Boosting Food System Stability Through Technological Progress in Price and Supply Dynamics

TL;DR

This study shows that technological progress can lower food prices and inflation in the EU, but doesn't fully stabilize food supply risks.

Contribution

The study provides new empirical evidence on how technological progress affects food system stability in the European Union.

Findings

Technological progress significantly reduces food prices and inflation in EU member states.

Technological progress does not significantly reduce food price volatility or supply variability.

The findings support integrating innovation into food system governance for policy effectiveness.

Abstract

This study examines the impact of technological progress on food price dynamics and supply stability across the 27 European Union Member States during 2011–2024. Using a balanced panel dataset, the analysis explores four dependent indicators—consumer food prices, food price inflation, price volatility, and food supply variability—while controlling for trade openness, GDP per capita growth, and population. Technological progress is estimated through panel least squares regression with fixed effects. The results reveal that technological advancement significantly reduces food prices and inflation, suggesting that innovation-driven productivity and efficiency gains stabilize consumer markets. However, its influence on food price volatility and supply variability is statistically insignificant, indicating that innovation alone cannot fully mitigate systemic risks in the European food system. The results provide policy-relevant evidence supporting the integration of technological innovation into food system governance across the European Union. They underline the need for targeted investment and regulatory coordination to translate innovation gains into tangible resilience outcomes, thus offering practical guidance for policymakers and stakeholders involved in implementing the European Green Deal and the Farm to Fork Strategy.

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