Food Chains and the Reasons Behind Rising Food Prices

Food Chains and the Reasons Behind Rising Food Prices

This article addresses the food crisis and its impacts on food chains. There
are nine general causes of higher prices: use of grains and agricultural land
for biofuels; population growth effects; strong income increase and distribution
in emerging economies; urbanization of populations (mega-cities);
local government income support programmes; high oil prices; production
shortages; dollar devaluation; and investment funds speculation. To face
this problem, 10 food chain solutions are proposed: sustainable horizontal
expansion in food production using new available areas; vertical expansion
increasing productivity; reduction in food taxes; investment in global
logistics to reduce waste; use of the best sources for biofuels production;
reduction in transaction costs; new generation of cheaper and innovative
sources of fertilizers; sustainable supply contracts to farmers for more
balanced margins allocation; spreading innovations