Prime Minister Gillard today joined Prime Minister Cameron and Prime Minister Harper to announce a new initiative - Ag Results - to improve food production in developing countries.
Ag Results will offer financial incentives for organisations that are able to develop and apply new technologies at an affordable price for farmers in developing countries.
This approach differs from traditional programs because incentives are paid only after results have been achieved.
In its first stages, Ag Results will help to improve crop storage, fight crop disease and produce more nutritious food.
Australia will provide $20 million over three years towards the $100 million joint initiative which includes contributions from the United Kingdom, Canada, the United States, Italy and the Bill and Melinda Gates Foundation.
Australia is well placed to make a significant contribution to this to this initiative. We are an efficient food exporting nation and our agricultural expertise is internationally acknowledged.
Speaking before the beginning of the G20 meeting in Los Cabos today, the Prime Minister said it was important for the world's strongest economies to support one of the most urgent challenges of our time.
Seventy-five per cent of the world's poorest people struggle to produce enough food for their families - and as our global population increases, this problem is only going to be more extreme.
The investment to meet the food needs of the global population in 2050 is estimated to be $83 billion a year. Much of this funding will need to come from private sources which is why this initiative is aimed at stimulating private investment.
In addition to increasing food production, this investment will also produce better quality food.
Nearly one billion people currently suffer from a lack of crucial micronutrients in their diet - a “hidden hunger” that inhibits the development of children and reduces adult productivity.