Belarusian Economic Research and Outreach Center
 Hinnerk Gnutzmann, Piotr Spiewanowski

FREE Policy Brief: Did the Fertilizer Cartel Cause the Food Crisis?

Food prices escalated during the 2007/2008-food crisis and have remained at historically high levels since. We show that an international export cartel for fertilizers was an important driver of the crisis, explaining up to 60% of the price increase. While biofuel subsidies, high energy prices and financial speculation doubtlessly put stress on food markets, our findings suggest new avenues for policy in the fertilizer market to stabilize food markets.