The state of agricultural commodity markets 2009. High food prices and the food crisis

This FAO report begins with a detailed examination of the nature of world price rises and their effect locally. Poor urban consumers have suffered from the rise in price of their food, part of which is imported. Paradoxically, producers from developing countries have not been able to use the high prices as an opportunity to invest in means of production and increase productivity because the price increases have not filtered down to them. Moreover, small farmers have had only limited access to inexpensive agricultural inputs, and their means of production, like their access to available institutions and infrastructures, have remained limited. Furthermore, some of the policies adopted (such as price control and reduced customs tariffs) have not encouraged them to invest. Consumers must be protected against high food prices, but producers must also be encouraged to invest in production, increase productivity and produce supply to meet the demand.

This report provides an accessible insight into debates on agricultural markets economics and policies. The food security issues that depend on these policies are fundamental.

FAO - 2009