The analysis of price formation should include the question of the effects of long-term
subsidies to producers by the central countries, which depress prices and lead to disorganization of
the productive structures in many agricultural countries. In 2008, food prices fell but hunger
worsened because indebted small producers were no longer able to buy seeds and fertilizers
(CHADE, 2009, p. 32; THE ECONOMIST, 2010). Without support from their governments, small
producers in the poorest countries do not have enough incentives to produce nor do they benefit
when price rises occur.
The analysis of price formation should include the question of the effects of long-termsubsidies to producers by the central countries, which depress prices and lead to disorganization ofthe productive structures in many agricultural countries. In 2008, food prices fell but hungerworsened because indebted small producers were no longer able to buy seeds and fertilizers(CHADE, 2009, p. 32; THE ECONOMIST, 2010). Without support from their governments, smallproducers in the poorest countries do not have enough incentives to produce nor do they benefitwhen price rises occur.
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