Rice Prices Up 40% Worldwide in 2004

[hatrack]

"Agricultural scientists say a 40 percent increase in international prices of rice this year following production shortfalls is a reminder that "Asia's ability to feed itself cannot be taken for granted".

Announcing this, the International Rice Research Institute (IRRI) said after a meeting in Tsukuba, Japan, that an "international effort" has been launched to renew focus on the development of sustainable strategies to feed half of the world's population that depends on rice. The meeting, World Rice Research Conference from Nov 4-7, was organised as part of the United Nations International Year of Rice 2004 for focusing on the food security of three billion rice eaters.

Rice, covering about 150 million hectares worldwide, has a profound impact on the environment and natural resources. One big challenge facing Asia, say scientists, is to meet national and household food security needs with an ever-declining natural resource base, especially water and land.

Current annual rice production of 545 million tonnes needs to be increased to 700 million tonnes to feed an additional 650 million rice consumers by 2025, using less water and less land, which is a big challenge. In addition, rice is seen as crucial in meeting a prominent UN Millennium Development Goal -- the eradication of extreme poverty and hunger."

EDIT

http://www.onlypunjab.com/fullstory1004-insight-Increasing+rice+prices+seen+as+warning+to+Asia-status-21-newsID-16453.html

[muriel_volestrangler]

1. Price measured in what currency?

If it's in dollars, then over half of the increase will be due to the dollar's fall.

[hatrack]

2. A good point, and the article doesn't say nt

.

[Warpy]

3. No, I believe it's in all currencies.

There was a poor harvest this year. Whenever that happens, the price goes up across the board.

Since a lot of the world's people depend on rice, this has the potential to be devastating.

The US produces more than enough for domestic consumption. However, they'll probably be shipping it overseas now, so we'll see the increase here at home, too.

(reminds self to get another 5 pound bag of Calrose)

[bemildred]

4. China has troubles feeding itself.

This is not an artifact of currency moves, although by pegging
to the dollar, I would think they are making international grain
purchases more expensive.

[amandabeech]

5. Yes, China has very, very severe problems.

China is experiencing desertification from the western edge of the Gobi Desert, which I have read is affecting rangeland.

In the northern wheat and corn growing region, a severe drought prevails, and ground water levels drop by feet each year.

Much of the water is severely polluted by industrial and sanitary runoff, and it is difficult to move that water from the relatively wet southeast to areas where it is needed to support human life and agriculture.

Was it you, bemildred, who recently posted an article discussion Chinese dealings in Argentina, in part to gain access to Argentine grain? The Chinese are also in Brazil, I think.

[bemildred]

6. Yeah, that was me.

I'm interested in the developing cross relations among
2nd and 3rd world countries independent of "Western" interests.
China is all over Latin American and busy in a number of places
in Africa. The conventional wisdom is that China is a rising
superpower, but I think there will be no more superpowers. The
last 100 years has not been kind to empires and superpowers.
Which is not to say that China is not a power to be rekoned with.

It is also interesting that both China and EU are negotiating with
the developing Mercosur arrangement, and there seems to be nothing
much the US can do about it, and the normally belligerent Bush
State Dept. has nothing to say. I am starting to think they are
giving up in Venezuela too, the Iraq thing has really been costly.

[amandabeech]

7. I always enjoy your posts.

My particular interests are in energy and agriculture, although I have no training in either.

It would seem that the Chinese and the EU are out-maneuvering us all over, as per your post about the EU and India.