In December 2010 the FAO’s Food Price Index reached a new peak. Richard China, director of FAO’s policy and programme development support division, said “With this new price shock only two years after the crisis of 2007/8 there is a serious concern now about implications for food markets in vulnerable countries.”
He said there is evidence that hasty decisions by some countries in 2007/8, such as export restrictions, actually exacerbated the problem.
The FAO has now published a guide to help policy makers address negative impacts of high food prices – or tap their opportunities. Although the guide is geared towards developing countries, the FAO stresses that there is no “one size fits all” solution.