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Recent Global Food Price Shocks: Causes, Consequences and Lessons for African Governments and Donors

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Publication date
30/06/2009
Number of Pages
43
Language:
English
Type of Publication:
Event Reports
Focus Region:
Sub-Saharan Africa
Focus Topic:
Market / Trade
Nutrition / Food Systems
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk assessment
Commodity:
Crops
Livestock
Author
Philip Abbott, Adeline Borot de Battisti
Organization
International Agricultural Trade Research Consortium

Dramatic increases in international agricultural commodity prices began in 2006 and peaked in July, 2008. An equally remarkable and rapid decline of those prices then ensued, accompanied by extreme volatility in those prices. The trend in food prices lagged the rapid increases in other commodity prices, including oil and metals, but accompanied those other prices in the downward part of the cycle. Not all agricultural commodities increased to the same extent – grains and oilseed prices increased the most, with rice among the most expensive at the peak and rising as much as crude oil, while prices of some African exports (cocoa, coffee and cotton) increased to a much smaller extent than the grains.