172nd Session of the FAO Council Opening Statement

172^nd Session of the FAO Council

Opening Statement

By

Dr QU Dongyu, FAO Director-General

24 April 2023

 

Independent Chairperson of the Council,

Members of the Council,

Excellences,

Ladies and Gentlemen,

Dear Colleagues and Friends,

 

I am pleased to be addressing you at the Opening of this 172nd Session of the FAO Council, my 11th Council session since taking office as FAO Director-General on 1 August 2019.

 

Today, I am proud to stand before you as Director-General of a more dynamic and professional Organization. An Organization that is more fit-for-purpose to better support its Members, as we move closer to the deadline for achieving the 2030 Agenda and the SDGs.

 

We have continued taking moving forward on our path towards achieving the Four Betters – Better Production, Better Nutrition, a Better Environment and a Better Life for all, leaving no one behind. With more focus and attention to the ones further left behind, and the most vulnerable population groups including rural farmers, women, youth and indigenous peoples.

 

We are one third of the way into 2023 - the Year of Excellence - and I am proud of the excellent results achieved so far. Our challenge in 2023 is to continue working towards achieving our collective long-term goal of transforming global agrifood systems to be more efficient, more inclusive, more resilient and more sustainable, while effectively addressing the multiple adversities affecting us globally.

 

FAO continues to be in the forefront of global efforts to respond to the food security crisis. Over the past months, food and fertilizer prices at the global level declined and in March 2023, the FAO Food Price Index was 20.5 percent down from its level a year before, generally reflecting improved global availabilities.

 

However, while prices have fallen in world markets, food price inflation is still a serious concern in many countries, and food prices continue to rise in local markets, hindering access to food, especially for poor and vulnerable populations.

 

In response to a request by the G20 Leaders, FAO, together with the World Bank and the World Trade Organization, launched a report in April 2023 on assessing the global responses to the food security crisis. The report emphasized the need for a unified approach and recommended improving the supply of development finance to support agricultural investments, and promote inclusive and sustainable economic growth in rural areas.

 

I returned yesterday from the G7 Agricultural Ministers’ Meeting where I emphasized the need for collective actions to meet immediate and longer-term global food security objectives, and on how the G7 should take a leading role in leveraging their economic and political power to enhance global food security by:

• One: increasing investment in agriculture by promoting sustainable agricultural practices, increase agricultural production and improve food supply chain logistics to ensure adequate available and affordable nutritious food for all;

• Two: providing financial assistance to developing countries that suffer from food insecurity to improve their agricultural productivity and food management systems;

• Three: promoting research and development for innovative technologies to enhance resilience and adaptation of farmers to climate risks;

• Four: addressing climate change by reducing their carbon footprint and mitigating the impacts of the climate crisis that negatively affect food security; and

• Five: providing emergency food assistance during food crises, in coordination with relevant international organizations, due to conflicts and natural disasters.

 

Structural drivers – such as urbanization - are pushing agrifood systems towards new difficulties, and this will be the focus of the 2023 Report on the State of Food Security and Nutrition in the World (SOFI) currently being prepared, which will analyze the links between urbanization and agrifood systems. By 2050, 7 in 10 people are projected to live in cities, and for this reason the FAO Green Cities Initiative – which has now entered its second year of implementation - aims to support urban transformation and a green economy, to ensure food security by developing new business models.

 

FAO’s work on resilience is ongoing, and it continues to grow and to innovate, as prospects for acute food insecurity in 2023 continue to be of concern. FAO continues to analyze and monitor the situation in highly vulnerable countries. For instance, a nationwide data collection on agricultural enterprises and rural households was conducted in December 2022 to better understand the impact of the war on Ukraine's agriculture sector and help design a tailored evidence-based resilience building program.

 

Since the start of 2023, FAO has also continued expanding its normative and operational work on Anticipatory Action, including through the development and implementation of a 3-year strategic programme for 2023-25.

 

Since December 2022, FAO has been continuing steady progress in its two major digitalization streams, namely Digital for Impact - to enhance digital targeted interventions for agriculture in the field - and Digital Workplace to ensure a cost-effective, sustainable and secure digital environment supporting the delivery of FAO’s mandate.

 

Furthermore, in the first quarter of 2023, the FAO Digital Services Portfolio has continued working with countries on strengthening advisory support for extension services to assist farmers.

 

Small Island Developing States (SIDS) are among the most affected countries from the impacts of the climate crisis. Through the FAO-China South-South Cooperation umbrella programme, we have implemented over 25 projects, and a new USD 5 million contribution received in early 2023 will be used to assist SIDS to accelerate transformation and build sustainable and resilient livelihoods.

 

FAO is committed to supporting the implementation of the Doha Programme of Action for the Least Developed Countries (LDC5), including through our active contribution to the Roadmap, as set out during the 5th UN Conference on the LDCs which I attended in Doha in early March this year.

