Food prices – a global crisis
We’re all feeling the pinch as the costs of basic foods like rice, corn, and wheat reach record highs. But the world’s poorest people are suffering most.
What are the issues?
There have already been food riots in countries as far apart as Mexico and Egypt. At this rate, 600 million people will be hungry by 2020 – that’s twice the population of the US and ten times that of the UK.
High oil prices, increased demand from China and India, population growth, droughts and biofuels are just some of the reasons for high food prices.
But there are other factors playing a part, like underinvestment in agriculture, the dominance of big companies and the mismanagement of agriculture and food policy.
What needs to happen?
Food prices are a big threat. But they are also an opportunity for governments to act now.
Rich countries must now:
- Give more money to poor countries to help reduce the immediate shock of high food prices.
- Review their current targets for biofuels, which often directly compete against food and feed crops.
- Reform the food aid system. Providing cash for governments and aid agencies to buy locally is usually more efficient and better for local agriculture than “in kind” food aid.
Poor country governments have a role to play too. They must invest in agriculture and infrastructure to help put small farmers in a better position to benefit from higher prices. And they need to be wary of signing up to unfair economic agreements.
