International Food Aid: U.S. and Other Donor Contributions

International Food Aid:
U.S. and Other Donor Contributions
Charles E. Hanrahan
Senior Specialist in Agricultural Policy
Resources, Science, and Industry Division
Carol Canada
Technical Information Specialist
Knowledge Services Group
Summary
The United States is the world’s major provider of international food aid to low-
income developing countries. This report provides three indicators of the U.S.
contribution to global food aid: (1) shipments of major donors compiled by the
International Grains Council, (2) U.S. contributions to the United Nations World Food
Program (WFP), and (3) the U.S. commitment under the Food Aid Convention (FAC).
U.S. food aid accounted for 58% of food aid shipments by major donors during

1995/96-2006/07. A substantial portion of U.S. food aid is channeled through the WFP.


During 1996-2008, around 48% of donor contributions to the WFP came from the
United States. The Food Aid Convention (FAC), now expired, was an agreement
among donor countries to provide a minimum amount of food aid to low-income
developing countries. The food aid commitment agreed to by all FAC signatories in
1999 was approximately 4.9 million metric tons (mmt). The United States pledged to
provide 2.5 mmt or 51% of the total commitment.
Contributions of Major Donors to International Food Aid
The United States is the major contributor to international food aid, supplying on
average, since 1995, around 58% of the annual total food aid donated by members of the
Food Aid Committee of the International Grains Council (IGC) and signatories of the
1999 Food Aid Convention (Figure 1).1 U.S. contributions of 2.8 million metric tons
(mmt) measured in wheat equivalent in 1995/1996 rose to 7.1 mmt in 2001/2002


1 Information on the International Grains Council, the Food Aid Convention, and the Food Aid
Committee is available at [http://www.igc.org.uk/].

(Appendix Table 1).2 U.S.Figure 1. Food Aid by Major Donors, 1995-2007


shipments of commodity
food aid were 3.9 mmt inEU 26.3%

2006/2007. U.S. contribu-Japan 5.6%


tions have averaged 5.8
mmt annually. Food aidCanada 5.2%
from the European Union
(including food aid providedAustralia 2.8%
by the European Commis-Other 1.9%
sion and by individual EU
member countries) has been
more stable and averaged
around 2.6 mmt or 26% of
average annual food aidUSA 58.1%
shipments. Japan and
Canada provided 6% and

5%, respectively, of the totalSource: Food Aid Shipments 2006/07, International Grains Council Food Aid Committee.


from major donors. Japan’s
contributions are provided as cash rather than commodities. The United States contributes
commodities, while the European Union and its member countries provide a mix of cash
and commodities.
Because the IGC’s food aid data are reported on a July/June marketing year basis,
they do not correspond, for example, to fiscal year food aid data reported by the U.S.
Department of Agriculture in budget documents or by the U.S. Agency for International
Development in annual food aid reports. The source of the data in Figure 1 and
Appendix Table 1 is the annual report Food Aid Shipments, prepared by the Food Aid3
Committee of the International Grains Council.
Food Aid Contributions to the World Food Program
Most U.S. food aid is provided on a bilateral basis, but a substantial portion is channeled
through the United Nations World Food Program (WFP), the intergovernmental agency
that provides food aid for development projects and humanitarian relief in low income
countries. More than 56 donors, mainly countries, but also some non-governmental
organizations and private corporations, contribute to the WFP. The United States is the
major donor, providing over the last 12 years around 46% of total WFP contributions
(Figure 2 and Appendix Table 2). Over that same 12-year period, the EU (again
combining European Commission with EU member countries’ contributions) accounted
for around 30% of total WFP contributions. Japan, whose contributions are in cash,
provided around 6%. The remaining donors combined provided about 18% to WFP food
aid resources. Donor contributions to the WFP are not in addition to, but are included in,
the data reported in Figure 1 and Appendix Table 1.
2 Data on food aid shipments provided by the International Grains Council are reported on a
marketing year basis (July-June).
3 International Grains Council, Food Aid Committee, Food Aid Shipments 2006/2007: Report
on Shipments by Members of the Food Aid Convention, May 2008, viewed at
[ ht t p: / / www.i gc.or g.uk/ downl oads/ publ i c at i ons/ f as/ f as0607.pdf ] .

