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Food inflation: The math doesn’t add up without factoring in corporate power
Published
2 years agoon

Large farmers’ protests broke out in at least 65 countries over the past year. From India to Kenya through Colombia and France, desperation has hit a breaking point. Farmers warn that without better prices and more protection, their future is at risk. Peasant movements like La Via Campesina, for over three decades now, have denounced the World Trade Organisation and the growing number of bilateral free trade agreements for destroying their livelihoods.
However, these protests unfold against the backdrop of record-high global food prices. The prices spiked first during the pandemic and then again at the start of the war in Ukraine hitting an all-time high in 2022. Food prices have been rising faster than other products: if the global general consumer price index (CPI) doubled between 2021 and 2022, the food CPI inflation almost tripled. According to the World Food Organisation (FAO) food price index, even if international prices have moderated in 2023, they are still higher than in 2019 (see Graph 1). And all indications are that this is a crisis of prices, and not a food shortage at the global level. For the past 20 years, world grain production has exceeded available stocks.
The impact of these food price increases on millions of people, especially the poor, is devastating. In 2022, 9.2% of the world’s population was chronically hungry, an increase of 122 million people since 2019.
But, as this year’s farmers’ protests make clear, the increase in food prices is not going into their pockets. So, who is benefiting from these food price rises?
Volatility by design
The FAO and corporate executives have attributed recent food price increases to disruptive supply chains for oil, gas, fertilisers and staple goods. This is a half truth, and thus deceptive. They don’t mention how the current structure of the food system encourages and amplifies such disruptions.
For decades, the World Bank and the International Monetary Fund (IMF) have promoted structural adjustment policies, and green revolution technologies (hybrid seeds + chemical pesticides and fertilisers) across the world. We now have a global food system designed around the production of a small number of agricultural commodities (wheat, rice, maize, soybeans, palm oil) in a few areas of the world totally devoted to the massive industrial production of monocultures dependent on the supply of inputs, and concentrated in the hands of a few companies. Any disruptions within this global system, be it war or drought, can have major impacts on people’s access to food.
This is particularly acute in countries of the global South that are now highly dependent on food imports because of policies imposed on them through multilateral banks and free trade agreements. Moreover, we are entering a period of intense climate crisis, water crisis, geopolitical tensions, and declining crop yield gains that are set to generate more frequent and more severe disruptions.
For some, however, this volatility is an opportunity. Because of deliberate policies implemented since the 1980s (see box), there is today a large and growing part of the financial sector that profits from shifts in food prices using what are called “derivatives”. In theory, the use of these instruments helps buyers and sellers to lock in prices and protect themselves against the risk of price fluctuations. The most common and important of these instruments are futures contracts, which are agreements to buy or sell agricultural commodities at a specified future date. In futures markets, it is not the agricultural product itself that is traded, but the contract. The price of the contract changes according to supply and demand. But price variations on the futures markets have a direct influence on price fluctuation of the goods to which the futures contract relate. For example, if the price of a wheat futures contract rises, this indicates that the estimated future price of wheat is high. Consequently, the real current price of wheat rises. With increased activity in the financial futures markets, food trading has come to be referenced to futures prices. In a vicious circle, the volatility of food prices attracts more speculative money into the commodity futures market. This, in turn, amplifies the volatility of the futures markets and pushes up or down real food prices.
They have some important advantages over purely financial players. For one, as ‘commercial actors’ they are not subject to the same restrictions or regulations of financial actors on commodity trading markets. Also, because of their global presence they have the most in-depth and up-to-date information about the availability of products and are the first to know about poor harvests or bumper crops. A study by SOMO found that the largest agricultural commodity trading companies ADM, Bunge, Cargill, COFCO International and Louis Dreyfus (usually referred to as “ABCCD”) control 73% of the global grain and oilseed trade as well as a combined 1 million hectares of farmland.
