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Posted by Pinky Bean
on March 25, 2008 12:44 PM
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Filed Under: Business, Food |
The increase in the cost of food isn't ocurring in North America and the U.K. alone. Consumers all over the world are being dealt a blow to their wallets as a "perfect storm" of conditions, including weather, economic changes, high oil prices, lower food reserves and the growing consumer demand in developing countries such as China and India.
Food riots have broken out in poor countries like Egypt - where two people were killed last week - as well as Burkina Faso and Cameroon. The cost of spaghetti is twice the price it once was in Haiti and Japan has seen a significant increase in the cost of miso, which is made from soybeans.
“It’s not likely that prices will go back to as low as we’re used to,” said Abdolreza Abbassian, economist and secretary of the Intergovernmental Group for Grains for the U.N. Food and Agriculture Organization. “Currently if you’re in Haiti, unless the government is subsidizing consumers, consumers have no choice but to cut consumption. It’s a very brutal scenario, but that’s what it is.”
It is poor areas like Haiti that are being hit the hardest - currently 37 counties are facing food crises and the U.N. says their food prgram will be unable to feed 89 million starving invdividuals due to a funding shortfall of $500 million.
As farmers begin to grow more grain, it is predicted that prices will eventually stabilize, but consumers may not see prices level off for another 10 years, according to the FAO. For now, the cost of fuel and the demand for meat in China and India will continue to drive prices upward. Experts say that food crises are not all that uncommon, but the global impact caused by the increasing costs of major foods is odd.
Hit the jump to read the full article for a more in-depth explanation of the global impact of the rising cost of food.
» MSNBC Business