World food prices rose to unprecedented heights in 2008 but have come down in 2009. However, in many African countries prices continued to rise, despite governments' efforts to reduce prices. This report focuses on why mainly cereal prices continued to rise in four East African countries and why government efforts to reduce prices were largely ineffective. The report finds that regional factors such as drought and conflict explain much of the price fluctuations in these countries. High world food prices have aggravated the situation because governments faced high import costs. Governments have been focusing on short-term measures to reduce prices of mainly urban consumers, thereby sometimes actually disadvantaging farmers and reducing agricultural production. There are, however, several differences between the African countries. The report also finds differences within these countries with respect to policies, prices and food insecurity, which are a sign of weak infrastructure and market institutions. To prevent such high price fluctuations in the future, African governments need to take more long-term measures that invest in agricultural production and marketing infrastructure.
Report 2009-102 East African governments' responses to high cereal prices