What would explain the rise? Ah. You'd be surprised. Pure speculation.
The rise of food prices skyrocketed shortly after the banks started coughing in 2008. Two major markets spiked, the oil futures and the food. Basically, the hedge betters started to panic and infuse their money in all the bubbles they could find / create, turning the whole game into a "last man standing". This had terrible consequences to the food market, because this infusion of capital didn't exactly "trickle down" to the farmers themselves, but made the whole market fluctuate wildly. The market was no longer "functional" so to speak, to its purpose of mediating between producers and distributers, but was turned into a ****ing casino.
Many other reasons gathered to build up the perfect storm happening now:
- The obvious connection to the energy price is obvious. Oil is rising and so will agriculture.
- Staggering rise of human conditions throughout the world. Yeah, the rising food price is also a symptom of something remarkable happening in the world, namely the fastest decade of economic growth the world has ever seen, driving hundreds of millions out of poverty.
- Really bad weather in the worst places. Many people blame environmental hazards that stroke the world in 2010 in the exporting countries. This also contributed.
- Biofuels. ****ing biofuels.