Gundelach, Finn O.

English

Archive of European Integration

E 
Reinforcement 
of world food security 
Published by the Agricultural Information Service of the Directorate-General for Agriculture 
European Community Commission- 200, rue de Ia Loi, 1049 Bruxelles 
Supplement lo the Documentation Bulletin- 0/AGR./EN 6 
Speech by FINN 0. GUNDELACH, Vice-President of the Commission 
of the European Communitie~ at the twentieth FAO Conference -
Rome, November 1979. 
The common agricultural policy as developed in the European Community has 
permitted us to bring about a coherent common internal market for 
agricultu!"al commodities and to develop a common position in our deal:i.ngs 
with our partners round the world, be it in regard to commercial matters or 
be it in regard to what is in the forefront of our deliberations at this 
Confel·ence, the combat against the evil of hunger. 
This common agricultu>:>al policy is an essential element of the European 
construct:i.on; It has, as you know, often been criticised from the ins5.de 
and outside, a!1d of course there are ah18ys adjustments to be made to bring 
it into accordance with the real Hies of the world today. But the poli.cy 
is there and it will remain because on the whole it has been benencial, 
not just to European farmers but to the world at large. I shall revert to 
that on a few specific points, but for this gene!"3l introducti-on, I would 
only make the point that a Community Hhich has a common agricultural policy 
and can deal with its agricultural problems not only internally, hut also 
in relation to its international partners can play a substantial role in 
solvi.ng world food pr'oblems. 
If one had to deal today with nine individual countries, tomorrm-t ten, the 
day after tomorr'OW eleven or twelve, life - and I can testify from personal 
experience in other capaci.ties - would be close to impossible. The fact 
that the Community speaks with one voice is to the benefit of the world 
community, because it permits the Community to contribute effectively. This 
would not be the case if we had nine, ten or eleven different national 
agricultural policies, no doubt more isolated and protectionist than the 
policy which we have today. I wish to bear this in mind in the discussions 
of the ups and downs of the agricultural policy. 
World food security j_s obviously of vital concern to all of us. \-lhether 
our countries are rich or poor, big or small, developed or developing, m;:m 
needs food. Besides overrlding moral and humanitarian pressures, it is in 
our own interest to see the hungry fed. Better nutritj_on is the foundati.on 
of economic development, and j_n its turn economic development and a more 
equal spread· of wealth is an important pre-condition of wol'ld stability. 
All that is widely accepted, but it must be stated at the outset as the 
background to Hhat I further have to say. 
J 
The evidence of hunger is all Bround us; j_n the newspapel'S, on the radios, 
and on out' television screens, and our imm~diate response is to want to 
help. One is struck by the immediate response that the public gives Hhen 
they are confronted clearly ~-.ri th disasters in va"ious parts of the HO.~"lc. 
There obviously js in our peoples will i_ngness to make the contribution, 
even the sacrifices, necessary to meet this problem. What is to be avoided 
is that, in the periods between painful immediate problems here or there on 
the geographical map efforts be allowed to slacken - in other words, that, 
whilst we have the preparedness to deal with irmnediate problems, He 
construct coherent policies Hhich enable us to get to the root of this 
problem. The flrst pre-condition for this is proper COO"'dination and 
intet~national cooperation. None of us, no matter how great our 
agricultural output, can eliminate world hunger by acting alone. There i_s 
a need for wide international cooperation. In this context let me pay 
tribute to the •t~ork of FAD. We regard its initiatives, together with those 
of other international bodies under the umbrella of the United Nations, as 
being of great importance. These organizations are constantly prompting 
the international community to take up its responsi.bi.Hties, and to develop 
a coherent policy for ensuring world food supplies. Much remains, I knoH, 
to be done. But something has already been achieved and this year the 
European Economic Community has already taken on seve~al extra commitments. 
At the May meeting of the Programme Committee of the Horld Food Programme 
the Community accepted the idea of forward planning of aid and is now 
considering an increase in its annual target for m:lk powder and butte1~oil 
for aid. Its 1979 programme already amounts to 150 000 tons of milk powder 
and 45 000 tons of butteroil. The European Commission wants to make 
substantial increases in Community aid in regard to these items. 
