Rising Food Prices Worldwide Causes & Cure

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and rising as much as crude oil. High commodity prices quickly raised farm gate prices in developed countries. In developing countries, poor market integration and border barriers may have limited pass-through of these prices to the farm gate, but there was more rapid food price and general inflation than occurred in many developed countries. Countries were impacted to differing extents, and food riots occurred in the most affected cases. In response to the crisis, countries from India and Egypt to Vietnam and Indonesia banned exports of rice, a staple for half the world. World food prices rose to a record in December on higher sugar, grain and oilseed costs, the United Nations said. An index of 55 food commodities tracked by the Food and Agriculture Organization gained for a sixth month to 214.7 points, above the previous all-time high of 213.5 in June 2008, the Rome-based UN agency said in a monthly report.
Moreover, debate persists on the exogenous mechanisms driving these ...

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factors responsible for the recent rises in food prices:-

» Weather disruptions, including serious droughts, have affected output in several key producing countries (Australia, Turkey, Ukraine and parts of North America) in the mid-2000s. This has led to two successive years of negative growth in world cereal production.
» Under-investment in rural infrastructure and agricultural innovation.
» Increased demand due to use of food crops in bio fuel production has resulted in reduced soybean and wheat cultivation.
» World production of cereals has slowed, causing a decline in stocks over the last decade. This has weakened the ability of the world food system to cope with ...

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