Navigating food price shocks in a pandemic: Food insecurity and coping mechanisms in Burkina Faso

Abstract

Global food prices rose substantially after the start of the COVID-19 pandemic. This paper examines the impact of rising food prices during the pandemic on food security in Burkina Faso. We aim to answer two primary questions. First, how do food price shocks affect household food insecurity? Second, what coping strategies do households adopt in response to these price shocks? Leveraging country-wide high-frequency longitudinal data, we employ household fixed effect models to examine the effects. In the absence of direct information on local food prices, we use household-reported price shocks to capture province-level price increases and show that the results are consistent with national-level price increases.

We find significant and immediate increases in food insecurity following the price shocks, and this effect persists for at least two months. The price shocks most acutely affected the poorest households. Furthermore, food insecurity increased more in rural areas than in urban areas. The higher proportion of poorer households in rural areas explains part of this difference. We find that households primarily cope with the shock by relying on increased assistance from relatives in Burkina Faso and abroad.

This study is the first to use panel data with household fixed effects to examine the repercussions of the rise in food prices during the pandemic on food insecurity in a developing country and to examine the coping mechanisms employed by households. Given that food prices are likely to remain high globally for an extended period, our findings carry implications for the broader developing world. Furthermore, given the disproportionate effect on the poorest and those living in rural areas, the findings highlight the need for policies to mitigate the negative impacts of the price shocks and enhance overall food security in countries like Burkina Faso.