The Global Food Crisis February 2009 World Affairs Council Five questions.

The Global Food Crisis

February 2009

World Affairs Council

Five questions

Global Food Crisis – question #1

What is the Global Food Crisis ?



May I have another?



A massive rise in the demand for foodstuffs.rice wheat corn (maize) soy beans

A sudden rise in demand leads to a rise in price.eg. The price of rice has tripled in past year. Wheat, corn (maize), soybeans have risen in price

Reduced food intake for poor people. ---for 100 million people in 30 countries. because they cannot pay the higher prices.

Global Food Crisis – question # 2

How are individuals affected?

Depends upon how rich (or poor) you are:Americans spend 16% for foodIndonesians spend 50% for foodVietnamese spend 65% for foodNigerians spend 73% for food

How do they cope:-they cut back on food:

number of meals, quantity, quality-they reduce other expenditures:

health care, transportation, schooling-they die:

25,000 deaths per day.


How are nations affected?Food riots (Cameroon, Indonesia)Producers limit exports (Vietnam, Ukraine, Argentina)Governments become defensive or repressive

-stockpiling or hoarding-rationing (Pakistan)-may collapse: Haiti

Regional instability-risk of war


What causes this rise in demand and price? Rising costs of food production Population growth – 80 million per year Demand for biofuels-ethanol Crop failures (SE Australia, Ukraine, Iowa, China) Speculative investment Increased consumption of meat


What causes this sudden demand for food? Rising costs of food production Population growth – 80 million per year Increased consumption of meat Demand for biofuels-ethanol Crop failures (SE Australia, Ukraine, Iowa, China) Speculative investmentNo single one of these causes,

but a simultaneous occurance of all of them!THE PERFECT STORM


CAUSES: Rising costs of food production Population growth – 80 million per year Demand for biofuels-ethanol Crop failures (SE Australia, Ukraine, Iowa, China) Speculative investment Increased consumption of meat


No single one of these causes,

but a simultaneous occurrence of all six of them!

THE PERFECT STORM


What’s to be done about it? Short term: feed the hungry

-immediate food and cash handouts

Middle term: stimulate farming overseas, make it worthwhile-stop subsidizing our farmers to produce cheap exports-give cash, not food, to overseas poor (e.g. CARE)-Gates and Buffet are giving money to stimulate farming

Long term; produce more food!


HOW do you produce more food?1. Increase acreage2. Improve farming practices3. Plant breeding4. Genetic engineering

THOMAS MALTHUS

Global Food Crisis – five questions

1. What is the Global Food Crisis?

2. How are individuals affected?

3. How are nations affected?

4. What causes this sudden demand for food?

5. What’s to be done about it?

Global Food Crisis

High prices is a temporary imbalance:

-a new price equilibrium will be found

-food prices have fallen in the past month!

probably due to the Global Economic Crisis

Global Food Crisis

My speculation:

-lower prices tend to reflect the new equilibrium-this situation still is in a temporary imbalance

-more food must be produced in poor areas-rich countries must help them do it.

The Global Food Crisis February 2009 World Affairs Council Five questions.

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