Assessing volatility patterns in food crops
Prices of food crops, which depend on unpredictable factors like the weather, are naturally volatile. However, in recent years we have experienced bouts of extreme food price volatility. These can be a thread to world food security. Especially in developing countries, where households spend a large share of income on food items and about two billion people live off small farms, while often not having access to credit, savings, or storage facilities, large price fluctuations can have devastating and long-term repercussions.