Chapter 4 7.4 Impacts on food security Due to the country specific nature of the constraints and potentials of the policy instruments applied, and of their effects, an analysis of the impact of agricultural sector, market and price policies on the food economy and on food security can only been done in relation to a particular country case. This is proposed as an exercise related to this module (see Activities 2 and 4 presented further below). The conceptual framework presented in Annex 1 provides the basis for such an exercise, addressing specifically the following issues (these points may be used as a checklist for the analysis): * the impact of price changes in food, other agricultural products, and production inputs on the volume of food production and supplies, * the impact of changing production factors (technologies, research and extension, input costs) on the food economy, * the impact of price changes in food and other goods on aggregate and household food demand, * the implications of the (changing level of) food prices for the pattern of existing food deficits, * the implications of a deviation of food prices from a market equilibrium for the structure of food deficits, * complementary policy measures required to maintain food prices at levels deviating from a market equilibrium, * the effects of food imports on food production and demand, * the impact of improved efficiency in food marketing on prices, food supply and demand, * the implications of a combined impact of the various factors on the state of food security. As far as the impacts of changing levels of food prices on * food production, * food supply, * household food demand, * agricultural income, and * the real income of the consumers, are concerned, reference is also made to the relevant parts of section 3 of this module. - 163 -