Food Shortage And Sustainable Investment
In the last few years, the agriculture sector has witnessed a sharp rise in food prices
. Rise in poverty and global warming is being predicted to cause more shortage of food and clean drinking water in the years to come. Developing nations are being said to be the worst affected with such global issues. If experts are to be believed, the present need is to adopt the concept of environmental sustainability and invest in countries that have untapped potential for food production. For instance, countries such as Ukraine, Russia and Kazakhstan hold good potential for export and agricultural production. Therefore, responsible investment along with effective policies for sustainable development is required to make sure these developing countries also play an important role in solving global food crisis.
Apart from socially responsible investing, government policies of these countries will also play an important role. Unless the agriculture sector doesnt offer a supportive platform for ethical investing opportunities, financial firms from all sectors will not be motivated to invest money in such economies. Agriculture has been declared a national priority in Russia and the amount of sustainable investment in this sector has also been increased as per the government policy. The annual support of RUB 66 billion (2.6 billion US$) from the state in 2007 will be increased to RUB 130 billion (5.2 billion US$) in 2012. Efforts are being made to create effective support systems so that government and public private responsibilities can be combined for good results.
More attention is required on factors that can affect the profitability of food production. With sustainable investment in facilities related to storage, transportation and handling of produce, loss occurring after crop harvest can be avoided. This will not only prove effective in farmers getting a fair price for their produce but the farm profitability will also increase considerably. With key agricultural produce becoming expensive, policymakers across the world are including the topic of food price inflation on top of economic policy. Since the problem of high food prices is not just limited to food importing countries, effective measures will be required from all over the world to solve this issue.
by: Kevin long
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