Wednesday, November 9, 2011

Food Prices and Supply


Kirk Condyles for The New York Times
Updated: April 7, 2011
For the second time in three years, food prices began to soar in late 2010. Some food experts thought the increases could have been a factor in the unrest that swept the Arab world in early 2011.
In 2008, food riots broke out in developing countries around the world, as the prices of staples, particularly rice, jumped sharply. Good harvests and a drop in demand due to the worldwide recession eased those shortages in 2009.
Prices began rising steadily again in the summer of 2010.
In January 2011, a price index compiled by the  United Nations Food and Agriculture Organization that tracks 55 food commodities for export hit its highest level since tracking began in 1990. Countries not dependent on food imports are less affected by global volatility. Still, food prices are expected to rise 2 percent to 3 percent in the United States in 2011.
Four main factors are seen as driving prices higher: weather, higher demand, smaller yields and crops diverted to biofuels. Volatile weather patterns often attributed to climate change are wreaking havoc with some harvests. Heavy rains in Australia damaged wheat to the extent that much of its usually high-quality crop has been downgraded to feed, experts noted.
This has pushed the demand and prices for American wheat much higher, with the best grades selling at 100 percent more than they were a year ago. The autumn soybean harvest in the United States was poor, so strong demand means stocks are at their lowest level in 50 years.
In addition, an ever larger portion of the world’s crops is being diverted for biofuels, as developed countries pass laws mandating greater use of nonfossil fuels and as emerging powerhouses like China seek new sources of energy. But with food prices rising sharply in early 2011, many experts began to call on countries to scale back their headlong rush into green fuel development, arguing that the combination of ambitious biofuel targets and mediocre harvests of some crucial crops is contributing to high prices, hunger and political instability.
Related: The Food Chain: A Series From The New York Times

1.  With the current strain on the economy, do you think the that the price of food would ever get so out of hand the there will be food price related riots? Is there any kind of food price change or increase that you think  you would protest/ or riot?

2.Do you think our efforts should be focused on green fuel development? Do you think this will cause an increase in food insecurity in America? And which do you feel is more important for the governement to invest in: green fuel? or fighting hunger?

11 comments:

  1. I think that there could definitely be riots if the price gets out of hand. It's far less likely to happen in the US, I hope. I think that the subsidizing of corn is obviously raising beef prices.
    The development of green fuel or an alternative is more important in the long term, but I also don't want anyone to go hungry. I do think inertia or complacency does exist here in America, but we should try and keep our food prices down, if nothing else.

    ReplyDelete
  2. 1. I think the increase in food prices would be more likely to cause riots in periphery countries than in would in core countries such as the U.S. Our food system is so expansive, and people have so many choices when it comes to the foods they buy, that if the price of one food rose, most people would just switch to buying something else until the price dropped again. However, the problem with this is that there are people in the U.S. who are impoverished and are affected by even the slightest increase in food prices. The effects on these people are many times overlooked when increases occur. In peripheral areas where they have less choice and are more dependent on a limited number of staple crops, I could see food riots breaking out if prices were to increase. I'm not sure if I would ever protest or riot over food prices, but I would like to get involved in some way to help create change.
    2. I think that green fuel development is a good thing, but not when it is causing people to go hungry or become food insecure. The use of fossil fuels is a factor causing climate change, which is in turn leading to poor crop yields and higher food prices. It's a vicious cycle, and something must be done to help decrease dependency on fossil fuels. However, I do think using commodity crops in developing green fuels may lead to food insecurity, and I think right now, it's more important for the government to fight hunger than to use valuable crops for fuel.

    ReplyDelete
  3. It is very feasible that there could be riots related to food insecurity in the United States. As more and more people are unable to obtain nutritious food, there will be more discontent throughout the population. With the recent Occupy movements, it is apparent that there is a significant amount of discontent throughout the country. A decreasing access to food is very likely to increase that discontent. As for alternative fuel sources, they are an essential part of the future, and do not necessarily have to take away from food production. There are other options for alternative fuels, in addition to reducing our dependence on fuels in general. I think those options should be explored more vigorously.

    ReplyDelete
  4. 1. For food prices to get high enough to cause riots in America, they would have to be extremely high. Unfortunately, I think Americans are less motivated to actively protest and revolt, for a number of reason.

    2. I think alternative energy should definitely be a main priority of our government. It doesn't matter if there is enough food if environmental degradation renders our means to produce it useless.

    ReplyDelete
  5. 1. I think that it is a definite probability to say that riots could take place due to food insecurity. After all, some people get pretty angry when they are hungry.

    2. I think that alternative energy is necessary for our future. However, I do not think that green fuel is the way to go (rather solar or nuclear perhaps). This is because it takes so much water and grains to produce, and it is quite possible that with the demand for ethanol comes higher prices in grains and meats since animals are fed such. All things considered, it is definitely better for the government to be concerned with fighting not just hunger but the economic inequalities that they have actually put into place.

    ReplyDelete
  6. 1. I believe that if the food supply and price problem got extremely out of hand there is a definite possibility that riots could break out. Food is a commodity that is necessary to survive and if the prices are getting so high that the lower classes can not afford them, people will react.

