June insight - When food becomes political

The famous phrase “Let them eat cake” has often been attributed to Marie Antoinette, highlighting the Queen of France’s disregard for the starving peasants’ plight, which helped contribute to the French Revolution in 1789. In reality, the phrase was recorded as early as 1765 by Jean-Jacques Rousseau.  However, it does serve to highlight how dangerous it is to underestimate the impact of a starving population. History is filled with examples of political unrest attributed to this issue.  As food inflation rises around the world, and the cost of living increases, we have already seen governments begin to recognise this very concern.

So how did we get here, and what were the drivers of this current crisis? And from an investment point of view, what can we do to insulate portfolios against food inflation, especially in an environment of emerging food ‘nationalism’?