The Food and Agriculture Organization of the United Nations (FAO) is warning of a new food crisis. According to this organisation, this crisis is opening at an alarming rate, as there are three common causes of such situations: the Ukrainian invasion, the destruction of the environment and the increase in food prices.

Despite the temporary shortage of crops and other raw materials, the Russian invasion of Ukraine is a perfect excuse for large food companies to continue to increase their prices. But if we look at FAO data, it is clear that the rise in food prices was taking place before the invasion of Ukraine. According to this organization, the world food price index was 131.9 in 2011, 125.7 in 2021; in February 2022 (before the invasion) it was reduced to 140.7 and last August to 138. The price increase of the basic household basket was 47.8% between March 2020 and February 2022. When the war broke out, food prices had a clear upward trend.

FAO estimates that there will be 2,774 million tonnes of crops this year, 38.9 million less than in 2021. Crop prices have continued to rise in 2022, although production has declined very little. War and production shortages therefore have a limited impact on rising food prices. In order to understand the underlying reason it is necessary to analyze the market structures of these goods.

With globalization, food systems in countries more or less capable of supplying food to the population have become part of a global network. The concentration of capital in this field has enabled the ten major companies to control the food markets that form the basis of food for a large majority of the world's population. According to Oxfam, these big ten lead almost monopolistic markets and drive price rises with market power.

But there is something else in explaining food price increases. The way in which raw materials and raw foods are produced on world markets is very curious. Contracts for the purchase of raw materials in these markets conclude the sale of a good for delivery by hand within a specified period and set the quantity and exchange price, future markets. However, these markets also involve banks, investment funds or pensions in order to speculate on the price variations that occur during that period. The main investment funds and banks are entitled to determine the fat prices of their yields while maintaining market control.

With this special mechanism, these financial actors have recently pushed up raw food prices. The post-2008 crisis began to use this mechanism by increasing food prices and spreading malnutrition and hunger. After Pandemic, these initiatives are strengthened. In fact, the share of these speculators in the Paris wheat market has risen from 23% in 2021 to 72% in April 2022, according to IPES Food. Despite the fact that the European Union announced measures in the past decade, the lobby of financial giants managed to break this claim. This time the measures are necessarily effective.