The Increasing Global Food Crisis

[FourScore]

Food Riots Breaking Out Across the Planet
by ApacheTrout
Thu Apr 10, 2008 at 06:35:40 AM PDT

A 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.

Here in the U.S., the economic collapse has been "contained" to the housing market and a "few bad apples" (Bear Stearns) in the financial markets, but for how much longer? Will we see food riots at home?

So far, the riots have been largely in developing countries around the world. The Wall Street Journal reports today (hat tip to Bonddad) that the World Bank estimates that the cost of food has risen 83% over the last 3 years.

http://online.wsj.com/article/SB120778643316903397.html?mod=hps_us_whats_news

Here's a timeline of food riots since 2007:

January 2007 - Mexico riot over the increasing price of tortillas.
September 2007 - Indians in West Bengal riot over food shortages and public corruption.
February 2008 - Cameroons angry over high fuel and food prices.
February 2008 - Protesters in Burkina Fasso attacked government offices and burned, shops, cars and petrol stations.
Marchh 2008 - Senegalese citizens are beaten following protests against the high cost of living.
April 2008 - Haitians riot over rising food prices.
April 2008 - Yemenis riot as the price of wheat has doubled since February, while rice and vegetable oil have gone up 20%.
April 2008 - Egyptians riot over the price of bread.

Is the U.S.immune to the conditions that cause food riots? In March, Kossak bink documented soaring wheat prices, which are now showing up in price hikes at bakeries in Michigan, pizzerias in New York, and beer just about everywhere. Milk prices are up 26 percent and egg prices are up 40 percent.

But Americans are a tough lot. We swallowed $2 and $3 per gallon gas prices with nary a blink or change in our driving habitat (until very recently). But is something about to change? Nearly one in 10 Ohioans now receive food stamps. Middle class Long Islanders are turning to food pantries. In Windsor, CT, 350 households now visit the food bank, compared to 120 in 2006. While I don't believe food riots are in our immediate future, it appears our ability to feed ourselves is becoming increasing difficult, and a day of reckoning may now be on the horizon.

http://www.dailykos.com/storyonly/2008/4/10/81213/2770/133/493114

[gateley]

1. World Bank estimates that the cost of food has risen 83% over the last 3 years.

And how much have peoples' salaries and wages risen during the same time period?

Rhetorical.

[Subdivisions]

2. Three words:

Exceeded http://en.wikipedia.org/wiki/Carrying_capacity|carrying capacity>.

[Kolesar]

3. Paul Krugman said that more people are eating meat &that makes a lot less grain available

It was in his column at www.nytimes.com on Monday

[KamaAina]

5. He also mentioned corn ethanol

I was wondering if he'd actually blamed it all on meat. Guess not:

http://www.nytimes.com/2008/04/07/opinion/07krugman.html?ex=1365307200&en=030c315702b010bd&ei=5090&partner=rssuserland&emc=rss&pagewanted=all

Where the effects of bad policy are clearest, however, is in the rise of demon ethanol and other biofuels.

The subsidized conversion of crops into fuel was supposed to promote energy independence and help limit global warming. But this promise was, as Time magazine bluntly put it, a “scam.”

This is especially true of corn ethanol: even on optimistic estimates, producing a gallon of ethanol from corn uses most of the energy the gallon contains. But it turns out that even seemingly “good” biofuel policies, like Brazil’s use of ethanol from sugar cane, accelerate the pace of climate change by promoting deforestation.

And meanwhile, land used to grow biofuel feedstock is land not available to grow food, so subsidies to biofuels are a major factor in the food crisis. You might put it this way: people are starving in Africa so that American politicians can court votes in farm states.

[FourScore]

8. Germany has decided not to put ethenol into their gasoline.

It was recently passed into law to add it, but they backtracked on that one for just this reason.

[Speck Tater]

4. No American food riots for a long, long time.

The places that are having food riots are places where people spend 70% to 80% of their total income on food. They have NO leeway whatsoever in their budget for these kinds of price increases. Americans spend 10% to 20% of their income on food. If wheat prices double, bread prices go up 10% or 20% (The cost of ingredients in a loaf of commercial bread is a small portion of the total cost, most of which is marketing, packaging, labor costs, and transportation). A 20% increase in the cost of a loaf of bread certainly hurts, but the average American is still able to afford enough food to survive.

The riots are only happening where price increases threaten actual physical survival. We have a long ways to go before that happens in America.

[gulfcoastliberal]

6. I wouldn't dismiss it out of hand.

The stockpiles of reserve grain are gone - they've been used to cover the gap between production and demand for the past several years. If oil supplies get tight it isn't good for an agricultural system completely dependent on oil for everything from chemicals to transport & harvesting.

[Tashca]

7. I would agree

But what can come home to haunt us is government instability in other countries. If this situation gets out of hand there will be major repercussions for everyone. I can't imagine what I might do to feed my family.....

[gaspee]

9. Protests?

Americans have been brainwashed to think it's their own damn fault if they can't feed themselves.