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Food inflation: The math doesn’t add up without factoring in corporate power

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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.

The price volatility experienced during the 2007 – 2008 food price crisis was partly a result of a surge in financial speculation. Similarly, when the war in Ukraine began, investments in commodity futures and commodity-linked funds rocketed. Speculative positions in the Paris wheat market increased from 35 million euros in January 2021 to 1 billion euros in March 2022. A report by IPES-Food found that the price of wheat on futures markets rose 54% in nine days, and the US Commodity Futures Trading Commission noted that volatility was 20% higher than normal. While this drove price increases that penalised consumers, hedge funds and pension funds speculating on food markets made huge profits.
The world’s agricultural trading companies have also benefited massively from this situation, including through their participation in financial markets. In 2022, profits achieved by the top five firms in this sector doubled and even tripled compared to the period 2016 – 2020. A report by the United Nations Conference on Trade and Development found that corporate profits of global food traders “appear to be strongly linked to periods of excessive speculation in commodity markets and to the growth of shadow banking – an unregulated financial sector that operates outside traditional banking institutions”.

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

  • 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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World Food Day 2026: Building healthy diets means reimagining how we grow, share, and enjoy our food.

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By the Witness Radio team.

In 2024, hunger affected an estimated 673 million people worldwide, the 2025 State of Food Security and Nutrition in the World report reveals, underscoring the urgent need to ensure everyone can access enough nutritious food.

Africa bears a heavy share of this crisis. Hunger affects about 307 million people, more than one in five on the continent. If nothing changes, experts warn that by 2030, as many as 512 million people could face chronic undernourishment, with nearly 60 percent living in Africa.

These numbers make it clear: we must transform our food systems now. It is not just about growing more food; it’s about ensuring everyone can enjoy diets that are diverse, safe, nourishing, and rooted in culture.

On World Food Day 2026, celebrated under the banner “Innovate Today, Nourish Tomorrow,” leaders urged the world to invest boldly in healthy eating, indigenous food traditions and agricultural breakthroughs that truly serve people’s needs.

Italy’s Minister for Agriculture, Food Sovereignty and Forestry, Francesco Lollobrigida, called for greater attention to healthy, balanced and sustainable diets, linking food consumption to human health, cultural heritage and environmental protection.

“To nourish tomorrow, it isn’t enough to invest in innovation and research and in waste reduction. We must also promote dietary habits that are healthy, balanced and sustainable, capitalizing on the deep link between food, health, culture and territory,” Lollobrigida said.

He highlighted Italy’s food culture as a living example of how what we eat can weave together nutrition, environmental care, and the fabric of social life.

“Food isn’t just nutrition; it’s a way of spending time together defending and protecting our environment and our health,” he said.

The minister also urged everyone to unite to tackle food waste, a challenge that stretches from farm fields to family tables. He stressed that governments, businesses, researchers and consumers must join forces through smart policies, new technologies and better food education to end waste.

While Italy’s minister focused on eating habits, King Letsie III of Lesotho, David Mohato Bereng Seeiso, called on African nations to embrace their indigenous foods, crops and traditional wisdom to boost nutrition.

The King noted Africa’s rich tapestry of traditional foods, livestock and aquatic resources, many perfectly suited to local environments and packed with nutrition. Yet he observed researchers, markets and public campaigns too often overlook these treasures.

“Countries must be assisted to promote indigenous traditional and underutilized foods as part of healthier diets, biodiversity conservation, climate adaptation and local economic development,” he said.

He added that building value chains around locally adapted foods could open doors for smallholder farmers, women and young entrepreneurs, all while helping communities safeguard their food heritage.

“While restoring pride in Africa’s food heritage, innovation does not mean abandoning tradition; it means combining the best of modern science with the knowledge and experience of our communities. Nourishing tomorrow should also begin with investing in children today,” King Letsie III added.

His words highlight the need to help farmers preserve locally adapted crops and seeds while harnessing science to boost harvests and nutrition.

FAO Director-General Qu Dongyu said scientific innovation should be judged by its contribution to people’s lives rather than by technological advances alone.

“Innovation is not only about the technology, but it’s also about people. It is about enabling people to turn knowledge into opportunity, science into solutions and hope into action,” he said.

He cited satellite monitoring, early-warning systems, improved irrigation, and digital technologies as tools that can help farmers protect harvests, manage resources, and access markets and financial services.