In the context of Operation Flood the Community has given India political 
assurances of the continu tty of aid over several years. 
In June the Community approved the FAO action plan for wor·ld food 
security. We support its objectives and have already almost doubled our 
own cereals stocks. This was, I admit, done partly because of our own and 
international market conditions, but I must emphasize also because of the 
precarious world situation. In other words, we wanted and still want to 
make our contribution to the setting up of security stocks. 
4 
The Community 1..:ants a new Internattonal Hheat Agreement and will be ready 
to resume negotiat:i_ons the moment that favourable conditions exist. We 
think that the increase in our stocks is an element facilitating this 
resumption of talks. 
Following SeptembeJ~ 's World Food Counc i.l the Community is again 
considering whether it can raise its cereals aid by more than 25 percent -
from less than 1. 3 mill i'on to 1. 65 mill ion tons a year. I must emphasize, 
to avoid any misunderstanding, that our food aid is directed tovrards 
ffi> 
meeting shortages of food wheJ"ever they may be in the world, and not to 
dispo3ing of this or that surplus with which we may be faced on the 
internal market. He have made provision for buying products on world 
markets if they are not ava i.lable internally, or if they are needed 
urgently. This gives us the possibility to act quickly and flexibly, as we 
~ave actually done in a nurnher of cases over the last few months - Uganda, 
Equatorial Guinea, Nicaragua, and not least the aid needed to meet the 
catastrophic situatton in Cambodia, not to mention other instances. 
I do not want to give the impression that we are complacent, that we think 
we are doing enough. We are not, and others are not. He must, in concert, 
further rna b i l i. z e our efforts. 
At a recent debate in the newly elected European Parliament the European 
Commission urged the Parliament to vote more budget resources for aid and 
development. We are already therefore, making a contribution. But the 
question of food aid goes further than t'rle mere donaEon of food to people 
or countries j_n need. Similarly, world food security consists of much more 
than the achievement of suffic~ent stocks of, say, cereals, however 
important that may be. 
If food is to be donated or stoc~ed, it must first be produced, and the 
rnechan ism for p.roper distribution must be provided. And if food is to be 
produced and d~stributed we must ensure the right political and economic 
conditions for far·rners and tradet'S. This is not easy in a world of 
increasing inflation. It is not easy in a wor-ld faced with a serious 
energy pl'Oblem. The references Hhich h.:we been made 5_n the deb8te to th.i.s 
problem are of paramount relevance in any econorn5_c discuss-tons, including 
on food. One must give high pri_ority for the r,..rorld to find solutions to 
5 
the energy problem, Hhich otherwise by inflation may bring about a cancer 
Hhich erodes our political and economic stabi1 ity and our ability to help 
where help has to be given. 
The bringing about of the conditions necessary for the farmers and traders 
in developed and developing countries alike must be the longer- term goal or 
our world food policy which, as I just said, cannot be seen in :i_solation 
from other economic policies, including ene!",gy policy. This goal to Hhich 
I have just referred has already made headway vlithin the European Commurdty 
by the creation of the Common Agricultural Policy, which is the foundation 
on Hhich many other matters stand. It ensh!"ines the principles and 
concepts Hhich guide our act:tons, outside our own f1"ontiers as well. 
The Common Agricultural Policy has made it possible for Community farmers 
to develop their production of basic foodstuffs, and for Community traders 
to export increasing quantities of cereals, milk powde~, butteroil and 
other products, and so to become impo~tant and reliable suppliers to other 
countries needing these commodities. We cannot be present on world ma~kets 
to the benefit of others w:i.thout the use of so-called export restitutions, 
but of course such export restitutions must be administered in a 
responsible manner. The present prices for cereals or milk powder provide 
proof that this is the case. This is not to say that all is well within 
the Common Agricultu~l Policy, or for that matter in the agricultural 
policies of other countries in the developed world, or that it is making 
its maxj_mum contribution to world food security : it is not yet, even 
though progress has been made. 
