2007-08 world food price crisis

World food prices increased dramatically in 2007 and the first and second quarter of 2008, [1] creating a global crisis and political and economic instability and social unrest in both poor and developed nations . Although the media spotlight focused on the riots that ensued in the face of high prices, the ongoing crisis of food insecurity had been years in the making. [2] [3] Systemic causes for the world continues to be the subject of debate. After peaking in the second quarter of 2008, prices fell dramatically during the late-2000s recession2009, World Food Price Crisis ( 2009-12 World Food Price Crisis ), a new level in the world of food and nutrition . [1] [4] Over the next years, prices fell , reaching a low in March 2016 with the deflated FAO food price index close to pre-crisis level of 2006. [5]

The initial causes of the late-2006 price spikes included droughts in grain-producing nations and rising oil prices . [6] Oil prices are also widespread in the costs of fertilizers , food transportation, and industrial agriculture . Root causes May be Increasing the use of biofuels in Developed Countries (voir aussi Food vs. fuel ), [7] and an Increasing demand for a more varied diet Expanding Across the middle-class populations of Asia. [8] [9] The Food and Agriculture Organization also raised concerns about the role of hedge funds speculatingwe are leading prices at major shifts in prices. [10] These factors, coupled with falling world-food stockpiles, all contributed to the global rise in food prices. [11]

Drastic price increases

Between 2006 and 2008, wheat by 136%, corn by 125% and soybeans by 107%. citation needed ] In late April 2008 hit prices 24 cents (US) per US pound, more than doubling the price in just seven months. [13]

World population growth

ALTHOUGH Some Commentators-have argued That this food crisis stems from Unprecedented global population growth , [14] [15] others Point Out That world population growth rates -have dropped Dramatically since the 1980s, [16] [17] and grain availability HAS continued to outpace population.

To prevent growth, food production should outpace population growth, which was about 1.2% per year . But it was a temporary drop in food production growth: [18] [19] for example, wheat production during 2006 and 2007 was 4% lower than that in 2004 and 2005.

World population has grown from 1.6 billion in 1900 to over 7.5 billion today. [20] [21]

Increased demand for resource intensive food

The head of the International Food Policy Research Institute , stated in 2008 that the gradual change in diet among newly-populated populations is the most important factor underpinning the global food prices. [22] Where food consumption HAS Increased, It has beens Largely in processed ( ” value added “) foods, sold in Developing and Developed nations. [23] Total grain utilization growth since 2006 (up to three percent, over the 2000-2006 per annum average of two percent) has been greatest in non-food use, especially in feed and biofuels. [24] [25]

One kilogram of beef requires seven kilograms of grain feed. [26] These reports, therefore, that use in industrial, feed, and input intensive foods, not population growth among consumers of simple grains, has contributed to the price increases. Rising meat consumption in the diet can be increased to one of the highest levels of energy consumption. . [27]

2005/1990 ratios of per-capita consumption [28]
india china brazil Nigeria
cereals 1.0 0.8 1.2 1.0
Meat 1.2 2.4 1.7 1.0
Milk 1.2 3.0 1.2 1.3
Fish 1.2 2.3 0.9 0.8
Fruits 1.3 3.5 0.8 1.1
vegetables 1.3 2.9 1.3 1.3

Although the vast majority of the population in Asia remains rural and poor, the growth of the middle class in the region has been dramatic. For comparison, in 1990, the middle class grew by 9.7 percent in India and 8.6 percent in China, but by 2007 the growth rate was nearly 30 percent and 70 percent respectively. [11] The corresponding increase in Asian affluence has also been associated with a change in lifestyle and eating habits, particularly with demand for greater variety. [8] [29] This demand exacerbates dramatic Increases in commodity prices Such As oil.

