Food price volatility makes developing countries more vulnerable
ALINe newsletter 13th August 2010
The current volatility in food price could be making developing countries more vulnerable than before the 2007-8 food price crisis, comments Joachim von Braun, Director of the Centre for Development Research at the University of Bonn.
Joachim identifies that the recent price increases for wheat has been generated partly by reduced expectations for wheat harvests because of wheat export bans such as in Russia and Ukraine. And also that there are indications that the volatility in food price is partly subject to increases in financial speculation on commodities, including food. However, unlike recent actions on speculation in financial markets, commodity markets remain largely unregulated.
Joachim highlights that the 2008 food price spike resulted in riots from Bangladesh to Haiti and that in the economic recession, the number of undernourished people has increased. In a letter to the Financial Times, Gordon Conway, Professor of International Development at Imperial College, London, also highlights that as food prices remained high in developing countries from the 2007-8 food price spike, and with likely knock on effects on other crops from the increase in wheat prices, the world's 1.2billion chronically hungry could increase.
Joachim advises that without more action to prevent future food price crises, including investment in agriculture, lack of affordable food due to an unregulated and protective food market could have significant impacts on nutrition and health in poorer countries. More support from the international community in helping farmers, particularly in Africa, achieve food security is necessary to prevent another crisis.
Please read Joachim's comment piece and Gordon's letter from the Financial Times.
News
• IRIN News report on the impact of drought and fires in Russia on the wheat price increases
• BBC News report on rice yields cuts from climate change
• IRIN News report on the political drive to improve nutrition at African Union meeting
• Opinions from a Future Agricultures Consortium workshop on the World Bank's consideration of the development of commercial agriculture in Africa's Guinea Savannah are presented in New Agriculturist
Events
• ISEE 2010 Conference: Advancing sustainability in a time of crisis, 22-25 August 2010
• ALINe Seminar: Evaluating participatory programmes using randomised controlled trials: methods and challenges, 8 September 2010
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ALINe promotes people-centred performance measurement in agricultural development. This regular update keeps you informed about news and events, and highlights from the fields of agriculture and measurement.
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