Tackling the Crisis of Rising Global Food Prices

Jul 14, 2026

Uploaded by Aria

Rising global food prices create recurring crises marked by volatility, sharp spikes, and widespread impacts such as shortages, trade disruptions, hunger and poverty, fiscal strain, and social unrest. Analysis of historical data since the 1960s shows crises in 1973–76, 2007–12, and post-2020 were triggered mainly by factors outside agriculture, with shortening intervals and worsening severity. The recent spike is linked to COVID-19 supply disruptions and the Russia–Ukraine war, amplified by trade dependence and biofuel diversion.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages25

Reading Time1 h 3 min

AccessFree to download

# Tackling the crisis of rising global food prices Analysis shows factors outside agriculture to be responsible,with lessons for the world and in food systemmanagement 14/06/2022 Global food prices are characterised by year-to-year volatility and periodic sharp spikes.While year-to-year volatility is easily managed by most countries through changes in their trade and domestic policies,it is steep and severe periodic price shocks that can lead to some sort of a crisis at the global andnational levels.The crisis can emerge in the form of food shortages,trade disruptions,a rise and spreadin hunger and poverty levels,a depletion of foreign exchange reserves for net food importing countries,astrain on a nation's fiscal resources due to an increase in spending on food safety nets,a threat topeace,and even social unrest in some places.Because of these widespread ramifications of food priceshocks,it becomes imperative to understand the real causes of such shocks and devise effectivemechanisms to deal with them. ## Crises and history Historical data on food prices compiled by international agencies such as the Food and AgricultureOrganization of the United Nations,the World Bank/International Monetary Fund show that since theonset and the adoption of Green Revolution technoloav in the earlv 1960s.the world has been struck Crises and history Historical data on food prices compiled by international agencies such as the Food and AgricultureOrganization of the United Nations,the World Bank/International Monetary Fund show that since theonset and the adoption of Green Revolution technology in the early 1960s,the world has been struckthrice by food price crises.The first shock was experienced during 1973-76 when the food price index(based on prices in U.S.dollars)doubled in nominal terms and increased by one third in real termscompared to the pre-shock average of four years.This shock moved up the nominal prices ofcommodities(including food)into a new trajectory.However,for the next two decades,food prices in realterms followed a declining trend and were at their lowest around 2002.After this,nominal as wellas thereal prices of food began rising;this momentum built up to culminate in the next food price crisis of 2008,which was further intensified by 2011.While the price shock began softening after 2014,food prices didnot move back to their pre-2006 level.The lullin global food prices stayed for a short duration,from 2015to 2019,and food prices again began moving above the trend by the third quarter of 2020.This time theincrease in the food price index happened very quickly and it turned out to be very big-it has taken thefood price index to its historically highest level This increase in global food prices which manifested itself in the three food price crises since the 1960soffers some pertinent lessons for global food systems and the international community.All the three foodprice crises during 1973-1976,2007-12,and the recent one which began

Jul 14, 2026

Uploaded by Aria