Financial Daily from THE HINDU group of publications Friday, May 07, 2004 |
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Agri-Biz & Commodities
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Oilseeds & Edible Oil Soya well placed meet vegoil, animal feed demands: FAO G Chandrashekhar
Mumbai , May 6 THERE has been little doubt about the growing importance of soyabean for nutrition at the global level, given the crop's abundant and rising availability, high nutritional value and varied uses as food and feed. However, determining the crop's contribution to combating hunger in food-insecure, import-dependent developing countries is a complex task, which can lead to different results for different countries, according to the Food and Agriculture Organisation (FAO). In a study on the role of soyabean in fighting world hunger, FAO found that the crop was well placed to meet the fast growing demand for vegetable oil and animal feed in developing countries. Being one of the world's major and fastest expanding crops, soyabean contributes significantly to overall human nutrition in terms of both calorie and protein intake. While the crop can be encouraged in small holder-based production systems in the tropics and sub-tropics to diversify production, generate income and capture positive rotation effects that improve productivity of other crops grown, the economic viability of growing soyabean depended on local marketing opportunities, the report pointed out. Can small producers of soyabean compete successfully in the market? Global production, processing and marketing of this legume is characterised by a high level of concentration, specialisation, vertical integration and economies of scale. Thus, small producers in developing countries find it difficult to compete especially when confronted by fast expanding and highly efficient trade. Referring to the general trend towards integration of developing countries into the international markets for foodstuff and other agricultural commodities like vegetable oils and meals, the FAO report cautioned that increased dependence on imports while not in conflict with food security objectives in terms of overall food availability might expose countries to a number of risks. For food-insecure countries in Africa, and pockets in Asia and Latin America, , increasing food availability through domestic production or import of food like soyabean products is important. However, in several countries, especially in Asia, hunger seems to be related more to inadequate access to food than insufficient supply. ``For this reason, it will be important to integrate supply oriented policies with access-based strategies that focus on income generation and distribution, access to assets, markets and education and improvement in infrastructure,'' the report concluded. FAO's current initiatives to fight poverty and hunger are increasingly adopting such an approach.
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