The Global Politics of Food Prices
Joshua Keating at Slate has an excellent piece on the role food prices have political stability and the drivers in the rise in food prices since 2000. That trend is result of the intersection of having maxed out on the amount of food we can produce and the growing global middle class demand. The both for greater net calories and more meat and dairy. Keating shares a number of interesting facts and insights.
Thailand’s program of supporting farmers by buying rice above cost and stockpiling it seems to be on the verge of disaster.
Exporting countries like the US stand to gain. And speaking of the US exports, Keating noted that Iowa produces more grain than all of Canada.
Here are the two most interesting bits.
“Sixty-five percent of the world’s food-insecure people live in seven countries: India, China, the Democratic Republic of Congo (DRC), Bangladesh, Indonesia, Pakistan, and Ethiopia, of which all but China have experienced civil conflict in the past decade, with DRC, Ethiopia, India, and Pakistan currently embroiled in civil conflicts.” And China, it should be pointed out, hasn’t been all that quiet. With about 180,000 protests per year, the government now spends about $125 billion annually on riot control.
. . . China has also been at the forefront of the trend of buying large tracts of land in developing countries to meet demand for grain back home, a practice denounced by critics as “land grabs.” State-connected Chinese firms have purchased a swath of farmland the size of Luxembourg in Argentina as well as about 5 percent of Ukraine’s territory.
Purchases on this scale bring up obvious concerns over sovereignty. Anger over the purchase of half of Madagascar’s arable land by the South Korean conglomerate Daewoo was a major precipitating factor in the overthrow of Madagascar’s government in 2009.
Making agriculture work in Africa is going to be the lynch pin to a future that works.