ADB boosts food security support to $40B

THE Asian Development Bank (ADB) is set to scale up its commitment to food and nutrition security in Asia and the Pacific, raising its total funding for food-related initiatives to $40 billion through 2030.

Speaking at the bank's 58th Annual Meeting held in Milan, ADB President Masato Kanda announced the expanded support, which includes an additional $26 billion to build on the bank's earlier pledge of $14 billion made in 2022.

"This expanded support will help countries alleviate hunger, improve diets, and protect the natural environment while providing opportunities for farmers and agribusinesses," Kanda said.

"It will drive change across the entire food value chain, from how food is grown and processed to how it is distributed and consumed," he added.

The $40-billion initiative will finance a holistic program that spans the full food production spectrum — from farming and processing to distribution and consumption.

The Manila-based lender aims to support governments and private enterprises through a combination of financing and policy initiatives, with the goal of producing diverse, nutritious food, generating employment, mitigating environmental damage, and building more resilient agricultural supply chains.

The newly announced $26 billion includes $18.5 billion in direct funding from ADB to governments and $7.5 billion in private sector investments.

ADB said it aims for the private sector to contribute at least 27 percent of the total program, recognizing its critical role in transforming food systems.

As of end-2024, the bank has already committed $11 billion — about 80 percent of the original allocation — with another $3.3 billion planned for 2025.

The expanded initiative responds to mounting pressures on the region's food systems, including worsening climate change, biodiversity loss, water scarcity, and degraded natural resources.

"Unprecedented droughts, floods, extreme heat, and degraded natural resources are undermining agricultural production while, at the same time, threatening food security and rural livelihoods," Kanda said.

More than half of the world's undernourished population resides in developing Asia, making food security a top concern. Food systems in the region are also responsible for 70 percent of global water use, 50 percent of habitable land, and 80 percent of biodiversity loss.

According to ADB, these systems currently employ around 40 percent of the regional workforce, underscoring their economic and environmental significance.

The initiative seeks to modernize agricultural value chains to improve access to affordable and nutritious food for vulnerable groups. It will also prioritize investments in soil health, biodiversity conservation, and climate-resilient agricultural practices.

To support data-driven agricultural transformation, the program will also invest in digital technologies and analytics to enhance decision-making for farmers, agribusinesses and policymakers. These digital tools will help optimize productivity, minimize resource use, and improve supply chain efficiency.

The ADB also announced the creation of the Natural Capital Fund — a $150 million blended finance facility aimed at supporting projects that sustainably manage and restore natural resources.

The fund will be anchored by support from the Global Environment Facility and is expected to attract contributions from partners such as the Global Agriculture and Food Security Program.