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18 January 2023
The journey of food – Young Macedonian artist wins FAO’s World Food Day poster contest 2022
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16 January 2023
Call for Participation to Tender for Consulting Services for Land Consolidation in North Macedonia – Land Re-allotment Planning and Main Technical Design of Agricultural Infrastructure Interventions in Chiflik
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22 December 2022
How the entrepreneurial dream of Filip became reality?
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The Sustainable Development Goals in North Macedonia
The Sustainable Development Goals are a global call to action to end poverty, protect the earth’s environment and climate, and ensure that people everywhere can enjoy peace and prosperity. These are the goals the UN is working on in North Macedonia:
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18 January 2023
The journey of food – Young Macedonian artist wins FAO’s World Food Day poster contest 2022
North Macedonia is largely an agriculture country, with smallholders and family farms cultivating two-thirds of the country’s arable land. World Food Day inspired Mihaela Stojmenovikj, a 17-year-old student from Skopje to portray the important work of family farmers, who are ensuring that our agrifood systems provide us with a variety of nutritious foods.
With her poster, Mihaela won the first prize in FAO’s 2022 global World Food Day poster contest in the 16 – 19 years age category.
Michaela’s poster is a combination of twelve scenes, each detailing a different food story. These stories form the cells of a honeycomb that symbolizes the food system, in which bees play a fundamental role in propagating the plants that underpin our food security, nutrition, and the environment. The vignettes tell the journey of food from farm – farmer plow land, raise livestock, milk a cow, and harvest grapes, there are vineyards, a maize field and apple orchards in bloom and production, while bees buzz at the apiary – to the green markets and ultimately, to our tables.
Michaela has previously won several artistic contests and she was very excited to use her creativity to participate in the global call to action for the 2022 World Food Day. She hopes that, together with her fellow contestants around the world she is helping to spread the word that by aiming for better production, better nutrition, a better environment, and a better life, we can achieve a Zero Hunger world where no one is left behind.
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16 January 2023
Call for Participation to Tender for Consulting Services for Land Consolidation in North Macedonia – Land Re-allotment Planning and Main Technical Design of Agricultural Infrastructure Interventions in Chiflik
The EU-funded project “Enhancing Land Consolidation in North Macedonia”, co-funded and implemented by the Food and Agriculture Organization of the United Nations (FAO) has launched a public tender (Reference number: 2023/CSAPC/REUDD/120213) for the provision of ‘’Consulting services for Land Consolidation in North Macedonia – Land Re-allotment Planning and Main Technical Design of Agricultural Infrastructure Interventions in Chiflik”.
Activities to be carried out as part of this tender include developing and implementing a Land Re-allotment Plan and designing agricultural infrastructure interventions in the land consolidation area of Chiflik village. More specifically, the contractor should conduct valuation of the agricultural land in Chiflik, in accordance with the Law on Valuation and the Methodology for valuation of assets in agriculture; develop a Land Re-allotment Plan following the majority-based land consolidation approach, in accordance with the Law on Consolidation of Agricultural land; prepare Main Technical Design for rehabilitation/construction of agricultural infrastructure in Chiflik, in accordance with the Law on Construction, the Law on Agricultural Land and other pertinent legislation; prepare Geodetic Elaborate for registration of the new ownership situation in the Agency for Real Estate Cadastre and conduct on-field surveying (staking out) of the new parcel boundaries in the land consolidation area.
Potential bidders can be all companies registered in the Ministry of Agriculture, Forestry and Water Economy (MAFWE) Register of Land Consolidation Service Providers, which possess License B for civil engineering planning issued by the Ministry of Transport and Communication (MTC) of North Macedonia, and are licensed by the MTC for real estate valuation or by the MAFWE for valuation of assets in agriculture.
In order to access the tender documents and submit a proposal, interested companies should first register in the United Nations Global Marketplace (UNGM) portal (www.ungm.org/Vendor/Registration), as only UNGM registered companies are eligible to participate. After successful registration, companies will be able to access the tender documents and submit their proposals through the same UNGM portal (www.ungm.org/Account/Account/Login).
The deadline for submitting an electronic proposal for the tender is 20 February (Monday) 2023, no later than 13:00 hrs, CET.
