scholarly journals HOW DO GOVERNMENTS RESPOND TO FOOD PRICE SPIKES? LESSONS FROM THE PAST

2010 ◽  
Vol 01 (02) ◽  
pp. 265-285 ◽  
Author(s):  
KYM ANDERSON ◽  
SIGNE NELGEN
Keyword(s):  
Time Series ◽  
Government Intervention ◽  
International Markets ◽  
Food Prices ◽  
Food Price ◽  
Food Markets ◽  
Price Fluctuations ◽  
Policy Responses ◽  
The Past ◽  
Domestic Prices

Food prices in international markets spiked upward in 2008, doubling or more in a matter of months. Evidence is still being compiled on policy responses over the following two years, but new time series estimates of government intervention for the previous five decades allow insights into past policy responses to price fluctuations and spikes. This paper reviews the distortionary impacts of policies used by governments attempting to stabilize their domestic food markets. It then focuses on policy responses in the mid-1970s, as reflected in domestic prices and various annual indicators of distortions to producer and consumer incentives, before drawing out some policy lessons.

scholarly journals Food Price Volatility and Macroeconomic Factors: Evidence from GARCH and GARCH-X Estimates

2011 ◽  
Vol 43 (1) ◽  
pp. 95-110 ◽  
Author(s):  
Nicholas Apergis ◽  
Anthony Rezitis
Keyword(s):  
Government Intervention ◽  
Price Volatility ◽  
Food Prices ◽  
Food Price ◽  
Food Markets ◽  
Macroeconomic Factors ◽  
Short Run ◽  
Food Market ◽  
Positive Effect

This article examines food price volatility in Greece and how it is affected by short-run deviations between food prices and macroeconomic factors. The methodology follows the GARCH and GARCH-X models. The results show that there exists a positive effect between the deviations and food price volatility. The results are highly important for producers and consumers because higher volatility augments the uncertainty in the food markets. Once the participants receive a signal that the food market is volatile, this might lead them to ask for increased government intervention in the allocation of investment resources and this could reduce overall welfare.

The diplomacy of world food: goals, capabilities, issues and arenas

1978 ◽  
Vol 32 (3) ◽  
pp. 775-809 ◽  
Author(s):  
Henry R. Nau
Keyword(s):  
Foreign Policy ◽  
Agricultural Policy ◽  
International Markets ◽  
World Food ◽  
Food Markets ◽  
Grain Trade ◽  
Domestic Prices ◽  
Food Shortages ◽  
International Diplomacy ◽  
Foreign Agricultural

Food is a factor in international diplomacy as a direct instrument of policy and as a condition underlying policy. Grain trade is particularly important. For most of the postwar period, principal grain exporting countries pursued policies designed to support domestic prices, using foreign agricultural policy to dispose of accumulated surpluses and to pursue broader non-food (political and economic) objectives. Grain importing countries came to rely on cheap food supplies in international markets, neglecting incentives to stimulate domestic production. Worldwide food shortages in 1973–74 made clear the need to consider international as well as domestic food requirements. Food considerations acquired a foreign policy dimension, while foreign policy considerations sparked a debate about the use of food for power. A return to surplus conditions in world food markets reduces the opportunities for the exercise of food power, while creating the conditions to meet historically unattainable food goals. To accomplish this, a system of international coordination and review of separate national food policies may be needed. Such a system would ensure greater accountability of private groups to governments and governments to one another without relying excessively on either automatic market forces or a centralized world food authority.

Implications of Food Price Shocks on Availability of Food: Evidences from the Indian Economy

2020 ◽  
pp. 097639962093739
Author(s):  
Arindam Laha ◽  
Subhra Sinha
Keyword(s):  
Government Procurement ◽  
Food Prices ◽  
Food Price ◽  
Relative Price ◽  
Agricultural Commodity ◽  
Price Shocks ◽  
Food Grains ◽  
Domestic Prices ◽  
The Government ◽  
Net Export

In the backdrop of liberalized trade of agricultural commodity in post WTO regime, reform measures is reflected in the change of domestic prices vis-à-vis international prices of food articles. Physical availability of food is purposively selected as a food security indicator in this paper due to its conceptual linkages of food price movement and domestic food supply. A declining trend in the per capita availability of food grains in the post reform period suggests a net export of food grains. Government intervention in procurement and distribution of food grains helps in insulating the shock of food prices in post food crisis situation. Empirical evidences also suggest that there exists a bi-directional causality in between relative price and net export, or food grains production, or government procurement of foodgrains. A responsive change in foodgrains production, net imports, foodgrains procurement and change in the government stock is followed by food price shocks.