A perverse and well prepared alignment of the stars in the 1980s
Three parallel developments in the 1980s were key to financialising the global food system. First, the liberalisation of agricultural markets was promoted by the World Bank and other international agencies. Until then, governments in different regions had adopted policies to protect farmers from production risks. Second, financial markets were deregulated in the United States and investment banks and commodity trading firms began marketing index funds that tracked the prices of various commodities. In addition, large institutional investors (such as pension funds) sought to diversify their investments. To hedge their risks, they increased their investments in commodity derivatives and physical assets. As a result, a growing number of financial players began to speculate on food prices.
Third, like other companies, agribusiness companies experienced a dramatic shift in ownership with the entry of large asset management firms. CEO salaries became linked to the value of shares, creating a strong incentive to restructure companies in ways that generated more profit for shareholders. To this end, mergers and acquisitions multiplied, laying the foundations for today’s deep corporate concentration in the agri-food sector.
Source: Jennifer Clapp and S. Ryan Isakson, “Speculative Harvests: Financialization, Food, and Agriculture”, Agrarian Change & Peasant Studies, 2021.
Price manipulation and sellers’ inflation
Financial markets are not the only space where big agribusiness and food companies have an impact on food prices. A growing number of voices, such as the economist Isabella Weber, point to the monopoly power of corporations as a major factor in recent price inflation, including with food. What they call “sellers’ inflation” happens in contexts of supply-chain bottlenecks and cost shocks. When price hikes in upstream sectors (such as the gas needed for fertilisers) spread along the supply chain, companies in downstream sectors pass on cost increases to protect margins and even take the opportunity to increase margins. They can raise prices knowing that all their competitors will do the same.
Such strategies are only possible in contexts where a handful of companies have the power to set prices, as is the case in the food and agriculture sector. For example, just four companies, Bayer, Corteva, Syngenta and BASF control half of the seed market and 75% of the global agrochemicals market. Since 2018, their profits have nearly doubled. On the fertilisers side, the global market is controlled by a small number of companies. Four of them control a third of all nitrogen fertiliser production. From 2018 to 2022, the profits of the top 9 fertiliser corporations more than tripled, as they increased prices far beyond the production costs. Another example can be found in the world’s second largest meat processor, Tyson. The company more than doubled its margins and profits at the end of 2021. This was due to price increases it initiated and then continued to raise to protect margins against cost pressures from grain prices. A similar strategy was followed by large branders as Nestlé, Unilever and Mondelez who increased prices and ended by recording high profits in 2022.
This combination of monopoly power and unregulated activity in financial markets allows agricultural commodity traders, big agribusiness and food companies to make huge profits from food price rises.
Countering corporate power in food systems
The big culprit when it comes to today’s high food prices for consumers and low prices for farmers is corporate power. The climate crisis will only make this situation worse, unless urgent actions are taken to dismantle corporate power and shift to more localised food systems, based on diversified food production and catered to people’s food needs. The struggle against free trade agreements, at the forefront of many of today’s farmers’ protests, is therefore critical.
At the same time, actions are needed to reign in the power of those actors in the casino economy who are amplifying food price volatility and increases. When it comes to financial speculation, an important driver in food price volatility, regulations need to be tightened. And, to tackle the so-called “sellers’ inflation”, we need measures to prevent profiteering, which could include taxes on windfall profits anti-trust measures, and, more importantly public controls over food prices and programmes that ensure a fair, equitable and secure distribution of nutritious foods to everyone.
Source: grain.org
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TXJCX1 Jason Kelly, a trader in the Wheat Options pit at the CME Group throws up his arms as traders toss confetti at the closing bell for the year on December 31, 2009 in Chicago. UPI/Brian Kersey
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MEDIA FOR CHANGE NETWORK
Youth, Women, Indigenous People: Yaounde Declaration Pledges 50% Leadership Roles
Published
17 minutes agoon
August 31, 2026
The 2nd Congo Basin Convening ended in Yaounde, Cameroon on August 27, 2026 with stakeholders demanding 30% public budget allocation for agro-ecology.
