Commodities and Land Speculation

 

Food commodity markets were created to protect farmers from price swings given unpredictable weather and other outside forces that impact crop yield. While these markets were originally developed for the benefit of those involved in the production of food, over the last 10 years deregulation has enabled speculators looking for quick returns to hedge in these markets, at times, causing volatility that creates food price spikes.  Given the millions across the globe living with food insecurity, ICCR members seek to educate investors in food commodities markets about the dangers of over-speculation to ensure their investments don't have unintended consequences.


Featured ICCR Initiatives 

Commodity Investing by Institutional Investors: An Agent-Principal Conflict. ICCR hosted this webinar by Mike Masters and David Frank in December of 2013 for investors. NOTE: you'll be asked to register before viewing.

Hedging Against Hunger: ICCR hosted a webinar illustrating the risks of over-speculation in food commodities, highlighting how the practice leads to dangerous spikes in global food prices. Listen  as multiple stakeholders share their insights (Note: webinar must be viewed in the web browser Internet Explorer to function properly).

If you represent an institution, this draft resolution on responsible food commodities investments may be of interest to your investment committee.


Featured Resources

ICCR's Principles for Responsible Investment in Food Commodities: ICCR's guidelines for institutional investors looking to responsibly invest in commodities.

Oxfam Briefing Document, Sugar Rush: Land rights and the supply chains of the biggest food and beverage companies.

Stop Gambling on Hunger: Excessive Speculation in Commodity Markets Is Driving Up Prices and Harming Commercial Producers and Consumers - Better Markets

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Featured Best Practice 

Coca-Cola declares "zero tolerance" for land grabs in its supply chain. Press release details the company's public commitments on land grabbing.

DZ Bank and Union Investment: The DZ Bank Group has chosen to exit from food speculation and is calling for strict regulation of soft-commodity markets.

 

 

 

The real hunger games

The Real Hunger Games - Big Commodity Traders Control World Grain Market