Another issue with rising affluence in India and China has been reduced to the “shock absorb” of poor people who are forced to reduce their resources. This reduced price elasticity and causes a sharp rise in food prices during some shortages. In the media, China is often mentioned as one of the main reasons for the increase in world food prices. However, China has a large extent to meet its own demand for food, and even exports its surplus in the world market. [30]

Effects of petroleum and fertilizer price increases

Starting in 2007, the prices of fertilizers of all kinds increased dramatically, peaking around the summer of 2008 (see graphs by the International Fertilizer Industry Association ). Approximately tripled prices for ammonia , urea , diammonium phosphate , muriate of potash(KCl) and sulfuric acid (used for making phosphate fertilizer), And Then Fell Dramatically just as in the lath portion of 2008. Some prices Doubled dans le six months before April 2008. [31] Part of the cause for these prices is the rise in the price of oil , since the most fertilizers require petroleum or natural gas to manufacture. [11]Although the hand fossil fuel input for fertilizer comes from natural gas to generate hydrogen for the Haber-Bosch process (see: Ammonia production ), natural gas has its own supply problems similar to those for oil. Because natural gas can substitute for petroleum in some uses (for example, natural gas liquids and electricity generation ), and thus for fertilizer.

Costs for fertilizer raw materials other than oil, such as potash , have been increasing [32] as increased production of staples increases demand. This is a boom (with associated volatility) in agriculture stocks.

The major IFPRI Report launched in February 2011 The causes of the global food crisis were similar to that of the 1972-74 food crisis, in which the price and the price was the major driver, as well as the shock to cereal demand (from biofuels this time), low interest rates, declining stocks, and some adverse weather conditions. [33] Unfortunately the IFPRI states that such shocks are likely to recur with several shocks in the future; compounded by a long history of neglecting agricultural investments.

Declining world food stockpiles

In the past, nations are more likely to sell their food stocks, but more recently, due to a faster pace of food growth and ease of importation, less emphasis is placed on high stockpiles. For example, in February 2008 wheat stockpiles hit a 60-year low in the United States (see also Rice shortage ). [11] Data stocks are often calculated as a difference between production and consumption, and it is difficult to discriminate between de-stocking policy choices of individual countries and a deficit between production and consumption.

Financial speculation

Destabilizing influences, including indiscriminate lending and real estate speculation, led to a crisis in January 2008 , and eroded investment in food commodities. [11]

Foreign investment drives productivity improvements, and other gains for farmers. [34] [35] [36]

Commodity index funds

Main article: Commodity index fund

Goldman Sachs’ entry into the commodities market via the Goldman Sachs Commodity Index has been implicated by some in the 2007-2008 world food price crisis. In a 2010 article in Harper’s magazine, Frederick Kaufman accused Goldman Sachs of profiting while many people went hungry or even starved. He argued That Goldman’s purchases Single wide of long options is wheat futures created a demand shock in the wheat market, qui disturbed the normal relationship entre supply and demand and price levels. He argues that the result was a ‘ contango ‘ wheat market on the Chicago Mercantile Exchange, which causes much more than normal sales, and the first place in the market.[37] [38] [39] However , a report by the Organization for Economic Co-operation and Development – using data from the Commodity Futures Trading Commission – showed tracking funds (from which Goldman Sachs Commodity Index was one) bubble. For example, the report points out that even commodities without rises during the period. [40] Some commodities without futures markets saw Their prices rise as a consequence of the rising prices of commodities with futures markets: the World Development Movement states there is strong evidence que le rising price of wheat Caused the price of rice to subsequently rise as well .[41]

Effects of trade liberalization

Some theorists, such as Martin Khor of the Third World Network , [42] point out that many developing nations have gone from being food independent to being net food importing economies since the 1970s and 1980s International Monetary Fund (and later the World Trade Organization ) s Agreement on Agriculture ) free market economics guidelines to debtor nations. In opening to Developing Countries Developed World Food imports Subsidized by Western gouvernements, Developing Nations can Become more dependent upon food imports if local agriculture does not Improve. [42] [43]

While developing countries, they are in the position of being subsidized by the government of the United States. In recent years United States government subsidies have been added to push production towards biofuel rather than food and vegetables. [11]

Effects of food for fuel

Main article: Food vs fuel

One systemic cause for the price of food for the first time in the production of biofuels . [44] An estimated 100 million tons of grain per year are being redirected from food to fuel. [45] (Total worldwide grain output for 2007 was just over 2000 million tones. [46] ) As farmers Devoted larger share of Their crops to produce fuel than in previous years, land and resources available for food producing Were Reduced correspondingly.

