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Viewing cable 08PARIS1004, France on Food Security

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Reference ID Created Released Classification Origin
08PARIS1004 2008-05-28 09:21 2011-08-24 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Paris
VZCZCXRO4709
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHFR #1004 1490921
ZNR UUUUU ZZH
R 280921Z MAY 08
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 3156
RUEHRN/USMISSION UN ROME 0012
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
UNCLAS PARIS 001004 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR EAID ECON TBIO FR
SUBJECT: France on Food Security 
 
REF: STATE 1372030 
 
1. (SBU) Summary: Econ Counselor raised reftel points 
on the President's global food security initiative 
with Francois Giovalucchi, advisor to Cooperation 
Minister Joyandet, and Florence Lasbennes, Cooperation 
Economic and Agricultural Development Office Chief, on 
May 19.   Giovalucchi and Lasbennes: said France 
shared concerns on export restrictions; maintained 
that France was open to a role for agricultural 
biotechnology in emerging markets as long as 
appropriate regulatory authorities were in place; and, 
took points on Doha on board without comment. 
Lasbennes said the GOF was finalizing longer-term 
policy proposals, which it would have in time for the 
June 3 - 5 FAO Summit on World Food Security (which 
President Sarkozy will attend).  Separately Post 
provided points to the Ministry of Agriculture and to 
the Ministry of Economy.  End summary. 
 
2. (SBU) Giovalucchi and Lasbennes said in the near- 
term France would double its 2008 food aid from 30 to 
60 million euros and boost amounts provided through 
cash-for-work programs targeting the urban poor.  The 
GOF was most concerned about the coming three months, 
notably in the sub-Sahel where stocks had been 
depleted and populations were nearing the limits of 
reserve capacity. 
 
3. (SBU) France's Agricultural Research Center for 
International Development (CIRAD) was in the process 
of finalizing a report for the GOF's inter-ministerial 
group on food security that would inform a longer-term 
policy response to the crisis (a report that would be 
made public).  With branches throughout the developing 
world - and notably in West Africa -- CIRAD was well- 
placed to provide informed analysis, Lasbennes said. 
Pending completion of the report the GOF's focus was 
on improving aid efficiency, and food aid and market 
"architecture" consistent with MDG-8, and within the 
framework of the UN's Global Food Security Task Force. 
 
4. (SBU) CIRAD's initial findings showed considerable 
variation from commodity to commodity, and thus a 
situation that escaped easy generalization.  Wheat has 
been on an upward trajectory for ten years, rice has 
climbed much more recently.  Lasbennes noted that 
while CIRAD found that growing emerging market demand 
played a role in price increases, demand growth had 
actually decelerated over the past year.  The findings 
also showed that in real terms today's price spike was 
less severe than that of the 1970s. 
 
5. (SBU) Lasbennes pointed to the entrance of hedge 
funds into agricultural commodity markets -- 
particularly rice -- as a factor in price volatility. 
Price increases had largely been captured by 
intermediaries, she said, and had yet to cycle through 
to the farmer. 
 
6. (SBU) Comment:  On bio-tech, Doha and, more 
broadly, faith in market adjustment mechanisms, making 
common cause with the French on a long-term approach 
to the food crisis will be a challenge.  We can expect 
the French political class to find grist for continued 
bashing of speculators and "market manipulators" in 
the profit-taking of hedge fund and other market 
participants on agricultural commodity price swings. 
Some of that worldview will inform French long-term 
thinking on food security policy, and we should be 
prepared to respond appropriately. 
 
STAPLETON