Barclays AGM: Protests over bank's role in food crisis

• Campaigners take food speculation protest to Barclays’ AGM
• New research shows true extent of Barclays food speculation activities
• Barclays accused of ‘profiting from hunger’

Following a month of protests at over 22 local Barclays’ branches around the country [1], campaigners from the World Development Movement [2] protested at the Barclays AGM this morning over the banks leading role in food speculation. The campaigners - dressed as Barclays eagles, bankers and selling food at hugely inflated prices - say speculation is fuelling the price of staple foods, and having a disastrous effect on the lives of millions of the poorest people across the world.

The protests come following research published by the World Development Movement yesterday that investigated the extent of Barclays’ involvement in food speculation, and found Barclays to be the UK’s leading bank in food speculation [3].

The report concludes that Barclays could be making as much as £340 million in profit annually from food speculative activities, leading to accusations from campaigners that Barclays is ‘profiting from hunger’. In addition, Barclays have been found to be a key facilitator in helping other financial players – such as pension funds – speculate on food. This has raised alarm bells with campaigners who are concerned that releasing just a fraction of the masses of money that pension funds hold onto the food markets is the grave inflationary push on food prices [4].

Concerns over food speculation come amid fears that many parts of the world are currently heading for another food price crisis on a scale equivalent to 2008. The UNFAO food price index this month shows a 60% increase in the price of cereals such as corn, wheat and rice in a single year [5]. Indeed, the World Bank estimates that a further 40 million people have been pushed into poverty and hunger since June 2010 as a result of rising food prices [6].

Murray Worthy, policy officer at the World Development Movement said: Rising food prices are the last thing people in the UK need when we are feeling the pinch. However the effects of soaring food prices are being most disastrously felt by millions of people in the poorest countries who are being pushed into greater hunger and poverty.

First, it was sub-prime mortgages, now it is food commodities. It is high time a light was shone on this shadowy, socially useless, pure gambling activity by large financial players such as Barclays. Along with others in the sector, Barclays is able to make unchallenged profits by betting on hunger.

Food is a basic right, not just a financial number flashing across the trading screens. We are calling for the government to finally stand up to the banks and back vital legislation that will curb this reckless behavior for the good of us all.

ENDS

For further comment
Please call Miriam on 07711 875 345 or email miriam.ross@wdm.org.uk

PHOTO OPPORTUNITY
A stunt will take place from 10:30 outside the Barclays AGM at the Royal Festival Hall.

Notes to Editors

[1] Locations include York, Brighton, Sheffield, Portsmouth, Merseyside, Worthing, Edinburgh, Glasgow, Manchester, Oxford, Nottingham, London, St Albans, Bexhill, Kent, Cambridge, South Lakes, Bristol, Leicester, Bradford, Basingstoke and Ayrshire

[2] The World Development Movement is a UK-based anti-poverty campaigning organisation who for the past 40 years has campaigned against policies in Western countries that create or maintain crippling poverty in developing countries. WDM was one of the original members of the Trade Justice Network, Jubilee 2000, and Fairtrade.

[3] A brief summary of the report can be read here: http://www.wdm.org.uk/stop-bankers-betting-food/barclays-profiting-hunger
The full version will be available on the 26th. Alternatively copies can be requested now.

[4] A brief summary of the report can be read here: http://www.wdm.org.uk/stop-bankers-betting-food/barclays-profiting-hunger
The full version will be available on the 26th. Alternatively copies can be requested now.

[5] http://www.fao.org/worldfoodsituation/wfs-home/foodpricesindex/en/

[6] http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22833439~pagePK:64257043~piPK:437376~theSitePK:4607,00.html