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Friday, 19 February 2010

Food prices are likely to fluctuate and supply crises become more frequent

Food prices are likely to fluctuate and supply crises become more frequent, according to a paper prepared by Spain, which holds the presidency of the Council of Ministers, on the future of the Common Agricultural Policy (CAP). Agriculture ministers will discuss the paper on Monday (22 February) as they continue their long-running debate on how to reform EU farm policy after 2013. The debate is set to gather pace in 2010, as the European Commission is due to publish a paper later in the year to launch a formal debate on CAP budget and policy goals. The rise and fall in food and commodity prices over the past few years provides the backdrop for CAP reform, but national governments are likely to draw different conclusions on what volatility means for the CAP. Food prices rose sharply between 2006-08 and then fell back in 2009 as the recession took hold, a downward turn that prompted calls from European farmers for protection against market volatility.

Source: European Voice