Commitments under the Food Aid Convention
The Food Aid Convention (FAC), first agreed to in 1968 during the Kennedy Round
of multilateral trade negotiations held under the auspices of the General Agreements on
Tariffs and Trade (GATT), was an international agreement that constituted a framework
of cooperation on food aid
between major donors. TheFigure 2. Food Aid Contributions to the World
food aid commitment underFood Program, 1996-2008
the FAC was a minimumUSA 46.2%
commitment and was in-
tended to be a guarantee of
food security for low-
income developing coun-
tries. The signatories of the
FAC were Argentina, Aus-
tralia, Canada, the European
Union and its memberJapan 6.2%
countries, Japan, Norway,Other 17.7%
Switzerland, and the United
States. Signatories could
provide more than theirEU 30.0%
minimum commitment. The
current FAC was negotiated
in 1999 and expired in*Data as of May 4, 2008.Source: World Food Programme.

2003.


Under the FAC, the donors could express their annual food aid commitments in
either tonnage or in value, but most continue to use the former. Japan is the major
exception, although the EU also provides some food aid in the form of cash. The total
commitment under the most recent FAC (1999-2003) was 4.9 mmt (see Figure 3 and
Appendix Table 2). The United States made the largest commitment, 2.5 mmt or 51%
of the total. The combined
EU commitmentFigure 3. Food Aid Commitments under the Food
(Commission and memberAid Convention


countries) was around 27%.EU 27.0%
Commitments by Canada,
Japan, and Australia were,
respectively, 8.6%, 6.1%,Canada 8.6%
and 5.1%. Only two ofJapan 6.1%
eight FAC signatoriesAustralia 5.1%Norway 0.6%Switzerland 0.8%
(Norway and the UnitedArgentina 0.7%
States) have met or
exceeded their FAC
commitments on average
over the life of the FAC
(1999-2003).
Although the FACUSA 51.1%
expired in 2003, a working
committee of the IGC wasSource: International Grains Council Food Aid Committee, Food Aid Convention.

established to prepare for its renegotiation.4 The Food Aid Committee of the IGC
continues to meet periodically to review donor food aid contributions in relation to
commitments under the 1999 FAC and to global food needs and has agreed that the
existing FAC should be extended for a further two-year period from July 1, 2005.
Concurrently, trade-related aspects of food aid are being negotiated in the multilateral
trade round known as the Doha Development Agenda (DDA). Renegotiation of the FAC,
however, appears unlikely until the future of DDA trade negotiations has been
determined. The next meeting of the Food Aid Committee of the IGC is scheduled for
October 2008.
Table 1. Annual Commitments under the Food Aid Convention
(metric tons wheat equivalent)
Average Food
AnnualAid Shipments
Commitment s P ercent 1999-2003 P ercent
Arge ntina 35,000 0.72% 553 0.01%
Australia 250,000 5.11% 235,242 2.42%
Canada 420,000 8.58% 386,859 3.98%
EU 1,320,000 26.97% 2,072,822 21.34%
J a pan 300,000 6.13% 550,945 5.67%
Norway 30,000 0.61% 109,318 1.13%
Switzerland 40,000 0.82% 62,217 0.64%
USA 2,500,000 51.07% 6,294,145 64.81%
T otal 4,895,000 100.00% 9,712,101 100.00%
Source: International Grains Council Food Aid Committee, The Food Aid Convention.


4 IGC-FAC Press Release, 8 December 2004, viewed at [http://www.igc.org.uk/press/
pr041208.htm].

CRS-5
Appendix Table 1. Food Aid by Major Donor, 1995/96-2006/07
(in metric tons wheat equivalent)
Annual Average
Metr ic
1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 T o tal P ercent Tons
na 13,400 10,135 2,740 26 26,301 0.03% 2,630
a 298,146 305,127 293,221 273,064 296,713 251,865 245,828 203,820 177,984 168,083 180,667 114,530 2,809,048 2.79% 280,905
448,764 468,431 417,917 487,095 470,640 293,477 412,082 499,382 351,168 437,341 448,534 474, 438 5,209,269 5.18% 520,927
2,413,991 2,049,691 2,201,162 1,969,892 1,970,768 2,357,778 1,836,717 1,980,781 2,218,065 2,151,958 2,853,063 2,488,053 26,491,919 26.33% 2 ,649,192
474,870 326,835 302,626 561,643 337,357 637,749 531,755 666,910 580,953 578,261 354,289 318,964 5,672,212 5.64% 567,221
6,233 32,816 19,306 61,293 75,960 85,876 74,318 144,927 165,510 145,586 196,034 179,408 1,187,267 1.18% 118,727
and 75,479 38,636 57,915 38,939 61,295 54,169 58,042 67,892 69,689 71,854 61,608 71,051 726,569 0.72% 72,657
iki/CRS-RS212792 ,849,384 2,553,283 2,818,500 4,734,121 5,692,116 6,798,280 7,124,407 6,054,197 5,801,724 5,363,186 4,830,710 3,869,162 58,489,070 58.13% 5,848,907
g/w6 ,580,267 5,774,819 6,110,647 8,136,182 8,907,589 10,479,194 10,283,175 9,617,909 9,365,093 8,916,269 8,924,905 7,515,606 100,611,655 1 00.00% 10,061,166
s.or
leak
International Grains Council Food Aid Committee, Food Aid Shipments, various issues.