Today, science provides farmers with tools previous generations could hardly have imagined. Satellites monitor crops from space, helping detect threats before harvests are lost. Early warning systems give farming families time to prepare for droughts, floods and other risks. Smarter irrigation lets farmers produce more food while using less water. Digital technologies connect rural communities to markets, financial services, and networks once out of reach, especially for smallholder farmers. These innovations can strengthen food security, stabilize incomes and create better opportunities for future generations.

Yet innovation alone is not enough. Its true value lies in reaching those who need it most and ensuring successful solutions can be shared and scaled up. The most effective innovations are those developed with farmers and rural communities, considering their needs, knowledge and local conditions, he said.

King Letsie III said transforming food systems requires political leadership, stronger institutions, and adequate nutrition financing.

“Our parOur parliamentarians approve budgets, enact laws, oversee government action and represent citizens’ priorities. I therefore welcome FAO’s engagement with the Pan-African Parliament and national and sub-regional parliamentary alliances on food security and nutrition. Through parliamentary capacity development, FAO is helping legislators create stronger enabling environments. Parliamentarians can and should champion adequate financing for nutrition, protect school meal budgets, promote healthy food environments, improve food safety laws, support women and youth and hold institutions accountable for the commitments made to our people.” He said.

He highlighted school feeding programs as one way to improve children’s diets while creating markets for locally produced food.

Nutritious school meals are a strategic investment that can improve diets, attendance, and learning; strengthen social protection; and create steady demand for locally produced food. Homegrown school meals connect agriculture, nutrition, education and local economic development. School meals should do more than relieve short-term hunger. They should support physical and cognitive development, encourage lifelong healthy habits, strengthen local economies and provide practical learning on nutrition, food safety, hygiene, biodiversity and respect for food. Safe water, sanitation and hygiene are also essential to ensure every meal advances health, dignity and learning, he added.

These leaders’ voices send a clear message: we must bridge the gap between what is grown in fields and what nourishes people’s bodies and lives.

Africa needs stronger links among farmers, researchers, universities, policymakers, entrepreneurs and investors. Solutions that show promise must move beyond pilots and laboratories, be adapted to local realities and scaled through effective institutions and sustainable financing,” the King said.

He emphasized that young people must be at the heart of this movement, with skills, funding, land, digital tools, mentors, and access to markets.

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International Day of Rural Women : Rural women farmers deserve not only equal rights and access to resources, but also the strength and voice to safeguard Mother Nature.

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By the Witness Radio Team.

As the world marks the International Day of Rural Women on 15 October 2026, with the theme “Rural Women Farmers Caring for Mother Nature,” the spotlight shines on women whose tireless efforts nourish food systems, shield biodiversity, and safeguard the natural resources that sustain entire communities.

This year’s celebration carries special weight as the United Nations declares 2026 the International Year of the Woman Farmer, spotlighting women’s vital roles across agri-food systems, from planting seeds to driving trade. This recognition opens the door to challenge the persistent inequalities that threaten women’s livelihoods and silence their voices in decisions about agriculture, land, and the environment.

In its statement marking the day, UN Women called for rural women’s rights, resources and decision-making power to match their contributions to food systems and environmental protection.

“On this day, we celebrate their knowledge and leadership in building a more resilient future. Yet their rights, resources and decision-making power too often fall short of their contributions,” UN Women said.

The agency called on governments and other groups to ensure women have enforceable rights to land, water, and natural resources. It also asked for better access to finance, markets, technology, and agricultural services, as well as decent work, social protection, and strong infrastructure. The agency highlighted the need to recognize, reduce, and share women’s unpaid care work.

These calls to action highlight the stark inequalities rural women endure. They are the backbone of community nourishment and environmental stewardship, yet too often they lack the resources and influence needed to improve their lives and shape the future.

Ambassador Ada Francisca de Asis Hernández Rivera, the Permanent Representative of the Dominican Republic to the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD) and the World Food Program (WFP), underscored rural women’s importance in eradicating poverty, ending hunger and transforming agri-food systems into more inclusive, resilient and sustainable systems.

She noted that women contribute to food production, biodiversity conservation, sustainable ecosystem management and the resilience of families and communities. Yet many still face barriers to accessing land, financial services, technology, information, markets, and technical assistance, as well as opportunities to participate in decision-making.

“These inequalities, of course, will reduce their opportunities and limit the potential of family farming to contribute completely to sustainable development,” she said.

Karina David, a representative of the Intercontinental Network of Organic Farmers Organizations (INFO) and the Rural Women in Action Network, also highlighted the gap between recognizing women’s contributions and addressing the inequalities they face.

