1. Staple Food Prices in Botswana
- Author:
- BIDPA
- Publication Date:
- 05-2010
- Content Type:
- Policy Brief
- Institution:
- Botswana Institute for Development Policy Analysis
- Abstract:
- What were the Causes of the 2007-9 Global Food Crisis? i) The main causes for the food crisis were the increase in oil prices together with subsidies for bio-fuels provided by food exporting countries. The introduction of bio-fuel subsidies by the US for maize derived ethanol contributed significantly to the food crisis. Changes in the value of the US dollar also worsened the crisis. ii) Almost all major food exporting countries have now established substantial bio-fuel mandates whereby a certain percentage of national transport fuel requirements will come renewable sources biofuels. These can easily be raised for bio-diesel which creates an increase in demand for the feedstock. This is a low cost way for governments of providing state support for farmers. iii) According to the World Bank, for every one percentage point increase in the barrel price of oil the price of maize will rise by 0.9% for all oil prices above USD50 per barrel (World Bank 2009, p7). This now links oil prices directly to maize.
- Topic:
- Markets, Food, Economy, and Food Crisis
- Political Geography:
- Africa and Botswana