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Are Food Prices Rising?
Over the past few decades, there have been recorded sharp rise in food prices, taking
into consideration of about 2.6% annually on average. The raise in food prices affects the
entire global population, but mostly the very poorest people in the world. The low standards
of living among the undeveloped countries hasn’t been the only necessity that has been
gouging in their wallet recently, but the case of raise in food prices is on its peak and the
world in general could face what could turn into one of the worst food crises in decades.
Several factors deployed by the societies globally have seen the implication in rise of food
prices that have consequences in their daily life.
CAUSES OF FOOD PRICES INCREASE
There are several causes of inflation in the world’s food prices that drives food prices in the
long run. They are mainly categorized as either short term factors that affect the demand or
supply, which is adjustable to meeting human expectation in accessing food over in short
period of time, or the long term that affect reproduction and health of reproducing plants. The
long term is as a result of weather, animal diseases, and catastrophes. Some of the causes are:
Disposable income. As income rise, consumers increase their expenditures on food which
also increases food prices. Higher disposal income partly explains many of the changes in the
mix of foods being consumed. For instance, people are eating more cheese, beef, and frozen
vegetables, this case of consumption will likely cause a slight increase in prices for those
products.
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Devaluation of the Dollar or Other World Securities. As the Federal Reserve continues to
print money for the betterment and stabilization of the economy, inflation has become a
pitfall and has contributed to rising prices across the board[ CITATION Kal19 \l 2057 ]. The US
dollar's devaluation is particularly damaging while various commodities are priced in U.S.
dollars.
Increase in the Price of Oils. Fuel is used in the manufacturing of many food products.
Furthermore, fuel is used in the transport of food, as a result, it causes higher oil prices, food
prices are also rise subsequently.
EFFECTS OF FOOD PRICES RISING
Lack provision of Basic Services and Social Protection. Low-income food importing
countries are currently facing surging food bills. In a context of scarce national resources, in
response to the high costs in food process, the government’s ability to provide public services
reduces
Effects on Household Income. Higher food prices have a significant effect on the real income
of poor households. As the expenditure of each household may vary depending on whether
the households are producers of food or net consumers, almost half of the household budget
may spend on food in low income countries. Therefore, any increase in food prices is likely
to have a disproportionate impact on the poor, and estimates suggest that disposable incomes
will be decreased by a quarter as a consequence[ CITATION Reb18 \l 2057 ].
Change in the Labour Market. Possible opportunities for increasing agricultural production
could increase demand for farm workers. Increasing opportunities for jobs are also likely to
increase household incomes. Disadvantage to it, is that rise in the demand for workers or the
need to support household income may also increase the participation of children in the
labour mark, depending on household decisions.
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EVIDENCE OF THE CAUSES AND EFFECTS OF THE FOOD PRICES RISING
Causes
Higher disposable income partly explains many of the changes in the mix of foods being
consumed. People will tend to eat fewer eggs, lamb, less pork, and using less condensed and
evaporated milk than they used to.
As inflation states continues to be a big challenge to many countries, fall in value of currency
faces the country as a challenges which largely affects the poor in financial status
As food production relies on oil, that provides transport and production necessities, oil will
also affect the faming. This is because oil by-products are significant components used in
making fertilizers. Increase in oil price means also increase in prices of fertilizers which may
be difficult for producers to purchase.
Effects
Rising in food household is likely to reduce the ability of government to spend on social
services since rising food import bills tend to deflate the economy and affect the revenue
collection.
Any increase in food prices is likely to have large effects on the poor and it is estimated that
disposal income will be cut short by a quarter.
As the population try to take the advantage of the agricultural production, the needed for
workers will significantly increase. Women may participate in the employment, which will
mean that there is less time for child care and other domestic responsibilities which may be
essential to other family members.
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Work Cited
Holmes, R., Jones N., and Wiggins, S. Understanding the impactof Food Prices on Children.
London: Plan UK, 5-6 Underhill Street, 2018.
Smith, Kalen. How Rising Food Prices Will Affect You & 6 Ways to Prepare. 2019
SparkCharge Media, 2019.
