As per my post yesterday on how the High-Level Panel of Experts (HLPE) appointed by the Committee on World Food Security is seeking comments on “version zero” of its Report on Price Volatility, my coauthor Chris Barrett and I sent the following comments. Remember that if you are interested in commenting, you have until June 3 to do so. Continue reading
From Deutsche Bank, via the Wall Street Journal:
“Food prices are likely to start falling later in 2011 but will remain high for the rest of this decade (…) We expect spikes in food prices to occur with increasing frequency, mostly due to weather disruption and climate change.”
In sum, the food price level is expected to remain high on average, but food price volatility is expected to increase? If so, agricultural producers will be the ones who suffer more than consumers.