Food Just Got More Expensive… Everywhere
Consumers still face at least 10 years of more expensive food
From subsistence farmers eating rice in Ecuador to gourmets feasting on escargot in France, consumers worldwide face rising food prices in what analysts call a perfect storm of conditions. Freak weather is a factor. But so are dramatic changes in the global economy, including higher oil prices, lower food reserves and growing consumer demand in China and India. While the price of spaghetti has doubled in Haiti, the cost of miso is packing a hit in Japan.
In the long term, prices are expected to stabilize, but consumers still face at least 10 years of more expensive food. The Chinese middle class is starting to change the traditional thought process of beef as a luxury. Attempts to control prices in one country often have dire effects elsewhere. China’s restrictions on wheat flour exports resulted in a price spike in Indonesia this year, according to the FAO. Ukraine and Russia imposed export restrictions on wheat, causing tight supplies and higher prices for importing countries.
March 25th, 2008 at 3:24 am
Food prices are rising all over the world in nearly all crops. Nearly all commodities: fuel, minerals and food, have been rising. What is the common denominator? — Investment funds trading in commodities in order to hedge against a falling dollar. Raw food prices are in the speculative value range now, as commodities markets have been driven them up beyond their true value, based on the supply/demand situation.
April 3rd, 2008 at 11:25 am
Rice rose 30% in Asia. Rice is the main filler in meals. Imagine all the hungry people, but 3X hungrier and desperate!