Who's Fooling Whom? The Real Drivers Behind the 2010/11 Food Crisis in Sub-Saharan Africa

Organisation:
PANGEA

Between the second half of 2010 and the first half of 2011, international food prices experienced a sharp rise after having fallen back to near-normal levels following the dramatic spike seen in 2007/08. In 2012, fears over another price spike and its consequences led to concerns regarding existing biofuels mandates in the developed world where doubt may yet again diminish the investment climate for the global bioenergy industry as a whole. The purpose of this report is to examine the link between global demand for biofuels and the 2010/11 food crisis in the Sub-Saharan African region, and to understand to what extent the former has influenced the latter. In order for the analysis to be as comprehensive as possible, this paper builds upon both statistical analysis and qualitative research. Food prices from 20 Sub-Saharan African countries have been compared to international commodity prices over the period 2010/11, in order to analyse the degree of price transmission from global to local markets. The analysis however does not consider the existence of food price support mechanisms at the national level, which may have had a fundamental role in smoothing price volatility.

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