Brace yourself for the food-price bubble

[cali]

If the world has a poor harvest this year, food prices will rise to previously unimaginable levels. Food riots will multiply, political unrest will spread, and governments will fall.

By Lester R. Brown / February 8, 2011
Washington

In early January, the UN Food and Agriculture Organization (FAO) reported that its Food Price Index had reached an all-time high in December, exceeding the previous record set during the 2007-08 price surge. Even more alarming, on February 3, the FAO announced that the December record had been broken in January as prices climbed an additional 3 percent.

Will this rise in food prices continue in the months ahead? In all likelihood we will see further rises that will take the world into uncharted territory in the relationship between food prices and political stability.

Everything now depends on this year’s harvest. Lowering food prices to a more comfortable level will require a bumper grain harvest, one much larger than the record harvest of 2008 that combined with the economic recession to end the 2007-08 grain price climb.


If the world has a poor harvest this year, food prices will rise to previously unimaginable levels. Food riots will multiply, political unrest will spread, and governments will fall. The world is now one poor harvest away from chaos in world grain markets.

http://www.csmonitor.com/Commentary/Global-Viewpoint/2011/0208/Brace-yourself-for-the-food-price-bubble

In China, there's a drought, endangering the world's largest wheat crop. Corn and soybean crops are also down.

[JuniperLea]

1. Between speculation on food futures and droughts and floods...

It's going to get hairy.

Support your local farmer! I think we need to take a giant step "backward" in order to progress.

[Bandit]

2. I am in the wholesale business and just received notice by my produce distributor

In some places over eighty percent of the crops were destroyed by record winter storms. Expect a huge spike in Produce prices nation wide..

[dixiegrrrrl]

3. Thanks for the heads up.

Time to hit the frozen vegie aisle of the grocery store and stock up.