The EBRD President, Thomas Mirow, has called for a greater role for private sector in boosting food output. The European Bank for Reconstruction and Development will support moves to combat price volatility in order to unleash the untapped production potential.

The president of the European Bank for Reconstruction and Development (EBRD), Thomas Mirow, called on the private sector to play a greater role in investments aimed at boosting agricultural productivity and freeing up untapped potential to combat food price spikes and volatility. He also highlighted that the task of ensuring global food security was becoming increasingly challenging. In June 2011, the Commission signed an agreement to reinforce the food security with the UN agencies.

According to Mr Mirow, the private sector played a critical role in reducing volatility and insecurity in food markets. Therefore, private sector firms could boost agricultural productivity, improve operational management across the food chain and address the key question of efficient use of resources, a major concern in a world of growing water scarcity.

Following the launch in November 2011 of its Private Sector for Food Security Initiative, the EBRD could play a key role in helping to support this investment drive from private industry. The aim of the new initiative is to promote private sector investments in food production, enable the implementation of technical assistance, and provide new financing to agriculture companies as well as fostering public-private policy dialogue. The EBRD is already leading the way in agricultural investment as the largest provider of finance to the sector with investments of close to €1 billion in debt and equity in 2011, and a portfolio of more than €3 billion. Strategic priorities include supporting primary agriculture, investing in trade logistics and increasing access to finance for farmers.