A response to the Global Food Prices Crisis: Sustainable family farming can feed the world

(Rome, 14 February 2008) Consumers around the world have seen the prices of staple food dramatically increasing over the past months, creating extreme hardship especially for the poorest communities. Over a year, wheat has doubled in price, maize is nearly 50% higher than a year ago

However, there is no crisis of production. Statistics show that cereals' production has never been as high as in 2007 (1).

Prices are increasing because part of production is now diverted into agrofuels, global food reserves are at their lowest in 25 years due to the de-regulation of markets by the WTO, and extreme weather has effected crops in some exporting countries such as Australia. But prices also increase because financial companies speculate over people's food as they anticipate that agriculture prices will keep rising in the near future. Food production, processing and distribution falls increasingly under the grip of transnational companies monopolising the markets.

The tragedy of industrial agrofuels: they feed cars and not people

Agrofuels (fuels produced from plants, agriculture and forestry) are presented as an answer to the peak in production of oil and global warming alike. However, many scientists and institutions now recognise that their energy benefits will be very limited and that their environmental and social impact will be extremely negative. However, the whole business world is rushing into that new market that is directly competing with people food's needs. The Indian government is talking of planting 14 millions hectares of land with Jatropha, the Inter-American Development Bank says that Brazil has 120 million hectares that could be cultivated with agrofuel crops, and an agrofuel lobby is speaking of 379 million hectares being available in 15 African countries (2). Current demand for corn in order to produce ethanol already represents 10% of the world consumption, pushing up world prices.

Industrial agrofuels are an economic, social and environmental nonsense. Their development should be halted and agricultural production should focus on food as a priority.

All farmers do not benefit from higher prices

Record world food prices hit consumers, and contrary to what can be expected, they do not benefit all producers. Stock breeders are in a crisis due to the rise in feed prices, cereal producers are facing sharp rises in fertiliser's prices and landless farmers and agricultural workers cannot afford to buy food. Farmers sell their produce at an extremely low price compared to what consumers pay. The Spanish coordination of farmers and stock breeders (COAG) calculated that consumers in Spain pay up to 600% more than what the food producer gets for his/her production.

The first to benefit from higher agricultural prices are the agro-industry and large retailers because they increase food prices much more than they should. Will food prices decrease when agricultural prices go down again? Large companies are able to stock large quantities of food and release them when the markets prices are high.

Small farmers and consumers need fair and stable prices, not the current high volatility. Small farmers cannot produce if prices are too low, as has often been the case in the last decades. They therefore need market regulations, the opposite of the WTO policies.

Agriculture trade