Prices for agricultural products are currently going up rapidly. While part of the price boom is of a cyclical nature, there is a host of arguments for the fact another part is being caused by structural changes to the global agricultural and food sectors. After a long period of falling food prices, people will have to adjust to the fact that food will become more expensive again, and yield and price fluctuations will increase. This will have a serious impact on food security, particularly in the poorest countries and among the poorest classes. But it will also make public and private investments in agriculture attractive again. This benefits pro-poor growth in those developing nations where there is a corresponding potential. At the same time efforts must be taken to safeguard the food situation under the new conditions and to stabilise the agricultural markets.
Dr. Michael Brüntrup
German Development Institute
Bonn, Germany
Michael.Bruentrup@die-gdi.de
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