WHY IS IT HAPPENING?

There are multiple causes to this ‘perfect storm’. A few of the factors that have combined together to produce this unprecedented crisis are:

  • Record high oil and fuel prices more info
  • Natural disasters, including floods and drought more info
  • A lack of adequate investment in the development of agriculture in developing countries more info
  • The fluctuation in value of the US dollar more info
  • Production of biofuels more info
  • Increased speculation in the commodity markets more info
  • Unfair trade practices more info
  • Increased meat consumption more info
  • A decrease in cereal reserves more info
  • Food export controls more info
  • Increasing urbanisation more info

All these factors converge to reduce the supply of staple foods like rice and wheat, making everyday food unaffordable for millions of people already living in poverty.

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Rising food prices have the greatest effect on those people already struggling with food insecurity who spend 60 per cent or more of their income on food.