The price of many agricultural commodities rose more than 25% from June 2010 to December 2010, according to a recent World Bank study. There are several reasons that the report is alarming. The first is that  there is a net increase of 44 million people who have been pushed into poverty because of these price increases. Relief for these people and others who may join them will not occur until global crop yields impr
ove and the price of agricultural commodities begins to ease. This will not happen soon because drought can take product acreage out of circulation for several years. Populations are also growing in some of the most affected countries.

This 24/7 Wall St. analysis looks at the ten relatively poor nations where food price increases are the most dramatic. The research also considers food imports. Most food prices are local. When commodity supplies are plentiful, prices remain low.  Citizens of countries that are net importers of food often must pay exorbitant prices for these commodities.

Another aspect of commodity prices is crop yield. 24/7 analyzed data on the percent of a county’s population employed in agriculture compared to the percentage of GDP which is produced by the agriculture sector. This is an imperfect way to show the productivity of acres currently planted, but the contrast between nations with advanced agricultural practices and underdeveloped countries is substantial. Poor nations rarely have access to the most modern farm equipment, irrigation infrastructure, advanced seed production, and practices of crop rotation.

The ten countries on this list had the largest increases in price of one or more of the key commodities grown or used for food among low and middle-income nations.

The situation described in this analysis shows that extreme difference between being a net importer or exporter of a key commodity. Exporters can keep prices low within their borders. Importers, however, are at the mercy of global commodity prices.  It’s a problem that’s difficult to solve.

Some countries are particularly dependent on one commodity.  For instance, a country where 50% of the average caloric intake is from corn will face exceptionally high inflation of the price of corn unless it has a substantial production of corn within its own boarders. So, 24/7 also took into account the portion of food consumed in all the nation based on the source of the calories.

So, this is the 24/7 Wall St. list of The Ten Nations Which Suffer The Most From Global Food Prices.

Brazil
> Key Food Commodity: Corn +56%
> GDP: $2.194 trillion
> GDP Per Capita: $10,900
> GDP That Comes From Agriculture: 6.1%
> % of Population Employed in Agriculture: 20%

Dry weather in South America resulted in dramatically lower corn yields in 2010, driving up the price in Brazil 56% from June to December. The increased price has affected the cost of many other consumer goods because corn is used as animal feed and is in a variety of processed foods.  It also comprises 7% of Brazil’s diet.

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Kyrgyzstan
> Key Food Commodity: Wheat +54%
> GDP: $11.85 billion
> GDP Per Capita: $2,200
> GDP That Comes From Agriculture: 24.6%
> % of Population Employed in Agriculture: 48%

The price of wheat increased by 54% in Kyrgyzstan between June 2010 and December 2010, due in large part to the rise in global wheat prices.  One of the main reasons for this is droughts in Russia and Kazakhstan, from which Kyrgyzstan imported a large amount of wheat this past summer.  The price increase has a large impact on poor and middle class families because 40% of calories consumed in Kyrgyzstan come from wheat.