A/HRC/9/23
page 31
8.
The impact of the increase of food prices on international markets has been severe on
net food buyers in countries in which the consumers are insufficiently insulated from such
impacts. Particularly at risk are the landless labourers and the urban poor. But among the
losers are also a large number of smallholders, themselves net food buyers, and who are
unable to benefit from the increase in prices on the international markets, because the increase
occurs at a time when the price of their inputs hits record levels and because they are not
connected to global supply chains.58 At the same time, others have benefited: global
58
It has been argued by some analysts that since 1° poverty is concentrated in the rural
areas, 2° this is driven by low and declining food prices and 3° the net food sellers are the very
poor, an increase in food prices might have a positive impact on poverty. M. Ataman Aksoy and
Aylin Isik-Dikmelik (“Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in
Low-Income Countries”, The World Bank: Washington, D.C., 2008) argue that although there
are more poor net food buyers then sellers, about half of net food buying households is marginal
net food buyers, and thus price increases will have a small effect on their welfare. In their
analysis for nine countries the average incomes of net food buyers are higher than the average
incomes of net food sellers in eight of nine countries. Thus, higher food prices will, on average,
transfer income from richer to poorer households and be pro poor. Also they argue that incomes
of the net food buying households in the rural areas depends on the expenditures of food selling
households and an increase in that might positively impact the food buying households.
However, this analysis presupposes that higher prices for food commodities on international
markets will translate into higher prices at the farmgate - an assumption which, due to the current
organisation of the food production and distribution chain, will be valid only in limited contexts,
particularly in countries such as Vietnam with highly egalitarian distribution of land resources.
Select target paragraph3
Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents