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High food commodity prices: will they stay? who will pay?

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  • Joe Dewbre
  • Céline Giner
  • Wyatt Thompson
  • Martin Von Lampe

Abstract

Much of the public discussion of the food price crisis has focused on the sharply increased use of food commodities for biofuel production, framing debate in simple food versus fuel terms. Reality is more complex. Multiple forces drove food prices to high levels and, according to findings we report in this article, these forces will sustain high prices over the medium term. We also find that the distinction between high world prices for food commodities and the consumer costs of food is an important one to make. Food consumers do not buy raw food commodities at international prices. The degree to which the price of traded food commodities and the price of food are related depends on a long list of factors, most of which operate to dampen price transmission. In the search for appropriate policy response, it is essential to measure consumer effects correctly and to apportion properly the causes of current high prices.

Suggested Citation

  • Joe Dewbre & Céline Giner & Wyatt Thompson & Martin Von Lampe, 2008. "High food commodity prices: will they stay? who will pay?," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 393-403, November.
  • Handle: RePEc:bla:agecon:v:39:y:2008:i:s1:p:393-403
    DOI: 10.1111/j.1574-0862.2008.00346.x
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    References listed on IDEAS

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    Cited by:

    1. Gutierrez, Luciano & Piras, Francesco, 2014. "A global VAR model for the analysis of wheat export prices," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182723, European Association of Agricultural Economists.
    2. Elsholz, Rudiger & Harsche, Johannes, 2011. "Price Changes, Policy Impacts and Instability in Farmers’ Revenues," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114342, European Association of Agricultural Economists.
    3. Assefa Admassie, 2013. "The Political Economy of Food Price: the Case of Ethiopia," WIDER Working Paper Series wp-2013-001, World Institute for Development Economic Research (UNU-WIDER).
    4. Gutierrez, L. & Piras, F., 2013. "A Global Wheat Market Model (GLOWMM) for the Analysis of Wheat Export Prices," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149760, Italian Association of Agricultural and Applied Economics (AIEAA).
    5. Admassie, Assefa, 2013. "The Political Economy of Food Price: The Case of Ethiopia," WIDER Working Paper Series 001, World Institute for Development Economic Research (UNU-WIDER).
    6. Belke, Ansgar & Dreger, Christian, 2013. "The Transmission of Oil and Food Prices to Consumer Prices – Evidence for the MENA Countries," Ruhr Economic Papers 448, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Pietola, Kyösti & Liu, Xing & Robles, Miguel, 2010. "Price, inventories, and volatility in the global wheat market," IFPRI discussion papers 996, International Food Policy Research Institute (IFPRI).
    8. Vincent H. Smith & Joseph W. Glauber, 2020. "Trade, policy, and food security," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 159-171, January.
    9. Athanasios Triantafyllou & Dimitrios Bakas & Marilou Ioakimidis, 2023. "Commodity price uncertainty as a leading indicator of economic activity," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4194-4219, October.
    10. Zhang, Zibin & Lohr, Luanne & Escalante, Cesar & Wetzstein, Michael, 2010. "Food versus fuel: What do prices tell us?," Energy Policy, Elsevier, vol. 38(1), pages 445-451, January.
    11. Wang, Ping & Brizmohun, Roshini & Wilson, Norbert, 2016. "Does Price Volatility Affect Food Insecurity in Small Island States?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235899, Agricultural and Applied Economics Association.
    12. Vollmer, Teresa & Von Cramon-Taubadel, Stephan, 2017. "Price discovery in the European wheat market," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261135, European Association of Agricultural Economists.
    13. Whistance, Jarrett & Ripplinger, David & Thompson, Wyatt, 2016. "Biofuel-related price transmission using Renewable Identification Number prices to signal mandate regime," Energy Economics, Elsevier, vol. 55(C), pages 19-29.
    14. Ansgar Belke & Christian Dreger, 2013. "The Transmission of Oil and Food Prices to Consumer Prices – Evidence for the MENA Countries," Ruhr Economic Papers 0448, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    15. Mohajan, Haradhan, 2013. "Ethiopia: A socio-economic study," MPRA Paper 52277, University Library of Munich, Germany, revised 10 Sep 2013.
    16. Unknown, 2010. "Journal of International Agricultural Trade and Development, Volume 6, Issue 1," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 6(1), pages 135-135, June.
    17. Anania, Giovanni, 2013. "Agricultural Export Restrictions and the WTO: What Options Do Policy-Makers Have For Promoting Food Security?," Price Volatility and Beyond 320191, International Centre for Trade and Sustainable Development (ICTSD).
    18. Yu, Tun-Hsiang (Edward) & Tokgoz, Simla & Wailes, Eric J. & Chavez, Eddie C., 2009. "A Quantitative Analysis of Trade Policy Responses to High Agricultural Commodity Prices," 2009 Conference, August 16-22, 2009, Beijing, China 51805, International Association of Agricultural Economists.
    19. Sitko, Nicholas J. & Chisanga, Brian, 2016. "How Is Multinational Investment in Grain and Oilseed Trading Reshaping the Smallholder Markets in Zambia?," Food Security Collaborative Working Papers 234948, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    20. Ansgar Belke & Christian Dreger, 2015. "The transmission of oil and food prices to consumer prices," International Economics and Economic Policy, Springer, vol. 12(1), pages 143-161, March.
    21. repec:zbw:rwirep:0448 is not listed on IDEAS
    22. Meltem Chadwick, 2023. "The significance of terms of trade shocks for retail food prices in Turkey," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 915-940, October.
    23. World Bank, 2010. "Food Price Increases in South Asia : National Responses and Regional Dimensions," World Bank Publications - Reports 2885, The World Bank Group.
    24. Hoa K. Hoang, 2018. "Analysis of food demand in Vietnam and short†term impacts of market shocks on quantity and calorie consumption," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 83-95, January.

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