We have a milk surplus which we have to diminish. Sugar production is on 
the high side. But of course vre must take into account the impo'"tant 
commitments He have been accepting to impol"t sugar from developing 
countries. We have a budget problem, and must bring agricultural 
expenditure under control. Given the existence of our financial resources, 
these limits Hill in my vieH not always exist in a dynamic Communi.ty, in a 
Community which is about to enlarge, which is about to take on new 
commitments. But for the time being those limits are there and must be 
6 
reckoned with. And I must make it quite clear that these internal problems 
cannot be solved just by reducing the levels of the Community's food 
production. 
We a~e not intending to pursue a Malthusian policy. We must not forget 
that the world has to feed an extra 72 million people a year, and that 
already 500 million people - tvlice the population of our Community - suffer 
from serious malnutr·it:ton. Anything that leads to a serious running down 
of Community production would run counter to the woJ•ld' s overall needs and 
interests. Indeed, it would constitute an act of vandalism so 
irresponsible as to be tantamount to a crime. Now these problems of 
internal market balance must be tackled by adapting our production patterns 
to the real:i.ties of our own markets, of world markets, and not least, by 
bearing in mind the needs of the fight against hunger. 
In this way we can achieve tHo objectives simultaneously, He can eliminate 
our internal difficulties, and make an even greater contribution to this 
reinforcement of world food security. 
Th~.s can only be pa"'t of the full response to the problems; by itself it 
cannot be enough. He must give high pr2_ority to increasing the production 
of the developing countries themselves. We must make sure that they are 
able to make as big a contribution as possjble to feeding their peoples, 
and they should have the chance to earn the foreign exchange that is so 
necessa!"'y for their overall development. 
In a:iming to bring thj_s about we must recognize the mistakes of the past. 
We must take account, of cout•se, of the Hishes of the developing countries 
to become industrialized, but you cannot achieve economic miracles just by 
implanting shipyards or steel mills in developi.ng countries without giving 
full emphasis to the necessity of developing a broader economic society. 
AgricultuPe is already the biggest sector in most of these economies. It 
is the basis on which they must build their economic development, and the 
CommunHy tries to contribute by providing markets \mich can act as a 
springboard for agricultural development by seeking to provide security in 
world trade; and by proviMng finance to help launch special development 
projects in agriculture as well as in other parts of the economy. 
7 
To be more specific and to put things in the right perspective, let me say 
that the Community's agricultural imports reached ,S46 b.illi.on in 1978 - a 
figure which shows that the Community is by far the :·lOrld's biggest 
importer of agricult~ral products. Imports from developing countries 
accounted for almost ,S22 billion of that total and are increasing rapidly -
by more than 77 percent over the last five years. 
This has been brought about by the concessions under the recently 
concluded second Lome Convention, by the increased generalized ppeference 
scheme operative from the beginning of this yea;~, and by concessions to 
countries in the Mediterranean area. 
These are marked steps forwa~d which are resulting in figures of the 
magnitude to which I have just referred. These figures, of course, also 
indicate that our imports from the developed agricultural countries are 
very significant. 
This brings me to the question of increased international cooperati_on in 
regard to securing a higher degree of stabil i.ty in markets of primary 
commodities. Sugar is on the agenda, cereals likeHise. 
I should like to point out that in a situat~.on Hhere the Community has to 
watch the level of its animal production, it is diffJcult to justify an 
increase in imports of fodder for that animal production, in the form of 
soya and to some extent tapioca - though there we a~e reaching agreements 
bilaterally with the main countries concerned. To be cautious as regards 
the development of our animal production, yet be faced with ever-increasing 
imports of fodder at low prices, is a cont,..adiction in terms. Here there 
is an area for further cooperation between agricultural-producing 
countries. Perhaps some of that soya could be better used in other parts 
of the world suffering from malnutrition. 
The Community provides large and dependable markets for the produce of 
developing countries. The importance of this to their agricultural 
industries cannot be over-esti_mated. In providing them with free or 
preferential access, the Community members are giving the same stimulus to 
the developing countries that they gave themselves by removing internal 
trade barriers. 
