Grain Shortages in 2nd and 3rd World
Sunday, April 6th, 2008Well, after 1 year or so of heavy biofuel frenzy, the results are coming in pretty fast. Note that all of these shortages and problems have multiple causes, but the fact is, like a freeway travelling at capacity, any event, no matter how apparently trivial, pushes the freeway into a traffic jam state.
First we have some fairly predictable events. Coupled with the inevitable corruption, the recent wheat price increases, indirectly triggered by intensive corn cultivation in the USA to make the highly energy intensive corn based ethanol (intensive = expensive crop ‘inputs’), and directly by increasing global, especially Chinese, demand for wheat, and a serious drop in wheat production in Australia due to a drought, we now see the first cracks appear:
The subsidized price of a 110-pound sack of flour has been less than $3 for years; the market price reached $45 early this year and has fallen to $36 since the government intervened.
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Even more serious, rice, the staple of much of the world’s poor, the ones, that is, who don’t rely on corn or wheat, is skyrocketing in price as well.
A global rice shortage that has seen prices of one of the world’s most important staple foods increase by 50 per cent in the past two weeks alone is triggering an international crisis, with countries banning export and threatening serious punishment for hoarders.