Mariann Fischer Boel, the EU agriculture minister, announced at an international conference Thursday that 1 billion euros (almost $1.6 billion) will be allocated to the effort. The money will come from funds not used to subsidize European agriculture.

High food prices have been good for European farmers and for countries that produce surpluses, Fischer Boel said.

"I think there are two sides of the coin: there are those who are food exporters and can take advantage of food exports to improve the economy on their own country," she told reporters. "But those who are net food importers are in serious trouble."

Three quarters of the money is to be allocated this year and the rest in 2009. Up to 15 percent will be used for direct aid for buying food, with the rest going to the purchase of fertilizer and seeds.