8 
But we must admj_t that this is not enough. Developing countries claim -
and have a right to - st Hl greater access to our markets. The Community 
must aim to meet this demand in the years ahead. This might very v1ell 
imply - in the 1 onger term - a change in the Comrnun ity' s j_mport pat tern. 
But freer access by itself is not enough. Agl'icultural development can be 
completely dislocated by price fluctuations. That is why we must ensu1•e 
greater market and price stabilHy in world agricultural trade - knm·ring 
that this benefits everyone, both produce~s and consumers. An example of 
our will in this area is provided by the recently completed GATT 
negotiations where the Community pressed for arrangements that will help 
stabilize world dairy produce and beef markets, and supported the 
establishment of a new world cereals agreement. For the Commission an 
essential part of such an agreement would be a new Food Aid Convention with 
bigger ta1•gets. 
The Lome Convention is another example of our will to bring about 
stability. It not only provides sugar producers in the ACP countries wUh 
guaranteed prices fixed at a comparable level to that offered to Community 
producers, but also p~nvides guaranteed access for 1.3 million tons of raH 
sugar a year. The STABEX system guarantees the stability of export 
earnings for more than 40 agricultural products and represents an important 
innovation in international economic relations. It gives insurance against 
the repercussi_ons of fluctuations in export volume and prices. The neH 
Convention signed on 31 October makes available about 730 million dollars 
which could be used to stabilize export earnings. But for this insurance, 
development projects in these countries would be at the mercy of falls in 
world commodity prices or of bad harvests. 
The third aspect of the Community's attempts to stimulate agricultural 
production in developing countries - in helping them to help themselves -
:Ls the provision of finance for development projects. 
We attack regional problems inside the Community by channelling finance and 
technical assistance into the areas of greatest need. 
We try to apply something like the same princi.ple in our aid policy tm,ra,...rls 
the developing countries in order to assjst the governments of these 
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Reinforcement of world food security. Speech by Finn 0. Gundelach, Vice President of the Commission of the European Communities, at the 20th FAO Conference, Rome, November 1979. Green Europe Newsletter in Brief No. 6

E Reinforcement of world food security Published by the Agricultural Information Service of the Directorate-General for Agriculture European Community Commission- 200,  rue de Ia  Loi,  1049 Bruxelles Supplement lo the Documentation Bulletin- 0/AGR./EN  6 Speech  by  FINN  0.  GUNDELACH,  Vice-President  of  the  Commission of  the  European  Communitie~ at  the  twentieth  FAO  Conference  -Rome,  November  1979. The  common  agricultural  policy as  developed  in the  European  Community  has permitted  us  to  bring  about  a  coherent  common  internal market  for agricultu!"al  commodities  and  to  develop  a  common  position in our  deal:i.ngs with  our  partners  round  the  world,  be  it in  regard  to  commercial  matters  or be  it in  regard  to  what  is  in  the  forefront  of our  deliberations at this Confel·ence,  the  combat  against  the  evil  of hunger. This  common  agricultu>:>al  policy  is  an  essential element  of the  European construct:i.on;  It has,  as  you  know,  often  been  criticised  from  the  ins5.de and  outside,  a!1d  of course  there  are  ah18ys  adjustments  to  be  made  to  bring it into  accordance  with  the  real  Hies of the  world  today.  But  the  poli.cy is  there  and  it will  remain  because  on  the  whole  it has  been benencial, not  just  to  European  farmers  but  to  the  world  at  large.  I  shall  revert  to that  on  a  few  specific points,  but  for  this gene!"3l  introducti-on,  I  would only make  the  point that a  Community  Hhich  has  a  common  agricultural policy and  can  deal  with  its agricultural  problems  not  only  internally,  hut  also in  relation  to  its  international partners  can  play  a  substantial  role  in solvi.ng  world  food  pr'oblems. If one  had  to  deal  today  with  nine  individual countries,  tomorrm-t  ten,  the day  after  tomorr'OW  eleven  or  twelve,  life - and  I  can  testify  from  personal experience  in other  capaci.ties  - would  be  close  to  impossible.  