Background note:
The land consolidation area of Chiflik is located in the Cheshinovo-Obleshevo Municipality, in the Eastern Region. It covers 156 hectares (ha) of agricultural land, fragmented into 1 263 irregularly shared land parcels, with an average parcel size of 0.12 ha, owned by 438 landowners. Chiflik is characterized by mainly flat terrain with fertile arable land and favorable natural conditions for the predominant rice production. The initiative for land consolidation in Chiflik derived from the local landowners, who expressed interest for land consolidation to the Ministry of Agriculture, Forestry and Water Economy in 2017, and the area was selected as eligible for land consolidation in 2018, under the EU-funded MAINLAND project.
As a first Phase in the land consolidation process, a Feasibility Study for land consolidation in Chiflik was carried out in the period from February – July 2019. The study examined the agricultural land and agricultural production structure in Chiflik, the landownership situation, all existing property and legal issues, assessed the interest and commitment of the landowners to participate in land consolidation, their individual preferences, as well as the community needs for agricultural infrastructure improvements. Based on the detailed analysis, it was identified that conducting land consolidation in Chiflik is feasible and that the vast majority of the registered landowners are interested in land consolidation. Based on the Feasibility study, the next step will be to proceed with Land Re-allotment Planning in Chiflik, following the majority-based land consolidation approach, as Phase II of the land consolidation process, and designing the agricultural infrastructure interventions - rehabilitation/construction of agricultural infrastructure (access roads, drainage and irrigation channels) in the land consolidation area, as Phase III in the land consolidation process.
About the EU-funded ‘’Enhancing Land Consolidation in North Macedonia’’ Project
Building directly on the results of the MAINLAND project, this project aims to assist MAFWE in further enhancing land consolidation in North Macedonia by improving the national policy on land consolidation, including strategic, legal, and institutional frameworks, as well as to continue supporting the implementation of the National Land Consolidation Programme through a full-fledged implementation of land consolidation projects in two project areas, combined with construction of agricultural infrastructure. The Project budget is EUR 1.2 million, financed from the EU IPA II 2019 Assistance (EUR 1 million) and FAO contribution (EUR 0.2 million). The project will be implemented over a period of 42 months, starting from August 2022 until January 2026.
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Story
22 December 2022
The new National Youth Strategy 2023-2027 is underway
Initiated on the basis on the Law for youth participation and an assessment of youth trends in North Macedonia, this new National Youth Strategy is created following a tailor-made Methodology for inclusion and participation of all stakeholders in the field of youth.
LINK https://www.youtube.com/watch?v=tumLuu-LVDs&t=3s
The celebration of the International Youth Day on the August 11th was occasion for announcing the creation of the National Youth Strategy. The process started with the launching conference on October 17th in Skopje uniting 150 participants - representatives of youth organizations, institutions, international community and young people. The participants have defined the vision and the objectives of the strategy for the next five years.
In the period between October and December, wide consultations in different forms with young people took place. Thematic groups were organized in each of the topics covered by the National Youth Strategy: youth participation, education, youth information, youth work, security, culture, health, and employment. Total of 24 working groups took place involving relevant institutions, civil society organizations and young people from all around the country. Moreover, consultative meetings were organized with youth from political parties, umbrella youth organizations and high-school students.
Furthermore, online consultation process and participation campaign took place on the social media. Namely, eight thematic questionnaires for consultation of young people were distributed widely through social media and other communication channels. The U-report tool was used to reach more young people from across the country. An Instagram profile was created so that youth-friendly information would be widespread among the youngsters. Short videos filed by young people were promoted online as invitation for youth involvement in the process.
LINK VIDEO https://www.facebook.com/UNDPMK/posts/pfbid027EzRkUHuMwA3TNzxMbw5SccXWutQJd1Au7wtW6A3k4ZwZD3MoxPnEnfsWrGFpRXhl
The process continues in 2023 with consultation of the young people on local and regional level and organization of 10 local events. The draft version of the Strategy will be publicly available for consultation in January/February 2023. The Strategy is expected to be discussed on Governmental level from March 2023.
The new National Youth Strategy comes as a response to the changing environment for young people in the post-COVID and world crisis period. This new context brings additional challenges for the young people in all spheres of life such as education, health, employment etc. Creating sustainable youth policies will put the focus on the young people in the society and create better conditions for their development.
The creation of the National Youth Strategy is supported within the project “Youth 4 inclusion, Equality and Trust”, funded by UN Peacebuilding Fund. This 2-years regional project is implemented by four UN agencies: UNDP, UNFPA, UN Women and UNESCO in Albania, Bosnia and Herzegovina, Kosovo[1], North Macedonia and Serbia.
