Cereal prices on the world market are rising: wheat prices have increased by 130 per cent between March last year and this year; rice prices increased by 17 per cent in 2007 and added another 30 per cent in March 2008. In countries that are highly dependent on imports, some prices have experienced a serious increase. Poor families cannot even afford to buy what is needed. In many countries, such as Haiti, cereal prices have doubled or tripled over the past year and governments are under a lot of pressure to put food at a reasonable price. In many other countries – Cameroon, Egypt, the Philippines, etc. – strong protests have begun.

This is how the international organization Via Campesina describes the current situation. The organization brings together various grassroots organizations and associations from all over the world, including the EHNE (Union of Farmers and Ranchers of the Basque Country) and the Basque NGO PTM-Mundubat. The team is not only describing the crisis, but also analyzing it and, above all, looking for formulas to respond to it. And the answer lies in rebuilding national food economies and regulating international markets. According to Via Campesina, farmers and small farmers are the main food producers and the only ones with the potential to feed the world.

The effect of neoliberal policies

Some analysts have attributed the crisis only to agricultural fuels, an increase in global demand, and global warming. But it is also a consequence of the destructive neoliberal policies that have been in place for many years. These policies undermined domestic food production and forced farmers to produce commercial crops for multinational companies and buy their food from multinationals on the global market. Over the past 30 years, countries have been forced by the World Bank, the International Monetary Fund and the World Trade Organization to reduce investments to boost food production and support for smallholder farmers. And yet, small producers are essential in food production around the world.
The capacity of countries to feed themselves has been destroyed by neoliberal policies, as well as by the boom in agricultural fuels, which is one of the reasons for the rise in food prices. Multinationals and the world’s economic powers, the United States of America and the European Union are rapidly developing their agricultural fuel production. Therefore, in a very short time, large areas of land that were destined for food production are used for the production of agricultural fuels. So much of the U.S. artasoros has “disappeared,” since the lands were purchased to produce ethanol. Several other agricultural products will have the same future for the benefit of agricultural fuels.

The solution to the crisis

To get out of the current crisis, according to Via Campesina, countries should prioritize in their budgets the support of the poorest consumers so that they are able to access enough food, as well as the internal production of food to reduce their dependence on the world market. They support the development of other production systems, which must integrate not only those of the main crops, but also local food. Small farmers’ families have the potential to produce a balanced diet and a variety of foods that guarantee certain market surpluses.

They also call for stabilisation of prices in the internal market at a level that is reasonable for farmers and consumers. In the case of farmers, so that they can obtain prices that cover production costs and guarantee a decent income; and in the case of consumers, to protect them from high prices. To do this, they want to promote direct sales between producers and consumers.

From an international point of view, it is necessary to take measures to stabilise prices on the markets. Countries need the freedom to control imports in order to protect domestic food production. For Via Campesina, the production of agricultural fuels is unacceptable and must be stopped, as it competes with food production. As a first step, they call for an immediate moratorium on agricultural fuels.