Food prices and inflation dynamics in China

2014 ◽  
Vol 6 (3) ◽  
pp. 395-412 ◽  
Author(s):  
Chengsi Zhang ◽  
Chunming Meng ◽  
Lisa Getz
Keyword(s):  
Error Correction ◽  
Food Prices ◽  
Food Price ◽  
Dynamic Interactions ◽  
Price Inflation ◽  
Inflation Dynamics ◽  
Content Type ◽  
The Past ◽  
Paper Construct ◽  
Correction Terms

Purpose – China has witnessed low and stable consumer price inflation in conjunction with high and volatile food price inflation over the past decade. The purpose of this paper is to examine questions about whether or not the link between consumer price inflation and food price inflation has weakened and the determinants of consumer price inflation. Design/methodology/approach – This paper explores these questions by estimating error correction terms for monetary and external sectors using the Johansen cointegration method. Findings – Empirical results suggest that the link between consumer price inflation and food prices has not been weakened, food price inflation, especially cereal price inflation, remains a significant driving force for overall consumer price inflation, and international food prices also play a significant role in determining China's inflation dynamics. Originality/value – The paper construct a multivariate dynamic model that features the link between consumer price inflation and its potential driving variables. It also develops error correction models for food price, non-food price and consumer price inflation, which can accommodate dynamic interactions among the underlying variables.

Structure and Food Price Inflation

2017 ◽  
Vol 16 (1) ◽  
Author(s):  
Ilya Rahkovsky ◽  
Richard Volpe
Keyword(s):  
Market Structure ◽  
Price Index ◽  
Consumer Price Index ◽  
Market Concentration ◽  
Food Prices ◽  
Food Price ◽  
Retail Market ◽  
Food Markets ◽  
Price Inflation ◽  
Market Shares

AbstractWe pair Nielsen TDLinx data, 2004–2014, with Consumer Price Index data to investigate how changes in food retail market structure drive food price inflation. We find, in corroboration with much of the evidence to date, that market concentration is positively and significantly associated with higher food prices. We find the same to be true for store format concentration, or the homogeneity of food markets. As the market shares, or penetration, of supercenters, warehouse stores, limited assortment stores, and superettes increase at expense of traditional supermarkets, food price inflation decreases.

Food price spikes: Is a cereal export ban the right response for Ethiopia?

2020 ◽  
Vol 49 (3) ◽  
pp. 225-234
Author(s):  
Emerta A Aragie ◽  
Jean Balié ◽  
Cristian Morales -Opazo
Keyword(s):  
Low Income ◽  
Food Prices ◽  
Low Income Countries ◽  
Price Shocks ◽  
Policy Responses ◽  
Domestic Prices ◽  
Short Run ◽  
Price Hike ◽  
The Right ◽  
Domestic Food

Following the price hikes of 2007–2008 and 2010–2011, many governments in low-income countries implemented food export bans. While several studies investigate the macroeconomic impacts of such bans on large net exporters of grains, only very few country case studies have examined the economy-wide and distributional effects combined. Further, there is a lack of rigorous studies that explicitly analyse cereal export bans as policy responses to external price shocks and their net combined effects, both in the immediate and in the short run. This article evaluates this situation for the case of Ethiopia, a net food-importing country. We find that international price shocks not only do affect domestic prices but could also considerably suppress domestic food production and supplies. A cereal export ban can help stabilize domestic food prices but cannot fully erase the price hike. We, however, note that the ban further discourages domestic cereal production and reduces rural households’ welfare.

scholarly journals Review: Food price fluctuations and its influence on global food market

