Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices

International food prices spiked for the second time in four years in early 2011, igniting concerns about a repeat of the 2008 food price crisis and its consequences for the poor. International food price uncertainty has also increased along with a...

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Main Author:	World Bank
Format:	Working Paper
Language:	English en_US
Published:	Washington, DC 2017
Subjects:	AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURE ANIMAL FEEDS BEEF CASSAVA CEREAL PRODUCTION CEREALS CLIMATE CLIMATE CHANGE CLIMATE RESILIENCE COMMODITIES COMMODITY COMMODITY MARKETS CONSUMERS CORN DEMAND FOR FOOD DEMAND GROWTH DEVELOPING COUNTRIES DOMESTIC MARKETS DOMESTIC PRICES ECONOMIES OF SCALE EMERGING MARKET EMERGING MARKET ECONOMIES EXPORT VOLUMES EXTREME TEMPERATURES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FOOD CONSUMPTION FOOD CROPS FOOD EXPORTS FOOD INSECURITY FOOD MARKETS FOOD POLICY FOOD PREFERENCES FOOD PRICE FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOREIGN INVESTORS FUTURES GLOBAL ECONOMIC PROSPECTS GLOBAL MARKETS GROUNDNUT GROUNDNUT OIL GROWTH RATE GROWTH RATES IMPORTS INCOME INCOMES INFLATION INSURANCE INTELLECTUAL PROPERTY INVESTMENT DECISIONS LOW- INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC STABILITY MAIZE MARKET ECONOMIES MARKET INFORMATION MARKETING MEAL MIDDLE-INCOME COUNTRIES MILLS OIL PRICES ORANGE OUTPUT PALM OIL PRICE ADJUSTMENT PRICE CHANGES PRICE INCREASES PRICE INDEX PRICE INSTABILITY PRICE RISK PRICE RISKS PRICE UNCERTAINTY PRICE VOLATILITY PRIVATE INVESTMENT PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS PURCHASING PURCHASING POWER RATE OF GROWTH RICE RISK MANAGEMENT SALES SAVINGS SECURITY RISKS SOYBEAN SOYBEANS SPREAD STOCKS SUGAR SUPPLY SIDE TAXATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE POLICIES TRADE POLICY TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY WEALTH WHEAT
Online Access:	http://documents.worldbank.org/curated/en/333101468348849576/Facilitating-short-and-longer-term-supply-response-to-higher-and-more-volatile-food-prices http://hdl.handle.net/10986/27122

