After the sharp increase in agricultural commodity prices during 2007, agricultural markets seem to have entered in the era of structural instability. There are different reasons, like growth in food demand, markets structure and trade policies. The increase in price volatility has implications for all stakeholders in the food chain. Especially for farmers, who are affected by both market power problems and imperfect price transmission. This topic is now at the center of the European debate on the future of Common Agricultural Policy (cap). In particular, after the crisis in the dairy sector in 2009 has been started a comprehensive discussion in Europe, which led to the first legislative step aimed at strengthening the prerogatives of producers in the primary sector. The work aims to provide both an overview of these phenomena and the implications for European policy maker, now engaged in reforming the cap.
Keywords: Price volatility, Cap Reform, Agricultural markets
Jel Code: Q02, Q18