Analysis of Global Food Problem in Context of the Ukrainian Factor

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Analysis of Global Food Problem in Context of the Ukrainian Factor

Viktor Patiychuk

Myroslava Boichuk

Summary

The content and main causes of the existence of food problem in the world are considered. The factors that have an influence on the the food problem in particular countries and regions are analyzed. The activity of international organizations in solving issues of global food crisis are studied. The main features and ways of the food problem solution in different regions and continents are researched. The opportunities and prospects of Ukraine's participation in solving the food problem in the world are revealed.

Key words: food problem, globalization, development factors, food monitoring, food security, the UN, FAO.

Анотація

Патійчук Віктор, Бойчук Мирослава. Аналіз глобальної продовольчої проблеми в контексті українського чинника. Розглянуто зміст та основні причини існування продовольчої проблеми на планеті. Проаналізовано чинники, які впливають на продовольчу проблему в окремих країнах і регіонах світу. Вивчено діяльність міжнародних організацій у питаннях вирішення глобальної продовольчої кризи. Досліджено основні особливості та способи розв'язання продовольчої проблеми в різних регіонах і континентах планети. Розкрито можливості та перспективи участі України в розв'язанні продовольчої проблеми у світі.

Ключові слова: продовольча проблема, глобалізація, чинники розвитку, продовольчий моніторинг, продовольча безпека, ООН, ФАО.

Аннотация

food crisis planet

Патийчук Виктор, Бойчук Мирослава. Анализ глобальной продовольственной проблемы в контексте украинского фактора. Рассмотрены содержание и основные причины существования продовольственной проблемы на планете. Проанализированы факторы, которые влияют на продовольственную проблему в отдельных странах и регионах мира. Изучена деятельность международных организаций в вопросах решения глобального продовольственного кризиса. Исследованы основные особенности и пути решения продовольственной проблемы в разных регионах и континентах планеты. Раскрыты возможности и перспективы участия Украины в решении продовольственной проблемы в мире.

Ключевые слова: продовольственная проблема, глобализация, факторы развития, продовольственный мониторинг, продовольственная безопасность, ООН, ФАО.

Formulation of Scientific Problem and its Importance. The food problem is important because it concerns many countries and regions of the world. According to official statistics of the Unites Nations the problem of hunger needs immediate solution in almost 40 countries. The number of people who are undernourished, according to the experts, in the future will increase continuously, because it requires events both at local level and at the level of international cooperation and the activities of international organizations, as well as the scientific monitoring. To solve this problem you need to use all the real possibilities of increasing food production in all countries of the world. Ukraine is among the States that have a significant potential in agricultural production for local needs and for exports, which could become an important stimulus for the development of its economy and the real financial revenues and development of investment activity that requires a scientific study.

The Analysis of Researches of this Problem. The research of the food problem as a global phenomenon is engaged with many foreign and national scholars, such as O. Goichuuk, O. Belarus, V. Vlasov, M. Demyanenko, O. Kablukl, S. Podolinsky, I. Korniichuk and others. There are many scientific publications devoted to this scientific topic. In particular, V. Vlasov explores the development of food production in the globalization of the problems of hunger and poverty [1]. Monograph of O. Goichuk «Food Security» dedicated to the improving of the food safety system based on the effective work of the national agri-food industry complex [2]. M. Demyanchuk examines the financial problems of the development of the agricultural market in Ukraine [3]. Y. Poluneev explores the features of the production of grain production in our country in the context of global food issues [11]. The study of food problems in different regions of the world are dedicated to the works of such scholars as P. Sabluk [13], B. Passhavera etc. However, there is not clear scientific opinion of the role of the Ukrainia in solving the global food crisis, which led us to the choice of this scientific article theme.

The purpose of the scientific article is an analysis of the main causes of food problems as a global phenomenon. The main objective of the publication is to identify the major causes of food crisis, as well as taking into account Ukrainian factor in providing the regions of the world with food and explore the role of Ukraine in overcoming this problem.

