World Food Crisis: Frequently asked questions
Answers to some of the most frequently asked questions about the World Food Crisis
Why are food prices rising?
There are many factors involved in the soaring prices of basic foods but the combination of increased demand from countries like India and China, erratic weather patterns, high oil and energy prices and increased demand for crops that can be used to make biofuels are all playing a big part. This ‘perfect storm’ has quickly resulted in an unprecedented situation that took many Governments, aid agencies and international institutions by surprise.
Why is climate change having an impact?
The changing climate is having an effect on the weather, which has caused crop failures and unpredictable harvests in some places, affecting supply. Small-scale farmers are the least equipped to cope with varying weather patterns and in tropical climates, home to some of the poorest countries, farmers will be able to produce even less than elsewhere. This will put even more pressure on their food supplies.
What do biofuels have to do with it?
The increased demand for biofuels, driven largely by targets set by Governments, is linked to food price rises and price instability. Crops previously used for food are being diverted to fuel - Oxfam has predicted that this could mean an extra 600 million people going hungry by 2025.
How can higher food prices be seen as an opportunity for poor people?
If Governments in poor countries are supported to act in the right way, this crisis could be turned into an opportunity for their poorest people. By investing more in agriculture and supporting small-scale farmers to modernise and increase productivity, the benefits of higher prices could be made to reach those at the bottom. The current situation could also spur much needed reform of the global food aid system, which can be inefficient and expensive. Food aid levels are the lowest in five decades and the food that is being sent is often late or in the wrong form.
Will prices remain at this level?
It seems that prices will remain high, even if they stop increasing at the current rate. This is because of long-term changes like increased consumption of food (especially meat) in China and India and erratic weather patterns.
Who are the winners and losers in a world of increasing food prices?
It is not completely clear who will ultimately gain from high prices but it is almost certain that the poorest people will be hit hardest, at least in the short term. Those who spend more on food than they earn from selling it will be the worst off. This means lots of poor urban consumers as well as many rural families who don’t grow enough to feed themselves. Those who are already vulnerable like landless workers and slum dwellers will be hardest hit. Small-scale farmers and agricultural workers could potentially benefit, but this isn’t guaranteed.
The winners are likely to be big commercial farms as well as those involved in the processing and trading of food (although they are more likely to be affected by increased costs like transport that result from high oil prices). Those who speculate on commodity markets are likely to gain, as are supermarkets and other big businesses involved in producing and selling agricultural goods.
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