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Apr
14
World Wide Food Price Crisis
Filed Under Class Classism and Economic Inequality, Environment and Conservation, Original Essays and Analysis, Politics, Sociology, Uncategorized by Rachel
A few weeks ago I walked into my local supermarket to see that a 10 oz. bar of cheese was “on sale” for $5.39. I did a double take–maybe they meant two bars of cheese for $5.39. Generally, the sale on that brand of cheese is 2 for $4.00 or 2 for $5.00, but sure enough this was somehow supposed to be a sale. I’ve been complaining about this since last year–the cost of food is soaring. Last year, I could generally get out of the supermarket paying around $65-85.00 for two people, now I’m paying $90.00 or more. The higher prices seem to apply across the board–fresh produce, canned foods, flour/rice, and most dramatically dairy. Of course, I’m fortunate to be able to suck it up and pay the higher prices, but many lower income folks in this country and other wealthy countries are struggling, and in poorer countries, people are taking to the streets in protest because they are unable to feed their families.
A quick search of Google news indicates that we really are in a world wide food crisis. I’m not so sure that there is an actually shortage of food, but the crisis appears to be the cost. Some of the countries where people are struggling with soaring food prices, include–Afghanistan, Haiti, South Africa, Namibia, New Zealand, Ivory Coast, and numerous others. The situation is getting so serious that the United Nations (and the World Bank) weighed in last week :
The head of the UN World Food Programme has warned that the rise in basic food costs could continue until 2010.
Josette Sheeran blamed soaring energy and grain prices, the effects of climate change and demand for biofuels.
Ms Sheeran has already warned that the WFP is considering plans to ration food aid due to a shortage of funds.
Some food prices rose 40% last year, and the WFP fears the world’s poorest will buy less food, less nutritious food or be forced to rely on aid.
Speaking after briefing the European Parliament, Ms Sheeran said the agency needed an extra $375m (244m euros; 187m) for food projects this year and $125m (81m euros; 93m) to transport it.
She said she saw no quick solution to high food and fuel costs.
“The assessment is that we are facing high food prices at least for the next couple of years,” she said.
Ms Sheeran said global food reserves were at their lowest level in 30 years - with enough to cover the need for emergency deliveries for 53 days, compared with 169 days in 2007.
Several factors have been cited as causes for the food price crisis including: rising fuel cost, the shift towards biofuels (e.g. ethanol), population growth, the growth of capitalist economies, and weather patterns. The greatest criticism in the range of articles I read has been reserved for government subsidies for bio-fuels, specifically ethanol. Many feel that the shift to ethanol and bio-fuels is environmentally harmful, but now we can add soaring food prices and hunger to the list of arguments against bio-fuels1.
- If you want more information of about the food crisis, these graphs from the BBC website have useful information about the food price crisis. The only additional point I would add is that (see the chart of trade balances) while some countries like the US will benefit in the area of trade, I don’t think that the average American is benefiting from this. A few corporate farmers may be getting rich, but the vast majority of people are hurting. We’re not hurting anywhere near as much as poor people in poor countries. [back]
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6 Responses to “World Wide Food Price Crisis”
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Here’s an ethanol dilemma:
I’ve heard that the main issue with ethanol is that corn is a really inefficient way to make it. But the powerful corn lobby makes sure that the focus stays on corn subsidies.
Sugarcane is much more efficient, and Brazil is far in the forefront in terms of ethanol use. But importing sugarcane ethanol from Brazil wouldn’t be popular politically, because the idea of biofuel is linked to a quasi-nationalist goal of energy independence.
I’ve also heard about sugarbeets being used in this way.
I’m no scientist, but I’ve heard ethanol also wastes a lot of energy. My sense is that we need to turn to renewable energy–wind, geothermal, and solar. I know they are costly now, but in the long term we going to destroy ourselves unless we pollute less.
I heard this story on NPR last week:
http://www.npr.org/templates/story/story.php?storyId=89562590
Basic gist: despite what Big Corn tells you, corn is not the only or even the best source for biofuels. The benefit of some other technology being developed is that it doesn’t use enzymes (which are expensive), it converts wood chippings and other yard waste and could even use animal waste or hulls and husks, and it uses chemicals that are ALREADY MADE for use in petroleum manufacturing. The amount of land needed would be minimal, and could utilize what we already toss away.
When asked, the scientist in the interview did say that when mass-produced, the process does NOT use an extraordinary amount of power to make. That’s the major down side of many of the other alternative fuel production methods. If it weren’t for the subsidies, corn ethanol wouldn’t be considered a cheap solution.
Ethanol is relatively inefficient. Fuel is consumed, planting, harvesting, transporting, refining and transporting again. In addition farmers use fertilizer, and in some places clear rainforest to increase the number of hectares under cultivation. Crops used to produce ethanol are removed from the food chain making animal feed and human food more expensive. Land used to grow ethanol producing crops is removed from the land bank which also increases the price of food. Solar, geothermal and wind seem to be more promising.
/Rachel hope things are going well with your pregnancy!
It’s just one of the unforseen consequences of the man-made global warming myth. When this blows over by 2015, we can go back to getting energy out of the ground and using crops to eat.
Also, how much subsidy does Big Corn get? I find lots of reference to tax breaks (which are not subsidies since stealing less from someone is not a gift of even one cent). But how much actual subsidies do they get?