tv Talking Business BBC News June 21, 2022 1:30am-2:01am BST
1:30 am
hello everybody, and welcome to talking business weekly, with me, aaron heslehurst. let's go and take a look at what's on the show. it's called the global food crisis, hunger looms around the world as vital supplies trapped in ukraine drive up prices. i'm going to take a look at some of the effect soaring food costs are having in africa and just how will the developing world cope? i will be discussing all of that with these two, chief economist of the world food programme and the head of agriculture the african union,
1:31 am
also on the show, could technology help africa grasp its agricultural potential? i will be speaking to the big boss of a company helping to spread two spread farming across that vast continent. wherever you are joining across that vast continent. wherever you arejoining me from around the world, a big hello and warm to the showstopping russia's invasion of ukraine has devastated the population, leaving tens of thousands feared dead and millions displaced, destroying lives and uprooting the very fabric of that country. and at the heart of the ukrainian economy is agriculture, and in particular, growing crops, a nation known as the breadbasket of europe, disrupting that
1:32 am
production that production is having a dramatic effect on the global food supply, having a dramatic effect on the globalfood supply, sending global food supply, sending prices globalfood supply, sending prices through the roof. the result is some of the world's poorest countries are now paying more money for less food. millions of tons of grain is trapped in ukraine, either still in the ground or sitting in silos unable to be shipped through the traditional roots as ports lie under siege by the russian navy and transport infrastructure lies in ruins. the blockade has fast become a crisis with russia being accused of using world hunger is a tool of war. the accused of using world hunger is a tool of war.— is a tool of war. the dramatic consequences _ is a tool of war. the dramatic consequences of _ is a tool of war. the dramatic consequences of russia's - is a tool of war. the dramatic| consequences of russia's war are spilling over across the globe and this is driving up food prices, putting people into poverty and destabilising entire regions. and russia is solely responsible for this food crisis. russia alone. wine reaion, food crisis. russia alone. wine region, especially _ food crisis. russia alone. wine region, especially affected - food crisis. russia alone. wine region, especially affected is l region, especially affected is africa, a which are's grew of
1:33 am
conditions, spiralling energy because, years of drought and failed crops have all come together to push the food security to the brink, prompting warnings of the millions of risk at hunger and destitution. and it's notjust ukrainian supplies causing the problem, as western sanctions on russia, also a huge grain and fertiliser supplier are adding further pressure, prompting a visit from the head of the african union to president vladimir putin to plead their case. translation: africa, while _ plead their case. translation: africa, while being _ plead their case. translation: africa, while being very - plead their case. translation: africa, while being very far - africa, while being very far from the theatre of operations is one of the first collateral victims of the war, since africa has a weak economy and cannot adapt to. this crisis has led to the. jo sports on the one hand from ukraine, but also on the other hand from russia, because of the sanctions, so we are there between these two, we told president putin that we accident that absolutely had to facilitate the export of ukrainian seeds but above all russia must also be able to export fertilisers and food products. i
1:34 am
export fertilisers and food products-_ export fertilisers and food roducts. , ,, . , ., products. i must specify that africa is not _ products. i must specify that africa is not asking - products. i must specify that africa is not asking for- africa is not asking for humanitarian aid, we want trade and we're not asking for help on wheat, we have to buy and we can buy, but the market must be it must be supplied. let's just remind ourselves how important russia and ukraine after the global food supply. together, they produce nearly 30% of global wheat exports, almost 20% of corn exports, and almost 80% of sunflower oil and when it comes to africa, they provide around 40% of the wheat they eat. helping to feed some 1.4 billion people, with warnings there are some 80 million people acutely hungry on that continent. since the start of the war as we have said, prices have only been going in one direction, and that after. in turn, these higher prices are leading to rises in food protectionism, as countries hold onto their supplies. with major producers like india banning private wheat exports, which certainly does not help the current
1:35 am
crisis. countries across africa are feeling the pressure mounts, especially those most reliant on food imports, where bread is life. members of the arab spring uprisings back by rising bread prices are fresh in the mind in countries like egypt to get around 80% of their wheat from russia and ukraine, and were nearly a third of the population live in extreme poverty, and on the horn of africa, where countries like somalia, who used to get over 90% of their wheat from russia and ukraine, a warning of famine after years of drought. a further season's robin ukraine is awaiting harvest and the clock is ticking, freeing up the movement of these grants could be the difference between life and death for millions. let's get more on all of this because a little earlier i caught up with the chief economist from the world food programme. doctor eric hussein, a real pleasure having you on the showstopper can we start with this, painting a picture of just how serious the current situation the global hunger is?
