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Cousin: Lower commodity prices not reflected in WFP retail food prices

NEW YORK CITY — Ertharin Cousin, the executive director of the United Nations World Food Programme, said here last week that she supports the Obama administration’s attempts to provide more cash for food aid, but she also noted that lower commodity prices have not been reflected in food prices in the countries where WFP is using cash vouchers.

WFP’s relationship with the United States “has never been stronger,” Cousin said, noting that the United States is the largest provider of both commodities and cash to WFP.

In 2014, the United States provided $2.2 billion to WFP, $1 billion in cash and $1.2 billion in the commodities known as “in-kind” food aid.

Ertharin Cousin
Ertharin Cousin
“You will not see WFP rejecting commodities from the United States, but we applaud the increased flexibility that the Congress has given to the administration, that has allowed us to invest more in local and regional purchasing,” Cousin said.

U.S. contributions “should reflect what is needed at country level,” she said, but added, “We want to maintain that support from the farm community.”

Cousin also noted that the recent reduction in commodity prices has not helped reduce WFP’s costs as much in countries in which it is using cash vouchers.

“Where there has been a reduction in the cost of commodities, we seize those opportunities to purchase, to lock in contract purchases wherever we are purchasing food,” she said.

But in responding to the Syrian crisis, which has caused people to be displaced and to move to neighboring countries such as Lebanon and Jordan in which food is available and in which WFP provides vouchers that can be used in stores, she said “we have not seen the reduction in prices reflected in food prices at the retail level.”

Cousin noted that WFP has recently had to cut back its operation helping the Syrian displaced persons and refugees due to lack of funds. About 366,000 persons have lost benefits while benefits to others have been cut in half.

WFP has been providing high-energy biscuits to Syrian refugees at some checkpoints, but is not active in Europe because WFP only goes into countries when asked to do so by governments.

Cousin said she hopes fundraising efforts will allow WFP, which operates on contributions, to restore all its operations to help the Syrians and avoid other cuts.