Deutsche Bank clashes with NGOs over food speculation | EurActiv

Deutsche Bank clashes with NGOs over food speculation | EurActiv:

 NGOs and investors are at odds over the effects of food speculation, causing the European Parliament to propose limiting direct stakeholder purchases, and Deutsche Bank to cover its tracks amid "a flood of accusations." EurActiv Germany reports.

Deutsche Bank is being stubborn: It does not want to draw any conclusions regarding the correlation between its business policy, and the risk of food price speculation. But this is precisely the accusation coming from numerous NGOs, after a meeting with representatives on Wednesday (16 April) in Frankfurt.

"Neither could Deutsche Bank weaken the argument that their financial products contribute to price increases in food products, nor could it finally rule out connections to hunger," criticised the NGO Foodwatch, which was invited to the meeting.

Similar to Oxfam and the German aid organisation Welthungerhilfe, Foodwatch believes that bets on changing prices for corn, soy or wheat are responsible for global hunger. Speculation drives prices for food products up, Foodwatch said, to the detriment of the poorest consumers.

But the details of the accusations cannot be analysed, as the conference of experts took place behind closed doors and the content of the debate is confidential.

 

Speculation in food prices can be potentially fatal for smallholders. Kenya, 2008. [World Bank/Flickr]