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http://www.new-ag.info/news/newsitem.php?a=1812
New study reveals causes of global food crisis
Increased demand in rising economies, such as China and India, futures market speculation and falling agricultural yields and food stocks were not the primary cause of the 2007-08 global food crisis, a new report by the International Food Policy Research Institute (IFPRI) states. The report concludes that the main causes were high energy costs, growing demand for biofuels, depreciation of the US dollar, trade shocks related to export restrictions, panic purchases and unfavourable weather.
Countries with existing problems, such as conflict, drought or poor economic policies, were particularly vulnerable. But strengthening currencies, a diversified food base and limited dependence on food imports protected other countries. “Poor people face a perpetual food crisis,” IFPRI research fellow and report co-author, Derek Headey stresses, “and this situation pushed millions more into hunger.” Investments that raise agricultural productivity in developing countries are therefore the best way of improving the food security of poor people, the report adds.
To avoid future food price crises, the report recommends making trade in agricultural commodities more free but more secure, tackling climate change and resource degradation, scaling up social safety nets in food-insecure countries and encouraging agricultural production in at least some of the countries now heavily dependent on food imports.
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