Volatility and prices increases are worsened according to the report by the concentration of staple foods in a few countries and export restrictions of these goods, the historical low of worldwide cereal reserves and the lack of timely information on food products, reserves and price developments. Especially this lack of information can lead to overreactions in the markets. Moreover, seasonal limitations on production possibilities, limited land for agricultural production, limited access to fertilizers and water, as well as the increasing demand resulting from population growth, puts pressure on food prices.
