Food price volatility has become a major obstacle to reducing hunger in the world

In an exclusive interview with the Xinhua News Agency, the Director-General of the Food and Agriculture Organization of the United Nations Jose Graziano da Silva said that market speculation, lack of national grain reserves, and changes in the exchange rate of the U.S. dollar against other currencies are the main causes of food price fluctuations. All countries should coordinate policies to address food security challenges. He stressed that fluctuations in food prices have become the main obstacle to reducing hunger in the world.

According to FAO's previous forecast, agricultural product prices will continue to operate at high levels in the next 10 years. In this regard, Da Silva said that the main problem affecting food security is not the high food prices, but the constant fluctuations in food prices. High food prices can stimulate farmers' enthusiasm for production, and fluctuations in food prices will only benefit speculators. .

Da Silva said that since the high food prices in 2010, FAO has monitored frequent price fluctuations. Although the average monthly food index released by FAO has not changed much, there will be a comparison between weekly and midweek. Ups and downs. At his request, FAO changed from the monthly monitoring of the original food index to weekly monitoring.

Da Silva believes that there are three reasons for the volatility of food prices: market speculation, insufficient national grain reserves, and changes in the exchange rate of the U.S. dollar against other currencies. He said that the solution to price volatility is to strengthen global governance of food security. One of its means is FAO's agricultural market information system under the auspices of the G20, which provides member countries with timely updated agricultural information. The release of global food stocks and price changes to the public, as well as the expectations of agricultural harvests in various countries, with a view to eliminating market uncertainty and reducing food price volatility.

As an agricultural economics expert, Da Silva hopes that the agricultural information collected by FAO will be shared with member countries and benefit the general public. He also hopes that countries can provide support for this system while obtaining information and make it more effective.

Da Silva pointed out that in the current context of globalization, safeguarding food security has become a global issue, and no country can “keep it alone” in ensuring food security. He said that the new era has come, but countries still use old ways of thinking and the old system to cope with new changes, change the habit of policy makers only making decisions based on national interests, and coordinate food policies among countries through international cooperation. It is crucial to avoid food crises.

“For instance, the agricultural drought we encountered this year is not enough to directly cause a food crisis. However, if the drought causes panic and then triggers export restrictions for large grain-exporting countries, as in 2007 and 2008, the drought will evolve. A food crisis." Da Silva said. He also pointed out that since G20 countries have about 95% of global cereal production, FAO will work to coordinate food policies among these countries and jointly tackle global food security challenges.

Da Silva believes that there is a close relationship between national security and stability and food security, and most of the 20 countries that have been affected by the food crisis have social unrest. The country is still not safe. What about food security?

Although there are many voices of doubt about the “Millennium Development Goals” proposed by the United Nations to achieve a halving of the global hungry population in 2015, Da Silva is still full of confidence. He said: "Despite the rising food prices, we have reduced 300 million hungry people since 2000. I believe we can achieve this goal on the premise of stable food prices."