id	okr-10986-27122
recordtype	oai_dc
spelling	okr-10986-271222021-04-23T14:04:40Z Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices World Bank AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURE ANIMAL FEEDS BEEF CASSAVA CEREAL PRODUCTION CEREALS CLIMATE CLIMATE CHANGE CLIMATE RESILIENCE COMMODITIES COMMODITY COMMODITY MARKETS CONSUMERS CORN DEMAND FOR FOOD DEMAND GROWTH DEVELOPING COUNTRIES DOMESTIC MARKETS DOMESTIC PRICES ECONOMIES OF SCALE EMERGING MARKET EMERGING MARKET ECONOMIES EXPORT VOLUMES EXTREME TEMPERATURES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FOOD CONSUMPTION FOOD CROPS FOOD EXPORTS FOOD INSECURITY FOOD MARKETS FOOD POLICY FOOD PREFERENCES FOOD PRICE FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOREIGN INVESTORS FUTURES GLOBAL ECONOMIC PROSPECTS GLOBAL MARKETS GROUNDNUT GROUNDNUT OIL GROWTH RATE GROWTH RATES IMPORTS INCOME INCOMES INFLATION INSURANCE INTELLECTUAL PROPERTY INVESTMENT DECISIONS LOW- INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC STABILITY MAIZE MARKET ECONOMIES MARKET INFORMATION MARKETING MEAL MIDDLE-INCOME COUNTRIES MILLS OIL PRICES ORANGE OUTPUT PALM OIL PRICE ADJUSTMENT PRICE CHANGES PRICE INCREASES PRICE INDEX PRICE INSTABILITY PRICE RISK PRICE RISKS PRICE UNCERTAINTY PRICE VOLATILITY PRIVATE INVESTMENT PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS PURCHASING PURCHASING POWER RATE OF GROWTH RICE RISK MANAGEMENT SALES SAVINGS SECURITY RISKS SOYBEAN SOYBEANS SPREAD STOCKS SUGAR SUPPLY SIDE TAXATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE POLICIES TRADE POLICY TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY WEALTH WHEAT International food prices spiked for the second time in four years in early 2011, igniting concerns about a repeat of the 2008 food price crisis and its consequences for the poor. International food price uncertainty has also increased along with average levels. Although price volatility is an intrinsic characteristic of agricultural markets, it has increased markedly over the last five years, compared to the previous two and a half decades, even when controlling for inflation. More adverse weather conditions in the main producing regions, rising land and water constraints, and stronger linkages with more volatile oil prices, including through biofuels, tend to place upward pressure on food price volatility. These factors are likely to persist in the short-to medium-term suggesting that volatility may be higher in the future than that observed in the 1980s, 1990s, and early 2000s. Episodes of high prices and extreme volatility create uncertainty that is a major threat to food security in developing countries. Farmers deciding what to plant, and countries deciding when to import, face significant uncertainty with respect to the distribution of future food prices. While producers who are net sellers have welcomed recent periods of high prices, uncertainty as to post-harvest prices is a disincentive to a strong supply response, especially in poorer developing countries. Finally, there is a need to improve the access of farmers to appropriate price risk management tools (financial services, including saving mobilization) to reduce the negative impact of price volatility on production decision and help ensure supply response to higher prices. Improving access to infrastructure, maintaining low inflation (precautionary savings), and financial sector development (reflective of risk management capacity) can help to reduce the negative effective effects of price volatility on production decisions. 2017-06-13T21:02:17Z 2017-06-13T21:02:17Z 2012-04 Working Paper http://documents.worldbank.org/curated/en/333101468348849576/Facilitating-short-and-longer-term-supply-response-to-higher-and-more-volatile-food-prices http://hdl.handle.net/10986/27122 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Publications & Research :: Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURE ANIMAL FEEDS BEEF CASSAVA CEREAL PRODUCTION CEREALS CLIMATE CLIMATE CHANGE CLIMATE RESILIENCE COMMODITIES COMMODITY COMMODITY MARKETS CONSUMERS CORN DEMAND FOR FOOD DEMAND GROWTH DEVELOPING COUNTRIES DOMESTIC MARKETS DOMESTIC PRICES ECONOMIES OF SCALE EMERGING MARKET EMERGING MARKET ECONOMIES EXPORT VOLUMES EXTREME TEMPERATURES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FOOD CONSUMPTION FOOD CROPS FOOD EXPORTS FOOD INSECURITY FOOD MARKETS FOOD POLICY FOOD PREFERENCES FOOD PRICE FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOREIGN INVESTORS FUTURES GLOBAL ECONOMIC PROSPECTS GLOBAL MARKETS GROUNDNUT GROUNDNUT OIL GROWTH RATE GROWTH RATES IMPORTS INCOME INCOMES INFLATION INSURANCE INTELLECTUAL PROPERTY INVESTMENT DECISIONS LOW- INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC STABILITY MAIZE MARKET ECONOMIES MARKET INFORMATION MARKETING MEAL MIDDLE-INCOME COUNTRIES MILLS OIL PRICES ORANGE OUTPUT PALM OIL PRICE ADJUSTMENT PRICE CHANGES PRICE INCREASES PRICE INDEX PRICE INSTABILITY PRICE RISK PRICE RISKS PRICE UNCERTAINTY PRICE VOLATILITY PRIVATE INVESTMENT PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS PURCHASING PURCHASING POWER RATE OF GROWTH RICE RISK MANAGEMENT SALES SAVINGS SECURITY RISKS SOYBEAN SOYBEANS SPREAD STOCKS SUGAR SUPPLY SIDE TAXATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE POLICIES TRADE POLICY TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY WEALTH WHEAT
