UN agency and Asia’s top development bank sign new pact to fast-track climate-smart farming and rural resilience
MILAN / Italy, 8 May 2025: The Food and Agriculture Organization (FAO) and the Asian Development Bank (ADB) have expanded their long-standing partnership to accelerate investment in sustainable agriculture across Asia and the Pacific.
The announcement was made during the 58th ADB Annual Meeting in Milan, where FAO Director-General QU Dongyu called for urgent, collective action to transform agrifood systems amid growing hunger, climate disruption, and economic inequality.
“We are at a critical juncture,” Qu told delegates. “Conflicts, climate shocks, and economic instability are pushing millions into hunger. Our food systems must become more efficient, inclusive, resilient, and sustainable.”
According to FAO’s latest data, 733 million people experienced hunger in 2023, while 2.8 billion were unable to afford a healthy diet in 2022. Qu stressed the need for a reimagined food production and distribution model — one that “produces more with less” while ensuring food affordability and accessibility for all.
Strengthening a 57-Year Partnership
The FAO-ADB partnership, active since 1968, has already supported over $2.6 billion in agricultural investment projects. These include impactful initiatives in:
Indonesia, where tree crop productivity improvements raised smallholder incomes.
Bangladesh, where farmers were able to switch to higher-value crops through diversification programs.
Afghanistan, where post-2021 emergency funding helped FAO reach over 800,000 rural households across all 34 provinces.
ADB was the first multilateral development bank to re-engage in Afghanistan following the 2021 transition, using the FAO’s ground presence to deliver rapid aid.
New Framework for Future Growth
At the Milan summit, FAO and ADB signed a new Framework Agreement to scale their cooperation. The agreement paves the way for large-scale, high-impact investments in several critical areas:
AI-powered agri-investment tools in nine Central and South Asian countries
Nature-based, climate-smart finance strategies in China, the Philippines, and Central Asia
Policy support and investment planning to build public-private agrifood partnerships in Pakistan, Bangladesh, and Uzbekistan
The collaboration also aligns with the FAO’s “Four Betters” approach – Better Production, Better Nutrition, Better Environment, and Better Life – and supports broader regional initiatives like the Pacific SIDS Investment Programme under the Hand-in-Hand Initiative.
Mobilizing Capital, Empowering Farmers
FAO emphasized the importance of development finance in bridging the global food investment gap. ADB’s ability to attract capital and private sector involvement is seen as critical in enabling rural transformation.
Qu concluded by urging sustained momentum: “With the right mix of funding, policy support, and innovation, we can empower smallholders, build resilience, and move closer to the goal of Zero Hunger.”
The FAO–ADB partnership reflects a shared commitment to building sustainable agrifood systems in the face of intensifying global and regional challenges.