This product has been produced for human consumption, especially in developing and least developed countries . The crisis can be seen, in a sense, to dichotomize rich and poor nations , since, for example, filling a tank of an average car with biofuel , water equivalent to as much maize (main Africa’s food staple) as an African person consumes in year entire year. [11]

Brazil, the world’s second largest producer of ethanol after the US, is considered to be the world’s first sustainable biofuels economy [47] [48] [49] and its government claims Brazil’s sugar cane based ethanol industry has not contributed to the 2008 food crises . [49] [50] A World Bank policy research working paper released in July 2008 [51] concluded that “… large increases in biofuels production in the United States and Europe are the main reason behind the steep rise in global food prices” , and also stated that “Brazil’s sugar-based ethanol did not appreciably higher”.OECD [54] disagreements with the World Bank report on the negative effects of subsidies and trade restrictions, finding that the effect of biofuels on food prices are much smaller. [55]

A report released by Oxfam in June 2008 [56] criticized biofuel policies of rich countries and of that, of all biofuels available in the market, Brazilian sugarcane ethanol is “far from perfect” but it is the most favorable biofuel in the world in term of cost and GHG balance. The report discusses some existing problems and potential risks and asks the Brazilian government for caution to avoid jeopardizing its environmental and social sustainability. The report also says that: “Brazil is going to be more expensive than $ 15 billion, but it is far less damaging for global food security .” [57] [58] (See Ethanol fuel in Brazil)

German Chancellor Angela Merkel said in the name of a farmer and farmer. [59] On April 29, 2008, US President George W. Bush declared that “85 percent of the world’s food prices are caused by weather, increased demand and energy prices,” and that 15 percent is caused by ethanol “. [60] On July 4, 2008, The Guardian reported that it was 75%. [61] This report was officially released in July 2008. [51]

Since reaching the highest prices in June 2008, the prices fell by 50% by October 2008, declining sharply with other commodities, including oil. As ethanol production from corn has continued at the same levels, some of these trends have been shown to increase the production of ethanol was mistaken. “Analysts, including some in the ethanol sector, say and ethanol demand adds about 75 cents to $ 1.00 per bushel to the price of corn, as a rule of thumb Other analysts say it adds around 20 percent, or just under 80 cents per bushel at These estimates are only $ 4 per bushel corn could be priced at only $ 3 without demand for ethanol fuel. ” [62] These industry sources consider a speculative bubble in the commodity marketsholding positions in corn futures .

Second- and third-generation biofuels (such as cellulosic and ethanol and algae fuel , respectively) may be useful for growing crops, but they require further development of farming practices and refining. technology; in contrast, ethanol from maize uses mature technology and the maize crop can be shifted between food and fuel use quickly.

Biofuel subsidies in the US and the EU

The World Bank lists the effect of biofuels as an important contributor to higher food prices. [63] The FAO / ECMB has reported that world land use for agriculture has declined since the 1980s, and has subsidized the United States. States began converting agricultural commodities to biofuels . [64] According to the United States Department of Agriculture (USDA), global wheat imports and inventories have decreased, domestic consumption has stagnated, and world wheat production has decreased from 2006 to 2008. [65]

In the United States, government subsidies for ethanol production have prompted many farmers to switch to production for biofuel. Maize is the primary crop used for the production of ethanol, with the United States being the largest producer of ethanol and ethanol. As a result, 23 percent of United States maize crops were used for ethanol in 2006-2007 (up from 6 percent in 2005-2006), and the USDA expects the United States to use 81 million tons of maize for ethanol production in the United States. 2007-2008 season, up 37 percent. [66] This is not only different grains from food, but it diverts agricultural land from food production.

Nevertheless, supporters of ethanol claim that using corn for ethanol is not responsible for the worst food in the world, which is caused by the price of rice and oil, which is not affected by biofuel .