The Second Congo Basin Convening on Agroecology for Inclusion, Sustainable Food Systems, Biodiversity, and Climate Justice officially concluded on Thursday, August 27, 2026, following three days of intensive deliberations in Yaounde, Cameroon. The high-level regional event drew to a close with a ceremony.
It was presided by the Inspector General in the Cameroon Ministry of Youth Affairs and Civic Education, MINJEC, Dr. Akedeh Metougue Eric, representing the Minister, Mounouna Foutsou. Speaking on behalf of the government alongside delegates from 16 African nations, regional bodies, civil society, and grassroots producers.
Bridging Policy, Action For Youth
Addressing distinguished delegates – including representatives of the African Parliament, the Economic Community of Central African States, ECCAS, traditional rulers, and civil society networks – Dr Akedeh emphasized the necessity of interministerial collaboration between MINJEC and the Ministry of Agriculture and Rural Development, MINADER.
Active Innovators, Solution-Providers
Highlighting the central role of young people in ecological transformation, the Minister’s statement rejected the view of youth as mere passive beneficiaries of environmental policy. Instead, the speech framed youth as active innovators and solution-providers capable of driving the green economy across Central Africa.
National support frameworks – including the Special Triennial Youth Plan, the National Guarantee Fund for Young Entrepreneurs, FOGAJEUN, and YouthConnekt Cameroon – were highlighted. As key vehicles to back green entrepreneurship, sustainable value chains, and rural employment.
The Yaounde Declaration 2026
The centerpiece of the conference’s outcome is the newly adopted Yaounde Declaration 2026. Which is jointly backed by the Alliance for Food Sovereignty in Africa, AFSA and the National Concertation of Farmer Organizations of Cameroon, CNOP-CAM. Building upon the 2023 Kinshasa Declaration, the document outlines key demands and commitments to transform regional food systems.
The Commitments
Dedicated Budgetary Support: Calls on member states and the African Union Commission to explicitly integrate agroecology into national CAADP implementation, reserving at least 30% of public food systems budgets for agroecological initiatives.
Policy Alignment By 2027: Demands that governments adopt agroecology to fulfill Target 10 of the Global Biodiversity Framework, embedding it within Nationally Determined Contributions, NDCs and National Adaptation Plans by the end of 2027.
Access To Climate Finance: Urges major international funders – including the Green Climate Fund, GEF, CAFI, and the African Development Bank – to establish simplified, direct-access funding streams, ensuring at least 20% of climate and conservation resources directly reach local farmers, women, and indigenous communities.
Land Rights, Seed Sovereignty: Reaffirms the necessity of Free, Prior, and Informed Consent (FPIC) in all development projects, while calling for legal protections for farmer-managed seed systems against restrictive or criminalizing regulatory regimes.
Inclusive Leadership: Pledges that civil society and farmer organizations will entrust women, youth, and indigenous representatives with at least 50% of leadership positions.
With Gratitude
Dr Akedeh expressed deep gratitude for the trust placed in him to represent the Ministry at such a prestigious gathering. He conveyed Minister Mounouna Foutsou’s heartfelt appreciation to his colleague, Mr. Gabriel Mbairobe, Minister of Agriculture and Rural Development, MINADER, for actively involving MINJEC in the conference’s proceedings.
Invaluable Values
“This initiative once again illustrates the relevance and strength of interministerial synergy, not only when it comes to promoting the aspirations and interests of young people. But also to fostering the values of solidarity, social cohesion, and harmonious living together that should guide relations between people sharing the same space, the same heritage, and common challenges,” the representative stated.
Joint Success
Paying tribute to the organizers, financial partners, and delegates, the representative praised the collaborative spirit demonstrated throughout the three days of dialogue: “Through your involvement, your dedication, and your commitment, you have helped to bring this initiative to fruition and, beyond that, to advance a shared vision of a society that is more united in the face of environmental challenges, most just, mindful of the common good, and resolutely committed to the path of sustainable development.”
