GLOBAL FOOD CRISIS – SYMPTOMS, IMPLICATIONS, CAUSES
Abstract
The study was devoted to the global food crisis that took place after 2007. On the basis of the literature review and analysis of statistical data we sought answers to questions about symptoms, effects and most of all causes of the crisis. Primary symptom of food crisis was the increase in world agro-food prices and their volatility. The strongest response of domestic consumer food prices on the increase in world agricultural commodity prices was observed in developing countries with high share of food expenditure in the total expenditure. A substantial coincidence of social unrests with changes in food prices indicates the political and social consequences of the food crisis. They are manifested not only in the decline in food security but it could have political implications especially in Africa and the Middle East. There are various factors which influenced the unprecedented increase in prices of agro-food products. The most important ones include changes in energy policy, which led to lower inventories and increase of linkages in agricultural commodity prices to crude oil prices, increased food demand from developing countries, and macroeconomic factors as fluctuations in exchange rates and low interest rates.
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