Curtailing the soaring global food prices

Globally, extreme fluctuations in the prices of food commodities have been experienced in recent years. The basic cause being lack of agricultural productivity; additional factors include financial market volatility, political instability, and armed conflict that have engulfed some parts of the world. Others are scarcity of natural resources such as land and water, and rising energy prices. The situation becomes even more complex when agricultural subsidies provided by governments to the farmers have reduced or when exports are restricted, which in recent years led to further scarcity and sudden price hikes in the global market. And it seems the countries giving out the subsidies are not without their problems either. Ironically, rich countries argue that the artificially low prices can lead to unhealthy incentives for consumers. When energy-dense foods such as grains and sugar become cheaper, they argue that these attract low-income families, leading to problems with overweight and obesity. But, all of these factors and the price fluctuations that result have put pressure not just on individuals but on entire social groupings and, indeed, societies as a whole. On the other hand, dramatic increases in the cost foodstuffs in developing countries have not only impoverished the diet and constrained the possibilities of many of the world’s poorest and most vulnerable populations; they have in some instances actually led to food riots which have triggered major political and societal changes among other challenges. When prices rise, the cost of acquiring food poses a growing problem. This is the most obvious effect. In order to prioritize the purchase of food within the framework of an unchanged budget, cuts have to be made elsewhere. On a household level, this can result in a general lowering of living standards, while governments may have to reduce funding for certain initiatives not related directly to the provision of food. Changes in the price of food can also impact the macro economy and labor markets, causing wages to rise or fall concomitantly. The worst-case scenario is when a drop in job opportunities is accompanied by a rise in food prices, as was the case in parts of the region in recent years. In fact, food prices do play a serious role in triggering the violent change. Several factors that influence food pricing, the repercussions experienced when price rises are deemed excessive, and solutions that could help alleviate the problem. Food price volatility is an issue that needs to be addressed on a global scale, rather than by individual countries only, for it is the poorer nations that suffer most in the wake of a food pricing crisis, as they are unable to fund the social and economic mitigation. When meals become unobtainable on account of their increased prices, the quality of the diet deteriorates. Such malnutrition leads to short-term health problems, but it also lays the foundation for long-term problems such as stunting and an increased predisposition to communicable diseases such as cardiovascular diseases and diabetes. The under nutrition rate of the under-fives also rises, and the increased prevalence of these conditions has a lasting negative influence not only on the individuals affected but also upon the entire societies of which they form a part. Strange as it may sound, the fact that food prices are either high or low in absolute terms is not the main concern. The most serious problem occurs when a sudden change or ‘spike’ in prices occurs, for countries whose nutrition security is already compromised find it very hard to cope with these changes. Traditionally, such sudden price increases have been attributable to natural disasters such as droughts and floods, and to man-made disasters such as wars. Such occurrences limit the supply of food available. As supply dwindles but demand grows due to population and income growth, the result is inevitably higher prices for such produce. This is something that goes along to affect other food commodities hence increasing their cost. The result of all this is a strain on people’s livelihood since these increases do not correspond to the existing purchasing power. More said than done, the underlying question is what can be done to curb the ever rising food prices and save our people from the challenges associated with it! oscar_kimanuka@yahoo.co.uk

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Curtailing the soaring global food prices