[1] All references to Kosovo shall be understood in the context of the UN Security Council Resolution 1244 (1999).
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Story
22 December 2022
How the entrepreneurial dream of Filip became reality?
Marking the International Day of People with Disabilities with the inspiration story of Filip Nakov from Skopje - a young, ambitious, and hardworking entrepreneur, owner of the Digital Marketing Agency "Nakov Media".
Filip, as part of the Self-Employment Programme for People with Disabilities, was awarded with grant to purchase the necessary equipment and materials to start the business, and today he is tackling the challenges of the market, competition, and consumers side by side with all entrepreneurs.
Filip is sending a powerful message against stereotypes in the community and discrimination in the business environment. "Disability exists only in the physical world", he says.
UNDPMK is implementing the programme as part of the Operational Plan of active labor market measures in partnership with the Ministry of Labor and Social Policy and the Employment Service Agency. As of 2022, 135 unemployed persons have completed entrepreneurship training and 115 persons have established their own businesses.
Watch the video: https://www.youtube.com/watch?v=Ow8tqsaNdU8
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Story
22 December 2022
UNFPA Regional Workshop on Comprehensive Sexuality Education
The regional workshop discussing the current situation in the domain of comprehensive sexuality education with the participation of representatives of national institutions, teachers, civil associations, youth, and UNFPA Country Offices from the Western Balkans, was held in Skopje, North Macedonia.
The topics of the workshop, organized by the UNFPA Office in North Macedonia, are supporting young people in the process of sexuality education, capacity building among teachers, and cooperation with institutions in this area. Participants from North Macedonia, Kosovo (UNSCR1244), Albania, Serbia, and Bosnia and Herzegovina have a chance to share their experiences on how young people acquire knowledge, skills, behavior, and values that would enable them to have better health, well-being, as well as healthy social and sexual relationships.
The participants of the event discussed the possibilities and lessons learned from the application of comprehensive sexuality education, in and out of school, in the countries of the region, as well as from global practices. Although the implementation of such education differs in the countries of the region, the participants emphasized that progress can be seen in recent years.
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Press Release
28 December 2022
Systematic solutions as an answer to the global food and energy crisis
Skopje, December 21, 2022. - At the conference entitled "Look further", which was held today in Skopje in the organization of the United Nations, representatives of several UN agencies together with international experts and representatives of the government discussed the key measures that the Republic of North Macedonia is taking and should take plans in the future in order to overcome the challenges in the food and energy crisis.
"The current crisis is in many ways unprecedented. However, the root causes and drivers are neither new nor surprising and reflect our inability to prioritize the advancement of the Sustainable Development Goals. Policy solutions are complex. We need to respond to the immediate needs to lift people out of poverty, but we also need to support businesses in order to save jobs, with concrete measures to ensure the best possible results with the available resources. Most importantly, policies should be systemic, sustainable and visionary to ensure that, despite the challenges, we remain strongly focused on sustainable growth and development. That requires timely and accurate data, cooperation and coordination," said the UN Resident Coordinator, Rossana Dudziak, at the opening of the conference.
During the panel, the Vice Prime Minister for Economic Affairs, Fatmir Bytyqi, emphasized that the problems should be solved systematically. "If they are not solved systematically, the problems increase. For example, we have been talking about digitization for years, but it was only superficial and not essential. Digitization requires a fundamental change in the behavior of stakeholders and citizens. We have not entered any segment to solve the problem in the way we should solve it", says Bytyqi. "Regarding the energy crisis, we understand that production is important, but we knew that we are 35 percent dependent on energy imports. It was nice because the price was good. As soon as a crisis comes, everyone asks why the problem is not solved. That problem is not solved overnight. The problem is again systemic. It should have started to be solved 10 years ago, and that in the field of alternative energies. Green energy. We are now trying to get old timers back into traffic with little intervention. But that is not a solution. The solution is green energy, a transition to green energy," added the Deputy Prime Minister for Economic Affairs.
The deputy representative of UNICEF, Artur Ayvazov, pointed out that shocks from price growth disproportionately affect households with more children and poorer families, due to their lower incomes and the greater share of food and energy consumption in their household budgets. Rising food prices leave these families with very little means to meet other basic needs. Ayvazov indicated that the Government should consider additional measures to reduce the burden on children and other vulnerable groups, including by expanding the access and volume of existing cash transfers and to ensure that the budget crisis does not disrupt basic health care services. , social protection and education.
