Recent Global Food Price Shocks: Causes, Consequences and Lessons for African Governments and Donors

• Published in: Journal of African economies Vol. 20; no. Supplement 1; pp. I12 - i62
• Main Authors: Abbott, P., Borot de Battisti, A.
• Format: Journal Article
• Language: English
• Published: Oxford Oxford Publishing Limited (England) 01-05-2011
• Subjects: Africa; Agricultural commodities; Agricultural subsidies; Commodity prices; Developing countries; Economic analysis; Exchange rates; Foreign exchange rates; LDCs; Price stabilization; Studies; Supply; Africa
• ISSN: 0963-8024; 1464-3723
• DOI: 10.1093/jae/ejr007

This paper will first explore the factors that have been offered to explain the run-up and subsequent down-turn in agricultural commodity prices. Explanations have included supply and utilisation events, competition for grains and oilseeds as food versus fuel, and financial factors such as currency changes that exaggerated prices measured in dollars. special emphasis will be put on what happened in Africa and how it should respond in the future. Some of the key issues in the current debate on expanding African agricultural sectors, including price stabilisation and fertiliser subsidisation, will be explored. In the process, this paper will evaluate how far various methodologies have taken them in providing an understanding of the consequences of these recent events, and providing a sound basis for policy.