Last week the World Food Program held talks to discuss how to ration critical international food aid, this week, the USAID is doing the same.

The soaring price of basic foods – like wheat, corn, rice and other cereals – over the past half year is creating a funding deficit likely to reach $200 million by the end of 2009. USAID currently provides food to almost 40 countries and areas – including Ethiopia, Iraq, Somalia, Honduras and Sudan’s Darfur region. Now the agency must decide how and where to scale back.

From this weekend’s Washington Post:

“USAID officials said the administration, facing a tight budget year, was not planning to request funds to cover the projected $200 million shortfall from the price increases. USAID purchases grains in the same domestic commodities market as the U.S. companies that serve up Wonder bread or Big Macs, meaning they pay the same high market rates. As a result, officials said, the program cuts are necessary. “At this point, this is the administration’s request,” Borns said yesterday…

Frank Orzechowski, an adviser for Catholic Relief Services, said his organization has calculated that U.S. food aid would drop from 2.6 million tons last year to about 2.2 million this year. “That is going to be a pretty big hit for the people who can afford it the least,” he said.

“The biggest concern is that there are going to be more people being pushed into food insecurity in poor countries because they don’t have the purchasing power to cover higher costs, and we will be less rather than more prepared to cope with that. Higher commodity prices is not a situation that the U.S. is to blame for, but we are going to need to see it step up now and decide to make a greater contribution anyway.”

The full article here.

-Virginia Simmons