Building a resilient global food system by lowering food price spikes and volatility

Abstract

Volatility and spikes in global food prices can have large and diverse impacts on the welfare of poor people, particularly their food and nutrition status. Although high and volatile price levels have subsided in recent years, the international community should not become complacent. The complex set of concurrent factors behind the recent food price crises in 2007–2008 and 2011—including diversion of crops for biofuel, extreme weather events, low grain stocks, and panicky trade behaviors—are still present or have the potential to reemerge. An important component of improving the stability of the global food system is to reduce price spikes and volatility that can destabilize future food availability and accessibility. The objective of this brief is to review the latest literature and developments related to actions taken in preventing and managing food price spikes and volatility and to identify future actions to build a more resilient global food system.