Food price hikes - strong increase in demand or agricultural commodities as investment category: what are the causes?

The steep rise in food prices has been generally disconcerting. For Joachim von Braun, International Food Policy Research Institute, Washington, food prices can be stabilised on a long-term basis only by an increase in production. Especially governments in developing countries should intensify their medium- and long-term investments in rural infrastructure, agricultural research and consultancy as well as the market access for small farmers. This view is supported by Hans-Joachim Preuss, German Agro Action (Deutsche Welthungerhilfe e.V.) for whom nutritional security can only be achieved on a long-term basis if rural development becomes a focus of development assistance again and more money is made available for agriculture. Also for Ralf Südhoff, UN World Food Programme (WFP), the greatest challenge presented by the current crisis is in agriculture itself. A massive expansion of the food supply is necessary - and the greatest potential is in the developing countries themselves. Christian Henning, University of Kiel, sees the major task of politics in creating general conditions for functioning international markets in which relative scarcity is signalled without distortions by means of corresponding price developments: "The best remedy for high food prices is high food prices." Dieter Kirschke and Astrid Häger, Humboldt University, Berlin, examine the world agricultural commodities markets, on which market orientation and competitiveness stand in the foreground and - in light of the expected development of agricultural prices - in which a new outlook and opportunities are offered.