True Force For Proposals
Addressing the core theme of youth participation, the MINJEC delegate noted that young people can no longer be viewed merely as passive recipients of environmental interventions. Reaffirming a key point raised earlier in the proceedings, he emphasized: “Youth cannot be considered merely as beneficiaries of environmental and climate policies. They must be recognized as a true force for proposals, innovation, and action, called upon to contribute fully to the transformation of our societies and to the preservation of the natural heritage that we will pass on to future generations.”
Cameroon’s Youth-led Initiatives
To translate this vision into reality, Dr Akedeh highlighted several existing government schemes designed to support youth entrepreneurship and capacity building in Cameroon. Including the Special Triennial Youth Plan ordered by the Head of State, H.E. Paul Biya, the National Guarantee Fund for Young Entrepreneurs, FOGAJEUN, the National Volunteer Program, PAJER-U, PEPEJ, PIFMAS, and YouthConnekt Cameroon. He urged that these platforms be increasingly oriented toward green jobs, sustainable natural resource management, and agroecological value chains.
Between Commitments, Action
A recurring motif throughout the closing address was the urgent imperative to move beyond rhetoric to concrete implementation. Citing insights shared during the conference by the Secretary General of the Alliance for Food Sovereignty in Africa, AFSA and the President of the National Concertation of Farmer Organizations of Cameroon, CNOP-CAM, Dr. Metougue warned against the proliferation of unexecuted declarations. While ecosystems continue to degrade and food insecurity persists.
Targeted Major Obstacles
He outlined three major obstacles identified during the conference discussions that must be overcome:
Source: cameroon-tribune.cm/
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MEDIA FOR CHANGE NETWORK
East African Community member states launched public hearings this week for the Seed and Plant Variety Bill 2025, marking a significant step in shaping the region’s agricultural future.
Published
3 days agoon
August 28, 2026
By the Witness Radio team
Starting August 24th, the East African member states opened a five-day window for researchers, policymakers, civil society organizations, and small-scale farmers to share their insights and concerns on the East African Community Seed and Plant Variety Bill 2025 as it moves toward its second reading in the East African Legislative Assembly.
Countries including Uganda, Kenya, Tanzania, Rwanda, and Burundi have been actively consulting citizens, inviting people from all walks of life to share their experiences and perspectives openly.
This follows the bill’s introduction in 2025 and its passage through legislative procedures, including tabling and the first reading in EALA in mid-2025.
According to EALA, the public hearings provide a critical opportunity for stakeholders to examine the Bill from multiple perspectives and contribute practical recommendations before the Assembly’s final consideration.
From farmers and seed companies to researchers, civil society, regulators, parliamentarians, women and youth in agribusiness, development partners, and private sector leaders, every voice brings experience that can shape stronger legislation and pave the way for successful implementation.
Following the high-level openings, partner states are rolling out national and regional consultations guided by the East African Legislative Assembly Committee on Agriculture, Tourism and Natural Resources. Uganda began its hearings on the 26th, while Rwanda and Kenya launched theirs on August 27, 2026. Other partner countries are also conducting the hearings.
During the launch in Uganda, East African Legislative Assembly Member, Hon. Rose Akol, said the Bill is intended to ease access to seed across the region by reducing barriers created by differing national requirements.
“The preamble of the Bill is meant to ease access to plant and seed varieties by farmers in the Community, so as not to make it difficult for them to access seeds because of non-tariff barriers where countries have their own standards and requirements in terms of registration, certification and laboratory testing,” Akol said on Wednesday.
She said harmonizing standards across Partner States would make it easier for farmers to obtain seed from other countries within the region.
“Once the member states have a harmonized law applying the same standards, it will be easier for farmers to access seeds from across borders,” she added.
In Kenya, the EALA parliamentary committee on Agriculture, Tourism and Natural Resources held key consultative meetings with bodies such as the Kenya Plant Health Inspectorate Service (KEPHIS) and the Ministry of Agriculture on the regional seed variety framework, as well as researchers and farmer organizations.
Kenyan member of the East African Legislative Assembly (EALA) Committee on Agriculture, Tourism and Natural Resources, Sankok Ole David, urged participants at every level to champion inclusivity and help craft agricultural regulations grounded in real evidence.