However, a World Bank policy research working paper released in July 2008 [51] says that biofuelshave raised food prices between 70 and 75 percent. The study shows that a 25-30% of total price rise. The “month-by-month” five-year analysis argues that increases in global grain consumption and droughts were responsible for price increases. far the biggest effect on food supply and prices. The paper concludes that increased production of biofuels in the US and EU have been supported by tariffs and tariffs on imports, and that they have been smaller. This research also concludes that Brazil’s sugar cane is based on ethanol.[52] [53]

The Renewable Fuel Association (RFA) published a rebuttal based on the leaked version of the World Bank’s paper. [67] The RFA criticizes that the analysis is highly subjective and that the author “estimates the effect of global food prices from the weak dollar and the direct and indirect effect of high prices and attributes everything else to biofuels.” [68]

An economie assessment report prepared by the OECD [54] agrees with the World Bank report on the negative effects of subsidies and trade restrictions, but found that the effect of biofuels on food prices are much smaller. The OECD study is also critical to the reduction of GHG emissions from biofuels produced in Europe and North America, concluding that the current biofuel support policies would reduce greenhouse gas emissions by 0.8 percent by 2015, while Brazilian ethanol 80 percent compared to fossil fuels. The assessment calls for governments for more markets in biofuels and feedstocks to improve efficiency and lower costs.[55]

Idled farmland

According to the New York Times on April 9, 2008, the United States government pays farmers to idle their cropland under a conservation program. This policy atteint a peak of 36.8 million acres (149.000 km 2 ) idled in 2007, That Is 8% of cropland in United States, Representing a total area bigger than the state of New York. [69]

Agricultural subsidies

The global food crisis has been renewed for distorting agricultural subsidies in developed countries. [70] Support to farmers in OECD countries totals 280 billion USD annually, which compares to official development assistance of just 80 billion USD in 2004, and farm support depresses global food prices, according to OECD estimates. [71] These agricultural subsidies lead to underdevelopment in rural developing countries, including the least developed countries ; meanwhile subsidized food increases overconsumption in developed countries. The US Farm Bill brought in by the Bush Administration in 2002, an increase of $ 190 billion. [72]In 2003, the EU agreed to extend the Common Agricultural Policy until 2013. Former UNDP Administrator Malloch Brown re-entered the CAP. [73]

Distorted global rice market

Japan is forced to import more than 767,000 tons of rice from the United States, Thailand, and other countries due to WTO rules, [74] while Japan produces over 11 million tons produced in 2005 while 8.7 million tones were consumed in 2003-2004 period. citation needed ] Japan is not allowed to re-export this rice to other countries without approval. This rice is generally used for animal feed . Under pressure, the United States and Japan are poised to strike a deal to remove such restrictions. It is expected 1.5 million tons of high-grade American rice will enter the market soon. [75]

Crop shortfalls from natural disasters

Several distinct weather- and climate-related incidents have caused disruptions in crop production. Perhaps the most influential is the drought in Australia , in particular the fertile Murray-Darling Basin , which produces large amounts of wheat and rice. The drought has caused the annual rice harvest to fall 98% from pre-drought levels. [76]

Australia is historically the second-largest exporter of wheat after the United States, producing up to 25 million tons in a year, the vast majority for export. However, the 2006 harvest was 9.8 million. [77] Other events That Negatively-have affected the price of food include the 2006 heat wave in California’s San Joaquin Valley , qui killed off numbers of farm animals, and unseasonable rains in 2008 in Kerala , India, qui destroyed swathes of grain. These incidents are consistent with the effects of climate change . [78] [79]

The effects of Cyclone Nargis on Burma in May 2008 caused a spike in the price of rice. Burma has historically been a rice exporter, but yields have fallen as opposed to reduced prices. The storm surges inundated rice paddies up to 30 miles (48 km) inland in the Irrawaddy Delta , raising concern that the salt could make the fields infertile. Burma would have exported more than 600,000 tons of rice in 2008, but was raised in the aftermath of cyclones. [13] [80]

Stem rust reappeared in 1998 [81] in Uganda (and possibly earlier in Kenya) [82] with the particularly virulent UG99 fungus. Unlike other rusts, which only partially affects crop yields, UG99 can bring 100% crop loss. Up to 80% yield losses were recently recorded in Kenya. [83]