David cited findings indicating that 75 percent of agricultural policy documents across 68 countries recognize women’s roles and challenges, but only 19 percent contain clear gender equality goals.

She argued that closing this gap is not only a matter of equality but also essential to improving food security, household incomes, resilience and rural development.

“Gender inequality has a real cost, and if I were to close the gap between women and men in the agri-food system, it could add almost $1 trillion to the global economy and reduce food insecurity for 45 million people,” she said.

The findings make it clear: governments must move beyond words and turn promises into real policies, funding, and programs that break down the barriers holding women farmers back.

The scale of women’s participation in agri-food systems further underscores why empowering them must be a priority. Tako Ndiaye, a team leader on gender issues in FAO’s Division for Rural Transformation and Gender Equality, cited findings from a report on the status of women in agri-food systems showing that 41 percent of working women globally are employed in these systems.

She noted that agri-food systems are particularly important sources of livelihoods for women in sub-Saharan Africa and Southern Asia, where 70 percent of working women in each region are employed in the sector.

Ndiaye also emphasized the importance of empowering women farmers, their organizations, and networks to participate effectively in family farming policymaking. She called for stronger roles for gender experts and women’s organizations in monitoring the implementation of policy commitments.

Women farmers do more than feed rural economies; they champion environmental sustainability. They conserve seeds, nurture biodiversity, manage precious water, and heal degraded land, using wisdom and practices that keep ecosystems thriving and help communities withstand the challenges of climate change.

Yet their ability to continue this vital work depends on access to land, financial support, modern technologies, and other resources that let them farm sustainably and adapt to a changing environment.

UN Women has called on governments, financial institutions, businesses, and development partners to invest directly in rural women and remove barriers that limit their economic independence and environmental leadership.

The agency also stressed that rural women must have a meaningful role in shaping agricultural policies and decisions on funding allocation for climate action, biodiversity conservation, and land restoration.

 

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ODPP Staff Equipped With New Skills on Land Crimes, Witness Protection and Victims Rights

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Mpigi – The Office of the Director of Public Prosecutions (ODPP), through the Department of Land Crimes and the Department of Witness Protection and Victim Empowerment, early this week, held a stakeholders’ engagement at the Mpigi Regional Office to enhance the capacity of prosecutors and investigators in the management of land crimes, witness protection and victims’ rights and empowerment.

The engagement brought together prosecutors and investigators from the region to share knowledge, exchange experiences and explore practical solutions to challenges affecting the effective investigation and prosecution of land-related offences, while strengthening the protection of witnesses and the empowerment of victims within the criminal justice system.

In her welcome remarks, the Regional Officer, Assistant Director of Public Prosecutions (DPP) Ms. Rachel Bikhole, welcomed the participants and facilitators to the Mpigi Regional Office. She appreciated the Departments of Land Crimes and Witness Protection and Victim Empowerment for collaborating with the Regional Office to equip prosecutors and investigators with the knowledge and skills necessary to improve service delivery.

The Head of the Department of Land Crimes, Mr. Andrew Odiit, noted that the engagement was timely, given that the region has the highest number of registered land cases in Central Uganda. He expressed optimism that the engagement would provide a valuable platform for sharing experiences, addressing existing challenges and identifying practical solutions to improve the management of land crimes.

Participants received presentations from Mr. Atuhaire Godwin, the Registrar of Titles at Mpigi Zonal Office, who took them through land transfers and registration in Uganda. He explained the procedures and requirements for effective land registration, equipping participants with a better understanding of the processes involved in land transactions and documentation.

Assistant Director of Public Prosecutions Dr. Daisy Nabasitu and Deputy Assistant Superintendent of Police (D/ASP) Bernice Aine respectively made presentations on the prosecution and investigation of land crimes. They highlighted the challenges encountered in handling land-related offences and shared best practices to strengthen investigations and prosecutions.

The Head of the Department of Witness Protection and Victim Empowerment, Mr. Charles Kaamuli, sensitised participants on the legal framework governing witness protection, including the circumstances under which a person may qualify for protection under the law. He also emphasised the importance of empowering victims by guiding them through court processes, explaining what is expected of them and keeping them informed about developments in their cases.

Mr. Kaamuli urged prosecutors to make greater use of the Department of Witness Protection and Victim Empowerment, particularly in cases involving vulnerable witnesses who may require protection and support throughout the criminal justice process.

The engagement underscored the importance of collaboration among prosecutors, investigators and other stakeholders in addressing land crimes, protecting vulnerable witnesses and upholding victims’ rights.

Source: ugstandard.com

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