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11

80

180

180

230

280

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

Index reference: 1977-1979 = 100

1917

Just before World War I

1951

Rebuilding after World War II

1974

Oil crisis

2008 forecast

80

100

120

140

160

180

200

FAO Food price index (FFPI)

The current world food crisis is the result of the combined effects of competition for crop-

land from the growth in biofuels, low cereal stocks, high oil prices, speculation in food

markets and extreme weather events. The crisis has resulted in a several-fold increase in

several central commodity prices, driven 110 million people into poverty and added 44

million more to the already undernourished. Information on the role and constraints of

the environment in increasing future food production is urgently needed. While food

prices are again declining, they still widely remain above 2004 levels.

The objective of this report is to provide an estimate of the potential constraints of envi-

ronmental degradation on future world food production and subsequent effects on food

prices and food security. It also identifies policy options to increase food security and

sustainability in long-term food production.

CURRENT WORLD FOOD CRISIS

Figure 1: Changes in the prices of major commodities from 1900 to 2008

reveal a general decline in food prices, but with several

peaks in the past century, the last and most recent one the most extreme. (Source: World Bank, 2009).