Why does the price of food rise? The role of the food oligopoly and public measures for a new model
The report analyzes the role of the food oligopoly in the rise of food price, beyond external causes (droughts, wars, etc.), and proposes public actions to reverse the phenomenon and guarantee access to affordable, healthy and sustainable food.
The key ideas of the study are three: first, inflation affects especially the cheapest products, rising to 37% between 2021 and 2024, compared to 23% that have increased the average and high ranges. Secondly, financial speculation is a key factor in the rise in food prices: products with higher demand but less supply attract investors and trigger prices. Third, business profits widened during the crisis, with a growth in the agri-food sector margins of 38.1% between 2021 and 2024.
The study concludes with public actions to reverse this trend, such as price control of essential foods, strengthen and expand public infrastructures, guarantee decent working conditions and reorient subsidies and taxation.
- Date: 2025
- Authors: Rubén Martínez and Adrià Rodríguez
- Supported by: Fundación Betiko
- Keywords: inflation, oligopoly, price regulation