Tuesday, April 15, 2008
Deepening World Food Crisis
The food crisis is getting big enough that even the major media are starting to cover it. According to the United Nations Food and Agriculture Organization (UNFAO), rising prices (48 percent increase since early 2007), particularly for staple grains like rice, are putting 37 countries on the brink of a food crisis. There have been actual food uprisings (or the fear of them) in Bangladesh, Cameroon, Egypt, Ethiopia, Haiti, Indonesia, Ivory Coast, Madagascar, Mauritania, Pakistan, the Philippines, and Thailand.
Driving the rising prices are the conversion of land from producing food to biofuel materials, which are still food crops, but taken out of the global food chain. The EU's subsidized crops, offered at a fraction of their production price, have undercut agriculture in Africa. Toss in low food reserves, and you see exacerbated prices that then become fodder for financial speculators. Food aid money isn't going as far as it needs to, and the UN World Food Program says that it needs $500 million in additional aid by May 1. Even so, 100 million people may find themselves pushed even deeper into poverty because of the unavoidable cost of eating.
Driving the rising prices are the conversion of land from producing food to biofuel materials, which are still food crops, but taken out of the global food chain. The EU's subsidized crops, offered at a fraction of their production price, have undercut agriculture in Africa. Toss in low food reserves, and you see exacerbated prices that then become fodder for financial speculators. Food aid money isn't going as far as it needs to, and the UN World Food Program says that it needs $500 million in additional aid by May 1. Even so, 100 million people may find themselves pushed even deeper into poverty because of the unavoidable cost of eating.
Friday, March 28, 2008
Expect Higher Rice Prices
Those who've been watching the escalating cost of food had better ready themselves again: international rice prices have jumped 30 percent, according to the Financial Times. Egypt put into place a ban forbidding exporting rice. It's a big producer of the grain, but is keeping its production at home to help keep lower prices for its own consumers - following a trend:
The Egyptian export ban formalises a previously poorly enforced curb and follows similar restrictions imposed by Vietnam and India, the world’s second- and third-largest exporters. Cambodia, a small seller, also on Thursday announced an export ban.That will only exaccerbate a growing problem of food shortages worldwide and, sadly, riots as a result. Expect US producers to look for higher prices along with the rest of the market.
These foreign sales restrictions have removed about a third of the rice traded in the international market.
