Facts about the food price crisis

This explains it, succinctly yet thoroughly, as well as anything I've seen does.

At the center of this crisis is the fact that the production of the world’s staple crops destined for export is concentrated in a small number of countries, and they are shipped around the world by a handful of trading firms. Much of this globally traded food is grown from a narrow range of seed varieties, using uniform industrial agricultural methods.

So, is it any wonder that a war involving two countries that specialize in producing two of these staples should spark a major global food crisis?

As we detail in the latest report from the International Panel of Experts on Sustainable Food Systems (IPES-Food), the world’s food security is built on a house of cards—the whole edifice can tumble when one card falls. The concentrated nature of the global food system creates vulnerabilities, which can have cascading consequences when there are disruptions to any part of it. These economies of scale might be designed for profitable efficiency, when things operate according to plan. But they’re neither stable, resilient, nor dependable in the face of risks, especially for vulnerable people.

Add to this concentrated global food system the financial markets, which can further exaggerate the effects of price shocks. - Civil Eats