Addressing the conference, the Deputy Regional Representative of FAO for Europe and Central Asia, Nabil Gangi, emphasized that from a long-term perspective, it is important to consider the structural causes of the food crisis, and in order to have a better approach to solving this problem, distinguishes between issues affecting access to food and issues affecting food availability. In terms of access to food, the situation is multidimensional and reflects the complex interrelationship between food, energy and financial crises. According to Gangi, addressing food security challenges caused by current crises requires an "agri-food systems" approach, which FAO promotes to act outside the usual sectoral frameworks. It is a systematic combination of policies, investments and solutions focused on sustainable improvements in productivity and efficiency, greater resilience and ensuring enough healthy food for all.
"Empirical research shows that a well-developed financial system can increase growth by up to 1 percent, and more importantly, reduce poverty. Financial systems contribute to encouraging savings and channeling them into investments, which are important for increasing the volume of capital and productivity, which in turn are the main determinants of long-term growth," said the Governor of National Bank of the Republic of North Macedonia, Anita Angelovska - Bezhoska. "The importance of finance is especially great in these crisis circumstances that emphasize structural weaknesses and the need for a green and digital transformation of the economy. It is positive for us that credit support for green transformation is growing, i.e. loans for this purpose in the past three years have recorded an increase of 80%", says Angelovska - Bezhoska.
According to the Permanent Representative of the UNDP, Armen Grigoryan, the crisis will probably continue in 2023 and it is difficult to predict in which direction things will develop. "UNDP and other UN agencies in the country, together with other development partners, are here to support institutions and citizens and contribute to public dialogue and consensus building around specific policies and other measures that will contribute to addressing current development challenges and the impact of the global crisis. However, we now have a better understanding of the vulnerabilities and root causes of the crisis, internal and external factors, and propose systemic pathways in response to the crisis. One of the things that should be paid attention to is the gray economy, which, according to research, amounts to somewhere around 35 percent entering the system, to pay taxes. The second thing is the encouragement of small and medium-sized enterprises and regional cooperation," Grigoryan said.
The Minister of Finance, Fatmir Besimi, emphasized that the past three years, which have been marked by crisis, have moved the mid-term framework of the planned fiscal targets, aimed at the consolidation of public finances and their long-term sustainability. "But at the same time, the policy makers give us the opportunity and show us where in the system we need changes. That's why we think it's good to implement the reform agenda in crisis episodes."
He added that this year, contrary to expectations, was not a year suitable for fiscal consolidation, and there was a need for measures to support citizens, the economy and for greater production of electricity from domestic capacities to deal with the energy and price crisis.
"In these conditions, the Government successfully resorted to rationalization of the expenditure side of the Budget, with which the achieved deficit is largely kept within the framework of the fiscal targets, which by 2027 should be reduced to 2.8% of the GDP budget deficit and public debt below 60%", said Besimi.
The goal of the United Nations agencies, UNDP, FAO and UNICEF, together with national and international partners, is to find sustainable and long-term solutions that will respond to the needs of vulnerable groups and at the same time support growth and development, in conditions of high inflation. and modest financial resources.
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Press Release
09 June 2022
The United Nations in North Macedonia launches 2021 Annual Results Report
"SDGs are not just an additional plan for the world but are a shared vision and therefore we must embrace their transformation and implementation. In order to achieve the 2030 Agenda, North Macedonia remains fully committed to the development of institutions and partnerships that will enable sustainability for present and future generations", underlined the Minister of Foreign Affairs Bujar Osmani.
The report focuses on the results that have been achieved and the lessons learned during 2021, the first year of implementation of the joint UN-Government 2021-2025 Sustainable Development Cooperation Framework (SDCF).
“COVID-19 crisis reminded the whole world that we are all interconnected and that we need to work together towards sustainable development and that no one is left behind”, says Rossana Dudziak, UN Resident Coordinator in North Macedonia. “This report showcases how working together can contribute to achieving better results with our collective efforts.”
Following the priorities identified in the 2021-2025 SDCF, the report records progress in the areas of inclusive prosperity, quality services for all, healthy environment, and good governance.
