Jan 31, 2013

The Global Food Crisis Guide

By Carmen D. Bullington


Now is the right time for countries to develop long term plans and goals about the current food crisis, to make sure it does not happen again.Right now the world is in a panic, governments are trying to come up with solutions, and if they do it will be for the short term at best. A senior agriculture official from Brazil predicts the crisis and high food prices will last for at least another six years, which is all the more for governments to act now!A well organized plan would not only insure order instead of chaos, but would stabilize food prices. The current crisis is only one of many that have happened in the past but it is the only one that has had a direct impact on the western nations.

Food crisis can be traced back to the early 1960's and even further. According to the executive intelligence, "food and self sufficiency has been declining since 1963 world wide". There has been an overall drop in production and output of at least 20 to 30 percent in cereals, pulses, oils and milk, with the African and Asian nations being hit the hardest.Biofuel has been credited with causing the current crisis, but it is not the sole contributor. Many things caused this meltdown.

Nearly every region of the world is experiencing drastic inflation caused by food this year. Retail prices are up 18% in China, 17% in Sri Lanka and 10% or more throughout Latin America and Russia.Recently on May 3, a cyclone devastated Myanmar's low-lying Irrawaddy delta region leaving more than 1 million people homeless, according to the UN. An estimated 80,000 people died in the delta's Labutta district alone. Myanmar had been expected to export 600,000 tons of rice this year, including to Sri Lanka and Bangladesh, according to the Food and Agriculture Organization. The cyclone flooded 5,000 square kilometers (1,930 square miles) of farmland. Cyclone Nargis struck the country's main rice-growing area, worsening a food crisis that's triggered unrest from Haiti to Egypt.

Why does it happen Rocketing oil prices, global warming, biofuels, and the world population explosion are the cause of this food crisis. The primary driver is the soaring cost of oil, which reached $123 a barrel for the first time. Oil cost will make transportation more expensive, thus making food more expensive too. The price of oil has sent the cost of food imports skyrocketing this year.

The World Bank predicts global demand for food will double by 2030. This is partly because the world's population is expected to grow by three billion by 2050. Food demand will also grow due to new prosperity in India and China.Global warming will disrupt food production in many countries. It can cause climate instability which is bad for crop.Food price are affected by accelerating demand for biofuels. Biofuels, made from food crops such as corn, sugar cane, and palm oil, are seen as easing the world's dependence on gasoline. But when crude oil is expensive, these alternative energy sources can also be sold at higher price. Last year a quarter of the US maize crop was turned into ethanol to fuel vehicles. US supplies more than 60% of the world's maize exports. According to the World Bank, this is putting pressure on countries' food supplies.

China's Food Woes China is in the midst of preparing for a severe, long-lasting drought which will have a huge impact on their wheat production. At this point in time, nearly a billion people around the world go to bed hungry each and every night, and every 3.6 seconds someone in the world starves to death (75% of those are children under the age of five) Raw Story has reported that because of food shortages China is feeding its poor fake rice made from plastic.

The two primary driver for the crisis is oil price and global warming. Oil price hike is mainly caused by geopolitical risk, not supply and demand. Political conditions affect oil production in Iraq, Nigeria, Venezuela, and Iran. Iraq is still struggling to recover from decades of war. Nigerian production is affected by attacks and sabotage. Venezuelan oil production has never fully recovered since December 2002, when political strife brought Venezuelan production to a halt. The key is to bring peace on those country.

Barnes Grand Blanc School.As you can see from the above statement it was just the opposite of the doubters. He was confident in his ideas and himself. You could say he was "fearless in his actions"No matter how much we turn our heads to it or pretend it is not happening, it won't go away. Ethanol can be made out of other commodities that wouldn't put a strain on our basic foods for example sugar cane, in which Brazil is doing. They are also the world's largest sugar producer and exporter and sugar doesn't compete with food.We have to get courageous in our thinking and fearless in our action and "take a bite out of the food crisis"




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