The Food Crisis and its Implications for Agricultural Development

Since January 2006, the prices of corn, wheat, and soybeans on world markets have more than doubled, and rice prices have tripled. These price increases have contributed to 5.1% food inflation in the United States, but the impact on consumers in developing countries is much greater. This is because food represents a much larger proportion of consumer spending in developing countries (40-60%) than in the United States (14%) and other industrialized countries.