Algeria in danger, says OECD report

A report from the Organization for Economic Co-operation and Development (OECD) released Thursday in collaboration with the UN Food and Agriculture Organization (FAO) confirmed the continuity of food’s prices increase until 2017.

• The report on “agricultural prospects” said that the next ten years will witness very high increases in food commodities prices, 20 percent in meat prices compared to the increase recorded during the previous decade in the period between 1998 and 2007. A total of 30 percent in sugar prices, between 40 to 60 percent in wheat, corn, milk, and butter prices, then the animal fats products by 60 percent, vegetal oils by over 80 percent, which represent the main products imported by Algeria from abroad. That will make the food’s bill which reached 4.7 billions dollars in the end of last year to double in 2017. This comes simultaneously with the establishment of free trade zone between Algeria and the European Union under the association agreement with the Union. It will increase the European exports to Algeria in complete freedom.
• The FAO warned of hunger crisis exacerbation due to the food prices rise particularly for poor people in developing countries which import agricultural and food products particularly wheat, red meat, milk , vegetal oils, and animal fats. Algeria comes at first countries that import these materials in the world, especially wheat, milk powder, vegetal oils, sugar and coffee.
• FAO called for increasing public and private investments to rise the agricultural productivity especially in developing countries that achieved economic growth in recent years to reduce expected impacts of this dramatic rise in food prices on vulnerable groups. City dwellers entirely rely on food purchases while rural residents do not produce foods.
• (OECD)’s Secretary General Angel Gurría said : “the way to handle high food prices is not applying protecting measures but  is opening agricultural markets and launching productive capacity of farmers who have proved that they respond to market incentives”.
• The FAO’s Secretary General, Jacques Diouf said “prices will remain in highest levels because of lack in stock.”
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