The  fact that  the  Community  speaks  with  one  voice  is  to  the  benefit of the  world community,  because  it permits  the  Community  to  contribute  effectively.  This would  not  be  the  case  if we  had  nine,  ten  or eleven different  national agricultural  policies,  no  doubt  more  isolated  and  protectionist than  the policy which  we  have  today.  I  wish  to  bear  this  in mind  in the discussions of  the  ups  and  downs  of  the  agricultural  policy. World  food  security  j_s  obviously of vital concern  to all of us.  \-lhether our  countries  are  rich  or  poor,  big or  small,  developed  or  developing,  m;:m needs  food.  Besides overrlding moral  and  humanitarian  pressures,  it is  in our  own  interest  to  see  the  hungry  fed.  Better nutritj_on  is  the  foundati.on of  economic  development,  and  j_n  its turn  economic  development  and  a  more equal  spread· of wealth  is  an  important  pre-condition of wol'ld  stability. All  that  is widely  accepted,  but  it must  be  stated at  the  outset as  the background  to  Hhat  I  further  have  to  say. J The  evidence  of  hunger  is all Bround  us;  j_n  the  newspapel'S,  on  the  radios, and  on  out'  television  screens,  and  our  imm~diate response  is  to  want  to help.  One  is  struck  by  the  immediate  response  that  the  public gives Hhen they  are  confronted  clearly  ~-.ri th disasters  in  va"ious  parts  of  the  HO.~"lc. There  obviously  js in  our  peoples will  i_ngness  to  make  the  contribution, even  the  sacrifices,  necessary  to  meet  this  problem.  What  is  to  be  avoided is that,  in  the  periods  between painful  immediate  problems  here  or  there  on the  geographical  map  efforts  be  allowed  to  slacken  - in other words,  that, whilst  we  have  the  preparedness  to  deal with  irmnediate  problems,  He construct coherent  policies Hhich  enable  us  to  get  to  the  root  of this problem.  The  flrst pre-condition for  this  is  proper  COO"'dination  and intet~national cooperation.  None  of us,  no  matter  how  great  our agricultural  output,  can  eliminate world  hunger  by  acting alone.  There  i_s a  need  for  wide  international cooperation.  In this  context let me  pay tribute  to  the  •t~ork of  FAD.  We  regard  its initiatives,  together with  those of other  international  bodies  under  the  umbrella  of the  United  Nations,  as being of great  importance.  These  organizations  are  constantly  prompting the  international community  to  take  up  its responsi.bi.Hties,  and  to  develop a  coherent  policy  for  ensuring  world  food  supplies.  Much  remains,  I  knoH, to  be  done.  But  something  has  already  been  achieved  and  this  year  the European  Economic  Community  has  already  taken  on  seve~al extra  commitments. At  the  May  meeting  of the  Programme  Committee  of  the  Horld  Food  Programme the  Community  accepted  the  idea of  forward  planning of aid  and  is  now considering  an  increase  in its annual  target  for  m:lk  powder  and  butte1~oil for aid.  Its  1979  programme  already amounts  to  150  000  tons  of milk  powder and  45  000  tons  of butteroil.  The  European  Commission  wants  to  make substantial increases  in  Community  aid  in  regard  to  these  items. In  the  context of Operation  Flood  the  Community  has given  India  political assurances of  the  continu tty of aid  over  several years. In  June  the  Community  approved  the  FAO  action  plan  for  wor·ld  food security.  We  support  its objectives  and  have  already  almost  doubled  our own  cereals  stocks.  This  was,  I  admit,  done  partly because  of our own  and international market  conditions,  but  I  must  emphasize also because of the precarious world  situation.  In other  words,  we  wanted  and  still want  to make  our  contribution  to  the  setting  up  of security  stocks. 4 The  Community  1..:ants  a  new  Internattonal Hheat  Agreement  and  will  be  ready to  resume  negotiat:i_ons  the  moment  that favourable  conditions exist.  