The UN Food and Agriculture Organization says that between March 2007 and March 2008 prices of cereals increased 88%, oils and fats 106%, and dairy 48%. The FAO food price index as a whole rose 57% in one year — and most of the increase occurred in the past few months.
Another source, the World Bank, says that that in the 36 months ending February 2008, global wheat prices rose 181% and overall global food prices increased by 83%. The Bank expects most food prices to remain well above 2004 levels until at least 2015.
The most popular grade of Thailand rice sold for $198 a tonne five years ago and $323 a tonne a year ago. On April 24, the price hit $1,000. Increases are even greater in Haiti, the market price of a 50 kilo bag of rice doubled in one week at the end of March.
These increases are catastrophic for the 2.6 billion people around the world who live on less than US$2 a day and spend 60% to 80% of their incomes on food. Hundreds of millions cannot afford to eat.
- Egypt Thousands of demonstrators in Mahalla el-Kobra loot shops and throw bricks at police during protests at rising food prices and low salaries, as part of nationwide strike
- Haiti At least four people killed in the southern city of Les Cayes after food prices rise 50 per cent in the past year
- Côte d’Ivoire Police injure more than ten protesters as several hundred demonstrators demand government action to curb food prices
- Cameroon Riots last four days and result in at least 40 deaths. Unrest is due to high fuel and food prices. Worst riots in country for 15 years
- Mozambique At least four people killed and 100 injured following fuel price rises
- Senegal Violent demonstrations in Dakar as prices of rice, milk and oil soar. Senegal imports almost all its food
- Yemen Five days of rioting and a hundred arrests after the price of wheat doubled over two months. Protesters set up roadblocks in Sana’a and Aden
U.N. peacekeepers patrol in an armored vehicle during protests on a street in Port-au-Prince, Haiti.World Bank president Robert Zoellick noted last week that world food prices had risen 80% over the past three years, and warned that at least 33 countries face social unrest as a result.
The irony is extraordinary. At a time when world leaders are expressing grave concern about diminishing food stocks and a coming global food crisis, the world government brings into force measures to increase the use of biofuels - a policy that will further increase food prices, and further worsen the plight of the world's poor.
What biofuels do is undeniable: they take food out of the mouths of starving people and divert them to be burned as fuel in the car engines of the world's rich consumers. This is, in the words of the United Nations special rapporteur on the right to food, Jean Ziegler, nothing less than a "crime against humanity". It is a crime the UK government seems determined to play its part in abetting. The Renewable Transport Fuel Obligation (RTFO), introduced on 15 April, mandates petrol retailers to mix 2.5 per cent biofuels into fuel sold to motorists. This will rise to 5.75 per cent by 2010, in line with European Union policy.
The message could not have been clearer if the Prime Min ister, Gordon Brown, had personally put a torch to a pyre of corn and rice in Parliament Square: even as you take to the streets to protest your empty bellies and hungry children, we will burn your food in our cars. The UK is not uniquely implicated in this scandal: the EU, the United States, India, Brazil and China all have targets to increase biofuels use. But a look at the raw data confirms today's dire situation. According to the World Bank, global maize production increased by 51 million tonnes between 2004 and 2007. During that time, biofuels use in the US alone (mostly ethanol) rose by 50 million tonnes, soaking up almost the entire global increase.
Next year, the use of US corn for ethanol is forecast to rise to 114 million tonnes - nearly a third of the whole projected US crop. American cars now burn enough corn to cover all the import needs of the 82 nations classed by the UN's Food and Agriculture Organisation (FAO) as "low-income food-deficit countries". There could scarcely be a better way to starve the poor.
Ethanol and biodiesel are very heavily subsidized, which means, inevitably, that crops like corn (maize) are being diverted out of the food chain and into gas tanks, and that new agricultural investment worldwide is being directed towards palm, soy, canola and other oil-producing plants. This increases the prices of agrofuel crops directly, and indirectly boosts the price of other grains by encouraging growers to switch to agrofuel.
