By David Beckmann
In 2006, the United States provided 6 million tons of food aid to agencies such as CARE, Catholic Relief Services, World Vision and Save the Children...why would any agency reject U.S. food aid?
Yet that's exactly what CARE did last July, when officials announced that beginning in 2009, CARE will forgo $45 million a year in U.S. food aid. The organization based its decision on disagreement with a practice known as monetization, the process of selling some of the U.S. food abroad in order to raise needed cash for development projects and administrative costs...CARE maintains that the sale of this food in the fragile markets of recipient countries competes with the sale of food produced by local farmers, causing prices to drop and lowering farmers' income. After careful study, CARE has determined that the benefits of monetization are simply not worth the costs....
Originally food aid programs were seen as a way of disposing of large surplus food stocks owned by the federal government....But those government surplus stocks no longer exist. Today the U.S. government purchases food through regular U.S. commercial channels. The law requires this; it favors agribusiness interests and U.S. shipping companies even though the end result is higher-priced commodities and transportation. If the aid groups were allowed to consider cheaper sources of food and transportation, they would save both money and time.
The law also requires that the vast majority of food aid donations be made into ready-to-eat products or otherwise processed before being shipped. At least 75 percent of food aid must be shipped on U.S. flagships, despite the fact that our domestic shipping fleet is small and normally more costly than its international competitors. The bottom line? More than half of the U.S. food aid budget is consumed by administrative and transportation expenses.
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