1:36 am
thank you for inviting me. let me put it this way. on a scale of one to ten, this is ten plus. the reason why i say that, and i don't say that lightly, is because ukraine is the food basket, the global food basket for about 400 million people. and when that gets disrupted, you feel the repercussions, notjust in ukraine, but around the world, and also, don't forget, this crisis is not happening in reaction. incomes are already really because of covid, inflation is at an all—time high, and infact, in 45 countries, we have inflation upwards of 15%, year—on—year,
1:37 am
and you have currencies around the world tumbling, they lost 25% of their value of the currency in less than one year, so with covid, with incomes going down, with inflation as it is, with governments having to deal with covid, this was the last thing we wanted. it’s the last thing we wanted. it's almost sadly _ the last thing we wanted. it's almost sadly like a perfect storm, and i'm focusing on africa a lot on the show, and i'm wondering, what are your major concerns for that continent?— major concerns for that continent? ., continent? on a good day most --eole continent? on a good day most peeple on _ continent? on a good day most people on africa _ continent? on a good day most people on africa spent - continent? on a good day most people on africa spent 50 - continent? on a good day most people on africa spent 50 to i people on africa spent 50 to 60% of their income on food, so with this crisis, that 50, 60% becomes 70, 80%, don't forget, is not only about food, it is about oil, it is about vegetable oil, what people eat, most poor people eat, so
1:38 am
between gas, oil and food, there is no reprieve, and this is why it is so important to have these safety nets for the poorest around the world so that they don't have to make drastic choices, they don't have to take actions which we also regret like destabilisation, mass migration.— destabilisation, mass mi . ration. ., ~' migration. you think the un, the world _ migration. you think the un, the world food _ migration. you think the un, the world food programme l migration. you think the un, i the world food programme have been too reliant on one nation for its supplies. correct me if i am wrong, 40% of wheat aid you use to get from ukraine? the world has been too reliant on very few exporters, when you look at your wheat, corn, soybean, horse greens like millet, less than ten countries provide 80, 90% of them, less than five countries, up to 80,
1:39 am
90% of those grains. than five countries, up to 80, 9096 of those grains.- than five countries, up to 80, 9096 of those grains. went any shock happens. _ 9096 of those grains. went any shock happens, any _ 9096 of those grains. went any shock happens, any of- 9096 of those grains. went any shock happens, any of these . 9096 of those grains. went any. shock happens, any of these big ones, you will find the repercussions around the world, so one lesson that comes out of this crisis is that we must diversify our export base in larger export bases so we are not in this type of situation going forward, the same goes for reserves. here is the funny thing. as an investor, you would neverjust by one stark, one asset, you would diversify. that would be the smart thing to do, but, for the globalfood security, there is no diversification. how does this make sense? and you know, what really bothers me is it is not a new issue, we went through this in 2008, 2011, we went to this in 2008, 2011, we went to this during covid, and now
1:40 am
again. so we're not good at learning lessons?— again. so we're not good at learning lessons? no, we're not, and _ learning lessons? no, we're not. and you _ learning lessons? no, we're not, and you know - learning lessons? no, we're not, and you know what? i learning lessons? no, we're| not, and you know what? me learning lessons? no, we're - not, and you know what? mejust say i hope, i hope, i hope that countries rethink their agricultural policies, countries rethink their energy policies, if not for the environmental say, policies, if not for the environmentalsay, rethink policies, if not for the environmental say, rethink it from the economic security perspective and geopolitical security. perspective and geopolitical securi . ., ., ., security. the world food programme's _ security. the world food programme's role - security. the world food programme's role is - security. the world food programme's role is to l security. the world food i programme's role is to help feed people in crisis. where do you make up the shortfalls? if you make up the shortfalls? if you use to get 40% of wheat aid from ukraine, who do you turn to now? , . to now? here is something which is uuite to now? here is something which is quite interesting, _ to now? here is something which is quite interesting, you - to now? here is something which is quite interesting, you have - is quite interesting, you have right now, the world will not run out of food suddenly, but what has happened is there has become more expensive, why,
