Figures Behind the Global Food Crisis Story
This week and the one before it, I have covered various aspects of the global food crisis and focussed especially on the predicament of the world’s poor as food prices spiral, and the likely contributors to the problem of inadequate food supply vis-a-vis the cost of basic foodstuff.
On April 12, we looked at how starvation and anger were driving millions to protest in the streets demanding government action. But social unrest can only be avoided when the hungry are assured of plentiful availability of their staples at prices they can afford.
We looked at perspectives on the crisis in 19 Myths and Facts on Global Food Crisis on April 21 and compared experiences of a protester in Damascus, Syria and a stay-at-home mother in Cairo, Egypt. We also quoted several world leaders and experts on biofuels, now being mentioned widely in connection with the diversion of traditional food crops to produce “cleaner” fuel.
Lastly, on April 23, we journeyed together through 12 World’s Largest Biofuel Plants, most of them in the US. Today, to cap this week’s insights on the global food crisis, I present (some of) the figures behind the whole story:
According to the World Bank, global food prices were 57% higher in March than in the same month of 2007. World rice prices have risen 96% and more for some types, between October 2007 and April 2008.
The Consumer Price Index (CPI) for all food in the US is forecast to increase 3.5% to 4.5% in 2008, as retailers continue to pass on higher commodity and energy costs to consumers in the form of higher retail prices. The CPI for food increased 4.0% in 2007, the highest annual increase since 1990.
The total spent for all food consumed in the U.S. was $1,082.5 billion dollars in 2006, a 6.6 percent increase from $1,015.1 billion in 2005. Source: ERS Food Expenditure Data Series
India’s inflation accelerated to 7.41% in the week ended March 29, the quickest in more than three years, in the wake of the biting food crisis. India has since banned most exports of its rice as a precautionary measure to feed more of her people and avoid social unrest. In comparison, inflation in Vietnam rose 21.4% in April, the highest since 1992.
It has also been reported that price increases globally, up to the end of March 2008 were as follows: Wheat: 130%; Soya: 87%; Rice: 74%; Corn: 31%.
In efforts to alleviate suffering in poor nations, the Bill & Melinda Gates Foundation has upped spending on farming projects by 50% or US$240 million, from US$160 million in 2007.
Inflation in Britain, which has recently embraced increased biofuel usage by way of new regulations, climbed to 3.5% in March, up from 3.2% in February 2008.
Global development aid devoted to agriculture have fallen to just 4%. The World Bank’s agricultural development financing, through its agencies, has steadily dropped over the years from a peak of 30% in 1980 to only 12% in 2007.
Around 30% of the United States’ corn production will be used to produce biofuels by 2010.
UN’s World Food Programme has an estimated funding shortfall of US$500 million to enable it feed the world’s poor and already global charities have cut their food supplies by 73%, effectively keeping 73 million people even hungrier.
By 2050, world population will have grown to 9.2 billion people, compared to current figures of just under 7 billion.
Photo Credit: Blablaurgh via Flickr
Sam, thank you so much for this coverage. It’s sorely needed.
These are frightening numbers! Thank you for your research.
Food grain shortage may have many reasons but two main reasons we are not taking into consideration. They are excessive urban growth and pruning agricultural lands and agriculture as non profitable business any more. One of the richest states (KERALA) in India has turned as consumer state rather than producing. 25 years back it produced rice and sold to other states now as the land converted to urban and houses has resulted shortage of agricultural land the main culprit for this issue is non profitable business. This situation will further aggravate if state government does step up for immediate action.
Similar situation is now with entire world, demand is more and production is less due to imbalanced economic policies. More attention is given to urban economic growth than the rural research and development. A day will come when a slogan or will find ad “Buy one kg of rice and get a laptops free” as computers and other electronic products will be much cheaper. Economic growth has to be balanced considering social condition of the country. Banning exports of essential items is only temporary solution to overcome present situation but for future food grain shortage will further aggravate as
• Global warming (even excessive urbanization has role to warm our globe). Excessive human population, Excessive concrete buildings - industries, carbon fuel based transportations heat up environment to reduce moisture in land results shortage and uncertain rain, river shrinkage, draught, shortage of water and so on.
• 25 years back there was more agricultural land than of today many of them converted to more and more housing and industrial lands; whereas population growing fast, feeding will become challenge to most countries even developed countries will not escape. Nature’s priority is water, food and then shelter. Economic and scientific growth need to be first based on human needs.
• Urban related economic growth thrusts agricultural land conversion to cities and building to accommodate urban population and industries. Over 20% of farm lands of developing countries have been converted to cities and buildings for the past decade and Over 50% of farmlands of villages (close to cities) got merged with cities.
• Non profitable food grain production (international organization and appropriate governments shall have to reconsider bring back agricultural subsidies). Also make agriculture more profitable by linking customer and farmers by way of direct procurement by large stores, and other agencies so mediators and brokers are kept away.
• Escalation of essential food prices by “Satta” future trading helps hording so less and less mediators between producer and final customer. Present system of trading agricultural goods only helps middlemen from wholesalers to brokers. Their financial power helps them hold back stock to create artificial shortage.
• Irrigation and water shortage (In fact water crisis is there but in some states and countries water is excessive causing disaster or consumed by sea. If scientists of missiles or warplanes work on how river water reaches sea after consumed by entire world, would convert desert land to fertile land).