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OECD: Increase in food prices, an opportunity for developing countries

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Wednesday, 10 July 2013

OECD: Increase in food prices, an opportunity for developing countries

The increase of global food prices can be an opportunity for developing countries; this could push them to upgrade their strategies for fighting food insecurity, the Organisation for Economic Co-operation and Development (OECD) emphasised in a report published in Brussels on June 19th. Moreover, according to the OECD, these countries could grow if the subventions for agricultural production were substituted by social transfers and investment.
As indicated in the report, the augmentation of food prices could impose upon the small scale farmers in developing countries to ground more viable businesses. Moreover, neither the decrease of prices usually advantages the small scale farmers, because they earn less in the moment of sale.
In any case, the vulnerability of food crises will stay alarmingly high if the income of the population in developing countries does not boost, the organisation believes. This is why, the small scale producers should orientate towards another fields of activity rather than agriculture, as for example the field of services or manufacturing.

More, it is suggested that a reciprocal liberalization of agricultural markets between the developing and developed countries is needed in order for real benefices to be drawn from international trade.

Source: EuraActiv.fr