We think that  the  increase  in our  stocks is  an  element  facilitating this resumption  of  talks. Following  SeptembeJ~ 's World  Food  Counc i.l  the  Community  is  again considering whether  it can  raise  its cereals aid  by  more  than  25  percent  -from  less  than  1. 3  mill  i'on  to  1. 65  mill  ion  tons  a  year.  I  must  emphasize, to  avoid  any  misunderstanding,  that  our  food  aid  is directed  tovrards ffi> meeting  shortages of  food  wheJ"ever  they  may  be  in  the  world,  and  not  to dispo3ing of this  or  that  surplus  with  which  we  may  be  faced  on  the internal market.  He  have  made  provision  for  buying  products  on  world markets  if they  are  not  ava i.lable  internally,  or  if they  are  needed urgently.  This  gives  us  the  possibility to  act quickly  and  flexibly,  as  we ~ave actually  done  in a  nurnher  of  cases  over  the  last  few  months  - Uganda, Equatorial  Guinea,  Nicaragua,  and  not  least  the  aid  needed  to  meet  the catastrophic situatton in  Cambodia,  not  to mention  other instances. I  do  not  want  to  give  the  impression  that  we  are  complacent,  that  we  think we  are  doing  enough.  We  are  not,  and  others  are  not.  He  must,  in concert, further  rna b i l i. z e  our efforts. At  a  recent  debate  in  the  newly  elected  European  Parliament  the  European Commission  urged  the Parliament  to  vote  more  budget  resources  for  aid  and development.  We  are  already  therefore,  making  a  contribution.  But  the question of  food  aid  goes  further  than  t'rle  mere  donaEon of food  to people or  countries  j_n  need.  Similarly,  world  food  security consists  of much  more than  the  achievement  of  suffic~ent stocks of,  say,  cereals,  however important  that  may  be. If food  is  to  be  donated  or  stoc~ed,  it must  first  be  produced,  and  the rnechan ism  for  p.roper  distribution must  be  provided.  And  if food  is  to  be produced  and  d~stributed we  must  ensure  the  right political and  economic conditions  for  far·rners  and  tradet'S.  This  is  not  easy  in  a  world  of increasing inflation.  It is  not  easy  in  a  wor-ld  faced  with  a  serious energy  pl'Oblem.  The  references  Hhich  h.:we  been  made  5_n  the  deb8te  to  th.i.s problem  are  of paramount  relevance  in  any  econorn5_c  discuss-tons,  including on  food.  One  must  give high  pri_ority  for  the  r,..rorld  to  find  solutions  to 5 the  energy  problem,  Hhich  otherwise  by  inflation may  bring  about  a  cancer Hhich  erodes  our political  and  economic  stabi1  ity  and  our ability  to  help where  help  has  to  be  given. The  bringing about  of the  conditions  necessary  for  the  farmers  and  traders in  developed  and  developing countries alike must  be  the  longer- term goal  or our  world  food  policy  which,  as  I  just said,  cannot  be  seen  in  :i_solation from  other  economic  policies,  including  ene!",gy  policy.  This  goal  to  Hhich I  have  just referred  has  already  made  headway  vlithin the  European  Commurdty by  the creation of the  Common  Agricultural  Policy,  which  is the  foundation on  Hhich  many  other matters  stand.  It ensh!"ines  the  principles  and concepts  Hhich  guide  our  act:tons,  outside  our  own  f1"ontiers  as  well. The  Common  Agricultural Policy  has  made  it possible  for  Community  farmers to  develop  their production of basic  foodstuffs,  and  for  Community  traders to  export  increasing  quantities of cereals,  milk  powde~,  butteroil and other products,  and  so  to  become  impo~tant and  reliable suppliers  to  other countries  needing  these  commodities.  We  cannot  be  present  on  world  ma~kets to  the  benefit of  others w:i.thout  the  use  of  so-called  export  restitutions, but of course  such  export  restitutions must  be administered  in  a responsible manner.  The  present  prices  for  cereals  or milk  powder  provide proof that  this  is  the  case.  This  is  not  to  say  that all  is well  within the  Common  Agricultu~l Policy,  or  for  that matter in  the  agricultural policies  of other  countries  in the  developed  world,  or  that it is  making its maxj_mum  contribution  to  world  food  security  :  it is  not yet,  even though  progress  has  been  made. We  have  a  milk  surplus which  we  have  to  diminish.  