spellingShingle	AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURE ANIMAL FEEDS BEEF CASSAVA CEREAL PRODUCTION CEREALS CLIMATE CLIMATE CHANGE CLIMATE RESILIENCE COMMODITIES COMMODITY COMMODITY MARKETS CONSUMERS CORN DEMAND FOR FOOD DEMAND GROWTH DEVELOPING COUNTRIES DOMESTIC MARKETS DOMESTIC PRICES ECONOMIES OF SCALE EMERGING MARKET EMERGING MARKET ECONOMIES EXPORT VOLUMES EXTREME TEMPERATURES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FOOD CONSUMPTION FOOD CROPS FOOD EXPORTS FOOD INSECURITY FOOD MARKETS FOOD POLICY FOOD PREFERENCES FOOD PRICE FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOREIGN INVESTORS FUTURES GLOBAL ECONOMIC PROSPECTS GLOBAL MARKETS GROUNDNUT GROUNDNUT OIL GROWTH RATE GROWTH RATES IMPORTS INCOME INCOMES INFLATION INSURANCE INTELLECTUAL PROPERTY INVESTMENT DECISIONS LOW- INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC STABILITY MAIZE MARKET ECONOMIES MARKET INFORMATION MARKETING MEAL MIDDLE-INCOME COUNTRIES MILLS OIL PRICES ORANGE OUTPUT PALM OIL PRICE ADJUSTMENT PRICE CHANGES PRICE INCREASES PRICE INDEX PRICE INSTABILITY PRICE RISK PRICE RISKS PRICE UNCERTAINTY PRICE VOLATILITY PRIVATE INVESTMENT PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS PURCHASING PURCHASING POWER RATE OF GROWTH RICE RISK MANAGEMENT SALES SAVINGS SECURITY RISKS SOYBEAN SOYBEANS SPREAD STOCKS SUGAR SUPPLY SIDE TAXATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE POLICIES TRADE POLICY TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY WEALTH WHEAT World Bank Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices
description	International food prices spiked for the second time in four years in early 2011, igniting concerns about a repeat of the 2008 food price crisis and its consequences for the poor. International food price uncertainty has also increased along with average levels. Although price volatility is an intrinsic characteristic of agricultural markets, it has increased markedly over the last five years, compared to the previous two and a half decades, even when controlling for inflation. More adverse weather conditions in the main producing regions, rising land and water constraints, and stronger linkages with more volatile oil prices, including through biofuels, tend to place upward pressure on food price volatility. These factors are likely to persist in the short-to medium-term suggesting that volatility may be higher in the future than that observed in the 1980s, 1990s, and early 2000s. Episodes of high prices and extreme volatility create uncertainty that is a major threat to food security in developing countries. Farmers deciding what to plant, and countries deciding when to import, face significant uncertainty with respect to the distribution of future food prices. While producers who are net sellers have welcomed recent periods of high prices, uncertainty as to post-harvest prices is a disincentive to a strong supply response, especially in poorer developing countries. Finally, there is a need to improve the access of farmers to appropriate price risk management tools (financial services, including saving mobilization) to reduce the negative impact of price volatility on production decision and help ensure supply response to higher prices. Improving access to infrastructure, maintaining low inflation (precautionary savings), and financial sector development (reflective of risk management capacity) can help to reduce the negative effective effects of price volatility on production decisions.
format	Working Paper
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices
title_short	Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices
title_full	Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices
title_fullStr	Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices
title_full_unstemmed	Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices
title_sort	facilitating short and longer-term supply response to higher and more volatile food prices
publisher	Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/333101468348849576/Facilitating-short-and-longer-term-supply-response-to-higher-and-more-volatile-food-prices http://hdl.handle.net/10986/27122
_version_	1764463501183549440

Facilitating Short and Longer-Term Supply Response to Higher and More Volatile Food Prices

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