Tuesday, 15 April 2008

Why Costs Are Climbing

As food prices surge, starvation looms for millions. Experts call for emergency action but admit there's no quick fix

By Eric Reguly

12/04/08 "Globe and Mail" -- -ROME — Fatal food riots in Haiti. Violent food-price protests in Egypt and Ivory Coast. Rice so valuable it is transported in armoured convoys. Soldiers guarding fields and warehouses. Export bans to keep local populations from starving.

For the first time in decades, the spectre of widespread hunger for millions looms as food prices explode. Two words not in common currency in recent years — famine and starvation — are now being raised as distinct possibilities in the poorest, food-importing countries.

Unlike past food crises, solved largely by throwing aid at hungry stomachs and boosting agricultural productivity, this one won't go away quickly, experts say. Prices are soaring and stand every chance of staying high because this crisis is different.

A swelling global population, soaring energy prices, the clamouring for meat from the rising Asian middle class, competition from biofuels and hot money pouring into the commodity markets are all factors that make this crisis unique and potentially calamitous. Even with concerted global action, such as rushing more land into cultivation, it will take years to fix the problem.

The price increases and food shortages have been nothing short of shocking. In February, stockpiles of wheat hit a 60-year low in the United States as prices soared. Almost all other commodities, from rice and soybeans to sugar and corn, have posted triple-digit price increases in the past year or two.

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Source: Information Clearing House

2 comments:

Anonymous said...

you dnt realise how bad a problem is untill it affects you. Finding out that one bag costs £50 made be realise just how bad things r getting!

mum of 3 said...

You are right. SubhanAllah the cost of fruit is so much these days it's tempting just to give the children biscuits or crisps as a snack since they are cheaper.

While richer people can eat their 5 a day.