Among many others, some of the results highlighted in the report are the 6,822 new jobs for young people that were created, more than 500 companies that received advisory and digitalized services, the consolidation of 1,078 hectares of agricultural land, the economic revival, and the return to in-person education. Also, the employment picked up, especially for women, who suffered the most during the pandemic, but less so for youth, which remains of concern.
A total of 24 UN entities worked closely with over 130 partners in North Macedonia and their work is aligned with the country’s national development and strategic priorities, its international human rights and gender equality obligations, as well as commitments towards achieving Agenda 2030 and the Sustainable Development Goals (SDGs).
Online version of the report is available in three languages, English, Macedonian and Albanian at the following link.
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Press Release
29 April 2022
New FAO–North Macedonia programming framework for a more competitive, sustainable, and resilient rural economy
Priorities of FAO’s new CPF for North Macedonia (2021–2025) are consistent with the priorities of the Government, the country's Strategy for Agriculture and Rural Development 2021–2027, and the United Nations Sustainable Development Cooperation Framework 2021–2025, with a view to facilitate food system transformation and progressive alignment of agriculture and the rural economy with European Union (EU) standards and the Sustainable Development Goals.
The accord was signed by Nabil Gangi, FAO Deputy Regional Representative, and Ljupco Nikolovski, Minister of Agriculture, Forestry and Water Economy of North Macedonia during their meeting today with FAO Director-General Qu Dongyu.
“This framework is a continuation of the long-standing partnership between FAO and North Macedonia and our joint efforts to advance agricultural development, empower smallholders and family farms, and invest in a sustainable and food-secure future of Macedonian people,” said Nabil Gangi, FAO Deputy Regional Representative.
"We are ready to continue the activities and the excellent cooperation with FAO through which the Ministry, the Government and the citizens of our country see the benefits directly on the ground. I will only mention the success we have achieved with the ongoing agricultural land consolidation projects under the National Land Consolidation Programme, through which we achieved historic progress in improving the structure of agricultural land, which has ultimately contributed to reducing costs and increasing farmers’ incomes. The cooperation with FAO is abundant, there are many joint projects that are of great interest to the country," said Minister Nikolovski.
Agriculture is one of the key sectors of the Macedonian economy and a critical employer in rural areas, accounting for 12 percent of the gross domestic product and some 22 percent of total employment. Still, the sector’s development is hampered by many challenges, including, but not limited to, agricultural land fragmentation, limited access to productive assets (such as infrastructure, land, water, energy, knowledge, and financial services), weak value chains, and high vulnerability to climate change.
Having this in mind, FAO is ready to support North Macedonia in two main areas; building a stronger rural economy aligned with the EU standards, with focus on small farms and women farmers, and enhancing climate action, natural resources, and disaster risk management.
More specifically, FAO will support the Government of North Macedonia in formulating effective policies and enabling investments for rural transformation, improving agricultural land structures and land market mobility, modernizing production, strengthening value chains, and ensuring climate-smart, resilient agriculture.
Support to the Ministry of Agriculture, Forestry and Water Economy will continue to implement the ongoing land consolidation projects under the National Land Consolidation Programme and further scale up the programme at national level, as well as other land market instruments.
Through knowledge sharing and other means, FAO will help the Ministry and other relevant partners in formulating policy measures for improved advisory, veterinary, and phytosanitary services, as well as in the European Union approximation efforts in the areas of animal health management and food safety and quality, to meet the national needs and global challenges in the food value chain.
Under the second priority of the programme, FAO will support the country’s climate action efforts. This includes sustainable management of natural resources (land, water, forestry, and biodiversity), building climate resilience of agricultural production, and reducing disaster risks in agriculture. Boosting the climate resilience of smallholder farmers in many ways – including more efficient input use, high-quality data for decision-making, climate-smart agriculture, and expansion of irrigation systems – will be a key area in this regard.
‘’Achieving these results is possible with strong Government commitment and support from resource partners as well as with FAO’s contribution through its Technical Cooperation Programme (TCP). The technical assistance provided through TCP projects plays an important role in addressing the critical technical gaps of the Government, but also in having a catalytic effect for a sustainable impact and further investments towards the achievement of the Sustainable Development Goals defined in the CPF’’, says Goran Stavrik, FAO Programme Officer (TCP). North Macedonia relies on FAO’s global experience and know-how as an accredited entity to the Green Climate Fund (GCF), Adaptation Fund (AF), and Global Environment Facility (GEF) in accessing environmental climate finance to support the country's national climate change adaptation and mitigation priorities while also meeting the country's global climate commitments.