As Canadian hog producers have found, it also drives up the cost of producing meat, since corn is the main ingredient in North American animal feed.
Climate Change: Scientists say that climate change could cut food production in parts of the world by 50% in the next 12 years. But that isn't just a matter for the future:
It's been estimated that 80% of the costs of growing corn are fossil fuel costs — so it is no accident that food prices rise when oil prices rise.
The sociology of the food riot is pretty straightforward: The usually impoverished majority of citizens may acquiesce to the rule of detested corrupt and repressive regimes when they are preoccupied with the daily struggle to feed their children and themselves, but when circumstances render it impossible to feed their hungry children, normally passive citizens can very quickly become militants with nothing to lose. That's especially true when the source of their hunger is not the absence of food supplies but their inability to afford to buy the available food supplies. And that's precisely what we're seeing in the current wave of global food-price inflation. As Josette Sheeran of the U.N. World Food Program put it last month, "We are seeing food on the shelves but people being unable to afford it."
The president of the World Bank, Robert Zoellick, has already warned that 100 million people could be pushed deeper into poverty because of food price rises caused directly by this imbalance between supply and demand. Even consumers in rich countries are suffering. We now pay higher prices for our food in order to subsidise the biofuels industry, thanks to measures such as the renewable fuels directive.
This is not just a short-term price blip, but the beginnings of a major structural change in the world food market. Population pressure - still something of a taboo subject - is also certainly playing a part. With the world population growing by 78 million a year, and expected to reach nine billion by the middle of the century, there are simply many more mouths to feed.
The hunger has historically been an instigator of revolutions and civil wars, it is not a sufficient condition for such violence. For a mass outpouring of rage spurred by hunger to translate into a credible challenge to an established order requires an organized political leadership ready to harness that anger against the state. It may not be all that surprising, then, that Haiti has been one of the major flashpoints of the new wave of hunger-generated political crises; the outpouring of rage there has been channeled into preexisting furrows of political discontent. And that's why there may be greater reason for concern in Egypt, where the bread crisis comes on top of a mounting challenge to the regime's legitimacy by a range of opposition groups.
The rapid industrialization of China and India over the past two decades — and the resultant growth of a new middle class fast approaching the size of America's — has driven demand for oil toward the limits of global supply capacity. That has pushed oil prices to levels five times what they were in the mid 1990s, which has also raised pressure on food prices by driving up agricultural costs and by prompting the substitution of biofuel crops for edible ones on scarce farmland. Moreover, those new middle class people are eating a lot better than their parents did — particularly more meat. Producing a single calorie of beef can, by some estimates, require eight or more calories of grain feed, and expanded meat consumption therefore has a multiplier effect on demand for grains. Throw in climate disasters such as the Australian drought and recent rice crop failures, and you have food inflation spiraling so fast that even the U.N. agency created to feed people in emergencies is warning that it lacks the funds to fulfill its mandate.
Read Further
What biofuels do is undeniable: they take food out of the mouths of starving people and divert them to be burned as fuel in the car engines of the world's rich consumers. This is, in the words of the United Nations special rapporteur on the right to food, Jean Ziegler, nothing less than a "crime against humanity". It is a crime the UK government seems determined to play its part in abetting. The Renewable Transport Fuel Obligation (RTFO), introduced on 15 April, mandates petrol retailers to mix 2.5 per cent biofuels into fuel sold to motorists. This will rise to 5.75 per cent by 2010, in line with European Union policy.
The message could not have been clearer if the Prime Min ister, Gordon Brown, had personally put a torch to a pyre of corn and rice in Parliament Square: even as you take to the streets to protest your empty bellies and hungry children, we will burn your food in our cars. The UK is not uniquely implicated in this scandal: the EU, the United States, India, Brazil and China all have targets to increase biofuels use. But a look at the raw data confirms today's dire situation. According to the World Bank, global maize production increased by 51 million tonnes between 2004 and 2007. During that time, biofuels use in the US alone (mostly ethanol) rose by 50 million tonnes, soaking up almost the entire global increase.