 

More and better public and private investment and finance solutions are critical to transform our agrifood systems, and the bold reform of the FAO Investment Centre has expanded its partnerships and services to ensure it is fit for purpose. In 2023, with the start of the second year of implementation of its Transformation Plan, the Investment Centre is strengthening its focus at the country level, including through the FAO Hand-in-Hand Initiative.

 

To advance its commitment to achieve gender equality and women’s empowerment, FAO launched a Report on The Status of Women in Agrifood Systems in April 2023, which provides new data and analyses on the challenges rural women face in agrifood systems.

 

Water continues to be high on FAO agenda. FAO successfully engaged in the 2023 UN Water Conference held in New York in March this year, and submitted 7 commitments to the Water Action Agenda.

 

FAO also successfully organized the Second International Forum on Water Scarcity in Agriculture (WASAG), hosted by Cabo Verde in February 2023, and the Praia Call for Action emphasized the need to step-up collaborative actions on water scarcity in agriculture.

 

As a follow-up to the Rome Water Dialogue held in October 2022, FAO is supporting Members, upon request, in the design of country-specific National Water Roadmaps through country-led dialogues and participatory processes. A Regional Workshop for Africa on National Water Roadmaps was held in Zimbabwe in February this year to present and discuss the initiative in the region, with the participation of over 30 African countries.

 

The Global Forest Resources Assessment 2025 reporting cycle started in the first quarter of 2023, and is the only official UN system data on forests related SDG indicators globally.

 

Through Blue Transformation FAO's work in fisheries and aquaculture continues to promote the effective management of aquatic living resources and the development of capacities to ensure equitable outcomes for all. The launch of the Global Sustainable Aquaculture Advancement Partnership in December 2022, in collaboration with the Chinese Academy of Fishery Sciences, aims to unlock the contribution of aquaculture in targeted countries by building partnerships and facilitating knowledge and technology transfer.

 

FAO also continues to support countries in their efforts to combat illegal, unreported and unregulated (IUU) fishing and in March this year a first series of regional workshops were held with a focus on the new FAO Voluntary Guidelines for Trans-shipment,

 

With regard to FAO’s work on livestock transformation and animal health, FAO completed the first Global Assessment on the “Contribution of Terrestrial Animal Source Food to Healthy Diets for Improved Nutrition and Health Outcomes”, to be launched in April 2023.

 

Recognizing its reputation in One Health implementation, FAO was selected in February 2023 as an Implementing Entity of the Pandemic Fund, and FAO was involved in the submission of 63 Expressions of Interest by eligible countries and regional entities.

 

FAO is currently finalizing the Action Plan of the new thematic Strategy on Climate Change, taking into consideration inputs received from Members. The adoption of the Kunming-Montreal Global Biodiversity Framework by the COP15 in December 2022 is key for the implementation of the FAO Strategy on Mainstreaming Biodiversity across Agricultural Sectors as half of the targets relate to agrifood sectors.

 

FAO launched the updated Framework for Environmental and Social Management on 30 January 2023 that will ensure FAO projects do both “no harm” and support the transformation of agrifood systems by upholding the highest international standards for risk management.

 

The Joint FAO/IAEA Centre launched its first astrobiology project in late 2022 designed to understand the effects of cosmic radiation and microgravity in outer space, and the seeds that were sent to outer space are now in the joint centre laboratories for in-depth research.

 

Since the start of year, several initiatives have also been launched to kick off the implementation of the Action Plan of the new FAO Strategy on Science and Innovation.

 

FAO recently launched the Innovation Fund supported by an Incubator, a pioneering programme to foster a culture of continuous innovation and learning, and in March this year FAO awarded funding to 8 innovation proposals as part of this initiative.

 

The Science and Innovation Forum is now an integral part of the annual World Food Forum, and this year’s theme will focus on climate action.

 

Preparations are underway for World Food Forum 2023, with the youth providing the inspiration and dynamism needed to keep the momentum high, working collectively to change the scale of the Forum for it to become the world event on food and agrifood systems issues, with a strong focus on youth, private sector partnership and investment, and science and innovation.

 

The past year has seen great progress in FAO’s engagement with the private sector. As we build on lessons learned and prioritize new directions, 2023 will be a year of expanded and transformative private sector engagement. Working across sectors to find solutions has never been more urgent.

 

To support implementation of the FAO Strategy for Private Sector Engagement, an informal Private Sector Advisory Group was established to act as an advisory, consultative forum to boost FAO's engagement. The first meeting of the Advisory Group was held on January 2023 and was attended by selected Permanent Representatives, and 25 Advisory Group members, including representatives from farmers' organizations, micro, small and medium-sized enterprises, and large multinationals and industry associations. We expect to hold two meetings a year and to discuss how FAO can further expand and deepen its strategic partnerships with the private sector, improve outreach and engage with even more impact to support sustainable agrifood systems transformation.

 

We continue to see progress in mobilizing voluntary contributions. In the first 3 months of 2023, FAO mobilized a total of USD 407 million in voluntary contributions, which represents a 30% increase when compared to the same period last year. In the 2024-25 biennium, we foresee the delivery of extra-budgetary resources reaching approximately USD 3 billion.

