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:

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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

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