Policy recommendations to better cope with and manage agricultural and food markets instability in the EU and worldwide
The EU-funded ULYSSES(opens in new window) (Understanding and coping with food markets volatility towards more stable world and EU food systems) project was conceived as a response to the 2007-2009 food crisis. With increased price volatility and markets instability, higher commodity prices and intense globalisation of food markets, this research helped address international community concerns. Project partners developed volatility models for various agricultural commodity markets, both with short- and long-term perspective. Researchers modelled agricultural production and commodity markets, which helped to create volatility measures and indices, to analyse market fundamentals and to assess the role and effect of policies on production, supply and commodity prices. The ULYSSES team analysed the consequences of price volatility in food chains in both the EU and developing countries. It assessed the impact of food price volatility and the rise in households' food expenditure and food deprivation in the EU. The team also studied general consumer, food and food-specific prices across the EU, and measured the effects of price volatility on food security indicators at household level. This helped determine the extent of the impact of increased food prices and volatility on consumers and households in the EU and in developing countries. Using all project outcomes as a basis, researchers delivered a set of policy responses and recommendations to manage and tackle market volatility. They will contribute to a better understanding of market dynamics and discussion of risk management policy tools in the Common Agricultural Policy. ULYSSES introduced concrete policy proposals and responses for the drivers of food price instability, the transmission of volatility along the market chain, and the impact on consumers globally. By reducing their complexity, decision-makers will be able to focus on policy instruments that mitigate and deal with the effects of price volatility and market instability. Watch the project’s video(opens in new window) here.