LINKS
In rural North Macedonia, FAO helps improve sustainable and resilient development
Enhancing rice production in North Macedonia through land consolidation
Young Macedonian artist wins World Food Day poster contest honoring food heroes
Land consolidation is the missing link for farmers in North Macedonia
North Macedonia receives continued support for “greening”
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Press Release
28 March 2022
Working jointly is the fastest way to improve health services for all
Representatives of the UN family, health workers and representatives and of many national partners involved gathered to discuss lessons learned from the Joint Programme, which was implemented by three UN agencies, UNFPA, UNICEF and WHO, in coordination with the UN Resident Coordinator’s Office, and funded by the UN COVID-19 Response and Recovery Fund.,
Participants of the event also discussed how to reach groups that may have been left behind in health services, improve preventive care in remote and underserved areas, how to strengthen immunisation, utilize digitalisation to ensure accessibility of the health services for all.
“This programme was established to enable fast and innovative response to emerging needs stemming out of COVID-19 and we are happy to be among very few in the world that managed to get funding from the UN COVID-19 Response and Recovery Fund”, says Patrizia DiGiovanni, UN Resident Coordinator ad interim. “The program enabled free life-saving services for the people, particularly women and girls, living in underserved areas to whom provision of such services was disrupted or postponed due to COVID 19 pandemic and it should serve as a model for many future activities and investments in the health sector, aiming not only to save life, but to increase quality of life and improve outcomes for all people in the country.”
“Safe and Innovative Health Services in Times of COVID-19 in North Macedonia” is a joint programme that helped the government improve essential health services within the context of COVID-19 by building on the significant investments already made to strengthen the national health and social systems, contain disease outbreaks, and ensure health responses to various emergencies.
The programme has introduced several innovative health services, such as the mobile gynaecological clinics visits to remote areas, including e-immunisation registry that aims to improve data collection and the calculation of immunization coverage rates, and risk communication to immunization-sceptic populations as well as awareness raising among women and girls of sexual and reproductive health and gender-based violence. These improved services address the significant decrease in their provision since the outbreak of COVID-19 and enable more efficient real time collection of policy relevant data on immunization while also contributing to greater professional and public support for vaccination.
The programme targets vulnerable women, adolescent girls and children, particularly those living in remote areas of the country, who would benefit from sexual and reproductive health services, immunization and psycho-social support. The implementation of the programme started in January 2021 and ends now at the end of March 2022, with a budget of $850,000.
The programme is jointly implemented by three UN agencies in close partnership with key national partners including the Ministry of Health, Ministry of Labour and Social Policy, e-Health Directorate, Association of Gynaecologists and Obstetricians, Committee on Safe Motherhood and Healthy New-borns, Macedonian Medical Association, Macedonian Association of Nurses and Midwives, University Clinic of Psychiatry and civil society organizations.
This joint programme is made possible thanks to the contributions to the UN COVID-19 Response and Recovery Fund by the governments of Norway, Netherlands, Switzerland, Denmark, Sweden, Republic of Korea, Finland, Austria, United Kingdom, Spain, New Zealand, United States of America, Iceland, Croatia, Portugal, Thailand, Slovak Republic, Romania, Cambodia, Cyprus and Philippines.
More info at:
https://northmacedonia.un.org/en/170196-safe-and-innovative-health-services-times-covid-19
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Press Release
14 March 2022
New Scenarios on Global Food Security based on Russia-Ukraine Conflict
Supply chain and logistical disruptions on Ukrainian and Russian grain and oilseed production and restrictions on Russia’s exports will have significant food security repercussions. This is especially true for some fifty countries that depend on Russia and Ukraine for 30% or more of their wheat supply. Many of them are least developed countries or low-income, food-deficit countries in Northern Africa, Asia and the Near East. Many European and Central Asian countries rely on Russia for over 50% of their fertilizer supply, and shortages there could extend to next year.
Food prices, already on the rise since the second half of 2020, reached an all-time high in February 2022 due to high demand, input and transportation costs, and port disruptions. Global prices of wheat and barley, for example, rose 31% over the course of 2021. Rapeseed oil and sunflower oil prices rose more than 60%. High demand and volatile natural gas prices have also driven up fertilizer costs. For instance, the price of urea, a key nitrogen fertilizer, has increased more than threefold in the past 12 months.
