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 (GMOs, nanotechnology); and, finally, consumer behaviour changes. The article ends by proposing a 14-point agenda for food chains in the future.Aston, A. (2009) ‘China's Green Innovation’, Business Week China, 1 May 2009[online], available from: www.iscvt.org/news/articles/article/?id=43 [accessed 29 March 2011]. www.iscvt.org/news/articles/article/?id=43
BBC News (2008) UN Sets Out Food Crisis Measures [online], 3 June 2008, available from: http://news.bbc.co.uk/2/hi/7432583.stm [accessed 29 March 2011]. http://news.bbc.co.uk/2/hi/7432583.stm
Besanko, D. Dranove, D. and Shanley, M. (2000) Economics of Strategy, John Wiley and Sons, New York.
Financial Times (2009a) ‘Saudis set aside US$800 million for foreign food’, Financial Times, 14 April 2009, available from: www.ft.com www.ft.com
Financial Times (2009b) ‘Japanese jitters grow over food security’, Financial Times, 30 April 2009, available from: www.ft.com www.ft.com
Frangos, A., Lyons, J. and Agarwal, V. (2011) ‘Developing Nations Fight Inflation’, Wall Street Journal, 8 January 2011 [online], available from: http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html
Goldberg, R. (2010) ‘Reviewing the Concept of Agribusiness’, speech given at the International Food and Agribusiness Management Association, 19-22 June 2010, Boston, USA.
Hook, L. and Cookson, R. (2010) ‘Beijing Acts on Surging Food Prices’, Financial Times, 30 November 2010 [online], available from: www.ft.com www.ft.com
Kilman, S. (2011) ‘US Farmers Head into Key Stretch for Harvests’, Wall Street Journal, 7 March 2011 [online], available from: http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html
Leung, S. and Kennedy, S. (2011) ‘Global Inflation Starts with Chinese Workers’, Business Week, 3 March 2011 [online], available from: http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm [accessed 29 March 2011]. http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm
Lingxi, D. (2009) ‘Can Chinese and Brazilian Economies be Complementary?’ Global Think Tank Summit Journal, China Center for International Economic Exchanges: pp. 94-95.
Neves, M.F. (2008) Chain Plan: A Method for Food Chains Strategic Planning [online], Forum of International Food and Agribusiness Management Association, Parma, available from: www.ifama.org [accessed 29 March 2011]. www.ifama.org
Neves, M.F. (2009) ‘The Food Crisis Will be Back’, China Daily, 7 July 2009, p. 9.
Neves, M.F. and Thomé e Castro, L. (2009) ‘Inserting Small Holders into Sustainable Value Chains’, in S. Singh (ed.), Handbook of Business Practices and Growth in Emerging Markets, World Scientific, Singapore.
Neves, M.F., Pinto, M.J.A. and Conejero, M.A. (2009) ‘Transnational Companies Investments in Brazilian Agribusiness and Agriculture: The Case of Sugar Cane’, part of UNCTAD (United Nations Conference on Trade and Development) World Investment Report 2009 [online], UNCTAD, Geneva, available from: http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1 [accessed 29 March 2011]. http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1
Neves, M.F., Pinto, M.J.A., Conejero, M.A., and Trombin, V.G. (2011) Food and Fuel: The Example of Brazil, Academic Publishers, Wageningen, the Netherlands.
North, D.C. (1994) ‘Economic performance through time’, The American Economic Review 84: 359-68.
Ruitenberg, R. (2011) ‘Sarkozy Calls for G-20 to Regulate Commodities, Price Swings’, Business Week, 24 January 2011 [online], available from: http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html [accessed 29 March 2011]. http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html
Verhallen, T.M.M., Wiegerinck, V.J.J., Gaakeer, C., and Poiesz, T.B.C., (2004) ‘Demand driven chains and networks’, in Camps, T., Diederen, P., Hofstede, G.J., and Vos, G.C.J.M. (eds), The Emerging World of Chains and Networks, Reed Business Information, Amsterdam.
Williamson, O.E. (1985) The Economic Institutions of Capitalism, Macmillan, New York.
Xinlian, L. (2009) ‘In the Name of Green’, Beijing Review, 21 May 2009: 32-33.