1:41 am
because now inaudible, which cost more, both in terms of time, meaning it takes longer to get it where it is needed but also in terms of freight, so right now, this is a crisis, and our problem is that if we don't start out the process, if we know make sure that the agricultural imports, especially fertiliser goes to africa, and if it does not go on time, we will be talking about and availability crisis come next year, and that will affect the stability of the world. ., , ., ., . world. on that point, how much of a worry _ world. on that point, how much of a worry is _ world. on that point, how much of a worry is the _ world. on that point, how much of a worry is the possibility - of a worry is the possibility of a worry is the possibility of social unrest as a direct result of hunger? we know many of the countries at highest risk are some of the most unstable, so are we at risk of theseissues unstable, so are we at risk of these issues snowballing?
1:42 am
extreme risk. i know people in rich countries and poor countries, they are suffering, and if we look at a stable country like sri lanka, what happened there? a government change many other countries, things are brewing right now, and we need to be careful about that. we need to make sure that we are able to provide their citizens, but provide financing facilities, for the poorer countries so they can buy food, so they can buy fuel, so they can buy fertiliser, and that would go a long way in
1:43 am
minimising risk and unrest, because when it starts, its spreads, it started one place and then it spreads, so it's something that you need to arrest before it happens, because when it happens, it is too late to. because when it happens, it is too late tw— too late to. let me end on this, because _ too late to. let me end on this, because how- too late to. let me end on this, because how much . too late to. let me end on| this, because how much of too late to. let me end on l this, because how much of a concern is everything you have just spoken to me about? all the pictures we have painted, how much of a concern is that for global economic development?- for global economic development? for global economic develoment? �*, ., development? it's a huge concern. _ development? it's a huge concern. i _ development? it's a huge concern, i mean - development? it's a huge concern, i mean it - development? it's a huge concern, i mean it really. development? it's a huge l concern, i mean it really is. but to truly understand that, you have to see that we are coming out of covid. so economies are depressed, people are depressed, there is not enough money to go around, and in that type of environment, when inflation is at record levels in poorer countries and rich countries, when currencies
1:44 am
are falling left right and centre, the more time we take to sort this out the bigger depression, the bigger recession we will see. the quicker we can sort this out the quicker recovery we can see. sever me, if we are now going to do it, do it for yourself, because not doing is not an option for the entire global community.- not an option for the entire global community. thank you for our global community. thank you for your time. _ global community. thank you for your time. a _ global community. thank you for your time, a real— global community. thank you for your time, a real pleasure - your time, a real pleasure speaking to you, good luck with everything i would love to talk to you again soon.— to you again soon. thank you and i really — to you again soon. thank you and i really appreciate the i and i really appreciate the opportunity and i hope we can do something about this. figs opportunity and i hope we can do something about this. as we have been _ do something about this. as we have been discussing _ do something about this. as we have been discussing africa, i have been discussing africa, one of the areas hardest hit by the spiralling cost of food, so
1:45 am
i have been speaking with the commission of agriculture from the continent's biggest club, the continent's biggest club, the african union. ambassador, thank you so much for your time, much appreciated, you coming on the show. can we start with this? what has been the impact of the war in ukraine on africa? i would first of all— ukraine on africa? i would first of all like _ ukraine on africa? i would first of all like to - ukraine on africa? i would first of all like to thank i ukraine on africa? i would | first of all like to thank the bbc for the insight of this topic. and to present my condolences possible to the family of millions of people in ukraine that have lost their loved ones in this war. the last five years, we have been facing a lot of shortage, like on the continent, climate change, invasive species here in the horn of africa. all of these were really undermining these were really undermining the gains that we made in the
