“We are entering a new era of rising food prices and spreading hunger. Food supplies are tightening everywhere and land is becoming the most sought-after commodity as the world shifts from an age of food abundance to one of scarcity. The geopolitics of food is fast overshadowing the geopolitics of oil.”
Those chilling words from Lester Brown of the Earth policy research center in Washington come as the United Nations is reporting that grain reserves worldwide have reached such a critical point that extreme weather in the United States or other major food exporting nations next year could cause a major hunger crisis. Continue reading →
The summer of unusually wet weather has created a large impact on British crops that is going to lead to heavy increases in food prices.
The National Farmers Union announced that wheat yields in the country are down almost 15% lower than the country’s five-year average. The British Retail Consortium said that food prices, already high due to the drought in the U.S. and a heatwave in Russia, which lowered corn and wheat production. Continue reading →
World food prices rose an average of 1.4% during September according to the UN’s Food and Agricultural Organization. The senior economist at the FAO stated that food prices are likely to remain high.
The fear of food shortages due to drought hitting grain crops in the US, Europe and Asia continued after the FAO stated they predict a 2.6% decrease in cereal production. The decrease is smaller than expected due to higher amounts of wheat and rice offsetting the loss of corn crops. Continue reading →
The United Nations has called on the United States to end production of biofuel ethanol because of the current worldwide food crisis.
Current US law requires that 40% of the nation’s corn must be used to create biofuel. Prices are currently facing significant increases with the USDA estimating the corn yield will be the lowest in 16 years. The shortfall is estimated to cause close to a 40 percent rise in prices per bushel. Continue reading →
Food prices worldwide have jumped due to unusual weather patterns. Prices jumped 6% in July. The United Nation’s Food and Agriculture Organization food price index measures price changes for a basket of food including cereals, dairy and meat. The July index, while higher, is still below the all-time record in February 2011.
The FAO released a report for July when they normally avoid issuing a report. The given reason was the “exceptional market conditions” that the drought in the USA, excessive rains in Brazil and production problems in Russia have caused in the world supply. Continue reading →
Corn prices are nearing the record highs of last summer as the U.S. Midwest suffers its worst drought since 1956. Shoppers should expect higher grocery bills, because corn is used in three-quarters of supermarket products.
Source: Smart Money – Rising Corn Prices and Your Grocery Bill