Foreign Aid

Banking on the hand that feeds: Food aid is big business in the US

Brady Yauch
Probe International
July 1, 2010

The food aid business is not simply for charity, it’s also a major source of jobs for businesses across the United States. According to a recent report from consultancy group Promar International, the overall economic impact of moving food aid from the nation’s farms to the ports and then on to foreign countries accounts for more than 13,000 jobs and amounts to almost $2-billion in goods and services, or output.

If, according to the report, Congressional budgetary appropriations for food aid were to be eliminated, the US cargo fleet would shrink by 15-30 percent and could have a knock-on effect, eliminating 16,500-33,000 jobs in other areas of the economy.

In total, the U.S. exported 2.8 million metric tons of food aid last year: 2.2 million tons of aid was shipped to African countries and 0.4 million tons went to Asia.

Further Reading from Probe International on the negative effects of food aid on the developing world:

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Categories: Foreign Aid

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