The Main Material and Justification of the Results of the Study. The food problem is one of the most threatening and requires an immediate solution. Only after the establishment in 1945 the Food and Agricultural Organization (FAO) has started a profound analysis of the providing the world's population with food, investigated the main regions and countries that supply food in the world, as well as an exportimport goods supply on a global scale. According to this organization, the main reason that accelerates global global food crisis is the onset of the global deficit and low level of economic development and significant population growth in some regions of the world [7]. In the face of fierce economic competition many countries are left alone in matters of solving the food problem and are not be able to solve it themselves. Sometimes States do not recognize the existence of hunger in the country due to certain political and economic reasons and sent to export their own agricultural production, which is not enough to meet their own needs, as they do not have other substantial income for the economy of the state. The solution of the food problem requires not just efforts of separate state.

It requires established cooperation of many subjects of international law. So international organizations take care of research and regulation the food problem in the world that conduct monitoring of the situation in regions of the world. They also coordinate their activities in the regulation of food problems on a global scale, such as the Rome Declaration on world food security and plan of action of the World Summit on the problems of food, which were declared at the end of the twentieth century [12].

According to experts opinions, the main signs of food crisis in the country are: lack of funds for the purchase of necessary amount of food to ensure the normal capacity; the inability to buy food to ensure a minimum of vital activity; malnutrition of children up to age five who are unable to gain normal weight; increase the morbidity of the population as a result of mass malnutrition and others [1]. Thus, the world production of agricultural production is constrained by the limited grounds, both in developed countries and in developing countries. It is related with high level of urbanization, the necessity of preservation of woodlots and limited water resources. The most acute food shortage problem faced by the poorest countries, which are unable to allocate significant funds to import food.

Experts select such groups of factors that affect the global food problem:

the natural condition of the population (the total area of agricultural land, and the structure of the agricultural potential, the climate, the ratio between the population and the mass of food, etc.);

the global transport and communication, which provide a wide output of food products on the foreign market;

the political situation in the world (the position of the political forces, the presence of international companies, associations, and the use of food supply in political purposes);

the world economy and trade in their unity (food as a component of trade flows, the role of the balance of payments, clearing) [4].

Among natural factors that have special importance for the solution of the food problem is soil properties, since not all areas of land suitable for cultivation of crops. The structure of its usage in the states and regions of the world is very different. The biological resources of the world ocean have a big importance for food provision of essential humanity. Since the opportunities for expansion of agricultural production in most countries of the world are limited, and the intensification of food production requires considerable expenses, which causes the growth of prices, so the particular interest is the expansion of non-traditional food, including the development of technologies of production of proteins that could be used for the production of new food products [1].

There is inequality in the production and consumption of food in modern conditions of social and political development in the regions of the world. As a rule, there are issues with food in countries where there is not enough developed agricultural production.

It primarily concerns developing countries. Due to the economic development of these countries, they could not overcome the food problem alone. In developing countries, there are almost 85 % of the world population, and there produced approximately 1/3 of the whole food, and consumed slightly more than 1/3 of its world-class [131. The most difficult state of the food supply to the population is in the 40 poorest countries that are included in the so-called «zone of hunger», which covers part of Equatorial Africa and South-East Asia, and Central and South America. These countries include Haiti, Equatorial Guinea, Zimbabwe, the Democratic Republic of Congo, Swaziland, Eritrea, Madagascar, Burundi, Sao Tome, etc. [5].

According to experts opinions, the main reason that speeds up the global food crisis is a shortage of food. The main reason for the shortage of food products is not only the intensive growth of the population in some regions of the planet, but also because of the significant agricultural areas, which are suitable for the cultivation of food produce, but they are used under technical crops that make biofuels. The FAO predicts that demand for biofuels in the next 3 years will increase by 170 % [7]. And the report of the Organization for economic cooperation and development assumes that over the next 10 years, food prices in the world can be increased by 20-50 % [6]. Throughout history the problem issue of stable food provision has been one of the most important, because it is connected with national security.

Experts distinguish the following main reasons that may cause the growth of food prices: higher demand for them in the global scale as a result of the improvement of the general welfare, increasing prices for energy resources and the usage of a significant part of agricultural products to produce biofuels. Due to the food problem in many countries of the world the problem of food security has been appeared. Because of the lack of food in the country, it requires the imports from other countries, which leads to dependence on such supplies. Countries-exporters of food can dictate their terms to the countries-importers, which creates a threat to their security and independence. In the United States and France, the level of selfsufficiency in food products is above 100 %, and in several Western European countries it is approaching 100 % [16].

