The increasing cost of food is heightening concern and distress throughout the world and especially in the least developed countries. The three-dimensional crisis of rising food prices, rising energy prices, and tightening financial conditions have important effects on its own, but they also feed into each other creating vicious cycles. For example, high fuel and fertilizer prices increase farmers＊ production costs, likely resulting in higher food prices and lower farm yields, and endangering food security.
The latest crisis is in addition to the negative impacts of climate change, which have disproportionally affected the agricultural sector in LDCs. Given that a large share of LDC citizens 〞up to 90 percent in some cases〞 are working in the agriculture sector, the need for new innovations and policies to improve standard of living and food security has become a priority in many countries. There is an urgent need to promote agri-food systems transformations that use the limited resources available in a way that provides an engine for employment creation and sustainable economic growth. Changes must be done at every level to bring mutual benefits for both farmers and the business community by creating a business-friendly environment, which allows smallholders and local enterprises to connect with global markets and value chains while creating sustainable and inclusive business models. The LDC5 Private Sector Forum will provide a forum to share innovative approaches and solutions that can bring transformative change.