Rising food prices affect the poor directly, as producers
and consumers, and indirectly, through the
impact on their economies. The greatest concern is
the impact on their food consumption. While most
of the world’s poor live in rural areas, not all are
farmers, and even some farmers buy staples. The
poor generally spend large fractions of their budgets
on food, so rising prices make them more likely
to reduce their food consumption (see Box 1). This
may not mean as large a fall in calorie intake, as
households may spend more on cheaper, calorierich
staples and less on foods rich in protein and
vitamins, such as meat, fish, dairy, fruit and vegetables,
reducing the quality of their diet.