A/HRC/9/23
page 29
1990s, with the exception of a small increase in 1979-1980 and during the mid 1990s. These
evolutions are reflected in the real value of the extended Food price Index of FAO. The index
reached its peak in 1974 (250) and then it has been followed by a decline in real food prices till
end of the 1980s (100) followed by a small increase in the mid 1990s, followed by a historical
low in 1999. Between 2000-2005 it has being increasing at a rate of 1.3 per cent per year and has
increased to 15 per cent per year since 2006, reaching a level of 160 in 2008.
5.
The structural decline in the prices of agricultural primary commodities over the
last 30 years clearly hindered the development of the agricultural sector in a number of
developing countries. Prices on the international markets were depressed due to two factors:
remarkable increases in productivity per hectare by mechanisation and the use of improved seeds
and other inputs in certain developing countries while the average wages remained low; and
public support to farmers, including in the form of export subsidies, in industrialized countries
with high salaries. The result was that for many farmers in the South, there were few incentives
to produce much beyond subsistence levels, even when they could achieve such levels - which
often they could not. This was further aggravated by the retreat of the public sector from
agriculture, in part because institutions such as marketing boards, because they were considered
inefficient and at times mismanaged, were dismantled following prescriptions of the
international financial institutions, and in part because too little of the public budget was invested
into agriculture, rural services, and the development of infrastructure for the rural areas. Massive
impoverishment of the rural areas and rural flight followed. A number of countries which
previously were self-sufficient in food became net-food-importing in the 1980s.56 The
56
Developing countries had an overall agricultural trade surplus of almost US$ 7 billion
per year in the 1960s. According to the Food and Agricultural Organization (FAO), gross
imports of food by developing countries grew with trade liberalization, turning into a food trade
deficit of more than US$ 11 billion by 2001 with cereal import bill for Low Income Food Deficit
Countries reaching over US$ 38 billion in 2007/2008.
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