What is the impact of high world food prices – who benefits and who loses?
The global cost of imported foodstuffs has jumped by at least 20 percent since 2006 to the highest level on record. It is evident that, when food prices rise, consumers are the first to suffer. Especially in low-income and food-deficit countries, rising food prices translate into hefty increases of food import bills with negative impacts on the balance of payments. For several years, consumers around the world have benefited from low food prices. In many countries, farmers could only grow agricultural crops thanks to strong government support. Most developing countries could not afford to provide such support measures. As a result, investment in agriculture has declined and many poorer countries became increasingly dependent on imports to meet their domestic food requirements. If todays high prices really trickle down to the farm level in developing countries, they could have a very positive impact on food production and convert agriculture into an engine of growth and employment, espe
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