As of 2005 stem rust was still believed to be “largely under control worldwide except in Eastern Africa”. [82] But by January 2007 an even more virulent strain had gone across the Red Sea into Yemen. FAO reported on 5 March 2008 that Uganda had now spread to major wheat-growing areas in Iran. [84]

These countries in North Africa and Middle East consume over 150% of their own wheat production; [81] The failure of this staple crop thus adds to a major burden on them. The disease is now expected to spread over China and the Far East. The strong international collaboration network of research and development that spreads disease-resistant strains some 40 years ago and started the Green Revolution , known as CGIAR , was since slowly starved of research funds because of its own success and is now too atrophied to swiftly react to the new threat. [81]

Soil and productivity losses

Sundquist [85] points out that large areas of cropland are lost year after year, due to soil erosion , water depletion and urbanization. According to him “60,000 km 2 / year of land becomes severely degraded that it loses its productive capacity and becomes wasteland”, and even more affected to a lesser extent, adding to the crop supply problem.

Additionally, agricultural production is also lost to depletion . Northern China in particular has depleted much of its non-renewable aquifers , which now impacts negatively its crop production. [86]

Urbanization is another, smaller, difficult to estimate cause of annual cropland reduction. [87]

Rising levels of ozone

One possible environmental factor in the food price crisis is rising levels of ground-level tropospheric ozone in the atmosphere. Plants have been shown to have high sensitivity to ozone levels, and lower yields of important food crops, such as wheat and soybeans, may have been a result of elevated ozone levels. Ozone levels in the Yangtze Delta have been studied for their effect on oilseed rape , a member of the cabbage family that produces one-third of the vegetable oil used in China. Plants grown in chambers that controlled ozone levels exhibited at 10-20 percent reduction in size and weight ( biomass ) when exposed to elevated ozone levels. Production of seeds and oil was also reduced. [88]The Chinese authors of this study aussi Reported That rice grown in chambers controlled ozone levels EXHIBITED That 14 to 20 percent reduction in biomass yield When exposed to ozone levels over 25 Times Higher than normal Was for the area. [89]

Rising prices

From the beginning of 2007 to early 2008, the prices of some of the most basic international food commodities increased dramatically on international markets. [90] The international market price of wheat doubled from February 2007 to February 2008 hitting a record high of over US $ 10 a bushel . [91] Rice prices also reached ten-year highs. In some nations, while soy (which hit a 34-year high price in December 2007 [92] ) and prices have increased dramatically.

Total food import bills rose by an estimated 25% for developing countries in 2007. Researchers from the Overseas Development Institute have suggested this problem in the future. As food is prepared by the World Food Program(WFP) needs an extra $ 500 million just to sustain the current operations. [93]

To the extent of their domestic and commercial populations, China, Brazil, India, Indonesia, Vietnam, Cambodia and Egypt, have been banned from exporting. [94] Conversely, several other nations, including Argentina, Ukraine, Russia, and Serbia, or imposed other tariffs on the market of foodstuffs and other foodstuffs. . North Korea suffered from the food crisis in North Korea, said: “It is more likely that everyone is going to die”. [95]This nation, however, is solely relying on food assistance to cope with the crisis. [96]

In developed countries

United States

A May 2008 national survey found that food banks and pantries across the US were forced to cut back on food distribution as 99 percent of people reported to increase in the number of people seeking services. Rising food and fuel prices, inadequate food stamp benefits, unemployment, underemployment, and rent or mortgage costs were 15-20 percent more people. [97] Compounding this issue, USDA bonuses were declined by $ 200 million and local food donations were down nationally over 9 percent over the same period. According to the California Association of Food Banks, which is an umbrella organization of nearly all food banks in the state, food banks are at the “beginning of a crisis.” [98]

Effects on farmers

If global price movements are transmitted to local markets, farmers in the developing world could benefit from the rising price of food. According to researchers from the Overseas Development Institute , this can depend on farmers’ ability to respond to changing market conditions. Experience suggests that farmers lack the credit and inputs needed to respond in the short term. In the medium or long term, however, they could benefit, as seen in the Asian Green Revolution or in many African countries in the recent past. [93]

Relationship with 2008 Chinese milk scandal

For more details on this topic, see 2008 Chinese milk scandal .