Sugar  production  is  on the  high  side.  But  of course  vre  must  take  into  account  the  impo'"tant commitments  He  have  been  accepting  to  impol"t  sugar  from  developing countries.  We  have  a  budget  problem,  and  must  bring agricultural expenditure  under  control.  Given  the  existence of our financial  resources, these  limits Hill in my  vieH  not  always  exist  in  a  dynamic  Communi.ty,  in  a Community  which  is  about  to  enlarge,  which  is  about  to  take  on  new commitments.  But  for  the  time  being those  limits  are there  and  must  be 6 reckoned  with.  And  I  must  make  it quite  clear that these  internal  problems cannot  be  solved  just by  reducing  the  levels of the  Community's  food production. We  a~e not  intending  to  pursue  a  Malthusian  policy.  We  must  not  forget that  the  world  has  to  feed  an  extra 72  million  people  a  year,  and  that already  500  million  people  - tvlice  the  population  of our  Community  - suffer from  serious malnutr·it:ton.  Anything that leads  to  a  serious  running  down of  Community  production  would  run  counter  to  the  woJ•ld' s  overall  needs  and interests.  Indeed,  it would  constitute  an  act of vandalism  so irresponsible as  to  be  tantamount  to  a  crime.  Now  these  problems  of internal market  balance must  be  tackled  by  adapting our  production  patterns to the  real:i.ties  of our  own  markets,  of world  markets,  and  not least,  by bearing  in mind  the  needs  of  the  fight  against  hunger. In  this  way  we  can  achieve  tHo  objectives simultaneously,  He  can  eliminate our  internal difficulties,  and  make  an  even  greater contribution to this reinforcement  of world  food  security. Th~.s  can  only  be  pa"'t  of  the  full  response  to  the  problems;  by  itself it cannot  be  enough.  He  must  give  high  pr2_ority  to  increasing the  production of  the  developing  countries  themselves.  We  must  make  sure  that  they are able  to make  as  big a  contribution as  possjble  to  feeding  their peoples, and  they  should  have  the  chance  to  earn  the  foreign  exchange  that  is  so necessa!"'y  for  their overall  development. In  a:iming  to  bring  thj_s  about  we  must  recognize  the  mistakes  of the  past. We  must  take  account,  of cout•se,  of  the  Hishes  of the  developing countries to  become  industrialized,  but  you  cannot  achieve  economic  miracles  just by implanting  shipyards  or  steel mills  in  developi.ng  countries without giving full  emphasis  to  the  necessity of developing  a  broader  economic  society. AgricultuPe  is already  the  biggest sector in most  of these  economies.  It is  the  basis  on  which  they  must  build their economic  development,  and  the CommunHy  tries  to  contribute  by  providing markets  \mich  can  act as  a springboard  for  agricultural  development  by  seeking  to  provide  security  in world  trade;  and  by  proviMng  finance  to  help  launch  special  development projects  in agriculture  as  well  as  in other parts  of the  economy. 7 To  be more  specific  and  to  put  things  in  the right perspective,  let me  say that the  Community's  agricultural  imports  reached ,S46  b.illi.on  in  1978  - a figure  which  shows  that  the  Community  is  by  far  the  :·lOrld's  biggest importer  of  agricult~ral products.  Imports  from  developing  countries accounted  for  almost ,S22  billion of that  total  and  are  increasing rapidly  -by  more  than  77  percent  over  the  last five  years. This  has  been  brought  about  by  the  concessions  under  the  recently concluded  second  Lome  Convention,  by  the  increased generalized  ppeference scheme  operative  from  the  beginning of this  yea;~,  and  by  concessions  to countries  in  the  Mediterranean  area. These  are  marked  steps  forwa~d which  are  resulting in  figures  of the magnitude  to  which  I  have  just referred.  