STABILITY OF FOOD SUPPLY
The second dimension of food security is the stability of food PRICE VOLATILITY
supply. Temporary disruption of supplies can have long-term
impacts. The two options for fulfilling demand – food imports Low and fluctuating prices are a core problem for stable food
and domestic production – imply several reasons for instability of production. Agricultural price volatility increases the uncer-
food supplies. A major reason for instability in food supply is high tainty faced by farmers and affects their investment decisions,
fluctuation in food prices (price volatility). Volatile prices lead to productivity and income. Lagging investments can be a con-
poor investment strategies of producers and immediate impacts straint in meeting changing consumer demands. For willing-
on consumers, especially in developing countries where consum- ness to invest it is the volatility of the revenue flows that mat-
ers spend a large share of their income on food. Another source ters. Instability in prices is related to factors in the agricultural
of instability is conflicts, which increase food supply risks. domain as well as in other sectors.

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