Written question asked by Sammy Wilson (Democratic Unionist Party) on Friday, 7 October 2011, in the House of Commons. It was due for an answer on Tuesday, 11 October 2011. It was answered by James Paice (Conservative) on Tuesday, 1 November 2011 on behalf of the Department for Environment, Food and Rural Affairs.

Food: Prices

Question: To ask the Secretary of State for Environment, Food and Rural Affairs what assessment her Department has made of the contribution of market speculation to food price volatility in 2007-08.

Answer: The report 2007-08 Agricultural Price Spikes: Causes and Policy Implications, published by HMG in January 2010, reviewed various potential mechanisms whereby speculation might have distorted markets. It concluded that there was no conclusive evidence that speculation leads to higher or more volatile prices, although we do know that some factors like export bans, stock levels, energy prices and damaged harvests certainly can put pressure on prices.On 8 April 2011 the UK and Brazil called on members of the G20 to take action to tackle food price volatility, in the face of food price inflation and long-term food security challenges.G20 Agriculture Ministers welcomed the steps which Finance Ministers are taking to ensure appropriate and transparent regulation of financial markets.

Secondary information