1:46 am
past decades. and then came the pandemic. it is also the impact of several shocks that were used to have a population, in terms of population, 236 million people were on the acute angle on the continent for malnutrition.— acute angle on the continent for malnutrition. some people should ask _ for malnutrition. some people should ask should _ for malnutrition. some people should ask should african i should ask should african countries actually worry where their grain comes from? is it still 0k to still be buying from russia, and some will say funding theirwar from russia, and some will say funding their war machine? irate funding their war machine? we alwa s funding their war machine? we always say _ funding their war machine? - always say that in africa we are a net importer of several commodities. net importer of several commodities. when we don't have a necessity to get them, because africa has 60% of them, because africa has 60% of the world's uncultivated, arid land. we have an ecological advantage to plant weeds, so
1:47 am
don't —— wheat, so don't need to import wheat, if it is russia, france, we don't need to import, we need to produce, in order to create wealth, and well—being for our populations. is it fair to say that the wonderful african continent has simply been too reliant on a single source, and i'm talking about russia here? we single source, and i'm talking about russia here?— single source, and i'm talking about russia here? we are not reliant on _ about russia here? we are not reliant on a _ about russia here? we are not reliant on a single _ about russia here? we are not reliant on a single source, i about russia here? we are not reliant on a single source, we | reliant on a single source, we import wheat and fertiliser elsewhere. it is not only russia. may be the bilateral relationship, by country by country, you know? but what i'm saying in the african union policy is to stop these imports. whatever country it is, we should stop importing, we should produce to create jobs, to create stability and to create business security and our continent. if to create business security and our continent.— our continent. if we 'ust look at the current i our continent. if we just look at the current crisis, - our continent. if we just look at the current crisis, and i our continent. if we just look at the current crisis, and the | at the current crisis, and the impact on africa from the war
1:48 am
in ukraine, how worried are you about social unrest? because we know many countries have been rocked, history says it, with high food prices. for instance, in the arab spring recently in sudan, where hybrid prices were a factor in actually bringing down the government. absolutely, we are really worried about it, this initiative of in the forthcoming agricultural season is very important. we need to do something. we cannotjust the war stops. do something. we cannot 'ust the war stops.i do something. we cannot 'ust the war stops. you mention the many shocks. _ the war stops. you mention the many shocks, i'm _ the war stops. you mention the many shocks, i'm just - the war stops. you mention the l many shocks, i'm just wondering how much of this current crisis is driven by climate change? i would determine more than 80% is driven by climate change. more than 80%, because if you look at what is happening now
1:49 am
in earth, if you look at what is happening now in the horn of africa, you know, climate change is definitely making the situation worse. africa is negatively impacted by climate change, even though it is the least emitter of green gas emission —— greenhouse gas emission, so we must invest in climate smart agriculture, that is the way forward. ambassador, how i is the way forward. ambassador, how i have _ is the way forward. ambassador, how i have appreciated _ is the way forward. ambassador, how i have appreciated your- how i have appreciated your time. good luck with everything and i would love to talk to you soon. . ~' and i would love to talk to you soon. . ~ ,., and i would love to talk to you. soon._ let's continue soon. thank you. let's continue with the global _ soon. thank you. let's continue with the global food _ soon. thank you. let's continue with the global food crisis i soon. thank you. let's continue with the global food crisis and l with the global food crisis and the devastating impact it is having on many african nations, with so many of them relying on supplies from russia and ukraine, just how can african farmers grow more of what they eat? i have been speaking to the big boss of one company whose approach to finance and a canny use of technology are being harnessed by farmers to help increase food production and make more money. from a line, it is based in ghana,
1:50 am
