Grainnet

This article is reprinted from the Nov. 26 edition of U.S. Grain Council Global Update

There are 6.6 billion people in the world and the population is growing at a rapid pace.

Ken Hobbie, U.S. Grains Council president and CEO, said almost 20 percent (1.3 billion) of the total population live on less than one dollar a day.

“That’s one in every five people living on less than $365 a year,” said Hobbie.

“These statistics make clear the absolute need for liberalized trade. One of the most effective, yet most overlooked, ways to attack hunger and strengthen global economies is free and open trade.

"As we enjoy Thanksgiving with our families, I truly hope our U.S. congressional leaders take time to sincerely reflect on what an open and free trade policy does to help those in need.

"The first step is to ratify pending trade agreements.”

For example, Hobbie said the Colombia and Panama trade agreements pending congressional approval represent U.S. agricultural export gains of more than $1 billion per year at full implementation for U.S. farmers.

This also increases incomes for overseas livestock producers and allows them to feed their families and consumers.

Current free trade agreements showcase many benefits to global agriculture.

The North American Free Trade Agreement (NAFTA) has allowed trade and investment flows in North America to skyrocket.

According to figures of the International Monetary Fund, total trade among the three NAFTA countries climbed from $297 billion in 1993 to $883 billion in 2006 representing a 198 percent increase.

That’s $1.2 million every minute.

“Canada and Mexico alone account for 50 percent of the increase in U.S. agricultural exports since 1993,” said Julio Hernandez, USGC director in Mexico.

“U.S. farmers benefit from the reduction of arbitrary trade barriers, while overseas consumers benefit lower food prices and more choices.

"It would be a big mistake to change the agreement. It is working. It’s good for Mexican consumers and for the U.S. economy.”

Hernandez said NAFTA has also helped Mexico’s economy substantially. U.S. agricultural imports from Mexico increased by $6.7 billion during the last 13 years.

Beyond free trade agreements, Hobbie notes Council efforts in the past that have resulted in feeding the hungry affordable agricultural products.

In the mid-1990s, the Council was afforded the opportunity to make its first trip to Cuba arranged through former Council member Continental Grain Company, now owned by Cargill.

“To my knowledge this was only the third visit by a U.S. agricultural group to Cuba in the past 20 years,” he said.

“In order to make the trip we asked several of our members to cover the cost of a shipment of about 10 metric tons of U.S. corn to Cuba.”

The corn was processed into rabbit feed at a mill owned by Continental Grain in Haiti and then shipped to Cuba.

“Once the feeding trial was complete and the data gathered, the rabbit meat was given to a U.S. government approved charity organization in Cuba that tended to the needs of first time mothers at risk for low birth weight babies,” Hobbie said.

About a year later, following a devastating hurricane that struck Cuba, the U. S. government began making it possible for Cuba to begin purchasing feed grains, other grains and processed food products from the U.S. market for cash for the first time since the Cuban embargo.

“I firmly believe that it was our donated corn that started moving both parties in the direction of opening the market to meet the needs of feeding the people of Cuba with affordable agricultural products that they could purchase from the U.S. market.

This was made possible through the Cuba Trade Act.”

The Council is currently engaging in programs in Iraq to rebuild the country’s once flourishing poultry industry.

Hobbie said the end result will likely be a stronger, less impoverished middle class similar to what is seen is Egypt today.

In Egypt, the Council established feedlots providing red meat for Egypt’s domestic population at an affordable price, increasing the availability of food and sustaining and expanding the middle class population.

“There are countless examples of how trade helps curb global hunger and the U.S. Grains Council is committed to working around the world and around the clock in fighting the fight,” said Hobbie.

“Trade improves lives and we need to embrace a truly liberalized free and open trade environment if we want an affordable and abundant food supply to be available for every man, woman and child.”

For more information, call 202-789-0789.

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• U.S. Grains Council

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