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Food security and global security - IEEE

Food security and global security - IEEE

Food security and global security - IEEE

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CHAPTER FIVETHE VOLATILITY OF THEAGRICULTURAL MARKETSAND THE WORLD FOOD CRISISJosé María SumpsiABSTRACTThe paper analyzes the main causes of strong <strong>and</strong> sudden increase inagricultural prices <strong>and</strong> food prices in the first half of 2008 that causedfood crisis, which was complex, multifactorial <strong>and</strong> not cyclical. Afterthat, significant price reductions on 2009 <strong>and</strong> part of 2010 have takenplace <strong>and</strong> again price increased strongly from August 2010 until July2011. This situation supports the view of a strong agricultural pricevolatility, which is one of the problems concern to the internationalcommunity, as evidenced by the fact that the G-20 considered theissue of agricultural market volatility <strong>and</strong> its impact on the <strong>global</strong>food crisis as one of the key themes in 2011 under the FrenchPresidency. Structural causes of the high volatility <strong>and</strong> particularlystrong <strong>and</strong> price spikes, particularly the supply-dem<strong>and</strong> imbalance<strong>and</strong> climate change, mean that humanity faces a challenge of longtermfood supply, which can only be solved through innovation <strong>and</strong>technology adoption, increased agricultural investment, design <strong>and</strong>implementation of appropriate agricultural policies <strong>and</strong> a new <strong>global</strong>governance for food <strong>and</strong> agriculture.Key Words:<strong>Food</strong> <strong>security</strong>, food crisis, price volatility, agriculturalinvestment, agricultural policy.

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