The main reason of food problem in developing countries is the lack of food, because of rapid population growth, urbanization and specializing in the production of export crops. Many developing countries export coffee, bananas, flowers and other crops that give them the opportunity to pay for the huge external debts. While the production of food crops in these countries is reduced. Free trade of agricultural products on the world market and international agreements within the framework of the World Trade Organization (WTO) allows farmers from developed countries to sell in the developing countries cheap food, which leads to decreasing the level of food security in developing countries [9].

Definition of food security, formulated at the Rome meeting, contains the following elements: physical availability of sufficient, safe and nutritious food; economic accessibility to proper amount of food and its quality for all social groups; autonomy and economic independence of the national food system (food independence); reliability, i.e. the capacity of the national food system to minimize the impact of seasonal, weather and other fluctuations to supply the food for all regions of the country; sustainability, which means the development the national food system in extended play [7].

Food policy is considered as a set of measures designed to solve tasks of development not only production, trade, storage and processing, but also equitable distribution of basic food products, as well as the social development of rural areas. Population growth stays ahead of food production in developing countries, where the traditional system of farming is used. There is lack of funds for developing countries for high-yielding varieties of seeds and thoroughbred animals, for fertilizers and chemicals, for agricultural machinery and the creation of the enterprises for processing agricultural products. For these countries is characterized a single consumer culture. In the countries of South and South-East Asia rice is dominated as the food (75 %), that is called «rice» type of food. «Corn» type of food is characteristic for Mexico, Venezuela and some countries in Central America and East Africa. The same type of food does not meet the physiological needs of the organism, that needs necessary proteins and fats of animal and vegetable origin, carbohydrates, vitamins and minerals [13]. Hunger, malnutrition, lack of vitamins and minerals in the food in developing countries reduce productivity.

Developing countries are forced to import food, spending a significant part of their money from export. It undermines the economy of countries and increases their economic backwardness.

In developed countries there is also food problem, but from the other side. Here are made more animal products and people consume a lot of fatty and sweet food, which leads to overeating. The work in the towns is not associated with large physical activity and does not require increasing the caloric content of the food. In Europe and North America, fats and oils gradually display grain and vegetables. The products of the American type of «fast-food» contain excess amounts of fats and sugars, and are not really useful for human health. As a result, in the United States among the adult population 55 % sufferer from overweight [8]. Similar situation is also in Western Europe. Overeating, as well as hunger, has negative consequences: increased susceptibility to diseases (diabetes, hypertension, etc.), the increase in mortality. With the excessive consumption of food are also connected food allergy, food hypersensitive (symptoms: headache, restlessness, increased aggressiveness, etc.), stomach disease.

According to experts opinions, at the present stage of the socio-political and economic development of mankind there are not the real solutions for global food problems that only proves its complexity [3]. The food situation in the world influenced by the following factors: physical-geographical conditions and placement of the population; development of the world transport and world trade, including grain trade and other. In addition, among the factors should be noted the economic backwardness of the majority countries of the third world, because of low level of development the productive forces of agriculture and in its narrow agricultural and raw materials specialization, poverty and low purchasing capacity of the main mass of the population. In addition, priority in the agriculture of developing countries goes to export technical crops but the food production remains at the level of traditional farms, and the best parts of territory are used under plantation (the legacy of the colonial period). One of the effects of population growth is the lack of drinking water. Global consumption of water for agriculture may increase by 19 %. Up to this point to these needs will be involved almost 90 % of the world's fresh water resources [10]. According to the latest assessment, made at the FAO Conference, the population will also be smaller, but it requires very significant, proportionally higher growth of agricultural production, particularly livestock production, due to the growth of income in the developing countries, especially in China, India, as well as the increased demand for grain in almost all countries of the «third world».

Thus, the food problem is a multipronged phenomenon which affects all social processes and therefore should be considered with the economic system and political system of the country and with national traditions management, etc. [10].