2021 ◽  
Vol 2 (1) ◽  
pp. 21-33
Author(s):  
Ifra Chaudhry ◽  
Raheel Suleman ◽  
Adrish Bhatti ◽  
Inam Ullah
Keyword(s):  
Food Security ◽  
Child Nutrition ◽  
Food Prices ◽  
Food Price ◽  
Agricultural System ◽  
Food Utilization ◽  
Price Fluctuation ◽  
Price Fluctuations ◽  
Individual Level ◽  
Food Market

Food price fluctuation is a multifarious problem in the food marketing. Food price fluctuations have a huge effect on the vulnerable. Food security considered at three levels (household, national and international levels). Food supply, safety, physical and financial accessibility, and food utilization are the four pillars of food security. Since 2006-2007, the costs of most food products in Pakistan have risen by more than 100 percent. Consumption patterns, income, market and stockholding are the main causes of increased food prices. Maternal and child nutrition affected due to price fluctuation at individual level. Short term and long-term police are important to improve food productivity by enhancing agricultural system. The main focus of the study is to identify the effects of price fluctuations on poor pregnant women diet specifically in Pakistan and then on the children. If mother is malnourished or micronutrient deficient then child will also be deficient in that specific nutrient and deficiency will run in families. Hence our purpose is to find out these deficiencies in Pakistan and better implementation of policies.

scholarly journals Analysis of Indonesian and Chinese Garlic Volatility Prices

2019 ◽  
pp. 197-207
Author(s):  
Marina Ayuningtyas ◽  
Sri Hartoyo ◽  
Sri Mulatsih
Keyword(s):  
Time Series ◽  
Garch Model ◽  
Price Volatility ◽  
World Market ◽  
Food Price ◽  
Price Stability ◽  
Price Uncertainty ◽  
Price Fluctuations ◽  
Price Data ◽  
The World

The need for garlic consumption in Indonesia tends to increase without being matched by increased production, which causes Indonesia to import garlic by 95 percent of total domestic needs. Garlic imports tend to increase, causing the price of local garlic to be higher than the price of imported garlic, so consumers prefer imported garlic products over local garlic products. This causes farmers to face the risk of uncertainty (unpredictable) on prices, where price fluctuations are difficult to predict. In order to cope with price fluctuations and to maintain food price stability that remains accessible to consumers, it is necessary to conduct research on the analysis of the price volatility of garlic, so that price uncertainty can be overcome. This study aims to analyze price volatility in the garlic market in Indonesia and China using time series price data between January 2012 and September 2019. The method used is the ARCH/GARCH model. The results showed price volatility at producer level, imported garlic retailers, and the world market (China).

scholarly journals Food security and agricultural markets:

2019 ◽  
Vol 7 (8) ◽  
pp. 359-366
Author(s):  
Maria Vitória Fabbio Carrocini ◽  
Vinícius Eduardo Ferrari ◽  
Paulo Ricardo Silva Oliveira
Keyword(s):  
Food Insecurity ◽  
Food Prices ◽  
Food Price ◽  
Price Shocks ◽  
African Countries ◽  
Food And Agriculture ◽  
Food And Agriculture Organization ◽  
Domestic Prices ◽  
Per Capita ◽  
Sub Saharan

According to the Food and Agriculture Organization (FAO), the food price crises in 2007-2008 and 2011-2012 led to increases in the number of undernourished people worldwide. In this study, we address the issue of food insecurity by analyzing the main causes behind the food price shocks in the 2000s. Moreover, we also investigate whether the sub-Saharan countries are most vulnerable to these shocks, as often pointed out by specialized literature. To this end, we analyzed the correlation between the maize domestic prices—the most cultivated and consumed grain in this region—and the daily kilocalories consumption in African countries. Results show that the poorest nations, i.e. the ones with per capita income below $ 1,400, suffer most from food prices crisis. Most African countries have advanced in addressing food insecurity issues. However, in some nations, the maize price shock in 2007‒2008 was a throwback in this progress, causing daily kilocalorie consumption to fall by half in relation to levels of early-2000s.

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