Aston, A. (2009) ‘China's Green Innovation’, Business Week China, 1 May 2009[online], available from: www.iscvt.org/news/articles/article/?id=43 [accessed 29 March 2011]. www.iscvt.org/news/articles/article/?id=43
BBC News (2008) UN Sets Out Food Crisis Measures [online], 3 June 2008, available from: http://news.bbc.co.uk/2/hi/7432583.stm [accessed 29 March 2011]. http://news.bbc.co.uk/2/hi/7432583.stm
Besanko, D. Dranove, D. and Shanley, M. (2000) Economics of Strategy, John Wiley and Sons, New York.
Financial Times (2009a) ‘Saudis set aside US$800 million for foreign food’, Financial Times, 14 April 2009, available from: www.ft.com www.ft.com
Financial Times (2009b) ‘Japanese jitters grow over food security’, Financial Times, 30 April 2009, available from: www.ft.com www.ft.com
Frangos, A., Lyons, J. and Agarwal, V. (2011) ‘Developing Nations Fight Inflation’, Wall Street Journal, 8 January 2011 [online], available from: http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html
Goldberg, R. (2010) ‘Reviewing the Concept of Agribusiness’, speech given at the International Food and Agribusiness Management Association, 19-22 June 2010, Boston, USA.
Hook, L. and Cookson, R. (2010) ‘Beijing Acts on Surging Food Prices’, Financial Times, 30 November 2010 [online], available from: www.ft.com www.ft.com
Kilman, S. (2011) ‘US Farmers Head into Key Stretch for Harvests’, Wall Street Journal, 7 March 2011 [online], available from: http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html
Leung, S. and Kennedy, S. (2011) ‘Global Inflation Starts with Chinese Workers’, Business Week, 3 March 2011 [online], available from: http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm [accessed 29 March 2011]. http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm
Lingxi, D. (2009) ‘Can Chinese and Brazilian Economies be Complementary?’ Global Think Tank Summit Journal, China Center for International Economic Exchanges: pp. 94-95.
Neves, M.F. (2008) Chain Plan: A Method for Food Chains Strategic Planning [online], Forum of International Food and Agribusiness Management Association, Parma, available from: www.ifama.org [accessed 29 March 2011]. www.ifama.org
Neves, M.F. (2009) ‘The Food Crisis Will be Back’, China Daily, 7 July 2009, p. 9.
Neves, M.F. and Thomé e Castro, L. (2009) ‘Inserting Small Holders into Sustainable Value Chains’, in S. Singh (ed.), Handbook of Business Practices and Growth in Emerging Markets, World Scientific, Singapore.
Neves, M.F., Pinto, M.J.A. and Conejero, M.A. (2009) ‘Transnational Companies Investments in Brazilian Agribusiness and Agriculture: The Case of Sugar Cane’, part of UNCTAD (United Nations Conference on Trade and Development) World Investment Report 2009 [online], UNCTAD, Geneva, available from: http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1 [accessed 29 March 2011]. http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1
Neves, M.F., Pinto, M.J.A., Conejero, M.A., and Trombin, V.G. (2011) Food and Fuel: The Example of Brazil, Academic Publishers, Wageningen, the Netherlands.
North, D.C. (1994) ‘Economic performance through time’, The American Economic Review 84: 359-68.
Ruitenberg, R. (2011) ‘Sarkozy Calls for G-20 to Regulate Commodities, Price Swings’, Business Week, 24 January 2011 [online], available from: http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html [accessed 29 March 2011]. http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html
Verhallen, T.M.M., Wiegerinck, V.J.J., Gaakeer, C., and Poiesz, T.B.C., (2004) ‘Demand driven chains and networks’, in Camps, T., Diederen, P., Hofstede, G.J., and Vos, G.C.J.M. (eds), The Emerging World of Chains and Networks, Reed Business Information, Amsterdam.
Williamson, O.E. (1985) The Economic Institutions of Capitalism, Macmillan, New York.
Xinlian, L. (2009) ‘In the Name of Green’, Beijing Review, 21 May 2009: 32-33.