west africa, and it has developed a tech platform being used by farmers in 33 countries. lucius attar, a real pleasure having you on my show. can we stop with this, let's take you back on how your company farm line started, originally a decade ago it was just you and a university friend, with 600 bucks. what happened next?— friend, with 600 bucks. what happened next? thank you for havin: happened next? thank you for having me- — happened next? thank you for having me- my _ happened next? thank you for having me. my partner - happened next? thank you for having me. my partner and i i having me. my partner and i started from mallory university commission, to help small farmers grow more food and make more money. they started from our own lived experiences of growing in famine commissions —— communities and seeing how farmers struggle to access very basic technologies that were invented over 100 years ago, high quality fertiliser and seed, intensive training and access to market. we realise that technology, mobile phones were everywhere, we decided to leverage this platform to help farmers get all they need to succeed, to grow more and to make more money, good training,
1:51 am
high quality fertiliser and seed and access to the market. to the uninitiated, me, what you actually do?— to the uninitiated, me, what you actually do? basically the challenges — you actually do? basically the challenges farmers _ you actually do? basically the challenges farmers face, i you actually do? basically thej challenges farmers face, they struggle to access fertiliser and they struggle to access training, so what farmer line does is leveraged a data platform to offer the training. so a training can call in ghana, 399, they can call and ask any question in their native languages. all of these innovations and research has been done that is supposed to been done that is supposed to be helping farmers but it is not readily available to them in a language and format they understand. we let them online and in libraries in hard copy. we take this and we break it down into 60 seconds of audio and messages that were sent to the farmers. that is how to get fertiliser and seed. the challenge around that is logistics and also access to
1:52 am
finance, so we give them the opportunity to pay basically over a period of time. finally at the end of the season when they have grown their crops, we buy it from them, we sell it locally and in some cases we export to india, china and vietnam. export to india, china and vietnam-— export to india, china and vietnam. �* , ., ., vietnam. and you mentioned fertiliser, _ vietnam. and you mentioned fertiliser, gardener, - vietnam. and you mentioned . fertiliser, gardener, wonderful ghana, it is a net importer of fertiliser from ghana, it is a net importer of fertiliserfrom ukraine, so fertiliser from ukraine, so what fertiliserfrom ukraine, so what is the conflict or war in ukraine there done to the supply fertiliser? it ukraine there done to the supply fertiliser?- ukraine there done to the supply fertiliser? it made the situation worse _ supply fertiliser? it made the situation worse to _ supply fertiliser? it made the situation worse to be - supply fertiliser? it made thej situation worse to be honest, but this problem has been there for many years now. let me give you a story. there is this farmer called rita. she only cultivates 20% of her farm, largely because she is not able to access high quality fertiliser and seed, this was way back in 2018. now her cultivation has gone down further. we import a lot of fertiliser, we bring it to the country. the situation in
1:53 am
ukraine has made it scarcer stop the price per metric oz is generally between 20, $280 per metric tonne. now it is at least $1300 per metric tonne, so it is having a massive impact on farmers.- so it is having a massive impact on farmers. how can you help farmers — impact on farmers. how can you help farmers afford _ impact on farmers. how can you help farmers afford fertiliser i help farmers afford fertiliser if they are already struggling? financing goes a long way. today the market basically runs on cash—and—carry. we created an ai on cash—and—carry. we created an al to create a scoring process to get a risk profile. based on this we are able to offer longer financing for them. so farmers only need to put up 30% of the total cost of fertiliser, or 50% to farmerline, and we deliver it to them, so we are solving the problem of logistics, we offer them training for free on how to farm well, how to adapt well
1:54 am
in the farming processes, and we buy from them as well. find we buy from them as well. and let me ask _ we buy from them as well. and let me ask you _ we buy from them as well. and let me ask you this, _ we buy from them as well. and let me ask you this, because you are clearly a very intelligent young man, we know, you went to university in ghana, and you did a course at stanford university in california at their business school. many of the farmers you work with i imagine won't have had the benefit of that kind of education. i am wondering, do you find it hard to persuade them that you and your colleagues are on their side? farmers don't need a lot of persuasion, they need long term allies, and in most cases they already have the solution. they know what has to be done to change their lives, to produce food and make more money. they need allies that can help them to actually make it happen. that is why it is extremely important for us to have local solutions, local champions that are working with these farmers, that will stay with them even through russia and ukraine and even through covid—19. that is what they want, because they
