WUNRN
GLOBAL HIGH FOOD PRICES - HUNGER,
POVERTY, MANIPULATION - WOMEN
Women
are the world's primary food producers, yet cultural traditions and social
structures often mean women are much more affected by hunger and poverty than
men. World Food Programme - http://www.wfp.org/hunger/who-are
_____________________________________________________________
Oxfam International
Small
farmers, big companies, developing countries: making sense of the global food
prices crisis
World
food prices reached a new historic peak in January 2011, exceeding prices
reached during the food crisis of 2007-08. The spike in prices in 2007-08 took
the total number of hungry people to over a billion - a sixth of the world’s
population. Millions of people’s lives are under threat.
We've put together this Q&A to
help make clearer the relationship between food prices and poverty.
A. Food prices have recently passed
the levels reached during the food crisis of 2007-08. People around the world
are starting to feel the impact and some countries like
A. Since July 2010, prices of many
crops have risen dramatically. Prices of maize increased 74%; wheat went up by
84%; sugar by 77% and oils and fats by 57%. Rice prices fortunately remain
fairly stable with prices in December 2010 less than 4% higher than the previous
year; meat and dairy also remained stable, but at high levels.
The UN Food and Agriculture
Organization said its food price index was up 3.4% from December, marking the
highest level since the organization started measuring food prices in 1990.
A. The causes are multiple and there
is considerable debate about the relative importance of different factors, but
key drivers are:
1.
Reduced production due to bad weather, possibly linked to
climate change (for example extreme drought or floods, as occurred in
2.
Export restrictions and panic buying – usually caused by
weather related shocks;
3.
Increased demand, both for biofuels – which takes land away
from food production – and for food (especially meat);
4.
Financial causes such as the depreciation of the dollar, low
interest rates and speculation;
5.
Increased oil prices which drive up the cost of agricultural
essentials like fertiliser and transport.
A. Big food trading companies
have reported increased profits; supermarkets, seed and fertilizer companies
are also doing well. Some big agribusinesses, which operate along the supply
chain, and have a strong position in markets, are well placed to reap the
benefits of higher prices.
There are also serious questions
about the impact of big institutional investors who have been involved in
speculation on food prices – activity that is likely to exacerbate food prices
rises and food price volatility.
A. Vulnerable people in
developing countries (as well as poor people in developed countries)
are being hit hardest. Those already living on the edge are particularly
vulnerable; the landless, slum dwellers and farm workers. If consumption
decreases, it’s women and children who suffer most as men’s rations tend to be
prioritized in many households.
A. While high food prices are clearly
a threat to many poor people in developing countries, they could also represent
an opportunity for those who make a living from agriculture. However, many poor
farmers are unable to take advantage of price increases for a number of
reasons, including limited access to land and water and essential inputs like
fertilizers, or the impacts of disasters and conflict.
Many poor farmers may only have one
buyer for their produce, who can dictate the price. They are vulnerable to
changes in the weather, are often not able to store their food, and poor roads
and other infrastructure can block them from getting to market. Farm workers
are even less likely to benefit. These people are vulnerable as they are often
working on short term contracts, with poor labor rights: they are very exposed
as consumers to higher prices, but have little hope of getting a better wage
for themselves.
A. It’s not possible to link specific
weather events to climate change. However, most scientists agree the world will
experience more unpredictable and extreme weather events as a result of climate
change. In the last year we’ve seen several devastating weather related shocks
which have had dramatic impacts on food production. In July/August 2010,
A. We are not yet in the crisis
situation of 2007-08. The current situation is similar to 2007-8, but there are
some differences:
·
Global cereal stocks are much higher now than they were in 2007-08
·
Price rises are not yet global – in much of
·
We are not yet experiencing the extent of export restrictions seen in
2007-08, one of the key drivers of high prices
·
Prices are rising across all foodstuffs, but critically, staple foods,
particularly cereals, eaten by many of the world’s poorest people are at a
lower price than the peak of the crisis in 2007-08.
Food prices are
likely to increase until the middle of this year unless
governments intervene. The longer prices continue to increase, the greater the
chances that the situation turns into a major food crisis on the scale of
2007-08 – or worse. If harvests are good in some countries prices may start to
decrease, but unpredictability of prices will remain a problem.
A. Governments, both developed and
developing, need to act quickly to ensure the recent food price increases do
not spiral out of control. Governments must:
·
Prevent ongoing volatile food prices by increasing support (like subsidies
for fertilizers and seeds) and investments in small scale agriculture to
increase certainty in 2011 production;
·
Help people living in poverty cope with the immediate effects of high and
volatile prices, through social protection programs.
In the long term the root
causes of food price increases need to be addressed by giving
developing countries space to create the policies needed to promote national
food production, increasing investment in agriculture – focused on small
farmers and women – and ensuring small scale producers are supported in their
efforts to adapt to climate change. Rich countries must come up with sufficient
financial means to address both short and long terms needs.
A. In 2008 the percentage of total
global aid spending devoted to agriculture had fallen from 18% to just 4%,
despite evidence that spending on agriculture pays dividends in terms
of reducing poverty and inequality, promoting sustainable growth and protecting
the environment.
Oxfam believes
strongly that overall aid spending should be going up, in line
with promises made by developed countries. Aid should also be targeted and
coordinated better, in order to increase its effectiveness. Less could be spent
on consultants for example.