The current high food prices are due to a variety of factors. The effects of speculation on food crops must not be overestimated and the impact of biofuels on global food prices is relative. In the longer term, food prices will fall again.
These are a few of the most important conclusions of an economic analysis of recent developments in global food prices. The study was carried out by LEI. Incidentally, the researchers are of the opinion that the issue of world hunger is only partially attributable to the demand from the biofuel sector, and is in fact primarily attributable to poor policy and the poor performance of markets.
The Dutch Minister for Agriculture presented the report on 4 June during a summit of the Food and Agriculture Organization (FAO) in Rome.
Report 2008-040 Why are current world food prices so high?