Experts estimate that in 2011-2013 on our planet almost lbillion people didn't get the proper amount of food, accounting for almost 15 % of the total world population [14]. Among them 820 million people were in developing countries, 212 million were found in India, 206,2 million - in Africa, 524 million - in Asia and the Pacific, 52,4 million - in Latin America and the Caribbean, 37,6 million is in North Africa, 25 million in countries with economies in developing countries and 9 million in industrialized countries [7]. Thus, the global food crisis refers to different parts of the world. For example, in Haiti - the poorest country of the Western Hemisphere, one-third of the residents are not getting the required daily amount of calories. Here lives a population of 8 million, 80 % of whom are below the poverty line, and unemployment is about 60 %. Over the past six months, prices of main food (rice and pasta) increased in 2 times [ 8].

More territories in America, in the West and in other parts of the planet, which previously used for food production, now are used under the cultivation of biomass for the production of ethanol and other clean sources of energy in order to reduce pollution and dependence from the Middle East [7]. With the increase of manufacture of biofuels, which is an alternative energy source, radical changes happen. Thus, according to experts researches, since 2000 consumption of cereals for food increased by 4 %, and using them for industrial purposes - more than 25 % [6]. In the USA, according to the Earth Policy Institute, the usage of corn for ethanol production during 2009-2015 increased by 250 % [8]. And this factor contributs to the increase in food prices [9]. According to the World Bank, over the past three years the price for food in the world grew by 83 %, but only since the beginning of 2016 the price of rice has tripled in Asia. Similar processes happen in other countries. If two years ago Cuba - one of the world's major rice importers could buy it for $ 400 for 1 ton, today the price of this product has reached $ 1200 [8]. In 2010 the Global Hunger Index, compiled by the International Food Policy Research Institute, argued that more than 1 billion people suffers from hunger and more than 20 thousand die every day, most of them are children under 3 years [16]. According to experts opinion, the highest level recorded in African countries located South of the Sahara and South Asia [13]. Food is a major strategic raw material in the world, which is rapidly decreased on the planet. The reasons are partly associated with rapid increase of people, and according to scientists opinion, by 2050 the world population will exceed 9,2 billion [13]. Therefore, countries should mobilize all available natural and material resources to maximize food production. Countries - leading exporters of food are both major importers. Thus, the United States, providing a key position in the supply of strategic raw food, also import large quantities of fruits, vegetables, coffee, cocoa, tea, spices and other goods. In 2014 the US food exports reached 1,56 trillion dollars and imports - 2,30 trillion dollars [6]. At the same time in some developing countries, the level of per capita now exceeds 3,000 calories a day, that is on quite acceptable level. This category includes, in particular, Argentina, Brazil, Indonesia, Mexico, Morocco, Syria and Turkey [8]. Thus, according to latest estimates in the 20142015 12 % of the world's population, or nearly one in eight people suffering from chronic malnutrition. In Africa and Sub-Saharan Africa it was 21,2 and 24,8 %, almost one in four or five people don't have the proper amount of food. The proportion of people who do not get enough food was high (19,3 %) and Caribbean countries [7].

Despite the fact that most of the food is consumed where it is made, international trade food is very intense. The volume of global food exports is 300 billion dollars per year. The major participants in the international trade of food - developed countries, primarily the United States, France, Netherlands, Germany. This group of countries make up 60 % of the world exports and imports. About a third part of purchases and sales make countries of Asia, Africa and Latin America. The share of the countries with economies in transition is less than 5 % [8]. Regarding Ukraine, compared to 1991, GDP per capita has increased to only 24 %, while in Uruguay to 214 % and in Poland to 355 % [15].

At the present stage of development of the world economy Ukraine has favourable conditions for the development of new markets for agricultural products, particularly in the regions of the SouthWestern, southern and Eastern Asia, North Africa, and also there are opportunities to increase exports of agricultural products to Europe [5].

According to experts opinion, the agricultural sector is the most potential component of the world economy, which could develop not only at national, but also regional and global scale [11]. Despite the fact that at this time, our country is not made even 75 % of the gross product of agriculture, which was produced in 1990 in Ukraine, but this is the only industry in the country, which in the years of the crisis gives positive results [4]. Selling grain on world markets in recent years has brought our country among the largest exporters in the world. For 2016. Ukraine has increased the production of grain and leguminous cultures compared to 2015 on 100 %, sugar beets on 127,7 %, sunflower seeds on 119 % and potatoes on 104,3 % (table 1).

