The Haiti earthquake. Flooding in Pakistan, India, Australia, the Philippines, Brazil, Sri Lanka, China, South Africa and more. The past year will be remembered for devastating natural disasters. Hurricanes, monsoons and cyclones wreaked havoc on four continents. Wildfires devastated Russia. Millions were left homeless, and the damage cost billions. But there is another deadly consequence. Rising food prices have driven an estimated 44 million people into poverty in developing countries, according to figures just released by the World Bank.
This article is reposted from my blog at Interaction.org
The Food and Agricultural Organization (FAO) Food Price Index shows that prices in January 2011 exceeded even the prices of July 2008, which incited riots in several countries, including Haiti, Cameroon and Egypt. The FAO predicts a steady increase in food prices: 35% of Sri Lanka’s rice crop has been destroyed, 7.5 million people in Pakistan need food support, 10 million need food in Chad and the other countries facing drought in the Sahel, and Russia has lost 25% of its wheat harvest.
In short, the demand for food is increasing, and the food available in the world has taken a sharp dive.
So, who is affected? In the U.S., the price of flour and rice jumped during the last shortage in 2008, but the price of bread was more stable because grocery stores kept prices low to retain customers. In a country like Sri Lanka, where an average 50% of income goes toward food, retailers are not so kind. An increase in rice costs translates directly to inflation in the price of all goods and services, and people quickly become unable to afford to feed their families.
For families in Sri Lanka, Chad, or Haiti, it’s possible that throughout the next year they will spend 75% of their income simply trying to eat. For an average American family, who normal spend 10% of their income on food, that would be equivalent to $3,000 spent on groceries each month, with a mere $1,000 to cover everything else. High food prices will no doubt lead to inability to pay for adequate housing, school or clothing. Already, Sri Lanka, Brazil, Pakistan and Haiti have been largely forgotten by the news media, but the effects of the global food shortage caused by disasters in these countries have only just begun.
It is certain we will see the price of a loaf of bread (currently pegged at $1.40/lb by the government) rise past $3, and perhaps reach $3.50 this year. Perhaps the shock of seeing rapid food price increases here at home will remind us how hard this crisis will be on those around the world who have already lost everything and now will struggle even more just to eat.
This article is reposted from my blog at Interaction.org
The Food and Agricultural Organization (FAO) Food Price Index shows that prices in January 2011 exceeded even the prices of July 2008, which incited riots in several countries, including Haiti, Cameroon and Egypt. The FAO predicts a steady increase in food prices: 35% of Sri Lanka’s rice crop has been destroyed, 7.5 million people in Pakistan need food support, 10 million need food in Chad and the other countries facing drought in the Sahel, and Russia has lost 25% of its wheat harvest.
In short, the demand for food is increasing, and the food available in the world has taken a sharp dive.
So, who is affected? In the U.S., the price of flour and rice jumped during the last shortage in 2008, but the price of bread was more stable because grocery stores kept prices low to retain customers. In a country like Sri Lanka, where an average 50% of income goes toward food, retailers are not so kind. An increase in rice costs translates directly to inflation in the price of all goods and services, and people quickly become unable to afford to feed their families.
For families in Sri Lanka, Chad, or Haiti, it’s possible that throughout the next year they will spend 75% of their income simply trying to eat. For an average American family, who normal spend 10% of their income on food, that would be equivalent to $3,000 spent on groceries each month, with a mere $1,000 to cover everything else. High food prices will no doubt lead to inability to pay for adequate housing, school or clothing. Already, Sri Lanka, Brazil, Pakistan and Haiti have been largely forgotten by the news media, but the effects of the global food shortage caused by disasters in these countries have only just begun.
It is certain we will see the price of a loaf of bread (currently pegged at $1.40/lb by the government) rise past $3, and perhaps reach $3.50 this year. Perhaps the shock of seeing rapid food price increases here at home will remind us how hard this crisis will be on those around the world who have already lost everything and now will struggle even more just to eat.
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