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1. The fluctuation of food supply

In economics, the unbalance of food supply and demand is the main reason of the food crisis. In the agriculture market, the input and output of food produce should be organised by farmers to make sure the balance of supply and demand, but it is difficult for them because of low level education, which gives rise to the uncertainties of food price. Take potato as an example, it is the important part of Turkish agriculture. In 2006, Turkey produced about 1.4 % of total world potato production (Erdal, et al, 2009). In the following of this chart, it is obvious that the curve of potato’s real price had a large number of fluctuations. Cobweb model is a good economic model to analysis this situation.

Given by the graph, in the period of 1975 to 1980, the supply of potato was low in market, which led to the high price of it because of shortage. In this way, more farmers tend to plant potato for high profit in the next term, so in the period of 1985 to 1990, the graph shown increasing of potato’s supply, but the price decreased due to oversupply.

2. Increase in costs of farming expenses:

The essential elements of food price are fuel, seeds, fertilizer and farmers’ wage. In the recent years, these factors’ price increasing rapidly which gave rise to the growth of food cost, in this way, the suppliers’ numbers will be decreased. So the supply curve will upward from right to left and quantity decreased.

3. The related product of food ---bio-fuel

4. The natural condition of agriculture

5. The food policy of each country

Effects:

1. Food price

1. Deterioration of poverty of developing counties

Prevention of food crisis

Agricultural technology

Storage and protection of food reserves

Non-agriculture measures

Control of population

Control of price

International aid & trade