High Food Price Crisis

The food price spike of 2007-2008 pushed the total number of hungry people to over one billion—1/6th of the world's population. Since then, food prices have continued an upward trend, reaching an all-time peak in January 2011. In developing countries, these increases mean millions have been pushed into poverty and malnutrition.

The Facts

Food prices change in response to such things as climatic shocks, energy prices, demand for biofuels, speculation, and trade policy. Oil price increases affect the price of fertilizers as well as the cost of shipping and transportation. Demand for biofuels such as corn ethanol increases world demand for particular crops and changes crop distribution. Following the 2008 financial crisis, many investors shifted funds from mortgage markets to agriculture commodities creating a demand shock that increased commodity prices. Additionally, since the 1980s, many countries have moved from self-sufficiency to being net food importers. This increases their exposure to supply and price risks instigated abroad.

The UN's Food and Agriculture Organization (FAO) reported a 45% increase in the world food price index during the 2008 food crisis. Wheat prices increased by 130% relative to 2007 levels. Similarly, soy prices went up by 87%, rice prices by 74%, and maize prices by 31%. While the short-term causes of the crisis include weather shocks, increased oil prices, speculation, and growing demand for biofuels, many experts believe trade agreements and agricultural commoditization set the stage for tremendous price increases. Similar reasons are cited for the 2011 food crisis, which has sparked riots, protests, and strife around the world.

What we are doing about it

Citizens can work together to change the economic climate that has produced the recent food crises. The Oakland Institute is committed to studying root causes of global food crises and, through its advocacy and outreach activities, ensuring that the right solutions find their way into on-the-ground policy.

Publications

Food Price Crisis: A Wake Up Call for Food Sovereignty

Food prices have been increasing sharply since 2005. According to the World Bank, global food prices have climbed by 83% over the last three years. The real price of rice rose to a 19-year high in March 2008―an increase of 50% in two weeks alone―while the real price of wheat hit a 28-year high, triggering an international crisis.

The Blame Game: Who is Behind the World Food Price Crisis?

World prices for basic staples have skyrocketed―up 83 percent compared to three years ago―while hunger and destitution reaches record levels. Corn registered a 31 percent increase between March 2007-2008, rice 74 percent, soya 87 percent and wheat a whopping 130 percent. Policy makers and media continue to place blame for skyrocketing prices on a variety of factors, including high fuel costs, bad weather in key food producing countries, and the...

The 2008 Food Price Crisis: Rethinking Food Security Policies

The 2008 Food Price Crisis: Rethinking Food Security Policies, the latest in the G-24 Discussion Paper Series, is a timely report as member states of the United Nations come together 16-18 November, 2009 at the World Summit on Food Security in Rome, in an effort to find lasting solutions to world hunger. Intended to inform current policy discussions on how to address ever-growing food insecurity, the report contends that it is essential to...

The High Food Price Challenge: A Review of Responses to Combat Hunger

High food prices in 2007-2008 threatened the livelihoods and food security of billions of people worldwide for whom getting enough food to eat was already a daily struggle. All over the world, individuals, civil society groups, governments and international organizations took action to cope with the crisis triggered by skyrocketing food prices.

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Le Défi de la Hausse des Prix Alimentaires: Une Revue des Responses a la Crise de 2008

La hausse des prix alimentaires en 2007-2008 a menacé la sécurité alimentaire voire la survie de milliards d’individus pour qui, se procurer assez de nourriture était déjà un combat quotidien. Dans le monde entier, des hommes et des femmes, des groupes de la société civile, des gouvernements et des organisations internationales ont agi pour faire face à la crise déclenchée par la hausse exceptionnelle des prix alimentaires. Ce rapport analyse l’...

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