Food Prices

Concerns have been growing over how the ongoing political turmoil in the Ukraine, the world's third largest maize exporter, could impact global grain prices and reserves in the coming year. While Ukraine has delivered the majority of its current export obligations, continuing conflict could pose problems for next season's planting and harvest, and thus future export shipments. According to an article published by IRIN News, however, experts do not foresee a long-term impact on global grain prices.

Global food prices are becoming less volatile compared to recent years, according to a new FAO report. The November 2013 Food Outlook credits the more balanced markets to the recovery of global cereal inventories. 2013 has seen a significant increase in cereal production, largely based on increased maize crops in the US and record wheat crops in CIS countries.

Highlights for other crops include:

By Luca Salvatici

High food prices affect poor populations in a variety of ways. While households that only consume food suffer as a result of rising food prices, households that also produce food can actually benefit from price increases. But there is another, less recognized avenue through which high food prices can impact the poor: rural wages. The lion's share of the world's poor relies on agricultural jobs to make a living; whether or not agricultural wages increase as a result of rising food prices therefore has significant implications for how those price increases will help or hurt.

Cross-posted from University of Bonn's Center for Development Research

Summary of the international expert consultation organized by the Center for Development Research (ZEF) and International Food Policy Research Institute (IFPRI) held at ZEF in Bonn, Germany on January 31 and February 1, 2013.

By Joachim von Braun (ZEF) and Maximo Torero (IFPRI)