silva remains optimistic: “Despite tight markets, a set of conditions and measures have so far stopped international food prices from spiralling up as they did in 2007/2008 and 2009/2010.” In his opinion, the improved international coordination and market transparency resulting from the G20’s Agricultural Market Information System (AMIS) prevented “the worst drought in decades from turning into a food price crisis”. The slight decline in October was mainly triggered by lower international prices of cereals and oils/fats which made up for increased dairy and sugar prices. According to the FAO Food Outlook, a global market report also published today, world cereal production is expected to decrease by 2.7% from last year’s record harvest to an estimated 2.284 billion tonnes. World cereal stocks could drop to 497 million tonnes. The FAO Cereal Price Index reached 259 points in October – a rise of 12% compared to October last year, and only 15 points below the record high of 274 points in April 2008.

A substantial reform of agricultural and energy policies is needed in order to fight hunger and tackle climate change. This was the conclusion of the conference ‘Dialogue on Transformation’, which took place from 1 - 3 November in Bonn, Germany. Organised by development and environmental NGO, Germanwatch and the US-based Institute for Agriculture and Trade Policy (IATP), the event was attended by 140 civil society representatives from 22 countries. The participants discussed ways in which the right to food for the 870 million people currently undernourished worldwide could be implemented. According to Jim Harkness, President of IATP, the event allowed a long overdue dialogue to be held between civil society organisations on the transformations required in the energy and agricultural system. “These movements have often worked separately despite their common goal of a just and sustainable future”, he said. Another topic of the dialogue was a follow-up of the results from the UN Conference on Sustainable Development (Rio+20). The role of different actors in contributing to national reports on sustainable food production and food security was also discussed. At Rio+20, the Committee on World Food Security (CFS) was mandated to facilitate country-initiated assessments of agricultural policies. Dialogue participant Hans Herren, co-author of the World Agricultural Report (IAASTD) and President of Biovision Foundation, stressed that national action plans are the basis for a change of course in agriculture: “Goals are food security for all, rural development with improved conditions, especially for small-scale farmers, particularly for women, as well as a sustainable use of natural resources.”