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Multiple factors interact to determine worldwide food price movement according to the following pattern:
Supply and demand
Crop yields together with livestock production influence supply through factors such as pests and diseases while climate change and droughts and floods act as main weather variables affecting supply production.
Population growth together with changes in eating patterns boosts the level of consumption which drives prices upward.
Economic Factors:
Higher fertilizer along with fuel and labor expenses push prices upward because production cost becomes more expensive.
Food price changes in countries that export or import goods arise from changing exchange rates because of altered export and import expenses.
The assumption states that price increases happen because of market speculation even when actual supply shortages do not occur.
Geopolitical factors:
Ethnic wars and military conflicts drive populations away from their homes while damaging supply networks so production processes change within the food supply system to create short food supplies and higher market prices.
Food exports are constrained when manufacturers implement export prohibitions with tariffs while trade barriers and export restrictions limit market transportation which causes price increases.
Agribusiness output growth will happen through research-based development aimed to boost crop yields as well as create drought-tolerant plants and promote green agricultural methods.
Better warehousing and distribution structures with improved transportation must be built as part of food supply chain strengthening efforts to reduce post-harvest waste.
Policies that implement adjustment strategies function to reduce greenhouse gas emissions which decreases farming consequences from climate change.
Sustainable food consumption practices should be promoted by encouraging individuals to adopt plant-based diets which reduces demands on natural resources.
Establishment of Social Safety Nets Requires Investment to Secure Vulnerable Groups from Negative Effects Caused by Increasing Food Prices.
The strengthening of international food safety programs through cooperation initiatives should aim to share information and coordinate crisis responses as well as defend the role of free trade policies.