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unusualmusic_lj_archiveA significant spike in grain and commodities prices is driving up the cost of food worldwide and marking the beginning of the collapse of the world economy. As a result, violent riots have broken out, as described by Vivian Walt (Time, February 27, 2008)
Rocketing food prices — some of which have more than doubled in two years — have sparked riots in numerous countries recently. Millions are reeling from sticker shock and governments are scrambling to staunch a fast-moving crisis before it spins out of control. From Mexico to Pakistan, protests have turned violent. Rioters tore through three cities in the West African nation of Burkina Faso last month, burning government buildings and looting stores. Days later in Cameroon, a taxi drivers' strike over fuel prices mutated into a massive protest about food prices, leaving around 20 people dead.
Includes timeline of riots since 2007. There goes world security...
From Reuters:Agflation Basically a world overview of the food crisis.
And Rice Hoarding in Asia: At the end of 2007, rice was priced at $360 a metric ton. Last week, medium-grade Thai rice (considered a market benchmark) hit $795 a ton. The Thai Rice Exporters Association expects rice prices to hit $850 a ton this week. And according to experts, we should expect to see the $1,000 per ton undreamt of price ticket sometime in the next three months.
Asia is panicking. By the end of March, 35 countries had recorded food riots. In the Philippines and Indonesia rice hoarding is taking place. The governments of Vietnam, India and Cambodia have taken steps to curb exports in order to ensure domestic supplies. Chinese Premier Wen Jiaobao took the unprecedented step of guaranteeing rice supplies to Hong Kong and Macau after soaring prices triggered panic buying.
Rice isn’t the only soft commodity to experience a sudden price surge. According to the United Nations’ Food and Agriculture Organization (FAO), food costs worldwide spiked 23 percent from 2006 to 2007. Grains rose 42 percent; edible oils 50 percent, and dairy products 80 percent. Corn, wheat and soybean futures have all set new records on the Chicago Board of Trade this past quarter. But rice is probably the most politically sensitive commodity on the market.
Rice is the staple for half the world’s population.
...
Water shortages and a sharp coldspell in China, floods in Bangladesh, India, Indonesia and Vietnam, excessive rainfall in North and South Korea, a typhoon in the Philippines and severe drought in Australia have all drastically reduced rice harvests. And global rice stocks are 4 percent below a year earlier and the smallest since the 1983/84 season. Moreover, ninety percent of rice produced in countries like Thailand, is consumed by its own domestic market, leaving a very small percentage for export purposes.
...
So what does this mean for us, the people having fried rice for lunch? For the wealthy and middle class consumers, rice and wheat price increases are a pricier inconvenience that they can and will have to bear with. But if prices go higher, it will be a disaster for the poor, who spend most of their disposable income on food.
Record high global grain prices have already compromised humanitarian aid efforts of international organizations such as the UN’s World Food Program (WFP). In 2006, WFP provided some 88 million people in 78 countries with much needed starvation-prevention food aid. As result of record world grain prices, WFP has been forced currently to launch an "extraordinary emergency appeal" for $500 million to continue its vital humanitarian work.
"At best, we’re at the same number of people last year who needed food assistance. So, a simple calculation would conclude that only half the people can be helped this year if WFP cannot secure enough food supplies," says FAO’s Abbassian.
Asian Food riots story pointed out by this person. thanks
Rocketing food prices — some of which have more than doubled in two years — have sparked riots in numerous countries recently. Millions are reeling from sticker shock and governments are scrambling to staunch a fast-moving crisis before it spins out of control. From Mexico to Pakistan, protests have turned violent. Rioters tore through three cities in the West African nation of Burkina Faso last month, burning government buildings and looting stores. Days later in Cameroon, a taxi drivers' strike over fuel prices mutated into a massive protest about food prices, leaving around 20 people dead.
Includes timeline of riots since 2007. There goes world security...
From Reuters:Agflation Basically a world overview of the food crisis.
And Rice Hoarding in Asia: At the end of 2007, rice was priced at $360 a metric ton. Last week, medium-grade Thai rice (considered a market benchmark) hit $795 a ton. The Thai Rice Exporters Association expects rice prices to hit $850 a ton this week. And according to experts, we should expect to see the $1,000 per ton undreamt of price ticket sometime in the next three months.
Asia is panicking. By the end of March, 35 countries had recorded food riots. In the Philippines and Indonesia rice hoarding is taking place. The governments of Vietnam, India and Cambodia have taken steps to curb exports in order to ensure domestic supplies. Chinese Premier Wen Jiaobao took the unprecedented step of guaranteeing rice supplies to Hong Kong and Macau after soaring prices triggered panic buying.
Rice isn’t the only soft commodity to experience a sudden price surge. According to the United Nations’ Food and Agriculture Organization (FAO), food costs worldwide spiked 23 percent from 2006 to 2007. Grains rose 42 percent; edible oils 50 percent, and dairy products 80 percent. Corn, wheat and soybean futures have all set new records on the Chicago Board of Trade this past quarter. But rice is probably the most politically sensitive commodity on the market.
Rice is the staple for half the world’s population.
...
Water shortages and a sharp coldspell in China, floods in Bangladesh, India, Indonesia and Vietnam, excessive rainfall in North and South Korea, a typhoon in the Philippines and severe drought in Australia have all drastically reduced rice harvests. And global rice stocks are 4 percent below a year earlier and the smallest since the 1983/84 season. Moreover, ninety percent of rice produced in countries like Thailand, is consumed by its own domestic market, leaving a very small percentage for export purposes.
...
So what does this mean for us, the people having fried rice for lunch? For the wealthy and middle class consumers, rice and wheat price increases are a pricier inconvenience that they can and will have to bear with. But if prices go higher, it will be a disaster for the poor, who spend most of their disposable income on food.
Record high global grain prices have already compromised humanitarian aid efforts of international organizations such as the UN’s World Food Program (WFP). In 2006, WFP provided some 88 million people in 78 countries with much needed starvation-prevention food aid. As result of record world grain prices, WFP has been forced currently to launch an "extraordinary emergency appeal" for $500 million to continue its vital humanitarian work.
"At best, we’re at the same number of people last year who needed food assistance. So, a simple calculation would conclude that only half the people can be helped this year if WFP cannot secure enough food supplies," says FAO’s Abbassian.
Asian Food riots story pointed out by this person. thanks
