[OPE-L] Food prices

From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Thu Dec 13 2007 - 10:02:54 EST

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Jerry, 

As far as I know, variations in labour productivity (output per working hour) have only a very small effect on fluctuations in agricultural prices in the world market. If a larger output means that prices will fall, agribusiness is not motivated to promote more output. A Canadian report notes that, paradoxically, in 2004 "agribusiness posted record profits while farmers shouldered near-record losses". http://melbourne.indymedia.org/news/2006/04/110324.php 

Jurriaan

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