Monday, April 07, 2008

Food for thought...

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These days you hear a lot about the world financial crisis. But there’s another world crisis under way — and it’s hurting a lot more people.

I’m talking about the food crisis.
There have already been food riots around the world

Paul Krugman

Food-supplying countries, from Ukraine to Argentina, have been limiting exports in an attempt to protect domestic consumers
First, there’s the march of the meat-eating Chinese
Second, there’s the price of oil
Third, there has been a run of bad weather in key growing areas.

Governments and private grain dealers used to hold large inventories in normal times, just in case a bad harvest created a sudden shortage. Over the years, however, these precautionary inventories were allowed to shrink, mainly because everyone came to believe that countries suffering crop failures could always import the food they needed.

Cheap food, like cheap oil, may be a thing of the past.
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