Next year, the use of US corn for ethanol is forecast to rise to 114 million tonnes - nearly a third of the whole projected US crop. American cars now burn enough corn to cover all the import needs of the 82 nations classed by the UN's Food and Agriculture Organisation (FAO) as "low-income food-deficit countries". There could scarcely be a better way to starve the poor.
Ethanol and biodiesel are very heavily subsidized, which means, inevitably, that crops like corn (maize) are being diverted out of the food chain and into gas tanks, and that new agricultural investment worldwide is being directed towards palm, soy, canola and other oil-producing plants. This increases the prices of agrofuel crops directly, and indirectly boosts the price of other grains by encouraging growers to switch to agrofuel.
As Canadian hog producers have found, it also drives up the cost of producing meat, since corn is the main ingredient in North American animal feed.
Climate Change: Scientists say that climate change could cut food production in parts of the world by 50% in the next 12 years. But that isn't just a matter for the future:
- Australia is normally the world's second-largest exporter of grain, but a savage multi-year drought has reduced the wheat crop by 60% and rice production has been completely wiped out.
- In Bangladesh in November, one of the strongest cyclones in decades wiped out a million tonnes of rice and severely damaged the wheat crop, making the huge country even more dependent on imported food.
- Other examples abound. It's clear that the global climate crisis is already here, and it is affecting food.
It's been estimated that 80% of the costs of growing corn are fossil fuel costs — so it is no accident that food prices rise when oil prices rise.
The sociology of the food riot is pretty straightforward: The usually impoverished majority of citizens may acquiesce to the rule of detested corrupt and repressive regimes when they are preoccupied with the daily struggle to feed their children and themselves, but when circumstances render it impossible to feed their hungry children, normally passive citizens can very quickly become militants with nothing to lose. That's especially true when the source of their hunger is not the absence of food supplies but their inability to afford to buy the available food supplies. And that's precisely what we're seeing in the current wave of global food-price inflation. As Josette Sheeran of the U.N. World Food Program put it last month, "We are seeing food on the shelves but people being unable to afford it."
The president of the World Bank, Robert Zoellick, has already warned that 100 million people could be pushed deeper into poverty because of food price rises caused directly by this imbalance between supply and demand. Even consumers in rich countries are suffering. We now pay higher prices for our food in order to subsidise the biofuels industry, thanks to measures such as the renewable fuels directive.
This is not just a short-term price blip, but the beginnings of a major structural change in the world food market. Population pressure - still something of a taboo subject - is also certainly playing a part. With the world population growing by 78 million a year, and expected to reach nine billion by the middle of the century, there are simply many more mouths to feed.
The hunger has historically been an instigator of revolutions and civil wars, it is not a sufficient condition for such violence. For a mass outpouring of rage spurred by hunger to translate into a credible challenge to an established order requires an organized political leadership ready to harness that anger against the state. It may not be all that surprising, then, that Haiti has been one of the major flashpoints of the new wave of hunger-generated political crises; the outpouring of rage there has been channeled into preexisting furrows of political discontent. And that's why there may be greater reason for concern in Egypt, where the bread crisis comes on top of a mounting challenge to the regime's legitimacy by a range of opposition groups.
The rapid industrialization of China and India over the past two decades — and the resultant growth of a new middle class fast approaching the size of America's — has driven demand for oil toward the limits of global supply capacity. That has pushed oil prices to levels five times what they were in the mid 1990s, which has also raised pressure on food prices by driving up agricultural costs and by prompting the substitution of biofuel crops for edible ones on scarce farmland. Moreover, those new middle class people are eating a lot better than their parents did — particularly more meat. Producing a single calorie of beef can, by some estimates, require eight or more calories of grain feed, and expanded meat consumption therefore has a multiplier effect on demand for grains. Throw in climate disasters such as the Australian drought and recent rice crop failures, and you have food inflation spiraling so fast that even the U.N. agency created to feed people in emergencies is warning that it lacks the funds to fulfill its mandate.
Read Further
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