There are some much-needed good news on the food price front. From the Food and Agriculture Organization (FAO) of the United Nations:
Published April 12, 2011
Category: Food
Published April 3, 2011
Is Food Security The World’s Worst Problem?
According to a conference held by the European Commission’s Joint Research Council (JRC), it is:
“Food security is “probably the most urgent and dramatic” problem facing mankind, a Brussels conference has been told. (…)
Dominique Ristori, director general of the JRC, said that in order to tackle the crisis, food production must assume a much higher priority in political agendas. He said that the case for ‘urgent action’ in the global food system ‘is now compelling.'”
This much is obvious to anyone who has been following the movements of food prices since the second half of 2010. What is more interesting is what the JRC suggests policy makers should do about it:
“Improving ‘governance’ of the global food system is another possible solution, it argues. ‘It is important to reduce subsidies and trade barriers that disadvantage poor countries.'”
This is in line with my own view on the impact of agricultural subsidies in the United States, in Europe, and elsewhere in the industrialized world on developing countries. More on this topic on Tuesday morning.
Published April 1, 2011
Food Prices Are Still Rising
Sadly, this is not an April Fools’ prank:
“US Corn stocks are significantly smaller than previous estimates suggested, the USDA said today. That sent the price of corn shooting up once again. (…)
As we noted recently, a couple key factors mean that demand for corn is staying high even as the price rises. One is growing consumption of meat among the growing middle class in Asia, which in turn means more demand for corn to feed livestock. The other is growing demand the growth for corn-based ethanol, which is supported by government subsidies.”
More on NPR’s Planet Money blog.