He warned that overreliance on seeds farmers cannot replant could create vulnerabilities if commercial supply chains are disrupted.
“Every season you have to go to the market. Suppose that market closes, what will happen to our food sovereignty and our food security?” Sankok asked.
The Kenyan discussions come against the backdrop of a broader legal debate over farmers’ rights to save, exchange and share seed.
In November 2025, Kenya’s High Court declared several provisions of the country’s Seeds and Plant Varieties Act unconstitutional after 15 smallholder farmers challenged restrictions on the sharing, exchange and sale of unregistered and uncertified seed.
Justice Rhoda Rutto found that seed saving, sharing and exchange form part of the cultural practices of Kenyan farming communities and that restrictions on indigenous seeds violated constitutional protections.
The court also found that some of the restrictions undermined the right to adequate food and could create economic dependency on commercial breeders.
The Kenyan ruling does not determine the outcome of the EAC Bill, which is a separate regional legislative process. However, it provides a recent example of the legal questions that can arise when formal seed regulation intersects with farmer-managed seed systems.
In Uganda, Civil society organizations (CSOs), Center for Food and Adequate Living Rights (CEFROHT), Participatory Ecological Land Use Management (PELUM), Eastern and Southern Africa Small Scale Farmers’ Forum (ESAFF), smallholder farmer groups, and regional trade stakeholders presented divergent positions on seed sovereignty versus commercial seed harmonization through discussions and position papers on the bill.
The Executive Director for CEFROHT, Dr. David Kabanda, who also led CSOs in Uganda in the consultation process, called for improved, further considered, and scrutinized provisions.
Kabanda says the proposed law should recognize the role farmers already play in maintaining and developing seed systems.
“We want the Bill to recognize that the formal seed sector is not the only seed system. Farmer-managed seed systems are already supporting millions of smallholder farmers, conserving agricultural biodiversity and contributing to food security,” he said.
Kabanda notes that the bill’s memorandum is silent on farmer-managed seed systems, which supply 70% to 80% of all seed planted by smallholder farmers in East Africa.
“The memorandum is silent on Farmer Managed Seed Systems, yet these systems supply between 70 and 80 percent of the seed planted by smallholder farmers in East Africa,” Kabanda said.
The organizations are proposing an amendment to the memorandum to explicitly recognize farmer rights and Farmer Managed Seed Systems as complementary to the formal seed sector, alongside issues including conservation of agrobiodiversity, biosafety, food security and food sovereignty.
If passed into law, the Act would establish common approaches to plant variety evaluation, testing, release, registration and marketing, while creating a regional framework for protecting plant breeders’ rights.
Supporters say harmonization could reduce regulatory barriers between Partner States, facilitate cross-border seed trade and make it easier for farmers to access quality seed. Critics, however, say common standards should not prevent farmers from continuing to preserve, exchange and select seed according to local environmental conditions and farming needs.
Protecting smallholder farmers is particularly significant in a region where smallholder farming accounts for about 75 percent of agricultural production.
For farmers who depend on locally managed seed, the outcome of the legislative process could determine how much space remains for traditional seed-saving, exchange and selection alongside the formal commercial seed sector.
But the committee emphasized that these hearings are designed as an inclusive platform, empowering stakeholders to shape the legislative process and drive evidence-based recommendations to strengthen agricultural regulation across East Africa.
These hearings are collecting vital feedback on a unified regional approach to plant variety evaluation, seed certification, testing, marketing, and plant breeders’ rights. The committee will weave these insights into a formal report, shaping recommendations before the Bill’s second reading in the East African Legislative Assembly.
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MEDIA FOR CHANGE NETWORK
EAC Seed Bill: Uganda launches public consultations as debates spark over safeguarding smallholder and indigenous seed rights.
Published
4 days agoon
August 27, 2026
By the Witness Radio team.
