Evidence-Based Research

An estimated one-third of all food produced globally is lost or wasted, according to the FAO, costing the world an estimated $940 billion per year. Food loss and waste (FLW) also exacerbates food insecurity and malnutrition, depletes natural resources, and generates an estimated 8 percent of global greenhouse gas emissions. Reducing food loss and waste can therefore be a triple win: saving money for farmers, companies, and households, improving food security, and reducing environmental pressures on water, land, and the climate.

In December 2015, the World Trade Organization reached an agreement on the Nairobi Package , the latest set of rules governing global trade. The agreement represents some progress on several major agricultural and food issues that have held up previous negotiations, including export subsidies , food aid, public stockholding for food security purposes, special safeguard measures for Least Developed Countries (LDCs), and the global cotton trade.

Soybean futures prices have seen a lot of movement in recent weeks, beginning in April when they twice saw record daily trading in combined futures and options volume on the Chicago market. Our early warning excessive food price volatility system has immediately reflected this trend, identifying extreme positive returns, i.e. returns that exceeds the 95% conditional quantile predicted by our NEXQ model . The days in which we observe excessive volatility are identified in the graph below.
Soybean Excessive Food Price Variability

The effects of climate change vary from region to region, but according to a new study from the World Bank, the majority of the global impact stemming from climate change will come through the water cycle. High and Dry: Climate Change, Water, and the Economy examines how scarce and variable water supplies will interact with growing global populations, rising incomes, and expanding urban areas and how smart policies and investments can reduce or eliminate the negative consequences.

On May 12, the USAID Agrilinks program held a webinar on a new report released by the World Bank, entitled Enabling the Business of Agriculture 2016: Comparing Regulatory Good Practices . The event examined the report’s key findings and discussed the objectives and future path of the Enabling the Business of Agriculture (EBA) project .