How to understand high global food price? Using SHAP to interpret machine learning algorithm

• Published in: PloS one Vol. 18; no. 8; p. e0290120
• Main Authors: Han, Xiao, Yuan, Tong, Wang, Donghui, Zhao, Zheng, Gong, Bing
• Format: Journal Article
• Language: English
• Published: San Francisco Public Library of Science 16-08-2023; Public Library of Science (PLoS)
• Subjects: Algorithms; American dollar; Biodiesel fuels; Biology and Life Sciences; Computer and Information Sciences; COVID-19; Crude oil; Crude oil prices; Engineering and Technology; Fertilizers; Food prices; Food production; Food security; Food supply; Learning algorithms; Liquidity; Machine learning; Medicine and Health Sciences; Physical Sciences; Research and Analysis Methods; Social Sciences; Supply chains; Theoretical analysis; United States > US; Vietnam; India
• ISSN: 1932-6203; 1932-6203
• DOI: 10.1371/journal.pone.0290120

The global food prices have surged to historical highs, and there is no consensus on the reasons behind this round of price increases in academia. Based on theoretical analysis, this study uses monthly data from January 2000 to May 2022 and machine learning models to examine the root causes of that period’s global food price surge and global food security situation. The results show that: Firstly, the increase in the supply of US dollars and the rise in oil prices during pandemic are the two most important variables affecting food prices. The unlimited quantitative easing monetary policy of the US dollar is the primary factor driving the global food price surge, and the alternating impact of oil prices and excessive US dollar liquidity are key features of the surge. Secondly, in the context of the global food shortage, the impact of food production reduction and demand growth expectations on food prices will further increase. Thirdly, attention should be paid to potential agricultural import supply chain risks arising from international uncertainty factors such as the ongoing Russia-Ukraine conflict. The Russian-Ukrainian conflict has profoundly impacted the global agricultural supply chain, and crude oil and fertilizers have gradually become the main driving force behind the rise in food prices.