Aston, A. (2009) ‘China's Green Innovation’, Business Week China, 1 May 2009[online], available from: www.iscvt.org/news/articles/article/?id=43 [accessed 29 March 2011]. www.iscvt.org/news/articles/article/?id=43
BBC News (2008) UN Sets Out Food Crisis Measures [online], 3 June 2008, available from: http://news.bbc.co.uk/2/hi/7432583.stm [accessed 29 March 2011]. http://news.bbc.co.uk/2/hi/7432583.stm
Besanko, D. Dranove, D. and Shanley, M. (2000) Economics of Strategy, John Wiley and Sons, New York.
Financial Times (2009a) ‘Saudis set aside US$800 million for foreign food’, Financial Times, 14 April 2009, available from: www.ft.com www.ft.com
Financial Times (2009b) ‘Japanese jitters grow over food security’, Financial Times, 30 April 2009, available from: www.ft.com www.ft.com
Frangos, A., Lyons, J. and Agarwal, V. (2011) ‘Developing Nations Fight Inflation’, Wall Street Journal, 8 January 2011 [online], available from: http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html
Goldberg, R. (2010) ‘Reviewing the Concept of Agribusiness’, speech given at the International Food and Agribusiness Management Association, 19-22 June 2010, Boston, USA.
Hook, L. and Cookson, R. (2010) ‘Beijing Acts on Surging Food Prices’, Financial Times, 30 November 2010 [online], available from: www.ft.com www.ft.com
Kilman, S. (2011) ‘US Farmers Head into Key Stretch for Harvests’, Wall Street Journal, 7 March 2011 [online], available from: http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html
Leung, S. and Kennedy, S. (2011) ‘Global Inflation Starts with Chinese Workers’, Business Week, 3 March 2011 [online], available from: http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm [accessed 29 March 2011]. http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm
Lingxi, D. (2009) ‘Can Chinese and Brazilian Economies be Complementary?’ Global Think Tank Summit Journal, China Center for International Economic Exchanges: pp. 94-95.
Neves, M.F. (2008) Chain Plan: A Method for Food Chains Strategic Planning [online], Forum of International Food and Agribusiness Management Association, Parma, available from: www.ifama.org [accessed 29 March 2011]. www.ifama.org
Neves, M.F. (2009) ‘The Food Crisis Will be Back’, China Daily, 7 July 2009, p. 9.
Neves, M.F. and Thomé e Castro, L. (2009) ‘Inserting Small Holders into Sustainable Value Chains’, in S. Singh (ed.), Handbook of Business Practices and Growth in Emerging Markets, World Scientific, Singapore.
Neves, M.F., Pinto, M.J.A. and Conejero, M.A. (2009) ‘Transnational Companies Investments in Brazilian Agribusiness and Agriculture: The Case of Sugar Cane’, part of UNCTAD (United Nations Conference on Trade and Development) World Investment Report 2009 [online], UNCTAD, Geneva, available from: http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1 [accessed 29 March 2011]. http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1
Neves, M.F., Pinto, M.J.A., Conejero, M.A., and Trombin, V.G. (2011) Food and Fuel: The Example of Brazil, Academic Publishers, Wageningen, the Netherlands.
North, D.C. (1994) ‘Economic performance through time’, The American Economic Review 84: 359-68.
Ruitenberg, R. (2011) ‘Sarkozy Calls for G-20 to Regulate Commodities, Price Swings’, Business Week, 24 January 2011 [online], available from: http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html [accessed 29 March 2011]. http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html
Verhallen, T.M.M., Wiegerinck, V.J.J., Gaakeer, C., and Poiesz, T.B.C., (2004) ‘Demand driven chains and networks’, in Camps, T., Diederen, P., Hofstede, G.J., and Vos, G.C.J.M. (eds), The Emerging World of Chains and Networks, Reed Business Information, Amsterdam.
Williamson, O.E. (1985) The Economic Institutions of Capitalism, Macmillan, New York.
Xinlian, L. (2009) ‘In the Name of Green’, Beijing Review, 21 May 2009: 32-33.
