Reducing Food Price Volatility

 Malawi maize crop

By Sara Gustafson

IFRIR While food price volatility has decreased since 2010, price spikes and unpredictable markets remain a significant threat to global food security. The uncertainty that stems from price volatility can cut into farmers’ profits and discourage long-term planning and investment, decreasing agricultural productivity. In turn, smaller harvests and lower food stocks can lead to further price increases and decreased availability of food, particularly for already vulnerable populations. But what is behind price volatility, and what can be done to control it?

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Source and Photo – International Food policy Research Institute, February 8, 2013
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