As grain prices increased, China’s large-scale milk producers, were unable to exist economically. As a result, they have been added to the feed and milk, including melamine , to boost the level of protein. Hundreds of thousands of children have become ill, China’s milk exports, and executives have been arrested. [99]

Unrest and government actions in individual countries and regions

The price rises affected parts of Asia and Africa PARTICULARLY Severely with Burkina Faso, [100] Cameroon, Senegal, Mauritania, Ivory Coast, [101] Egypt [102] and Morocco seeing protests and riots in late 2007 and early 2008 over the unavailability of basic food staples. Other countries that have seen food are: Mexico, Bolivia, Yemen, Uzbekistan, Bangladesh, [103] Pakistan, [104] Sri Lanka, [105] and South Africa. [106]


10,000 workers rioted close to the Bangladeshi capital Dhaka , smashing cars and buzzards and vandalism factories in anger at high prices and low wages. Dozens of people, at least 20 police officials, were injured in the violence. Ironically, the country achieves self-sufficiency in 2002, but has increased its importance to agriculture and fossil fuels. [107]

Economists estimate 30 million of the country’s 150 million people could go hungry. [108]


In April 2008, the Brazilian government announced a temporary ban on the export of rice. The ban is intended to protect domestic consumers. [109] [110]

Burkina Faso

One of the earlier food riots took place in Burkina Faso, on February 22, when rioting broke out in the country’s second and third largest cities (up to a 65 percent increase), sparing the capital, Ouagadougou , where soldiers were mobilized throughout strategic points. The government promised to lower taxes on food and to release food stocks. Over 100 people have been arrested in one of the towns. [111] Related policy actions of the Burkinabe government included:

  • The removal of customs duty on rice, salt, dairy-based products and baby foods
  • The removal of value added on durum wheat, baby foods, soap and edible oils
  • Establishing negotiated prices with wholesalers for sugar, oil and rice
  • Releasing food stocks
  • Strengthening of community grain banks
  • Food distribution in-kind
  • Reduction of electricity cost, partial payment of utility bills for the poor
  • Enacting special programs for schools and hospitals
  • Fertilizer distribution and production support.

A ban was also imposed on the export of cereals. [112]


Main article: 2008 Cameroonian anti-government protests

Cameroon, the world’s fourth largest cocoa producer, saw large scale rioting in late February 2008 in Douala, the country’s commercial capital. Protesters were against inflating food and fuel prices, President Paul Biya to extend his 25-year rule. Protesters set up barricades, burned tires, and targeted businesses that they believe belonged to the Biya family, high members of the ruling party, the government, or France. [113] It became the first protest in the nation’s history in which minute-by-minute events were covered by social media. By 27 February, Yaounde, Douala, Bamenda, Bafoussam, Buea, Limbe, Tiko, Muea, Mutengene, and Kumba. [113]At least seven people have been killed in the worst unrest in the country in over fifteen years. [114] This figure was later increased to 24. [95] Youths were mobilized in ways that had not been seen since the dead cities. [113] Part of the government response to the protests in rice, flour, and fish. The government reached an agreement with a view to reducing taxes. As of late April 2008, however, reports suggest that prices had not eased and had increased. [115]

On 24 April 2008, the government of Cameroon announced a two-year emergency program designed to double Cameroon’s food production and achieve food self-sufficiency. [116]

Ivory Coast

On 31 March, Ivory Coast’s capital Abidjan saw police wear tear gas and a dozen protesters. The riots followed in the price of food and fuel, with the price of beef rising from $ 1.68 to $ 2.16 per kilogram, and the price of gasoline rising from $ 1.44 to $ 2.04 per liter, in only three days. [117]


In Egypt, a boy was killed by a gunshot to the head of an Egyptian police intervened in violent demonstrations over rising prices that gripped the industrial city of Mahalla on 8 April. Large swathes of the population-have-been hit as food prices, and the price of bread PARTICULARLY, Doubled-have over the last Several months as a result of exploiting a shortage producteurs That HAS Existed since 2006 [118]  · . [119]


This section needs expansion . You can help by adding to it . (June 2008)

Drought and the food price in Ethiopia. [120]


