Strengthening the agriculture sector and therefore ensuring food supply security is a crucial step in many developing countries' efforts to achieve self-sufficiency. For this reason, the Netherlands is to donate 100 million euros to the private food sector in such countries over the coming five years. ‘The private sector is key to the food security of people who face hunger on a regular basis. The agri-food industry also creates jobs and, in turn, buying power for many millions of people,’ stated International cooperation minister Ben Knapen at the signing of an agreement to this effect with the International Finance Corporation (IFC) in Washington last Saturday. Because farmers and food companies are often regarded by commercial banks as un-creditworthy, they cannot obtain loans to upgrade their professional skills or develop their businesses. The Netherlands’ financial contribution will be used to guarantee commercial loans, thus reducing the risks for banks. It is predicted that the Netherlands’ contribution will increase the level of investments tenfold, to the tune of 1 billion euros. Whilst in Washington, Mr Knapen also announced that the Netherlands will hold an international networking conference this autumn for experts on food security in developing countries.

Further information:

• www.government.nl