://wiki
http

Appendix Table 2. Food Aid Contributions to the World Food Program, 1996-2008
(thousand dollars)
As of
May 4,
199619971998199920002001200220032004 2005200620072008Total
of
ca 494,980 408,380 876,284 718,856 795,676 1,210,543 933,217 1,459,324 1,044,168 1,174,918 1,123,113 1,183,068 362,728 11,785,255
Union603,981550,522522,397461,800442,495436,559560,653620,929692,984876,111747,096763,064373,3317,651,922
o mmission 196,873 237,254 184,645 168,098 117,509 118, 411 179,205 201,463 200,501 263,940 265,762 250,437 32,451 2,416,548
ountries 407,108313,269337,752293,702324,986318,149381,448419,466492,483612,171481,334512,627340,8805,235,374
stria 4 ,774 4,910 3,853 3,710 2,854 1,117 3,302 2,199 2,189 4,344 1,839 3,776 3,414 42,281
gium 19,472 17,416 16,908 10,782 6,284 5,294 5,748 8,480 10,750 13,952 11,132 17,644 15 143,876
prus 5 400 656 1,061
Republic981,236308561572,260
nmark 53,064 44,248 43,384 46,900 41,908 39,385 39,964 39,335 43,247 52,838 43,817 44,339 50,480 582,909
iki/CRS-RS21279land 16,045 13,768 13,801 15,345 15,219 14, 467 17,445 17,793 17,860 23,557 18,319 25,403 18,736 227,758ce 19,203 21,884 24,742 27,693 26,170 35,929 14,457 14,939 30,288 37,676 25,689 33,762 9,140 321,572
g/w
s.orrmany 96,036 68,487 61,779 53,089 46,750 58, 088 60,920 46,458 65,126 70,721 59,621 65,680 28,456 781,211
leak150 170 25 1 130 200 16 3,637 4,201 5,081 3,214 16,825
://wikir y 65 120 65 65 315and 3 ,149 4,284 4,378 5,021 7,639 7, 317 10,390 11,815 13,684 19,708 31,005 34,244 9,187 161,819
httpy 34,876 9,112 10,632 20,817 19,936 36,060 38,016 40,480 47,613 47,908 12,321 31,268 41,544 390,584
huania 112 306 418
embourg 218 270 130 1,205 1,735 2,919 3,913 5,413 10,681 15,387 11,951 11,338 65,160
therland s 78,804 45,972 45,532 55,003 62,801 59,481 58,795 50,422 77,738 115,348 79,985 75,630 54,232 859,743
d 356 200 1,200 755 2,511
akia 25 30 48 44 147
enia 33 97 107 47 284
n 13,720 12,245 2,725 2,511 3,256 3,946 2,607 5,357 17,553 11,595 16,993 29,641 13,716 135,865
eden 33,164 35,985 29,511 28,415 30,778 27,711 31,167 42,341 44,540 84,259 58,520 64,863 61,290 572,545
ited Kingdom34,43434,78980,21224,28460,05627,62095,718135,734115,884114,264100,37266,85136,014926,231
124,032 98,991 123,757 106,438 260,099 91,139 92,896 129,938 135,730 160,528 71,190 118,710 69,653 1,583,101
thers 222,166 253,647 204,811 268,274 252,853 165,999 222,338 362,983 342,017 515,410 762, 467 647,917 294,903 4,515,785
AL 1 ,445,159 1,311,540 1,727,248 1,555,369 1,751,123 1,904,241 1,809,104 2,573,174 2,214,899 2,726,967 2,703,866 2,712,759 1,100,615 25,536,063
World Food Program. Data available at [http://www.wfp.org].