2.c.1 Indicator of Food Price Anomalies (Rice)
Target 2.c: Adopt measures to ensure the proper functioning of food commodity markets and their derivatives and facilitate timely access to market information, including on food reserves, in order to help limit extreme food price volatility
Goal 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Custodian Organization: Food and Agriculture Organization of the United Nations (FAO)
Tier Classification: Tier II
To facilitate the implementation of the global indicator framework, all indicators are classified by the IAEG-SDGs (Inter-Agency and Expert Group on Sustainable Development Goals Indicators) into three tiers on the basis of their level of methodological development and the availability of data at the global level, as follows:
Tier I: Indicator is conceptually clear, has an internationally established methodology and standards are available, and data are regularly produced by countries for at least 50 per cent of countries and of the population in every region where the indicator is relevant.
Tier II: Indicator is conceptually clear, has an internationally established methodology and standards are available, but data are not regularly produced by countries.
Tier III: No internationally established methodology or standards are yet available for the indicator, but methodology/standards are being (or will be) developed or tested.
Definition: The indicator of food price anomalies (IFPA) identifies abnormally high or low prices that occur for a food commodity price series over a given period of time.
Concepts: The basis for the IFPA is a weighted sum of two compound growth rates (CGR). The use of two compound growth rates, quarterly and annual, aims to take into account the potential seasonal movements of food prices.
A CGR is a geometric mean that assumes that a random variable grows at a steady rate, compounded over a specific period of time. Because it assumes a steady rate of growth the CGR smooths the effect of volatility of periodic price movements. The CGR is the growth in any random variable from time period t0 to t-n, raised to the power of one over the length of the period of time being considered.
Rationale: The food price surge in global markets in 2007-2008 and then again in 2011, spurred a lot of interest in creating an indicator to detect abnormal growth in prices in commodity and consumer markets, where advance warning of an impending food crisis can be critical. Sometimes market prices are the only source of information available to assess the severity of a market shock. Because prices summarize information held by a large number of economic agents, including their expectations regarding likely short-term developments in supply and demand, they are ideal to characterize the functioning of food commodity markets and may help to put in place policies that limit extreme price volatility.
Limitations: The indicator cannot be used and is not suitable for forecasting of future events, it is only able to characterize previous events.
Data Source: Data for this indicator was primarily collected from the United Nations Statistics Division’s Open SDG Data Hub. National level data from the UN Statistics Division is compiled by the respective custodian for the SDG indicator, unless otherwise noted. To learn more about the data used in this portal, visit the about page.
Data is accurate as of October 31, 2018.
2.c.1 Indicator of Food Price Anomalies (Rice) in the Sustainable Development Goals
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2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
It is time to rethink how we grow, share and consume our food.
If done right, agriculture, forestry and fisheries can provide nutritious food for all and generate decent incomes, while supporting people-centred rural development and protecting the environment.
Right now, our soils, freshwater, oceans, forests and biodiversity are being rapidly degraded. Climate change is putting even more pressure on the resources we depend on, increasing risks associated with disasters such as droughts and floods. Many rural women and men can no longer make ends meet on their land, forcing them to migrate to cities in search of opportunities.
A profound change of the global food and agriculture system is needed if we are to nourish today’s 815 million hungry and the additional 2 billion people expected by 2050.
The food and agriculture sector offers key solutions for development, and is central for hunger and poverty eradication.