Aston, A. (2009) ‘China's Green Innovation’, Business Week China, 1 May 2009[online], available from: www.iscvt.org/news/articles/article/?id=43 [accessed 29 March 2011]. www.iscvt.org/news/articles/article/?id=43
BBC News (2008) UN Sets Out Food Crisis Measures [online], 3 June 2008, available from: http://news.bbc.co.uk/2/hi/7432583.stm [accessed 29 March 2011]. http://news.bbc.co.uk/2/hi/7432583.stm
Besanko, D. Dranove, D. and Shanley, M. (2000) Economics of Strategy, John Wiley and Sons, New York.
Financial Times (2009a) ‘Saudis set aside US$800 million for foreign food’, Financial Times, 14 April 2009, available from: www.ft.com www.ft.com
Financial Times (2009b) ‘Japanese jitters grow over food security’, Financial Times, 30 April 2009, available from: www.ft.com www.ft.com
Frangos, A., Lyons, J. and Agarwal, V. (2011) ‘Developing Nations Fight Inflation’, Wall Street Journal, 8 January 2011 [online], available from: http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748704739504576068171365313408.html
Goldberg, R. (2010) ‘Reviewing the Concept of Agribusiness’, speech given at the International Food and Agribusiness Management Association, 19-22 June 2010, Boston, USA.
Hook, L. and Cookson, R. (2010) ‘Beijing Acts on Surging Food Prices’, Financial Times, 30 November 2010 [online], available from: www.ft.com www.ft.com
Kilman, S. (2011) ‘US Farmers Head into Key Stretch for Harvests’, Wall Street Journal, 7 March 2011 [online], available from: http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html [accessed 29 March 2011]. http://online.wsj.com/article/SB10001424052748703867704576182922704152088.html
Leung, S. and Kennedy, S. (2011) ‘Global Inflation Starts with Chinese Workers’, Business Week, 3 March 2011 [online], available from: http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm [accessed 29 March 2011]. http://www.businessweek.com/magazine/content/11_11/b4219009844239.htm
Lingxi, D. (2009) ‘Can Chinese and Brazilian Economies be Complementary?’ Global Think Tank Summit Journal, China Center for International Economic Exchanges: pp. 94-95.
Neves, M.F. (2008) Chain Plan: A Method for Food Chains Strategic Planning [online], Forum of International Food and Agribusiness Management Association, Parma, available from: www.ifama.org [accessed 29 March 2011]. www.ifama.org
Neves, M.F. (2009) ‘The Food Crisis Will be Back’, China Daily, 7 July 2009, p. 9.
Neves, M.F. and Thomé e Castro, L. (2009) ‘Inserting Small Holders into Sustainable Value Chains’, in S. Singh (ed.), Handbook of Business Practices and Growth in Emerging Markets, World Scientific, Singapore.
Neves, M.F., Pinto, M.J.A. and Conejero, M.A. (2009) ‘Transnational Companies Investments in Brazilian Agribusiness and Agriculture: The Case of Sugar Cane’, part of UNCTAD (United Nations Conference on Trade and Development) World Investment Report 2009 [online], UNCTAD, Geneva, available from: http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1 [accessed 29 March 2011]. http://www.unctad.org/Templates/Page.asp?intItemID=1465&xml:lang=1
Neves, M.F., Pinto, M.J.A., Conejero, M.A., and Trombin, V.G. (2011) Food and Fuel: The Example of Brazil, Academic Publishers, Wageningen, the Netherlands.
North, D.C. (1994) ‘Economic performance through time’, The American Economic Review 84: 359-68.
Ruitenberg, R. (2011) ‘Sarkozy Calls for G-20 to Regulate Commodities, Price Swings’, Business Week, 24 January 2011 [online], available from: http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html [accessed 29 March 2011]. http://www.businessweek.com/news/2011-01-24/sarkozy-calls-for-g-20-to-regulatecommodities-price-swings.html
Verhallen, T.M.M., Wiegerinck, V.J.J., Gaakeer, C., and Poiesz, T.B.C., (2004) ‘Demand driven chains and networks’, in Camps, T., Diederen, P., Hofstede, G.J., and Vos, G.C.J.M. (eds), The Emerging World of Chains and Networks, Reed Business Information, Amsterdam.
Williamson, O.E. (1985) The Economic Institutions of Capitalism, Macmillan, New York.
Xinlian, L. (2009) ‘In the Name of Green’, Beijing Review, 21 May 2009: 32-33.
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