    2. Though I am not sure if green fuel is the definite answer to saving energy problems, i do feel that it is important that we are researching alternative fuel and energy sources. I so believe that it is more important to first understand the food insecurities of America and realize that food deserts and hunger is all around the US and we should be trying o decrease them

    ReplyDelete
  7. 1. I think there could be riots at any time in our current economy. The price of quality food is absolutely ridiculous and only getting worse. For those on a limited income, many have to sacrifice healthy, fresh food for highly processed and unhealthy foods. These unhealthy, processed foods are not only more accessible today than ever, they are often the only choice for people who cannot afford healthier options. Unfortunately healthy, fresh, and better quality food is correlated to higher prices, causing a huge concern for many US citizens. This is issue is definitely worth rioting about.
    Personally I would riot about food prices as early as tomorrow. I currently cannot afford the foods I wish to eat like fresh fruit, whole almonds, and organic products. Instead I resort to buying $1 TV dinners that fill me up for cheap. However, aside from my personal qualms with high food prices I would especially riot for others who cannot afford to put quality food on their table and resort to other alternatives such as going without food, resorting to donations, or even dumpster diving. But on top of rioting I would want to take action and try to create a solution to fix this problem. Once a substantial amount of awareness has been raised about this issue, the next step is doing something to stop it from continuing.

    2. Although I believe in the green movement I do not support green fuel development at the expense of crops that could feed our nation. Although I am not particularly well versed in this topic, I am pretty sure that creating these huge subsidized crops of corn, etc. is harmful to the environment because it replaces natural landscapes, requires heavy machinery, and uses a great deal of fossil fuels and other resources to convert corn into usable fuel. Therefore the whole idea just sounds preposterous even when not taking hunger into consideration. On another note, I am not positive that continuing green fuel development will cause an increase in food insecurity in America. If these are additional crops being added for the purpose of developing green fuel development than although it is a crop, the crops would not have been grown if it was not for the production of green fuel. However if existing crops are being used for green fuel development then this is a significant problem. Another factor must also be considered. Today there is enough food in the US to feed all Americans. The problem mainly involves unequal distribution and access of food. These are two key issues that must be solved to end food insecurity in America. I definitely feel that it is more important to fight hunger in America but I don't think attacking green fuel development is the best way to do this. A drastic change in the structure of the US food system needs to occur to prevent hunger in America. In regards to green fuel development, the US needs to find more efficient options than turning subsidized corn crops into fuel.

    ReplyDelete
  8. 1. I agree with the idea that in the US, at least for the time being, there won't be any food price related riots, because the people controlling our food system won't let us see how bad the situation really is. They don't want us rioting, why would they? Peripheral countries will be the true victims, first and foremost, because they get the worst byproducts of our system, and will have no other options.

    2. Our government needs to invest in renewable resources like solar and wind. Solar prices have been dropping steadily in the past few years, and with our government's sincere investment in that direction, we could make some huge headway. Our food system needs to be encouraged to diversify and be made available to our younger, more organically minded generations. If each US citizen had the knowledge and ability to grow some of their own food, we would be in a much better place than we are now, where no one knows how to grow their food.

    ReplyDelete
  9. 1. As the economy continue to fight back from a recession, I do believe food related riots could possibly break out. If more and more people continue to lose their homes and jobs and cannot afford to feed their family, I believe riots and luting could occur. Millions of once middle class Americans are now teatering on the brink of poverty. As America falls deeper into an epidemic of obesity, there is plenty of food to go around not only for us but for countries around the world.

    2. I believe both green technology and fighting hunger can both benefit from one another. Green technology and alternartive energy resources will be vital with oil reserves drying up within the next half century. The entire world runs and operates on oil and fossil fuels today but that will have to change once the oil disappears. By changing to green alternative energy sources, produce yields could potentially increase. There is researchers and scientists using green technology to enhance a greener, higher yielding crops that will end hunger around the world. The crops would be sustainable for generations and generations.

    ReplyDelete
  10. 1) I will never protest or riot because of food prices or supply issues. I'd much rather go shoot a squirrel if I was hungry and in need of food. As to the existence of riots over food prices, I think it's a possibility in the US, particularly in poor, inner-city communities that are more likely to be food insecure and more unstable, in general. That said, it'll happen here last, because we produce so much food compared to our population that the government would always have the option of simply taxing exports to the point that all of our food stayed home. We would eat cheap and maintain civil order while the rest of the world, dependent on our agricultural machine, would starve and riot.

    2) Investing in green fuel and investing in fighting hunger are not mutually exclusive, necessarily. That said, I would place the greater priority on fighting hunger, as I see protecting human life as the highest goal of government, and human life is more directly threatened by hunger than by fossil fuels.

    ReplyDelete
  11. 1. I think food prices aren't a significant issue in America as they are in other countries. Although this could change, I would imagine most Americans doing little to alter their eating habits. When gas prices spiked at 4 dollars a gallon, people changed their habits for a little bit, but there were no long term solutions enacted. So much of our food is already so artificially cheap through federal grain subsidies that I don't see this being as big of an issue in America.

    2. Biofuels, specifically ethanol from corn, has already shown the ability to wreak havoc on world food prices. However, if it is hunger we are so worried about fighting, then simply converting all the land used for livestock feed into crops for human consumption would all but eliminate this issue, given that there was actually an incentive to feed the world's hungry. Unfortunately the one's who suffer the most tend to have the smallest voice, in this case their voice is money, and I don't see the U.S. agricultural system embracing philanthropy any time soon.

    ReplyDelete