Table 1. Production of Main Agricultural Crops in 2016 in Ukraine *

* Excluding the temporarily occupied territory of the Autonomous Republic of Crimea, Sevastopol, and part of the zone of the anti-terrorist operation.

The major suppliers of grain on the world market are the United States, Canada, the EU (mainly France), Argentina and Australia. They have a part 9/10 of the world's exports of wheat and coarse grains [8]. Ukraine is also an exporter of agricultural products. The most intensive international trade is made with grain products, as well as (in a lesser extent) seeds and oil fruits of plants (table 2).

Table 2. The Product Structure of Exports in Ukraine in 2015 (Herbal Products, mln USD)*

Table 3

* Compiled by: [5].

In Ukraine is concentrated about third world and 70 % of Europe's existing stocks of black earth, and it is extremely favorable opportunities for securing plants productive wet. In addition, the relatively low are labour costs and high enough practical experience of employees agriculture [2]. Regarding the cost of the investment, then in 1 hectare of Ukrainian farmland should attach about 1000 dollars to get a decent result, and in the EU countries - from 4000 USD. Also, Ukraine is one of the few countries in the world where there are agri-holdings, where there are approximately 150 thousand hectares (EU farm is 5 hectares and it is considered huge). Agri-holdings in Ukraine are vertically integrated - what in unusual in the world [4]. Among the largest countries-importers of Ukraine are not only third world countries - Bangladesh (1 million tons), Egypt (2,5 million tons), Iran (0,4 million tons), Syria (0,3 million tons), Turkey (0,3 million tons), but also the «Top-20» countries - Saudi Arabia (about 3 million tons), South Korea (0,9 million tons), Spain (0,6 million tons), Japan (150 thousand tons), Israel (0,5 million tons) [7]. Therefore, Ukraine has good prospects for solving the problem of hunger in developing countries.

According to WTO researches, Ukraine is third in the world in terms of grain exports after the United States and Argentina; the first export of oil and barley, the sixth is the export of wheat, wheat flour, oilseeds, nonfat dry milk and seventh - export of cheese.

All resources are available in the country for the optimization of agricultural and food production, including advanced port infrastructure (up to 30 million tons per year) [7]. According to experts' opinion from the United Nations, in the coming years, the agricultural production in Ukraine will increase by 40 %, that could bring our country to the second position on the export of grain food products [9].

In 2015 was approved The Sustainable Development Strategy «Ukraine-2020», which was the basic premise of the implementation of agrarian reforms. One of the most important things is the initiative to form the Foundation of a strategic grain reserve in UN. Together with FAO, it is advisable to develop the concept of the creation of the world's grain reserve and to create the place and quotas for Ukraine [5]. The formation of the world's grain reserve may increase the stability of world food markets and the effectiveness of programs that prevent hunger in Africa and Asia. For countries-exporters of grain this is the opportunity to stimulate the development of the real economy. The strategic grain reserves may give financial resources in the real sector of the economy and expand the real values for state reservation.

According to official data, Ukraine is one of the 4 largest agricultural countries in the world, after the United States, Brazil and China, and the second after America on grain export [5]. However, the agrofood potential of our country, according to experts' opinion, is not really developed yet [6]. The UN predicts that in 2050 the Earth's population will grow to 9 billion people, so our country with its resources can become a major participant in preventing global food crisis [8]. According to experts' opinion, Ukraine has the potential to become a key player in resolving the global food crisis [14]. This was said this year at the Ukrainian-American Agricultural Congress in Washington, which brought together government's officials and business leaders from both countries. American investors are ready to invest money in the agricultural sector of our country, but they require the introduction of real economic reforms from the Government and guarantees from international financial institutions.

Conclusions and Perspectives for Further Researches. Therefore, the food problem as a global phenomenon and the food security of every country in the world is an important pressing task for every country of our planet. Population continues to grow and food security of the countries is put at risk. A significant number of fertile agricultural lands are lost each year due to drought and erosion, irrational agricultural activity and increase of lands under the biofuels, so consumption of food will be restricted in the future that will create the lack of food in the future. In this context, we need to explore strategic opportunities for participation of Ukraine in solving the food problem and this requires further research attention.

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