In 2007 and the first half of 2008, a sharp rise in agricultural commodity and food prices triggered grave concerns about food security, malnutrition and increased poverty. While the threat of a prolonged food-price shock receded in the second half of 2008, many factors underlying the price volatility are likely to persist, and will require careful management if future food-price shocks are to be avoided. This paper suggests three strategies that, together, could reduce vulnerability to price shocks: (1) strengthen safety nets, improve access to family planning services, and promote education; (2) enhance domestic food production and improve rural livelihoods through increased investment in research and development to increase productivity; and (3) reduce exposure to market volatility through more efficient supply chains and better use of financial instruments to hedge risk. The challenge of food security will require a global response, involving governments, international and regional funding and lending institutions, United Nations agencies, non-governmental organizations, civil society, and the private sector.

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