Section outline

  • 24 October 2011

    Palais des Nations, Room XXV

    The general state of food security and agricultural commodity markets in developing countries

    For many developing countries, particularly the least developed countries (LDCs), commodity trade generates a critical source of income. However, the sector has been characterized by declining terms of trade, price volatility, boom-and-bust cycles, trade barriers, and in most LDCs, a steadily diminishing share in total exports in value terms of primary commodities. All of the above factors have in one way or another had adverse effects on economic growth in commodity-dependent developing countries. Since 2000, certain characteristics of commodity markets have also changed. For example, compared with previous commodity price cycles, a key difference is the large amplitude of price swings for a broad range of agricultural commodities. The recent boom has lasted much longer than previous ones and price volatility in agricultural commodity markets appears to have increased. The first part of the course will examine the contributing factors to the recent price volatility in agricultural commodity markets. It will also consider the implications of this for food security in LDCs. The second part of the course will discuss possible responses to the recent price volatilities in agricultural commodity markets in terms of trade, investment, and agricultural policies and measures at the national, regional and international levels. UNCTAD’s potential contribution to addressing the situation will be highlighted, including by means of a report coordinated by the Group of Twenty and various international organizations, Price Volatility in Food and Agricultural Markets: Policy Responses, as well as by the Comprehensive Framework for Action prepared by the High-Level Task Force on the Global Food Security Crisis established by the United Nations Secretary-General.

    Delivered by:  Special Unit on Commodities