1:55 am
have just seen many people come and go and they want allies. so if you are trying to support farmers as an entrepreneur, the best thing is to listen, listen listen what they have to say because these guys have been doing it for over 40 years, they have the solution, they just need help to bring the solution to life and to actually scale it. so the best thing to do is to listen, build trust, become an ally and work with them for a long time. fin with them for a long time. on that positive point, the big boss of farmerline, thank you for your time. boss of farmerline, thank you foryourtime. i boss of farmerline, thank you for your time. i would love to checkin for your time. i would love to check in with you soon. for sure. check in with you soon. for sure- the _ check in with you soon. for sure. the forward - check in with you soon. for sure. the forward to i check in with you soon. fr?" sure. the forward to staying in touch. . , ., , touch. that is it that this week's chauffeurs i touch. that is it that this week's chauffeurs that l touch. that is it that this i week's chauffeurs that hope touch. that is it that this - week's chauffeurs that hope you enjoyed it. follow me on twitter, tweet me, i will treat you back. you can get me at bbc arran. thanks for watching. i will see you soon.
1:56 am
hello. tuesday promises a long day ahead, quite literally — the longest day of the year. it is the summer solstice, and for shetland, we're looking at close to a whopping 19 hours of daylight. i can't promise you 19 hours of sunshine here, however, because there is a weather front closing in on northern scotland, and that will mean more cloud around, maybe even some rain through tuesday, although it should brighten across scotland later in the day. quite grey initially, with some drizzly rain, but by the afternoon, skies should brighten, especially in the east, and we could see some isolated showers breaking out. for the clearest of the skies and the best of the sunshine, england and wales will be the place to be, and here, the top temperatures returning to the mid—20s.
1:57 am
cooler for aberdeen, as we see that weather front slide south. pollen levels come down somewhat across scotland, in response to the weather front being in place, but still remain very high across england, wales and northern ireland. tuesday evening, some more fine weather around, and more sunshine until quite late into the evening, and then, as darkness falls, clear skies continue across england and wales, a little bit more in the way of patchy cloud in scotland and northern ireland. 0vernight lows typically in double figures, somewhere between the 10—12 degree mark. for wednesday into thursday, we've still got high pressure trying to push across the uk. this little ridge from the west, so actually quite a lot of fine weather to come for both wednesday and thursday, and no really dramatic changes in our weather story — perhaps more sunshine across central and eastern scotland, and here, we should see temperatures responding to that and pushing up into the low—20s. still cooler though for the northwest of scotland with more cloud, but look at england and wales — 28 degrees, actually seeing some significant heat returning, through wednesday, and i think thursday's picture will be very similar indeed
1:58 am
for england and wales. the chance of a few showers closing into the south coast, spilling up from the continent, but they should be few and far between. for scotland and northern ireland, perhaps a little more cloud around, but temperatures up to 20 in belfast and aberdeen. it's the end of the week, though, where it looks like things will start to turn more unsettled, and into the weekend, showers becoming more widespread, the wind picking up and the temperatures sliding down.
2:00 am
welcome to bbc news, i'm david eades. our top stories: political upheaval in israel — the coalition government falls apart, the prime minister stands down and yet another election is looming. the united nations is accused of covering up, abuse and corruption within its ranks — former un members tell the bbc they were bullied for speaking out. no—one can tested unless removing them immunity. colombia's largest active guerilla group says it's prepared to take part in peace
25 Views
IN COLLECTIONS
BBC News Television Archive Television Archive News Search ServiceUploaded by TV Archive on