There are a lot of ongoing reasons for why food prices are rising, including disruptive and adverse weather conditions that have led to the instability and even destruction of various crops. This was a particularly bad year for natural disasters. Another reason is the rise in demand that comes from income levels rising in the rapidly emerging economies of some countries like China, whose people are facing rising prices for nearly everything.
Global food prices have skyrocketed recently, leading to mobs rioting and looting in various cities throughout the world. One reason for this is that billions of people are buying ever-greater quantities of food; especially in booming China and India, where many have stopped growing their own food and now have the finances to buy more than ever. Increasing meat consumption, for example, has helped drive up demand for grain, and with it the price.
The spike in oil prices, which hit $103 per barrel in recent days, has pushed up fertilizer prices, as well as the cost of trucking food from farms to local markets and shipping it abroad. Then there is climate change. Harvests have been seriously disrupted by freak weather, including prolonged droughts in Australia (the second largest producer of wheat in the world) and southern Africa, floods in West Africa, and this past winter’s deep frost in China and record-breaking warmth in northern Europe.
Besides decreased stocks and increased global demand for food, the increase in demands for biofuels is being cited as a contributing factor to the current high level of global food prices. According to a Princeton researcher writing in The Washington Post last month, biofuel production uses 6.5% of the world’s annual grain production. Besides ethanol, made with corn, the biofuels made from vegetable oils, such as palm oil, use 8% of the world’s supply of vegetable oil. This a sharp increase from the negligible impact of biofuels as recently as 2004.
Click here to cancel reply.
Sorry,At this time user registration is disabled. We will open registration soon!
Don't have an account? Click Here to Signup
© Copyright GreenAnswers.com LLC