The food price increase of 2010-2011 : Hausse des prix des denrées alimentaires en 2010-2011 : facteurs et répercussions

In February 2011, the Food and Agriculture Organization of the United Nations (FAO) reported a 6.5% increase in its Food Price Index relative to December 2010. The Index had reached a level not seen in nearly 20 years and had surpassed the peak attained in June 2008 that explained that year's food crisis. Despite this marked increase in the Food Price Index in 2011, the FAO did not allude to a food crisis. Yet, according to some analysts, the increase in the price of foodstuffs and the difficulty people had in obtaining food caused the popular uprisings of the "Arab Spring" and led to riots in some developing countries. It is not surprising, then, that the G20 heads of state placed great importance on agricultural commodity prices in 2011. The goal of this paper is to describe the factors that likely sparked the increase in food prices as well as the effect of that increase on the food security of some of the world's population. The paper begins with an analysis of the changes in food prices since 1990, then it demonstrates that the food price increase on world markets in 2010-2011 stemmed from structural and macroeconomic factors and from speculation. Finally, the paper shows that price increases can have a negative impact on people in some developing countries, while benefitting exporters.