Speculation on the financial and commercial food is one of the phenomena that prevents food sovereignty of most of the inhabitants of the planet and it is clear contributory factor to the aggravation of the recent number of hungry people on the planet. In June 2008 the prices of basic foodstuffs in the international market have touched on the rise – record of the last 30 years. In the second half of 2008 fell by 50%. Finance is the main responsible for such leaps: UNCTAD data reveal that financial operators who have invested in agriculture in early 2007, when prices started to rise, increased their operations of a third compared to 2006. Between 2005 and 2008 they have doubled their presence in specific products such as futures on corn, wheat and soybeans.
In all this the farmers have not benefited of the sudden price and are urged to intensify production by using fertilizers and pesticides have become much more expensive than in the recent past, while the value of the crops decreased progressively.
FAO also tells us that, though many produce just pocketed the proceeds of sales: in Africa, the total corn flowing through the conventional market, the 40-45% is sold from 5% of companies. These companies are largely integrated into global supply chains controlled by a few transnational North and South Top 5 companies have foreign investment in agriculture, which apply in times of crisis, over 1 billion dollars in business each year . Some are subsidiaries of large groups, located in tax havens where their profits are turned into net dividends. Many run up to the end of the supply chain – processing and distribution – which also ensures 70-80% of the final price paid by consumers.
To prevent financialisation of agricultural markets and that the rules of profit at any cost impact on fundamental rights of individuals, including the right to food, it is necessary that we introduce the ban on investing in financial derivatives on food, as it existed in Europe until a few years ago.