The conflict’s intensity and duration remain uncertain. The likely disruptions to agricultural activities of these two major exporters of staple commodities could seriously escalate food insecurity globally, when international food and input prices are already high and volatile. The conflict could also constrain agricultural production and purchasing power in Ukraine, leading to increased food insecurity locally.
Core Risk Factors Identified
Cereal crops will be ready for harvest in June. Whether farmers in Ukraine would be able to harvest them and deliver to the market is unclear. Massive population displacement has reduced the number of agricultural laborers and workers. Accessing agricultural fields would be difficult. Rearing livestock and poultry and producing fruits and vegetables would be constrained as well.
The Ukrainian ports on the Black Sea have shuttered. Even if inland transportation infrastructure remains intact, shipping grain by rail would be impossible because of a lack of an operational railway system. Vessels can still transit through the Turkish Straits, a critical trade juncture through which a large amount of wheat and maize shipments pass. Rising insurance premiums for the Black Sea region would exacerbate the already high costs of shipping, compounding the costs of food imports. And, whether storage and processing facilities would remain intact and staffed is also still unclear.
The Russian ports on the Black Sea are open for now, and no major disruption to agricultural production is expected in the short term. However, the financial sanctions against Russia have caused an important depreciation which, if continued, could undermine productivity and growth and ultimately further elevate agricultural production costs.
Russia is a major player in the global energy market, accounting for 18% of global coal exports, 11% of oil, and 10% of gas. Agriculture requires energy through fuel, gas, electricity use, as well as fertilizers, pesticides, and lubricants. Manufacturing feed ingredients and feedstuffs also require energy. The current conflict has caused energy prices to surge, with negative consequences on the agriculture sector.
Wheat is a staple food for over 35% of the world's population, and the current conflict could result in a sudden and steep reduction in wheat exports from both Russia and Ukraine. It is still unclear whether other exporters would be able to fill this gap. Wheat inventories are already running low in Canada, and exports from the United States, Argentina and other countries are likely to be limited as government will try to ensure domestic supply.
Countries reliant on wheat imports are likely to ramp up levels, adding further pressure on global supplies. Egypt, Turkey, Bangladesh, and Iran are the top global wheat importers, buying more than 60% of their wheat from Russia and Ukraine, and all of them have outstanding imports. Lebanon, Tunisia, Yemen, Libya, and Pakistan also rely heavily on the two countries for their wheat supply. Global maize trade is likely to shrink due to expectations that the export loss from Ukraine will not be filled by other exporters and because of high prices.
Export prospects for sunflower oil and other alternative oils also remain uncertain. Major sunflower oil importers, including India, the European Union, China, Iran, and Turkey, must find other suppliers or other vegetable oils, which could have a spill-over effect on palm, soy, and rapeseed oils, for example.
Policy Recommendations
1. Keep global food and fertilizer trade open. Every effort should be made to protect the production and marketing activities needed to meet domestic and global demands. Supply chains should keep moving, which means protecting standing crops, livestock, food processing infrastructure, and all logistical systems.
2. Find new and more diverse food suppliers. Countries dependent on food imports from Russia and Ukraine should look for alternative suppliers to absorb the shock. They should also rely on existing food stocks and diversify their domestic production to ensure people’s access to healthy diets.
3. Support vulnerable groups, including internally displaced people. Governments must expand social safety nets to protect vulnerable people. In Ukraine, international organizations must step in to help reach people in need. Across the globe, many more people would be pushed into poverty and hunger because of the conflict, and we must provide timely and well-targeted social protection programs to them.
4. Avoid ad hoc policy reactions. Before enacting any measures to secure food supply, governments must consider their potential effects on international markets. Reductions in import tariffs or the use of export restrictions could help to resolve individual country food security challenges in the short term, but they would drive up prices on global markets.
5. Strengthen market transparency and dialogue. More transparency and information on global market conditions can help governments and investors make informed decisions when agricultural commodity markets are volatile. Initiatives like the G-20’s Agricultural Market Information System (AMIS) increases such transparency by providing objective and timely market assessments.
