The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Feast and famine as food prices soar

Today’s long-term rise in agricultural commodity prices is different from previous episodic spikes. Higher prices are having knock-on effects on companies in the sector, as well as on farmers and the poor, and causing a re-evaluation of business models. Peter Koh reports.

Emission control’s neglected area

Getting microfinance to the farmers

Speculation about causes


food-mainimage.gif

TO UNDERSTAND THE impact of today’s higher food price environment it is important to understand how the factors behind the rally are different from those that drove previous price spikes.

"We’ve had falling real food prices for a whole century," says Josef Schmidhuber, senior economist and head of the global perspectives studies unit at the UN’s Food and Agriculture Organization in Rome. "For decades, this reflected rapid productivity growth combined with declining population growth and a growing saturation of food demand. Prices for individual crops have spiked from time to time but the last time we saw the price of all agricultural commodities soar was in 1973-74 when we had the world food crisis," he says. "While there are some similarities between that period and today, such as a spike in oil prices and a falling dollar, the big difference with today’s situation is that high oil prices are creating a completely new, much larger market, making it more difficult to meet market demand for agricultural produce."


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree