Wednesday, 16 January 2013

Food is running out, and it becomes more and more expensive!

Some experts claim that the banks and the stock market traders responsible for the increase of food prices. At the same time, some experts have sought the causes of poverty on the other.

The riots raged in many countries between the 2007th and 2008. year: Thousands of people demonstrated against the excessive price of food in Morocco, in the so-called "bread riot". The growth rate in Mexico has caused the so-called "tortilla crisis". Violent demonstrations rocked Pakistan, Somalia and India. In Burkina Faso and Senegal, people took to the streets because "expensive life." The reason for all these riots was a jump in the price of basic foodstuffs.

Prices of rice, wheat, corn and soybeans are increased several times between June 2007. and June 2008. In Ethiopia, the price of corn has risen by almost 200 percent, wheat prices have jumped in Somalia for the 300, and in Sudan for about 90 percent.

Many say that they are responsible for that speculation in the market of foodstuffs. Through agricultural funds, banks, hedge funds and state-investors may be betting on the future price of foods such as wheat, corn or soy. "Some banks offer special fund investors, who profit if the price of raw materials increases. The money is then invested in line with that, "explains Markus Hen of the NGO Viid. Viid and other non-governmental organizations such as Oxfam or Fudwatch believe that these mechanisms bear some responsibility for the lack of food.

Controversial blame speculators

Researchers from the University of Halle-Wittenberg oppose the Gladys. Viewing scientific articles and studies in the period since 2010. to 2012. led them to the conclusion that the provision of financial speculation does not cause high food prices - but other factors: "People are now better than before the food, especially meat products available. This increases the demand for natural resources. "Explains Ingo Pies, economic ethicist University Halle-Wittenberg and co-author of the research. In addition, subsidies for fuel ecological impact on the market. Large areas are used for growing plants that receive energy, and therefore are not available for agriculture.

At the same time, representatives of non-governmental organizations accuse the researchers of Halle-Wittenberg that did not take into account all relevant studies. "They discussed the studies that suit themselves," says Markus Hen Viid from the organization. Studies that did not fit were criticized in detail, and the results are simply different ones were accepted, he said. However, Ingo Piejs says that some studies that have sent the organization "does not refer to the scientific literature, but the literature they were not written by scientists."

Organization for Economic Cooperation and Development (OECD) recognizes that speculation regarding agricultural land increased sharply since 2008, but to them it is not a direct cause of the price increase. "That kind of financial speculation may have a partial influence on the movement of prices, but the long-term growth rate can not be explained," says Carmel Cahill, chief adviser to the Directorate for Trade and Agriculture Organization of the organization.

The increasing rates

And Michael Brintrup from the German Institute for Development Policy follows the discussion about food trade. Read a study from the University of Halle, and advocates a different view. "For a lot of factors affecting prices. For example, they can change because they are in the United States, Russia and Australia decreased yields, "he explains. It would be very difficult to determine the exact impact of speculation.

The OECD says that the prices of foodstuffs such as corn, rice and wheat, continued to rise because of population growth. "The price of wheat has just increase by 80 percent, and it would be logical to affect the price of bread," said Momar Ndao, Chairperson of the consumer health organization ASCOSEN in Senegal. Pierre Nakoul, chairman of similar organizations in Burkina Faso confirms this: "Recently we had a problem, because the bakers went on strike due to the increasing price of wheat." Expensive food for many will mean starvation.

Advice from the European Union

Non-governmental organizations seeking to force banks and other financial actors to refrain from speculation in basic foodstuffs. Commerzbank, the second largest bank in Germany, she decided to terminate the offer of investment in the sector, in November 2011.

Scientists at the University Halle-Wittenberg that do not attach great importance. "Financial speculation sideshow. We have to ask the important questions, "says Ingo Pies. In the first place it is important "to correct the mistakes of politicians, strengthen markets and to support the transfer of technology. We need technology to reach developing countries. "This would allow for more production, and it is necessary to feed nine billion people in 2050. year, says Ingo Pies for DW.

The EU intends to adopt new rules for agricultural markets early next year. The Chairperson of the Committee for Agriculture and Rural Development in the European Parliament on the occasion of DW says: "We really need to fight against speculation. But we should not forget that the real reason for instability in agriculture is a big difference between supply and demand. "


  1. totally agree with you.
    and i gotta say, when the world is going with this rate, this day won't we too far!!. i mean not only with the food but with energy,water,healthy environment, etc.
    I think people still can control it!
    sadly they choose not to.

  2. Yeah, all this facts are true and that is not damn good at all. We gotta do something... I am leaving on a village and have some of the products because i am producing myself (corn, pepper, some of the fruits, salad). But that is not enough for normal life, i gotta still buy the "big" rest of the food. We can control air pollution, but we won't, also can control many things, but someone will not have a profit if we would. I am just affraid we will not feel "Mad Max" destiny... We are goin' securely to that. Greets!

  3. Yea, i will agree with your conversation because in a statistical information, FAO [Food and Agriculture Organization] said that, in the present world, the production of total food is enough to feed the all people but it is not possible due to discrimination in distribution of food.

  4. Yeah! I'm agree with you. Because the world population are increasing day by day. At that time we need technology to reach developing countries.

  5. Considering the world's population is set to increase by over 2 billion people in just 40 years it is no wonder food is running out. I live in The Philippines and we are already the world's biggest importer or rice, and our population is set to increase by 50% in just 40 years. We cannot feed ourselves now let alone in 40 years time.

  6. The scarcity is increasing day by day and also the unbounded population needs to be put under control or it is a big threat

  7. It's really so!Money like a water and prices on food are too much all over the world. The Government should regulate such question and to help the farmers!

  8. Food is running out, and it becomes more and more expensive! Nice post with very much useful information. I thing it's a great opportunity for us to read such a nice article.

  9. The problem is NOT that we have a shortage of food. The problem is that we can't get it to the right place in the right time.... Approx. 40% of the population is underfed.