On April 12, 2008, the Haitian Senate voted to dismiss Prime Minister Jacques-Edouard Alexis after violent food riots hit the country. [121] The food riots caused the death of 5 people. [95] Prices for food items such as rice, beans, fruit and condensed milk have gone up 50 percent in Haiti since late 2007 while the price of fuel has tripled in only two months. [122] Riots broke out in the past, and the government was attempting to restore order by subsidizing a 15 percent reduction in the price of rice. [123] As of February 2010, post-earthquake Port-au-Prince is almost entirely related to foreign markets. [124]


India has banned the export of rice except for Basmati which attracts a premium price. [125]

The ban has since been removed, and India now exports a variety of rice. quote needed ]


Street food prices have increased in Indonesia [126] where food staples and gasoline have nearly doubled in price since January 2008. [127]

Latin America

In April 2008, the Latin American members of the United Nations’ Food and Agriculture Organization (FAO) puts in Brasilia to confront the issues of high food prices, scarcities and violence that affect the region. [128]


The President of Mexico , Felipe Calderón , with industry representatives and members of the Confederation of Industrial Chambers (Concamin), agreed to free of charge prices of more than 150 consumer staples, such as coffee, sardines, tuna, oil, soup or tea, among others , until the end of December 2008. The rate of inflation was 4.95%, the highest increase since December 2004.

Mexican baking company Grupo Bimbo’s CEO, Daniel Servitje, announced in the 19th Plenary Meeting of the Mexico-China Business Committee that, despite its 20% rise in production costs. [129] Bimbo is one of the most important baking companies worldwide, having recently expanded to China. Bimbo has also acquired five bakeries in the United States and Canada. [130]


In mid February, rioting that started in the Mozambican rural town of Chokwe and then spread to the capital, Maputo , has resulted in at least four deaths. The riots have been reported in the media to have been, at least in part, and have been termed “food riots.” A biofuel advocacy publication, however, claimed that these were, in fact, “fuel riots”, limited to the cost of diesel, and argued that “food riot” characterization worked to fan “anti-biofuels sentiment.” [131]


The Pakistan Army has been deployed to the seizure of food from the fields and warehouses. This has not stopped the food prices from increasing. The new government has been blamed for not managing the food stockpiles properly. [132]


The world’s top rice producer. Rice exports dropped by nearly 4 million tons to only about 40,000 tons last year, mostly due to neglect by Myanmar’s ruling generals of infrastructure, including irrigation and warehousing. On May 3, 2008 Cyclone Nargisstripped Myanmar’s rice-growing districts, ruining large areas with salt water. 65 percent of Myanmar’s rice. Worries of long-term food shortages and rationing are rife. The military regime says nothing about the rice crisis, but continues to export rice at the same rate. “… at least the next two harvests are going to be greatly affected and there will be virtually none of these. The damage to the economy is going to be profound. ” said economist and Myanmar expert Sean Turnell, of Australia’s Macquarie University. (interviewed in “The Irriwaddy”, Tuesday, 27 May 2008)


In Panama, in the face of the market and the price of food and the price of food to the public at a lower subsidized price at food kiosks.


In the Philippines, the Arroyo government insisted on 13 April that there would be no food riots in the country and that there could be no comparison with Haiti’s situation. [133] Chief Presidential Legal Counsel, Sergio Apostolstated: “We are not trying to solve the problem, we are doing something to the issue. [134] Comments by the Justice Secretary, Raul Gonzalez , the following day, that food riots are not far fetched, were quickly rebuked by the rest of the government. [135]

On April 15, the Philippines, the world’s largest rice importer, urged China, Japan, and other key Asian nations, to convene an emergency meeting, especially taking issue with those countries’ rice export bans. “Free trade should be flowing”, Philippine Agriculture Secretary Arthur Yap stated. [136] In late April 2008, the Philippines requested that the World Bank export restrictions. [137]


The Russian government pressured retailers to freeze food prices before key elections for fear of a public backlash Against the rising cost of food in October 2007. [138] The freeze ended on 1 May 2008. [139]


On March 31, 2008, Senegal had riots in response to the price of food and fuel. Twenty-four people have been arrested and detained in “torture” and “unspeakable acts” on the part of the security forces. [140] Further protests took place in Dakar on April 26, 2008. [141]


Riots in Somalia occurred on 5 May 2008 over the price of food, in which five protesters were killed. The protests occurred during the Ethiopian war in Somalia .