These  figures,  of course,  also indicate  that  our  imports  from  the  developed  agricultural countries  are very  significant. This  brings  me  to  the  question  of increased  international cooperati_on  in regard  to  securing a  higher  degree  of stabil  i.ty  in markets  of primary commodities.  Sugar  is  on  the  agenda,  cereals  likeHise. I  should  like  to  point  out  that in a  situat~.on Hhere  the  Community  has  to watch  the  level  of its animal  production,  it is  diffJcult to  justify an increase in  imports  of fodder  for  that  animal  production,  in  the  form  of soya and  to  some  extent  tapioca  - though  there  we  a~e  reaching  agreements bilaterally with  the main  countries  concerned.  To  be  cautious as  regards the  development  of our  animal  production,  yet  be  faced  with ever-increasing imports  of fodder  at  low  prices,  is a  cont,..adiction  in  terms.  Here  there is  an  area  for  further  cooperation  between  agricultural-producing countries.  Perhaps  some  of that  soya  could  be  better used  in  other parts of  the  world  suffering  from  malnutrition. The  Community  provides  large  and  dependable  markets  for  the  produce  of developing  countries.  The  importance  of this  to  their agricultural industries cannot  be  over-esti_mated.  In  providing  them  with  free  or preferential access,  the  Community  members  are  giving  the  same  stimulus  to the  developing  countries  that  they  gave  themselves  by  removing internal trade  barriers. 8 But  we  must  admj_t  that this  is  not  enough.  Developing countries  claim  -and  have  a  right  to  - st  Hl greater  access  to  our markets.  The  Community must  aim  to  meet  this  demand  in the  years  ahead.  This  might very  v1ell imply  - in  the  1 onger  term  - a  change  in  the  Comrnun ity'  s  j_mport  pat  tern. But  freer  access  by  itself is  not  enough.  Agl'icultural  development  can  be completely dislocated  by  price  fluctuations.  That  is why  we  must  ensu1•e greater market  and  price stabilHy in world agricultural  trade  - knm·ring that this  benefits  everyone,  both  produce~s and  consumers.  An  example  of our will  in  this  area  is  provided  by  the  recently  completed  GATT negotiations  where  the  Community  pressed  for  arrangements  that will  help stabilize world  dairy produce  and  beef markets,  and  supported  the establishment  of a  new  world  cereals  agreement.  For  the  Commission  an essential part  of such  an  agreement  would  be  a  new  Food  Aid  Convention with bigger  ta1•gets. The  Lome  Convention  is  another  example  of our will  to  bring about stability.  It not  only  provides  sugar  producers  in the  ACP  countries wUh guaranteed  prices  fixed  at  a  comparable  level  to  that offered  to  Community producers,  but  also  p~nvides guaranteed  access  for  1.3 million  tons  of  raH sugar  a  year.  The  STABEX  system guarantees  the stability of export earnings  for more  than  40  agricultural  products  and  represents  an  important innovation  in  international economic  relations.  It gives  insurance against the  repercussi_ons  of  fluctuations  in  export  volume  and  prices.  The  neH Convention  signed  on  31  October  makes  available about  730  million dollars which  could  be  used  to  stabilize export  earnings.  But  for  this insurance, development  projects  in these  countries  would  be  at the mercy  of falls  in world  commodity  prices  or  of  bad  harvests. The  third  aspect of the  Community's  attempts  to  stimulate  agricultural production in  developing  countries  - in  helping  them  to  help  themselves  -:Ls  the  provision  of finance  for  development  projects. We  attack  regional  problems  inside  the  Community  by  channelling  finance  and technical assistance  into  the  areas of greatest need. We  try  to  apply  something  like the  same  princi.ple  in our  aid  policy  tm,ra,...rls the  developing  countries  in order  to  assjst  the  governments  of  these () ali OFFICE FOR OFFICIAL PUBLICATIONS OF THE EUROPEAN COMMUNITIES Bolte postale 1003- Luxembourg 

Reinforcement of world food security. Speech by Finn 0. Gundelach, Vice President of the Commission of the European Communities, at the 20th FAO Conference, Rome, November 1979. Green Europe Newsletter in Brief No. 6

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