Alert concerning the increased volatility of agricultural

According to the United Nations Food and Agricultural Organization (FAO), the increased volatility of prices for agricultural commodities in 2006 threatens the future of developing countries.

The United Nations Food and Agricultural Organization (FAO), in the June 8th edition of the FAO Food Outlook, attributes the increased volatility of prices for agricultural commodities to the coincidence of three factors:

› - Increased economic uncertainty since 2005 ;
› - Sharp increases in oil prices ;
› - A series of natural disasters in 2005 that have affected agricultural markets.

As a result, the bill for food imports is expected to rise in 2006 by 2% on average according to the FAO.

But this increase will be much higher for the developing countries, and notably the poorest, because wheat, coarse grains and sugar, which make up the staple diet in developing countries, will experience the biggest price increases.

There is therefore a real risk of impoverishment and famine in the developing countries in the coming months. This is one of the reasons why WOAgri is working on regulatory principles that aim to neutralize the negative effects caused by the volatility of prices.


Source : Europolitique Agriculture