Year 2016, Volume 1, Issue 2

Year : 2016
Volume : 1
Issue : 2
Authors : Grzegorz DYBOWSKI, Anna BUGAŁA
Abstract : During the long period before 2002 the global index of real food prices showed downward tendency. This resulted from the dynamic economic growth, technological progress and supporting of agriculture in many OECD countries. The supply factors mainly determined global food price levels. Meeting food needs in developing countries was highly dependent onimports. This increased the role of food exporting countries which drove towards liberalization of international trade. In the years of sharp price increase followed by financial crisis, the new market forces appeared such as: support granted to biofuels in US and EU, competition for land of food and non-food agricultural products, links between food and fuel markets, increase in demand for food in emerging economies. In effect demand factors determining food market development prevailed over the supply ones. However, the duality existing in the global economic system has been also spreading to the global food sector. The developing countries could hardly benefit from high prices on international agricultural markets because they had no potential to start additional production in a short time. Price transmission from the global food market to local agricultural sectors was insufficient as well. This has brought about the loss of reliabilities of free market as a source of food for states with scaresnational food supply. The policy response of many developing countries has resulted in tendencies to increase self-sufficiency in food production.
For citation : Dybowski, G., Bugała, A. (2016). Global food market – new factors influencing development. AGROFOR International Journal, Volume 1. Issue No. 2. pp. 13-19. DOI:10.7251/AGRENG1602013D
Keywords : global food market, factors, development, food price crisis
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