The Christian Science Monitor , neweurasia, and other media observers are predicting that a nascent hunger crisis will erupt into a full famine as a consequence of energy shortages . [142] An expert announced on 10 October that almost one-third of Tajikistan’s 6.7 million inhabitants may not have enough to eat for the winter of 2008-09. [143]


Food riots in southern Yemen that began in late April, saw torched police stations, and roadblocks were set up by armed protesters. The army has deployed tanks and other military vehicles. Although the rises involved more than 100 arrests, the authorities claimed no fatalities; residents, however, claiming one of the fourteen wounded people has died. [144]

Projections and early mitigation efforts

The UN (FAO) released a study in December 2007 projecting a 49 percent increase in African prices, and 53 percent in European prices, through July 2008. [145] In April 2008, the World Bank, in combination with the International Monetary Fund Haiti, Haiti, Haiti, Haiti, Haiti, Haiti. [146] According To FAO director Jacques Diouf , HOWEVER, the World Food Program needed immediate cash injection of at least year $ 1,700 million [11]far more than the tens of million-worth in the measures already pledged. On 28 April 2008, the United Nations Secretary-General Ban Ki-moon established a Task Force on the Global Food Security Crisis [2] under the chairmanship and composed of the United Nations specialized agencies, funds and programs, Bretton Woods institutions and the UN Secretariat to co-ordinate efforts to alleviate the crisis. [147]

After the crisis

2013 Concluded research que la spike Was the result of an unusual combination of Circumstances and prices in the future Will Be Higher Than before the spike, we DEPENDING oil prices , climate change , and future diets. The impacts of the spike on poor people are less than thought, thanks to rising rural wages in some countries. The researchers called on developing countries to improve indicators of social exclusion and to strengthen social protection , and to reduce the incidence of child malnutrition and stimulating agricultural development. [148]

Actions by governments

IFAD is making up to US $ 200 million in the world of food crisis. [149]

On May 2, 2008, US President George W. Bush said he was asking $ 770 million for international food aid. [150] On October 16, 2008, in a speech at a United Nations gathering on World Food Day , US President Bill Clintoncriticizes the bipartisan coalition in Congress that makes it difficult to donate in cash rather than food. [151] Clinton also said:

We need the World Bank, the IMF, all the big foundations, and all the governments to admit it, for 30 years, we all blew it, including when I was President. We have been wrong to believe that we are in the market, and we are in favor of a more responsible and sustainable form of agriculture. [152]

The release of Japan’s rice reserves down the market. As of May 16, anticipation of the move had already been reduced by 14% in a single week. [153]

On 30 April 2008 Thailand announced the creation of the Organization of Rice Exporting Countries (OREC) with the potential to develop a price-fixing cartel for rice. [154] [155] This is seen by some as an action to capitalize on the crisis. quote needed ]

In June 2008 the Food and Agriculture Organization hosted a High-Level Conference on World Food Security , in which $ 1.2 billion in food aid was committed for the 75 million people in the world. [156]

In June 2008, a sustained commitment of the G8 was called for by some humanitarian organizations. [157]

Food price decreases

In December 2008, the global economic slowdown , decreasing prices , and speculation of decreased demand for commodities worldwide. The Chicago Board of Trade dropped from US $ 7.99 per bushel in June to US $ 3.74 per bushel in mid-December; wheat and rice prices experienced similar decreases. [158] The UN’s Food and Agriculture Organization, however, warned against “a false sense of security”, noting that the credit cruner could be reduced. [159] FAO convened at World Summit on Food Securityicts at headquarters in Rome in November 2008, Noting That Remained high food prices in developing countries and que la overall food security conditions worsened HAS.

By early 2011 food prices had risen again to surpass the highs of record in 2008. Some commentators saw this as a resumption of the price spike seen in 2007-08. [160] Having fallen due to the recession. [161]