Food prices, already on the rise since the second half of 2020, reached an all-time high in February 2022 due to high demand, input and transportation costs, and port disruptions. Global prices of wheat and barley, for example, rose 31% over the course of 2021. Rapeseed oil and sunflower oil prices rose more than 60%. High demand and volatile natural gas prices have also driven up fertilizer costs. For instance, the price of urea, a key nitrogen fertilizer, has increased more than threefold in the past 12 months.
The conflict’s intensity and duration remain uncertain. The likely disruptions to agricultural activities of these two major exporters of staple commodities could seriously escalate food insecurity globally, when international food and input prices are already high and volatile. The conflict could also constrain agricultural production and purchasing power in Ukraine, leading to increased food insecurity locally.
Core Risk Factors Identified
Cereal crops will be ready for harvest in June. Whether farmers in Ukraine would be able to harvest them and deliver to the market is unclear. Massive population displacement has reduced the number of agricultural laborers and workers. Accessing agricultural fields would be difficult. Rearing livestock and poultry and producing fruits and vegetables would be constrained as well.
The Ukrainian ports on the Black Sea have shuttered. Even if inland transportation infrastructure remains intact, shipping grain by rail would be impossible because of a lack of an operational railway system. Vessels can still transit through the Turkish Straits, a critical trade juncture through which a large amount of wheat and maize shipments pass. Rising insurance premiums for the Black Sea region would exacerbate the already high costs of shipping, compounding the costs of food imports. And, whether storage and processing facilities would remain intact and staffed is also still unclear.
The Russian ports on the Black Sea are open for now, and no major disruption to agricultural production is expected in the short term. However, the financial sanctions against Russia have caused an important depreciation which, if continued, could undermine productivity and growth and ultimately further elevate agricultural production costs.
Russia is a major player in the global energy market, accounting for 18% of global coal exports, 11% of oil, and 10% of gas. Agriculture requires energy through fuel, gas, electricity use, as well as fertilizers, pesticides, and lubricants. Manufacturing feed ingredients and feedstuffs also require energy. The current conflict has caused energy prices to surge, with negative consequences on the agriculture sector.
Wheat is a staple food for over 35% of the world's population, and the current conflict could result in a sudden and steep reduction in wheat exports from both Russia and Ukraine. It is still unclear whether other exporters would be able to fill this gap. Wheat inventories are already running low in Canada, and exports from the United States, Argentina and other countries are likely to be limited as government will try to ensure domestic supply.
Countries reliant on wheat imports are likely to ramp up levels, adding further pressure on global supplies. Egypt, Turkey, Bangladesh, and Iran are the top global wheat importers, buying more than 60% of their wheat from Russia and Ukraine, and all of them have outstanding imports. Lebanon, Tunisia, Yemen, Libya, and Pakistan also rely heavily on the two countries for their wheat supply. Global maize trade is likely to shrink due to expectations that the export loss from Ukraine will not be filled by other exporters and because of high prices.
Export prospects for sunflower oil and other alternative oils also remain uncertain. Major sunflower oil importers, including India, the European Union, China, Iran, and Turkey, must find other suppliers or other vegetable oils, which could have a spill-over effect on palm, soy, and rapeseed oils, for example.
Policy Recommendations
1. Keep global food and fertilizer trade open. Every effort should be made to protect the production and marketing activities needed to meet domestic and global demands. Supply chains should keep moving, which means protecting standing crops, livestock, food processing infrastructure, and all logistical systems.
2. Find new and more diverse food suppliers. Countries dependent on food imports from Russia and Ukraine should look for alternative suppliers to absorb the shock. They should also rely on existing food stocks and diversify their domestic production to ensure people’s access to healthy diets.
3. Support vulnerable groups, including internally displaced people. Governments must expand social safety nets to protect vulnerable people. In Ukraine, international organizations must step in to help reach people in need. Across the globe, many more people would be pushed into poverty and hunger because of the conflict, and we must provide timely and well-targeted social protection programs to them.
4. Avoid ad hoc policy reactions. Before enacting any measures to secure food supply, governments must consider their potential effects on international markets. Reductions in import tariffs or the use of export restrictions could help to resolve individual country food security challenges in the short term, but they would drive up prices on global markets.
5. Strengthen market transparency and dialogue. More transparency and information on global market conditions can help governments and investors make informed decisions when agricultural commodity markets are volatile. Initiatives like the G-20’s Agricultural Market Information System (AMIS) increases such transparency by providing objective and timely market assessments.
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