 

Following the launch event of the Country Projects for the Implementation of the One Country One Priority Product (OCOP) initiative, the first meeting of the Regional Organizing Group for Africa was held on 8 March 2023, during which the group’s Terms of Reference were endorsed. The meeting also kicked off the OCOP project in Malawi to drive development of the banana value chain, and in Uzbekistan, an inception workshop was held to launch the OCOP project focused on sweet cherries.

 

This is the third year we have presented a comprehensive HR annual report to our governing bodies, through recent the Finance Committee session, on progress made in HR developments with significant results in all areas. Updated flexible working arrangements were implemented in March this year, finding a balance between flexibility and office presence, supporting an inclusive environment, addressing needs of our employees and teamwork in the office.

 

We continue to also work closely with the FAO Women’s and Youth Committees as part of our overall engagement with employees to drive culture change and reform. This includes monthly consultation and meetings with the Staff Representative Bodies on a wide range of issues of concern to employees.

 

FAO has progressed on the implementation of outstanding audit recommendations, and will continue to make every effort to maintain momentum to achieve a high closure rate by end of the year. In terms of internal audit, OIG has been actively collaborating with management on the implementation of the open agreed actions.

 

The Ethics Office’s 2022 Annual Report, shared with the Finance Committee in March this year, details the many achievements of the past year, including management of personal conflict-of-interest risks. Furthermore, a number of training sessions on the Annual Disclosure Programme were held over the past months to raise awareness and help increase compliance, and further drive a culture of transparency and accountability at FAO.

 

FAO is fully engaged with Members to strengthen their agrifood systems regulatory frameworks, in particular on the role of legislation in anchoring policies and implementing international commitments at national level. Over the past months, FAO has been developing a dedicated umbrella programme to support Members to develop capacity to ensure compliance with national agrifood systems laws.

 

The global context in which FAO’s Programme of Work and Budget (PWB) 2024-25 proposal was prepared is critical. The importance of food and agriculture given the current global situation, and to achieve the SDGs cannot be underestimated.

 

We are facing ongoing, complex and overlapping crises, all of which continue to affect global food security, especially in the poorest countries and among vulnerable populations. In this context, the transformation of global agrifood systems for the achievement of the 2030 Agenda has become urgent. FAO is effectively using its unique role as a global knowledge organization, and its distinctive position as a UN Specialized Agency, to inform and influence a global response that can seize the many opportunities for the needed transformation.

 

The FAO Strategic Framework 2022-31 provides a robust and flexible roadmap to help ensure that FAO can effectively contribute to achieving the 2030 Agenda. Under the overarching objectives of the Four Betters, the 20 Programme Priority Areas (PPAs) ensure we capitalize on the wealth of FAO’s multidisciplinary technical expertise to tackle longstanding challenges and to respond to emerging priorities.

 

In 2022-23, FAO stepped up to the challenge by harnessing the full scope of the Strategic Framework, as well as through its leading role in global governance for food security and nutrition. In the 2024-25 biennium, FAO stands ready to further strengthen its response to the food crisis and other multiple and overlapping global challenges.

 

The recently approved thematic strategies will further enable the Organization to increase impact in these critical cross-cutting areas of work in the 2024-25 biennium and beyond.

 

Through the Hand-in-Hand Initiative, for example, FAO brings advanced geospatial modelling and analytics to accelerate market-based agrifood systems transformation to raise incomes and improve the well-being and resilience of poor and vulnerable populations – with 61 countries currently participating.

 

We will continue to work ONE FAO to optimize human and financial capital, and ensuring a modern and efficient country offices network. We have the elements in place to be able to respond efficiently, effectively and coherently to global challenges, in line with FAO’s mandate.

 

But we cannot do it alone, we must do it together.

 

FAO’s current regular programme funding situation has reached a critical “tipping point”. It is critical that our core resources are protected from further loss after 12 years of a flat nominal budget.

 

For the 2024-25 biennium, I am therefore presenting a net appropriation budget with cost increases to preserve purchasing power parity with 2022-23. FAO has now faced 6 successive biennia of a flat nominal budget in its regular assessed contributions, causing a decline of 7% in the Organization’s purchasing power to over the past 12 years.

 

As requested by Members, we have prepared a number of budgetary reduction scenarios - under all reduction scenarios, the Organization’s technical capacity would be reduced. Even while we continuously seek to identify efficiency savings, any further reductions would result in a corresponding reduction of the Organization’s capacity to deliver and meet growing demands.

 

I am convinced that together, with mutual and collective commitment, and with solid partnerships, we will be able to deliver on our shared ambition of ensuring a prosperous and equitable future for all, leaving no one behind.

 

Let us continue to work together in our fight against hunger and poverty, which is the real enemy in front of us.
A consensual approval of the proposed budget level will be a powerful sign that we are indeed ONE FAO.

 

Thank you.