Food price crisis ahead

A very disturbing news today has come to light in Rome this week concludes. And is that while in this space we have talked a lot about the value of gold and silver, as tools of financial protection against crises, there is something much more important for the existence of mankind: food.

Food prices are rising again according to the UN’s Food and Agriculture Organization, global Food Price Index. That’s being blamed on government export restrictions, a weakening United States dollar and a growing appetite by speculators and index funds for wider commodity portfolio investments.

Futurist Peter Schwartz warns that we have become so obsessed with the global financial crisis that we have ignored the prospect of a food price crisis. Schwartz says people now spend about about 15-25% of their income on food. But with rising food prices, they could end up spending as much as 50% of their budgets on foods, which means less money for other items such as clothing and vacations. And the problem, he says, is not food shortages but speculation by investors looking for commodities. Once it was oil, now it’s food.

To prepare for this, he says, we need to start thinking the unthinkable. Which may be easier said than done.

Well they say that everything around you get used to not eating less. hence the relevance of what today we reported the United Nations Organization for Food and Agriculture, FAO, with the help of the Organization for Cooperation and Development, as has been reported that during the next ten years, global agricultural production will grow at a very low average of 1.5%,  much slower than the 2.1% growth the previous ten years.
This means a big problem, because the planet’s growing population requires more and more food, and scarcity increases.
Among the causes of this decline in agricultural expansion are the limited agricultural land expansion, rising production costs, scarcity of resources and environmental pressures and climate.
We must not overlook the fact that usually these organisms are usually optimistic about the results expected, so in fact, we see this announcement as a prelude to what could become a new global food crisis .
Of course, the reduced availability of food can only mean that their prices will continue shooting in the future medium and long term. Something the prophets of disaster for the raw material prices, they should consider. His bull market, despite the low is not over.
According to the Index of Food Prices FAO itself, 2011 is still the year that historically, these were the highest on record, and even seemed to lose pressure last year, it is also true that from June 2012 that trend reversed again, and it’s about time for us to meet the high levels of two years ago.
Therefore, many believe that the use of field resources to replace fossil fuels through biofuels called, is a measure that may bring more harm than good.
Assume that you want to help the environment by reducing pollution also a renewable resource, and that is fine, but products like corn that could be used to eating well end up being burned as fuel in cars, for example. Convert to smoke that could nourish thousands or millions of people, not a good idea.
They should look for better alternatives in this area.
Yet. In Mexico and we know very well the story of what happens when a commodity like the egg or the chicken scarce, so from the government should provide that we are not going to take you by surprise here anticipate this crisis.
We can not ignore the fact that our country has to import of basic food from other countries, because we are not self-sufficient.
This though is not bad in itself, it is risky, it is certain that other nations prefer to feed themselves before they sell us what we needed, and if they do, it will be at a cost that will be accessible to very few.
A focus of attention now that the president, Enrique Peña Nieto, has put as a priority of his administration to end hunger in the country.
With such low production, poor harvest any reason whatsoever, it becomes dangerous.
It will then understand that food sovereignty is a matter of national security. Hunger is capable of generating social instability and even revolutions, in extreme cases hopefully never arise.

Now, not all are bad omens.
High prices also mean good opportunities for farmers, who can greatly benefit from their companies.
That is why the modernization incentives, production and investment in the field are more urgent than ever, in truly free market, in which respect for individual property rights.
Perhaps we are still in time to mitigate the effects of the upcoming food crisis, but we must put and get to work.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s