CURRENT STATUS OF THE FOOD SECURITY SITUATION IN

UNCLAS GUATEMALA 000782 AIDAC SIPDIS FOR DCHA/FFP/JBORNS DCHA/FFP/CLAURENT LAC/CAM/KSEIFERT LAC/RSD/KBYRNES E.O. 12958: N/A TAGS: EAID AFIN DCHA PGOV PREL KDEM GT FPC SUBJECT: CURRENT STATUS OF THE FOOD SECURITY SITUATION IN GUATEMALA Summary: Food supplies of the rural poor remain below normal due to reduced food crop production caused by erratic rainfall and by reduced use of fertilizers due to high prices. The end result is reduced crop yields. This makes access to minimally adequate food supplies problematic for the rural poor. The QEl NioQ phenomenon is expected to produce warmer temperatures and lower rainfall in important food production zones and is projected to last until early 2010. There has also been a decrease of 11% of remittances during the first semester of 2009 as compared to the same semester of 2008, thus affecting many rural families who purchase some or most of their food. The Government of Guatemala (GoG) approved a contingency plan to assist approximately 187,000 families living in 1,900 highly food insecure communities, as categorized by the Food and Nutrition Secretariat (SESAN). The plan is estimated to cost nearly US$9 million and involves providing over 11,000 metric tons of commodities to those at greater risk. However the GoG does not have the funding required for this plan and is likely to approach the international donor community for assistance. End summary. Currently, below normal household food supplies and above normal prices of basic food stuffs pose a serious food security threat to thousands of poor families, especially those living in the "dry corridor" that stretches from the eastern department of Chiquimula to the western department of Quiche. The press reports a surge in acute malnutrition cases. These signs of a deteriorating food security situation in the context of Guatemala's broad and systemic malnutrition problems bear close attention. Guatemala has the highest national levels of chronic malnutrition on children under the age of 5 (49 percent) in the Western hemisphere. These chronic malnutrition levels among children are ethnically and geographically bound and strongly concentrated in rural indigenous communities where they average 69 percent. In May 2009, the Government of Guatemala (GOG) approved a contingency plan that would assist 186,561 families in 1,901 communities that are categorized with moderate to high food insecurity according to the Food and Nutrition Secretariat (SESAN). These communities are located in 136 municipalities prioritized by the GoG Conditional Cash Transfer Program known as Cohesion Social. The cost of this emergency plan is approximately US$9 million which includes the cost of 11,000 metric tons of commodities and transport to the centers of distribution. However, the GOG does not have the funding to cover this plan and is approaching different donors to help fund the implementation of this program. The Meso-American Food Security Early Warning System (MFEWS) food security outlook for the period from July through December 2009 reported that due to the rainfall irregularities during the months of May and June and high prices of agricultural inputs such as fertilizers and pesticides, crops were affected and up to 50 percent of both maize and beans was lost in some areas. This year the annual hunger season started one month early (March) because of reduced yield due to last yearQs high prices of agriculture inputs such as fertilizer throughout the country. All of these factors will make the food security situation for the poor households in Guatemala worse. In July, the climatic phenomenon of QEl NioQ was declared by the U.S. Department of Commerce, National Oceanic and Atmospheric Administration (DOC/NOAA) and it is expected to QAtmospheric Administration (DOC/NOAA) and it is expected to continue through early 2010. In the case of a typical phenomenon of QEl Nio,Q dry and warm conditions are expected in much of the country. The last Central American Climate Outlook forecasted that during the next three months rains will remain below normal in the eastern departments of Guatemala. All of these factors indicate that yields for the second crop of basic food stuffs planted in August and harvested in November is likely to be reduced. This indicates a high likelihood of further deterioration in the household food security of thousands of subsistence farmers in 2010. During the first week of August, MFEWS, SESAN, World Food Programme, Action Against Hunger and the National Peace Fund will carry-out a rapid assessment of the impact of the financial crisis, the closing of apparel sourcing factories and the reduction of remittances on Guatemalans. Data from the Central Bank indicate that there has been a decrease of 11 percent in remittances during the first semester of 2009 compared to the same period in 2008. This is likely to affect the access to foods of poor and middle-class families over the coming months, especially in the central, northeast and west of the country. It should be noted that the cost of the basic food basket in June 2009 was $238.44, a value which is higher than the minimum salary of $192.88, and higher than what most poor rural families earn. In light of these factors affecting the food security of poor Guatemalans, USAID/Guatemala along with MFEWS will continue to closely monitor the situation and report on any critical developments. Some possible recommendations to mitigate the impact of the expected decreases in food security include monitoring with the GOG and international organizations in the following areas: (1) the production of crops; (2) the amount of reserves that families have in the rural area of the country; and (3) the climate. USAID will continue to advise the GOG regarding the use of improved varieties of seeds for the second planting season (drought resistant) and for the implementation of their approved contingency plan. McFarland