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Archive for the ‘agricultural commodities’ Category

Food Prices Surge 36 pct

Posted by feww on April 15, 2011

Another 44 million people pushed into poverty

 1.2 billion people living on less than $1.25 a day: World Bank

About 1.2 billion people live on less than $1.25 a day, the World Bank president estimates.

[NOTE: The true figures may exceed 2.5 billion. FIRE-EARTH]

“More poor people are suffering and more people could become poor because of high and volatile food prices,” said Zoellick.

“We have to put food first and protect the poor and vulnerable, who spend most of their money on food.”

So why don’t we?

Food price changes  (Q1 2010 to Q1 2011)

  • Maize: 74%
  • Wheat: 69%
  • Palm oil: 55%
  • Soybeans: 36%
  • Beef: 30%
  • Rice: -2% (Source: World Bank)

Another 30% rise would force 50 more million or so below the extreme poverty line ($1.25 per day), World bank has warned.

World Bank Report Summary: Global food prices have increased substantially since mid-2010, as have prices in many developing countries. In this study we assess the poverty impact of the price changes between June and December 2010 in twenty-eight low and middle income countries. This is done by gathering detailed information on individual households’ food production and consumption levels for thirty-eight agricultural and food commodities to assess the impacts on household welfare. This study estimates that this sudden food price surge increased the number of poor people globally, but with considerably different impacts in different countries. The heterogeneity of these impacts is partly related to the wide variation in the transmission of global prices to local prices and partly to differences in households’ patterns of production and consumption. On balance, the adverse welfare impact on net buyers outweighs the benefits to net sellers resulting in an increase in the number of poor and in the depth of poverty. We estimate that the average poverty change was 1.1 percentage points in low income countries and 0.7 percentage points in middle income countries with a net increase of 44 million people falling below the $1.25 per day extreme poverty line.

Full Report:  Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices 

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