Farmers are receiving less of what consumers spend on food, as modern food systems increasingly direct costs toward value-added components like processing, transport, and marketing. A new study by the Potsdam Institute for Climate Impact Research PIK shows that this effect shapes how food prices respond to agricultural climate policies: While value-added components buffer consumer price changes in wealthier countries, low-income countries—where farming costs dominate—face greater challenges in managing food price increases due to climate policies.