Uganda has begun public consultations on the proposed East African Community Seeds and Plant Varieties Bill, 2025, bringing together farmers, researchers, regulators, policymakers, and other stakeholders to explore how this regional law could reshape access to seed, farmers’ rights, and seed systems throughout East Africa.
The consultations are part of wider public hearings across EAC Partner States before the Bill is considered by the East African Legislative Assembly (EALA).
The proposed legislation seeks to harmonize seed regulation across the region by establishing common procedures for plant variety evaluation and release, seed certification and plant variety protection.
Its proponents say harmonizing the rules would make it easier for quality seed to move across borders, reduce duplication of regulatory requirements, and encourage investment in the regional seed sector.
Yet these consultations have sparked questions about whether the regional framework can truly safeguard indigenous seed systems, farmers’ rights, biodiversity, and food sovereignty while welcoming commercial seed companies.
East African Legislative Assembly Member of Parliament Rose Akol chaired the first hearing in Uganda. She and her team examined provisions of the Bill that participants said required clarification or modification, including issues around seed certification and the movement of seed between Partner States.
Akol said the Bill aims to ease access to seed across the region by reducing barriers from differing national requirements.
“The preamble of the Bill is meant to ease access to plant and seed varieties by farmers in the community, so as not to make it difficult for them to access seeds because of non-tariff barriers where countries have their own standards and requirements in terms of registration, certification and laboratory testing,” Akol said.
One concern was how a harmonized certification system would operate across countries with different laws, standards, registration requirements, laboratory-testing procedures, and regulatory systems.
She said harmonizing standards across Partner States would make it easier for farmers to obtain seed from other countries within the region.
“Once the member states have a harmonized law applying the same standards, it will be easier for farmers to access seeds from across borders,” she added.
The East African Community Seeds and Plant Varieties Bill, 2025, is designed to create a common regional framework for seed regulation, plant variety evaluation and release, seed certification and plant variety protection.
The Bill also seeks to promote investment and innovation in the seed sector while supporting food security and sustainable agricultural development.
Moses Edward Erongu, a Senior Agriculture Inspector at the National Seed Certification Service in the Ministry of Agriculture, Animal Industry and Fisheries, said the consultations were important because they allowed stakeholders to examine and validate the provisions of the proposed law.
He said harmonization could make it easier for farmers to obtain seed from other EAC countries and create opportunities for seed companies to invest in production within the region.
“If we harmonize this law, it will be easier for investors to establish anywhere because they will no longer fear the different regulatory regimes. They can look at comparative advantages—for Uganda, for example, where we have two seasons—and seed companies would be interested in investing here, producing seed in Uganda and supplying other parts of the region. That creates employment for our people and income for farmers who will be engaged as out-growers.”
Still, worries linger that greater commercialization and regional harmonization might threaten the livelihoods of farmers relying on locally produced, farmer-managed seed.
When Witness Radio asked whether the proposed Bill could leave smallholder farmers dependent on commercial seed companies, Erongu rejected the suggestion that the legislation could result in “seed slavery.”
“There is nothing like seed slavery. This encourages farmers to access seeds because smallholder farmers are the ones who utilize the seed,” he added. Making seed more accessible would allow smallholder farmers to benefit from improved agricultural technologies and potentially increase their productivity and returns.
“If you don’t make procedures easier for them to get seed, they are kept out of the technology. As technology grows, they remain excluded and continue using inferior seed material, which means they cannot get a gainful return from their farming efforts,” Erongu added.
Traders at the consultations voiced support for harmonized regional rules, arguing that lifting non-tariff barriers could ease the transport of seed and other agricultural inputs across EAC borders.
Meanwhile, civil society organizations and farmer-rights advocates are set to share their perspectives on the proposed legislation in full later today, 27 August 2026.
Their stance will carry significant weight, as the Bill addresses crucial issues such as farmers’ rights to save, exchange, and access seed; the safeguarding of indigenous seed systems; biodiversity; and the influence of commercial seed companies.
Public hearings continue today, with stakeholders poised to offer more insights before the proposed regional law moves forward to its next stage.
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